This is Awful | THEY CANCELLED ME!!!!
Hey Ninja's! What do you do when you get the dreaded, 'I found a guy that is cheaper...'? I gotta be honest, this is the first time I have actually been told that a previous client is leaving me to go with a 'cheaper guy'. Last year I raised my rates by about 5%. The company I bought my clients from was already really low in price. He hadn't raised his rates in a few years, so I felt my rate adjustment last year was justified. More so even this year with inflation at 8% (realistically, it is probably higher).
This year, 2022, I raised ALL of my rates by 10-15%. It is key in knowing your per man hour rate to know what you need to increase them by to still be profitable. Let's be honest, we run our lawn care companies to make a profit. Every business needs to have a profit. With the price of everything from fuel to maintenance to equipment increasing, we need to keep up in order to maintain our level of income and pay rates while still being able to save and reinvest in our business, whether that is by purchasing new equipment or saving or putting money into marketing.
Last year I could buy a ride-on aerator (a goal of mine) for $8,250. The autumn of 2021 saw that same ride-on aerator hit $11,000. Just got a quote today and the aerator is now $11,700. That's an increase (if my math is correct) of more than 40% in less than a year!
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