Price increases over 10%, what to do:
With inflation still over 5%, labour pressures and increase costs in fuel, insurance and equipment, introducing a significant price increase to clients for their landscape maintenance contract at renewal time can be a delicate matter.
Here are five best ways to approach it:
1. Provide Advance Notice: Give your clients plenty of notice before the renewal date, ideally at least 30-60 days in advance. This will allow them to adjust their budget and plan accordingly.
2. Explain the Reasoning: Be transparent about the reasons for the price increase. For example, if the cost of materials or labor has gone up, or if there are new services that are being added, let them know.
3. Offer Options: Give clients the option to switch to a less expensive service package or reduce the frequency of their maintenance visits to help offset the cost increase.
4. Highlight the Benefits: Emphasize the value of your services and the benefits that clients will receive from continuing to work with you. This could include the high-quality work, reliability, and professionalism that you provide. Include the problems and “pain” that your company prevents them from having when they select your company.
5. Personalize the Message: Make the communication personal and tailor it to each individual client. Explain how the price increase will affect their specific property and what services they can expect to receive. Meet with them on Zoom or face to face!
Remember to be respectful and professional in your communication with clients. Be prepared to answer any questions they may have and be willing to work with them to find a solution that meets their needs and budget. I would not suggest sending your contract by email and hoping for the best. That will not produce the desired results.
If you have any questions or would like to learn more about our products and services, please don’t hesitate to contact us.
We would be happy to hear from you and provide any assistance you may need.
