Raising Prices

[l_chinchilla]

I'm a new member in this site, and I have found the information that I have read so far very helpful in changing some things that I am not doing well. Thanks to everybody for sharing their good advice.

I have a small size business that my dad has been runing since the last ten years. I've been working with him for the past four years and this past year I have been dealing more with the administrative part of it. Some of the customers that we have are low paying customers, and there is little to no profit being made on some of them. What could be a good way to increase the price without scaring the customer away because of a price increase???

[Elwood]

IF these are clients you really want to keep, you need to gradually raise your price over a couple years AND increase the upsells that you provide and really try to push more upsells to help cover the short profit.

Bidding new work at high rates helps, IF you are able to take on a lot of more new work. If your plate is full and you really don't want a lot of new work, take it on and set the price of the low paying lawns at where you really want them. If they stay on, you are making the profit you need and if not, you are not working for little to no profit.


In a seminar once, I was told to evaluate your clients profitability and at the end of the year, replace the lowest 10 percent with new, higher paying work.