How to Raise Lawn Care Prices and Keep Clients

Published on February 2, 2017

As the cost of doing business rises, your lawn care prices should be adjusted accordingly.

Although, the fear of losing clients shouldn't keep you from raising lawn care prices. Naturally, your lawn care prices should increase when costs rise.

Even though the loss of some clients is inevitable, there are a few ways you can keep clients and help prevent them from leaving.

This article will show you how to increase lawn care prices and decrease the chances of clients leaving for the competition.

  • 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 Lawn Care Prices With Industry Standards

Naturally, business costs rise every year, which causes lawn care prices to also increase.

Although, with the recent labor shortage, the cost of doing business has spiked. In addition, the rising costs of materials, equipment, and transportation have lead to even more massive spikes in cost.

All of these factors coupled with an increase in demand has forced many lawn care businesses to choose between two options:

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

More than ever, during these times regular re-evaluations in lawn prices need to be performed.

As a result, these price re-evaluations will help you determine your current break-even point - allowing your lawn care business to meet necessary profit goals.

However, it's important not to copy or closely compare your lawn care prices to the competition.

Remember, with the wide pricing variances, it's more important to factor in average local and state costs.

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2. Increase Lawn Care 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 Lawn Care Prices

By far, the worst time of year to increase lawn care prices is during the busy selling season. Depending on your area, this is likely around spring selling season.

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

Which means, the competition likely is already trying to poach them with flyers, business cards, targeted social media ads, Google Ads, and any other tactic they can think concoct.

In turn, if you can avoid it, you don't want to give clients a reason to leave you when the competition is already breathing down their throats for a quick sale.

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

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

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

The Best Times to Raise Lawn Care 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 Price Increase Onto Least Clients First

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

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

As a result, if you lose your least profitable clients while perfecting the process, it won't hurt the business as much as losing profitable clients would.

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.

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4. Send the Affected Clients a Price Increase Letter

All of your clients affected by the price increase should receive a letter explaining the reasoning behind the price change.

It's important to use your price increase letter to help clients understand why their prices are going up.

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

Steal This Price Increase Letter Template

[insert lawn care business logo]

Dear [Client Name],

Due to rising economic factors, [Lawn Care Business Name] will be adjusting our prices soon.

Our billing reflects the labor, equipment, maintenance, fuel, office/billing expenses, and other various costs, which make up the price of our services.

In order to continue providing you with the highest-quality lawn care services you deserve, our lawn care price for [insert client's lawn care service agreement] will increase to $XX.XX on Month Day, Year.

We will continue to invest in the best materials, equipment, and training available to us. This will allow us to send the best lawn care professionals to your property.

We're continuing our commitment to a complete satisfaction guarantee. If you're not 100% satisfied with your lawn care services, then we will return, free of charge to resolve the issue.

As always, call our office at XXX-XXX-XXXX with any questions, comments, concerns, or updates to your scheduled services.

Sincerely,

[Lawn Care Business Owner Name]

[Lawn Care Business Owner Signature]

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5. Test to Perfect the Price Increase Process

Once you've sent the 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 Lawn Care 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 raise lawn care prices without losing clients!


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


Originally published Feb 2, 2017 1:54 PM, updated Jan 19, 2022 11:44 AM

Lisa Marino

Lisa Marino is the Sr. Marketing Director for Service Autopilot. She uses her 17+ years in direct marketing, sales, and product development to push entrepreneurs beyond their limits. She's passionate about helping others grow their businesses through time-tested marketing techniques. When not writing, you can find her belting out a mean Stevie Nicks at a local karaoke night.
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