Price Increases
Price Increase, July 1st, 2008
We find ourselves in the unfortunate position of being forced to raise prices for our services again this year. The increasing price of fuel as well as recent and large price increases of fertilizer and control chemicals require we raise our prices or go out of business.
We sincerely regret that things have come to this point, but we can't deny reality.
Therefore, effective immediately, we are putting in place a new price structure based on the program you selected and the size of your lawn. You will be notified during your next fertilization what your new price will be. If you wish to alter your program make changes to your program, please call us as soon as possible. Our office number is 1-888-966-5296.
Some customers have already been notified by phone about this price increase. We found that trying to call everyone to be too time consuming to be effective.
Some customers have also already received a mid season price increase. This new price increase will apply to them also.
If the price of fuel and fertilizer continues to go up, there will be additional price increases.
Customers who pre-paid for the year will require some special considerations: Here is how we are going to work that out.
1. All customers who pre-paid have been given a credit to their account to reflect the discount for pre-paying.
2. We will continue applying the charges to the credit balance as we do work through out the season.
3. Once the credit balance has been used, your account will be charged for the remainder of work performed and a bill will be left on your door when we complete work for you the same way we bill non pre-pay customers. Bills are due in 20 days.
4. You can choose to pre-pay the difference for the remainder of the year with the new prices and still get the pre-pay discount. Please call us so we can calculate that pre-pay amount for you.
We have done investigative research on our competitors and we find our new prices are in line with companies that offer similar products and similar service.
If you have any questions feel free to contact us at 1-888-966-5296.
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Here are some links to websites that offer evidence of current price trends for my materials.
For Fertilizer:
Fertilizer prices have gone up about 60% in the last month.
blogs.navellier.com/all_cap/entry/fertilizer_prices_are_soaring/
www2.barchart.com/commentary/story.asp
bigpicture.typepad.com/comments/2008/05/fertilizer-cris.html
www.eurekalert.org/pub_releases/2008-05/i-wfp052308.php
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For Fuel:
Fuel has increased about $.10/gallon a week since April, there is no end in the foreseeable future.
en.wikipedia.org/wiki/Image:Price_of_West_Texas_Intermediate_1999_to_June_2008.PNG
www.eia.doe.gov/oil_gas/petroleum/data_publications/wrgp/mogas_home_page.html
We have considered changing our price structure to include a fuel surcharge. This will result in a lower price for the service and but add a second charge for fuel based on current fuel prices. The advantage of this system is that allows for prices to go down if fuel goes down in price. If this idea appeals to you then please contact us.
For Chemicals:
Dow Chemical makes the ingredients for many weed control products. There has been similar price increases from other chemical companies.
Here is their announcement on May 28th to raise their prices 20% news.dow.com/corporate/2008/20080528a.htm
Less then 1 month later, their next announcement to raise prices another 25% http://news.dow.com/dow_news/corporate/2008/20080624a.htm
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