In this current and challenging economy, you need to take a step back and ask yourself if it is time to raise your prices with your lawn care business?

With the increasing gas prices and paying a competitive wage for employees, it may very well be time to raise your prices. First, however, you must view it from your customer’s point of view at the level of service you are providing them and if they are prepared to go along with you at a higher rate?  

Here are some strategies to consider before committing yourself to a price hike and announcing it to your customers.

Timing is Everything

When you know your clients are happy with your lawn care service and your rise in expenditures, it may very well be time to boost pricing. However, if you are contemplating a price increase, continue to provide value-added service, and your customers should consent to it without resistance.

Add Extras

Customers are far more willing to pay higher costs if they get anything additional in return. So, consider some other small jobs you could add to the existing service that would cost you little or nothing but would provide the customer with a higher perceived value.

Add or Raise Fees

Instead of raising your prices at this time, you may want to consider adding fees. By adding fees, you may be able to avoid boosting the cost of your current lawn services. Utility corporations do it all the time. When gas and electricity rates skyrocketed a few years ago, many small businesses utilized it as well. If you think your price increase will be temporary, this is an excellent approach to use, and you can quickly remove the fee once the necessity for it has passed.

Add Additional Services

Customers are more likely to accept a price increase if it comes with advancements or additions to your lawn care service. 

Think about some other services you could incorporate into your current lawn care services.

Offer Discounts 

If you do raise your prices, you risk losing some of your cost-cutting clients. If you have done the math and you need to increase your rates, do so with periodic discounts and promotions to reward those 

budget-conscious customers for staying with you. 

While thrifty customers may take advantage of these discounts, less frugal customers will likely ignore them, resulting in many individuals paying the total price while keeping your client base balanced.

Bundle Services

You may want to consider offering new service bundles to lessen the “sting” of a price hike. For example, add different packaged lawn services with various perks so that each benefit is in the spotlight at a reduced rate than its higher, individual pricing.

Target a Different Customer Base

If you need to increase prices substantially, you may target a new, higher-income customer base. Even if your price increase is minor, broadening your target market to include more upmarket clients with larger budgets might help you compensate for any customers you might lose.

Raise Rates at Regular Intervals

Because you are in the lawn care industry, your clients are used to price hikes. If need be, increase rates at the beginning of the year or after a customer has been with you for two or more years. They usually expect to pay the price increase.

Defend Your Rate

You cannot expect all your customers to be accepting of a price increase. So, be ready with your message about why you are increasing prices due to higher expenditures or inflation costs.

Plan Ahead

Ensure you have evaluated your present expenditures and any cost increases on target to occur in the upcoming year. You do not want to put in a lot of effort to raising your prices to find out four months later that you must do it again.

Raising prices is not always easy, especially in this current economy. However, with these strategies in place, it can be a win-win for you and your customers.