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Losing Customers

Discussion in 'Business Fundamentals' started by GL&M, Nov 21, 2007.

  1. GL&M

    GL&M Senior Member
    from PA
    Messages: 223

    Is anyone else losing customers this year due to raising your prices? I raised mine a few bucks this year and lost 3 customers so far because of it. I still have plenty to fill the route so I'm not starving for the work. I guess some people can't grasp that the cost of doing businss is increasing. A least I know what the market will bear.
     
  2. dmjr77

    dmjr77 Senior Member
    Messages: 225

    I have not lost any customers to increased prices. In my contract there is a dollar value that I have set per gallon before I will asses a fuel surcharge. I have a feeling that they have found someone else who is a buck or so cheaper, but in the long run they are going to pay a surcharge.
     
  3. KGRlandscapeing

    KGRlandscapeing 2000 Club Member
    Messages: 2,660

    i have a horse farm that i do this would of been my 4th season with them and price went up 20 bucks she hasnt signd yet and i have even had compliments from people who use the barn as to how good the service is. its 20bucks and i know the drive like the back of my hand but if somebody is gonna under cut me on it then let them i cant afford to do it for less.
     
  4. fordzilla1155

    fordzilla1155 Senior Member
    Messages: 127

    If I am going to loose money, I am going to sit in my underwear eating chips and :drinkup:, not out in the cold. Wait till the snow falls, then see who calls who.
     
  5. LoneCowboy

    LoneCowboy PlowSite.com Addict
    Messages: 1,760

    horse people :gunsfiring:
    say no more
    run far far away.
     
  6. Ozone

    Ozone Member
    Messages: 49

    Careful Ford..you have some hear that will chastise you for the comment(I made the same mistake). Some here don't understand the economics of business or region you live in.
     
  7. theplowmeister

    theplowmeister 2000 Club Member
    from MA
    Messages: 2,551

    I went up ~20% and lost 1 of 75 customers.. and up 35% on 13 customers and Lost no one. Maybe I charge to little? (next time I'll go up 75% if I loose 35% of my customers I am ahead of the game) more payup and less work!!
     
  8. QuadPlower

    QuadPlower PlowSite.com Addict
    Messages: 1,056

    I'd rather do 1 for a $100 than 5 for $25. That is why I stick to commercial for mowing and plowing.

    I love to plow, but I would rather lay in bed then loose money out in the cold.
     
  9. mmplowing

    mmplowing Member
    Messages: 56

    First year in plowing for hire we took whatever we were able to get. Now we are able to be much pickier and that is a great feeling. We did lose a few customers but not to price hikes...more to them deciding to do their own snow removal with a snow blower. My money is betting on the fact that they will be calling me come the first big storm...but we shall see.
     
  10. dmjr77

    dmjr77 Senior Member
    Messages: 225

    There was an article about how some plow drivers say new customers are scarce this morning. I have a funny feeling it is the sign of the times
     
  11. Gicon

    Gicon Senior Member
    from MA
    Messages: 989

    Customers will come and go like the flowers of spring. What you will find out within years is those people will end up calling you back. Some will call you back on a yearly basis.
     
  12. SnowPusher513

    SnowPusher513 Junior Member
    Messages: 4

    Our company lost one site this year because the new property manager wanted the landscaper to do the plowing (and we are not the landscaper) and then we also gained a site where ANOTHER property manager wanted the landscaper to do the plowing (we are the landscapers). We have seen a lot of that in the past couple years. Property managers must be learning that it is more efficient or cost effective to have their landscapers plow as well.
     
  13. Tiflawn

    Tiflawn Member
    Messages: 45

    Lost customers!

    Lost customers due to justifiable price increases only make us guys stronger. wesport
    wesport If they cant pay a fair price, let them go else where and roll the dice :gunsfiring:
     
  14. AbsoluteH&L

    AbsoluteH&L Senior Member
    Messages: 573

    I louse a few every year, but you get a few every year too. If some one drops you for a price increase or to save a buck from someone else, then it's a customer you don't want anyway.
     
  15. BSDeality

    BSDeality Senior Member
    Messages: 736

    lost one of mine from last year. His son is going to do it with the quad this winter. Didn"t bother me a bit. It was a crap $30 driveway (below my minimum too). Picked up a $100 driveway today to replace it.