What’s the best way to craft a lawn care price increase letter that won’t put off your clients? Effective communication is key. If they are not handled with tact and transparency, price increases can have a negative impact on client relationships.
This article will discuss how to communicate price changes in lawn care services to ensure that you retain strong customer loyalty while maintaining the profitability of your business.
- Preparing for Price Changes
- Communicating the Price Changes
- Fielding Client Concerns and Objections
- Implementing Price Changes
- Monitoring the Impact of Price Changes
Preparing for Price Changes
As your business grows, your costs will grow to scale as well. This is inevitable. As you prepare to restructure your pricing, follow these steps to lay a solid foundation for the transition.
Conducting market research
In the landscaping industry, market research simply refers to understanding the landscape of competitors in your area. What services are they offering? How much do their prices range? It also involves identifying key customer segments. Certain customers will be more price-sensitive than others, so plan accordingly. Market research will help you appropriately set your lawn care pricing.
Assessing costs and expenses
Analyze your services and assess how to maximize their value yet keep them affordable. For example, if you offer lawn mowing services, review the costs associated with maintaining your equipment and providing labor. Also account for gas, and insurance—all of the expenses that go into each service. A thorough assessment of costs will help you determine the pricing structure of your services.
Drafting a plan for implementing
Refrain from springing the news on your clients! Implement customer loyalty strategies in advance of raising prices; for example, offering promotional discounts or additional benefits.
A lawn care pricing template can be an excellent reference for both you and your clients. A template should outline all of the services offered, any discounts available for customers who sign up for multiple services or longer-term contracts and list all the rates.
Communicating the Price Changes to Clients
Now that you have conducted your market research and drafted a lawn care pricing plan, it’s time to communicate the price changes to your clients. Be honest, straightforward, and timely.
Timing of the communication
Your commercial clients are typically on a fixed budget for the fiscal year. Give enough time for them to adjust their budget, typically 90 days prior to implementing the new rates. For residential clients, give them at least 30 days in advance.
Choosing communication method
The method of communication should be based on how you typically communicate with clients. Email is a great way to get the news out to a large customer base. An announcement on your website or mailing letters can also be effective. If you’ve developed strong relationships through phone calls and in-person meetings, it might be best to have a face-to-face conversation about the upcoming shift in price structure.
Drafting a message that expresses value
This is your chance to remind clients why they love working with you! As you draft your landscaping price change letter to customers, begin by reminding clients of your value.
- Emphasize services that you specialize in that set you apart from local competition
- Include certifications, licenses, or warranties
- Feature any promotions or flexible payment options
Justifying the price increase for clients
Refer back to the assessment of your expenses. Without going into nitty-gritty detail, explain the reasons for the change in pricing—do you need to hire additional staff, upgrade equipment, etc.? Give a broad overview of how additional funds will be allocated to help you to continue to provide high-quality lawn care services.
Dealing with Client Concerns and Objections
When prices increase, pushback is a natural reaction. The important thing is how you handle it. Your communication can make or break the customer relationship.
Anticipating potential objections from clients
Clients are likely to raise more than an eyebrow at a price increase. Here are some of the most common objections you might encounter:
- The price increase is too large/warrants no additional services
- Your services are no longer competitively priced
- Other lawn care services offer better deals
Roleplay with your team members how you’ll respond to each objection, calmly and in detail. Always address concerns with tact and diplomacy. Your customers are your business partners and they deserve an explanation.
Offering alternatives or compromises
Keeping your current customers happy is much more cost-effective than trying to acquire new ones. Be prepared to go the extra mile for your loyal customers during this transition. Consider what compromises you’re willing to make, such as:
- Discounts for pre-paying quarterly or annually
- Offering payment via credit card
- Referral discounts for sending new clients that sign a contract
Maintaining a positive and professional attitude
In the face of frustration, stay professional and be respectful of your client’s feelings. Acknowledge their concerns, empathize, and explain why the increase in prices is necessary. Finally, express gratitude for their continued patronage!
Implementing the Price Changes
Setting the new prices is the first step. After communicating the changes to existing clients, don’t forget to roll out the changes to new clients as well.
- Spread the word on your website and social media
- Update pricing information on relevant listings, such as Yelp, Google My Business, and more
Revise all contracts and invoices to reflect the new price structure. Keep things consistent across all channels!
Monitoring the Impact of the Price Changes
Restructuring your prices will inevitably have an impact on your overall revenue. It’s important to monitor customer growth and revenue for the first few weeks or months after implementation.
Tracking client feedback
Carefully collect and analyze customer feedback, both positive and negative. Use this data to make sure that any changes are being implemented properly, or to make small tweaks if needed.
Monitoring sales and revenue
Keep an eye on your quarterly numbers. If you see a decrease in sales, revenue, or both, it may be worth re-evaluating the price change to ensure that prices are set at the right level. An intuitive business management software with data analysis capabilities, like LMN, can make monitoring your sales and growth easier during this transition.
Evaluating the success of the price changes
You’ll know you’ve made the price change successfully if you see an increase in revenue, or if customers are still willing to pay the new rate. This data can be used to inform future pricing decisions and help you remain competitive.
Preparing for potential future price changes
Your business will continue to evolve with the lawn care industry. Be proactive and regularly revisit your plan for potential future price changes. Ensure that your customers are informed of any new developments.
Lawn Care Price Increase Letter Examples
Lawn care price increase for 2022 letter | Sample
To ensure compliance with the current market environment, we are increasing our service prices as of January 1st (20xx). This adjustment will be reflected in all future invoices.
- We’ll increase prices by [percentage] from [Material and Supplier increases/ Demands/New Service Package].
- Our commitment to you is that we will provide prompt, reliable, and trustworthy service tailored to your industry needs.
- As we strive to advance our company, the new price will ensure that the value of our product remains intact.
- Jobs underway and quotations approved prior to [Monday, Day / Year] will remain unaffected by the forthcoming price increase.
If you require any additional information, please don’t hesitate to contact us. We are here to help!
Conclusion
Successfully communicating lawn care price increases to clients requires careful planning, thoughtful communication, and ongoing monitoring. Craft a well-written message and implement changes consistently across all channels. Keep an eye on your sales and be ready to pivot again, if need be.
Learn more about how LMN can help you restructure your lawn care prices successfully and guarantee that each job is profitable.
