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When is the right time to increase prices?

30 Apr 2024 | BALI Member News

Getting your pricing right is essential for your landscape gardening business to thrive. If you set your prices too low, you might end up losing money. It's important to keep your financial records up to date so you can catch any problems early. Costs have been rising significantly in recent years, so it's vital to adjust your prices accordingly.

Running a landscape gardening business requires a professional approach. You need to think about not just the costs of materials, labour, and overheads, but also your salary. Many business owners forget to factor in their personal wages, which can cause problems come year end. By keeping your financial records updated, you can see if you're making enough profit to pay yourself a dividend or drawing.  If not, you have two options: raise prices or cut costs.

So, how do you raise prices? You have a couple of choices: you can increase all your prices by the same percentage, or you can adjust prices for individual clients to match what other customers are paying. Looking at both options can help you determine which is the best strategy for your business. It's important to adjust your prices regularly to keep up with inflation. Implementing annual price increases will avoid surprising your customers with sudden jumps in price. Setting a routine for yearly increases makes planning easier and keeps things consistent.

When informing your customers of a price increase, you can do it in person, over the phone, or by email. If you're short on time, sending an email explaining the increase and when it will happen is the quickest option. If you've chosen a uniform percentage increase, you can use the same email template for all your customers.

Price increases are just part of running a successful landscape gardening business. Being confident in your prices and understanding your value are important for handling these changes smoothly.

To discuss further, please contact Accredited Supplier Sones Accountancy Services.

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