Mike AndesFounder, Augusta Lawn Care and Homeworks · Founder of Homeworks and Augusta Lawn Care

Don't hold back! Once you hit your capacity, RAISE your price.

24 Mar 2024 · 0 min

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Short transcript excerpt from a conversation (Mike Andes and another speaker) advising that price increases should be triggered by business capacity rather than seasonal timing. Mike recommends raising prices whenever customer load reaches capacity thresholds (e.g., after reaching a specific customer count), potentially multiple times per year to avoid overtime, equipment strain, and the need for immediate hiring.

Price increases should be determined by your capacity, not by the time of the year. Whether or not it's sunny. It's like if we hit 140, whatever it is, 170 customers, we're raising prices because anything above that, we know we're going to be working on guys overtime. We know we're going to be struggling for the two trucks, that if one of them goes down, we're in a really bad spot. We're going to put pressure and we're going to have to hire more people. You hit capacity, you raise prices, you hit capacity again, which I think we can do twice this year.
Really?
Again?
Raise prices twice this year?
There's no reason not to because they don't think about it.
I personally love the sound of that. I'm just like, I don't know how to do it.