Lawn care
How many customers can you lose after a raise?
Here is the math for lawn care. It shows how many customers could go before you make less.
| You raise | This many of every 100 customers can leave |
|---|---|
| 3% | 2.9 |
| 5% | 4.7 |
| 7% | 6.5 |
| 10% | 9 |
| 15% | 13 |
Lose that many and you still bring in what you do now. Lose fewer and you come out ahead.
An example
Say you have 100 customers at $45 a cut. Raise 5% and a cut is $47.25. Then 4 customers could leave and you would still bring in more than you do now. Everyone who stays pays more for the same work.
Why a few can go
A raise brings in more from every customer who stays. So a few can go before you are behind.
The table counts only what customers pay you. Fewer cuts also means less time and less money spent on the work. Count that too, and you are even further ahead.
When to raise
Mowing season starts in March. A raise lands best just before it. Give customers 30 to 60 days of warning, so send your note in January. source
The math
Raise prices by r, and up to r ÷ (1 + r) of your customers can leave. For 5% that is 0.05 ÷ 1.05. That comes to 4.7 of every 100, rounded down.
Abacus does this math on your own Jobber book before you raise. How to raise prices in Jobber · What to say to customers · Every trade