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Price increase

Evening all , raring to get back at it now and I'm going to increase my charges across the board 

I'm wondering if it's best to increase by a set percentage and how everyone else goes about it ? Email?? Fuel and equipment costs are rising so I feel we should be doing the same

 

Regards 

Steve

 

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  • PRO

    an annual set percentage is probably what most of the old heads would say is required..... but

    I did a few in November verbally when I could drop it into a conversation whilst discussing the garden, the others i did by email (A) as I was a chicken and (B) if they live away then I rarely seem them face to face. The increase was an £ amount to put on par with the rest

    Due to increased costs and continual investment in equipment, tools & horticultural knowledge the price for ongoing maintenance will be increasing from December 2021. 

    Those I havent done in the past 12 months will be getting told very soon! and it works for me

    • PRO

      Hi Stephen 

      Absolutely have had to increase prices otherwise there is no point . Last years mower service was £70 , This year its £90 , Seems everyone is having to adapt because the increases are too much to absorb .

      I have gone with a 15% price increase , Higher fuel prices , cost of living and £9.00 a day ulez zone charge , I dont think these have being introduced in North Yorks yet ? 

      Also waste charges are increasing at my local recycling plant . 

      Have phoned regular customers and they understand completely and luckily they are in a position to pay the increase also had some early birds wanting quotes which will be interesting to gauge the reaction it could be a game changer or race to the bottom . 

      Have a good season . all the best . always look forward to my drive over the moors for a break , great part of the country .

  • PRO

    I'm definately doing it... but I'm waiting till the grass starts growing - there's more pressure then for them to accept and pay up, rather than looking elsewhere.

    I do it with a letter, this year it will point to Diesel costs, NI hike, costs of servicing and maintenance across the board, As well as recognising what the competition are all charging. Last year two new clients commented when I asked £60 an hour for cutting their standard lawn that my price was cheaper than the previous gardener!! So quite a few are going to get a nasty surprise!!

    All the people with gardens measured in acres that keep us on 12 months a year will get a 15% rise, 

    Those with smaller gardens are going to get a 20% rise - I am gambling that some will drop by the wayside and I will be able to work 4 days a week (I'm 65 this summer, time to back off... do you want to buy a profitabe gardening business in S Wiltshire???)

  • I put mine up 20% starting last autumn l still have a few left do which will be in spring, because i lost my nerve after a big argument with a customer about it. 

    Hoping I'll lose some old wood in the process.

    One customer even offered and gave me a rise last year. That's never happened before, I must be doing something right.

    • One of my regular customers who I do a lot of work for told me he was increasing my pay last year, it really does make you feel good when that happens! 

    • A couple of years back, a good customer told me he wasn't paying me enough and offered me a large hike in my hourly rate. I thought it was too much and lowered his offer, he counter-offered slightly higher. We did this for a minute or two until we reached an agreed price. I got home and told my missus what happened, she nearly killed me. I'm crap when it comes to money!

      • As long as your happy I guess that's that...but then again

        HAPPY WIFE , HAPPY LIFE

         

         

  • PRO

    We will almost certainly be applying a reasonable increase as a percentage across the board where contracts permit - some clients are tied in on three year fixed price but not many.  I think it is important to consider the value of the service provided rather than the cost - this proves to be a winning approach in the long run.  Clearly some other contributors posting in this feed offer great value in what they do for their clients and hence they are able to command fair fees for the works completed.  Price increases can also be used to manage away problem clients or those that do not value the services provided by our industry.

    I think the main thing is to review, apply a fair increase and repeat annually.  Have a great 2022 all.

  •  

    15% and 20% seems to me to be eye wateringly high rates of increase. I suppose it depends what you are charging to start with. If for instance someone is only charging twenty quid to mow a small lawn, then 20% of that is only £4, so not very much at all. That would likely not be an issue at all with the client.

    But some of my jobs are well over £200 per cut. I have one that is £240 per cut, 20% on that is an extra £48. That would make the job £288 rather than £240.

    A council cemetery is £410 per cut, so 20% on that would take it up to £492. No one would wear that.

    I would argue that a small percentage rise every year is the way to do it. That way you keep up with costs and inflation but without having to frighten everyone off with massive increases. I think if 20% is needed then perhaps the prices were far too low to begin with. Again, if the fees are very low to start with, then a fiver on the price is proportionately a high percentage increase.

    • Depends on circumstances. I wanted to put my rates up in 2020 but with covid it didn't seem right. Now the cost of living etc etc gone up its time to charge more. I booked in new regular work at my new rate testing to see if it's acceptable.

      One off/stuff i do once a year I charge what I like this Is highly profitable. My regular stuff is bread and butter money and this is what needs to go up 20%, These are people I've mostly worked for over a decade that give me big tips at Xmas.

      There is nothing nice about increasing rates, I've found it harder doing every year rather than as and when needed. If I had contract's with customers stating a annual rise the whole process would be easier, which I don't. I prefer to keep it relaxed and organic.

      Never signed up for gardening to be rich just comfortable. If I feel the pinch then so do the customers.

       A £5 is nothing, you can't even by a pint for a fiver my way.

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