I’ve heard landscapers say it for years: “Tony, you just can’t make big money cutting grass.”
Baloney.
There are lawn and landscape contractors all across America working their tails off, producing beautiful properties, employing good people, buying trucks, paying insurance, paying taxes and keeping Fedzilla fed—and then wondering why there isn’t enough money left in the bank account. (The Wealthy Landscaper Video Recording found here).
The problem isn’t lawn maintenance. The problem is the price.
That’s why we developed the Wealthy Landscaper Double Profits Process. When you understand your numbers and systematically improve pricing, an under-performing lawn maintenance department can be transformed into a cash cow…one price fix at a time!
And raising prices is part math and part art.
The math tells you which customers need an increase and how much you can charge. The art is knowing how and when to make the change on underperforming accounts without losing the customer OR scaring yourself half to death.
During our Wealthy Landscaper training, I sat down with veteran landscape contractor Doug Robbins to discuss this process and the lessons we’ve learned from decades of making good money from basic mowing, trimming, weeding and pruning services.
Here are Tony’s 7 Tips for Price Increase Success:
- Only raise prices on the bottom 20% of customers at any time. Don’t automatically blast an increase to everybody. Raise prices on the customers producing the poorest financial results and stop the bleeding quick! Raising prices on customers who are making money or at least breaking even can also cost you valuable revenue!
- There are two best times for price increases: April 1 and the day you find out you’re losing money on an account! Once you know an account is losing money, waiting doesn’t improve anything. In fact, keeping a loser and knowing it’s a loser is a sin! Raise prices on accounts that cost you money – immediately!
- Don’t put it off! Don’t be scared! Do not hesitate! Fear doesn’t pay payroll. Am I making this point clear enough? Your customer is NOT responsible for your profitability – YOU ARE.
- A written letter is adequate to notify customers of a price increase. Keep it professional, positive and simple.
- Provide flexibility. This is the art part of raising prices. Give good customers reasonable choices. A perfect example is allowing a customer to take a 3% discount if they pay you with a check, cash or ACH transfer instead of a credit card. Another example would be to allow a discount if they pay you for the entire season in advance instead of a weekly or monthly payment.
- Be prepared to negotiate. A conversation with a valuable customer may produce a solution that works for everybody. You have the ability to lower prices by decreasing optional services. You have the opportunity to increase quality if you increase the number of services and therefore the quality of your lawn services. When a customer has a question about your price, it may not be a price objection. They may need more details so they understand what options could affect price.
- Losing a customer is not the end of the world. In fact, losing a customer who costs you money is the SAME THING as getting a pay raise!
If you own a lawn or landscape business, you don’t need to apologize for making a profit!
Personally, I think business owners that create jobs and provide dependable services are American heroes. Unfortunately, many landscapers are underpaid. No kidding!
So, take pride in the work you provide. Take pride in creating jobs. Take pride in building a business that supports your employees, your community and your family.
Keep this in mind when you look at your financial performance. Your future is on the line. Your family’s future is on the line.
When you follow the process described in the Double Profits Guidebook, even an under-performing lawn maintenance department—or an entire cash-flow-struggling landscape company—can begin building something much bigger: a profitable company capable of creating a seven-figure payday. The guidebook lays out a step-by-step process designed to help contractors double company profits in 12-24 months. It’s worked for hundreds of contractors. It can work for you, too.
7 Tips for Raising Prices Recording Available
Watch and listen to the recording of Doug Robbins and Tony Bass as we discuss these 7 tips for raising prices.
We take a look at 5 unique landscape companies as they build their companies and bank accounts. You’ll get an insider’s look at these landscapers and what their biggest challenges are. Recording found here.
Then look at your own numbers and ask yourself a simple question:
How much money am I leaving on the table because I’m afraid to charge what my work is worth?
So let me say it real plain. Raise your prices.
If you need help…we’re standing by.
Profit Greatly,
Tony Bass, founder
866-923-0027
P.S. – Want to learn the step-by-step system for dramatically improving profits? Download the Double Your Profits Guidebook at SuperLawn Toolkit.
Get the e-book delivered to your inbox. Read it. Follow along the examples. Adjust your prices.
Use the price increase letter found on page 14.
Study the negotiating strategies found on pages 15.
You will instantly begin to build a stronger lawn service business—and a healthier bank account.
