How to Implement a Lawn Care Price Increase Letter

If you want to write a lawn care price increase letter, you're not alone.

As the cost of doing business rises, you may need to do a lawn care price increase to keep your profits up.

And before you write the letter increase prices, we’ll show you how to:

• Consider all variables
• Change prices at the right time
• Increase prices on least profitable clients first
• Properly communicate the price change with the affected clients
• Test and improve the price increase process before releasing it to profitable clients

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1. Raise Prices With Industry Standards

The cost of labor, fuel, and equipment has been on the rise, and that likely means you’ll need to do a lawn care price increase too.

Because when it comes down to it, you have to choose between two options:

1. Raise lawn care prices to offset the new costs
2. Keep prices the same and lose profits

As a result, price re-evaluations will help you determine your current break-even point—allowing your lawn care business to meet necessary profit goals. However, be sure to do your research pricing and not just copy the competition.

2. Increase Prices at the Right Time of Year

By raising lawn care prices at the right time of year, you can reduce the likelihood of losing clients to the competition.

The Worst Time to Raise Prices

By far, the worst time of year to do a lawn care price increase is during the busy selling season, which is usually around spring. 

Remember, the competition is aching to leap at the chance to steal your clients.

This means, the competition likely is already trying to poach them with flyers, business cards, targeted social media ads, Google Ads, and more.

That said, there are instances where a price increase during peak selling season is unavoidable.

For example, if an unprofitable client is causing you to hemorrhage money, then you'll have to increase their price.

In this scenario, it would actually help your business for a highly unprofitable client to leave for the competition.

The Best Times to Raise Prices

While you should always try to avoid increasing lawn care prices during the busy selling season, these are a few of the best times to raise it:

• A few months before the busy season
• The end of the busy season

After all, one of the best times to raise lawn care prices is when the competition likely is already too busy to poach your clients.

Plus, when you raise lawn care prices at the end of the busy season, many clients will often forget about the increase altogether.

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3. Roll Out the Lawn Care Price Increase To The Least Profitable Clients First

Prior to rolling out a new lawn care price increase to your entire client base, it's important to first increase prices for your least profitable clients.

In turn, you can use your least profitable clients to test out the process and improve it.

To start, re-evaluate all of your accounts and calculate their profitability. 

Next, compare it to your profit goals to see if they meet the necessary criteria.

In addition, this process is simplified, quick, and easy using Service Autopilot. Use the #1 lawn care software to quickly evaluate client prices and profitability.

4. Send a Lawn Care Price Increase Letter

One of the best to communicate this change is with a lawn care price increase letter explaining the reasoning behind the price change.

Plus, it gives you the opportunity to reassure them that this price increase secures their continued high-quality lawn care services.

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5. Test to Perfect the Lawn Care Price Increase Process

Once you've sent the lawn care price increase letter to your least profitable clients first, you'll want to test it on a small number of profitable ones.

You can easily determine the success of the price increase process by simply sending email and text surveys. 

Next, use this feedback to improve the price increase process for your most profitable clients.

In addition, using Service Autopilot Automations, you can send automated surveys, via email or two-way texting, to receive feedback.

Automations is the  #1 way to follow up  with clients. If you’re not using it, your business might still be successful - but it won’t grow. 

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In Service Autopilot, our automations send emails and texts to:​

Every lead after an estimate is completed

Clients after their property has been serviced​

Remind leads and clients to send you customer feedback​

Update outdated or declined payment information​

Inform them when a service can’t be completed due to unforeseen circumstances (i.e. weather)​

Remind them of maintenance tips (i.e. putting a cover on the outdoor faucet before the winter)​

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Start Raising Prices Without Losing Clients

Remember, the best way to ensure all profit goals are being met on a weekly and monthly basis is to regularly evaluate your lawn care prices.

Also, it's important not to be afraid to increase prices on unprofitable or minimally profitable clients.

Keep in mind, it's better to lose a few unprofitable clients than to throw away valuable resources, which could've been spent on more profitable clients.

Raising your prices doesn't have to be intimidating or overly complex. 

Start using these effective strategies today to successfully launch a lawn care price increase without losing clients!

Related: Lawn Care Pricing: How Much to Charge for Your Services

Originally published Feb 2, 2017 1:54 PM, updated Aug 5, 2024 09:30 AM