Mike Andes raised prices $50/month on his lawn-care subscription service and offered refunds. About 60% of customers took them, costing him nearly $200,000 in refunds against $175,000 in annual revenue.
$99/month
$25 per visit
$150/month
$200/month
About 175 subscriptions
So we had priced at 99amonth. So everyone was at 25 a visit. And these are half acre properties. Oh, dude. Acre properties, it was 150amonth. And then for acre and a half properties, it was 200amonth. I think we had 175 subscriptions. So we were doing 40 or 50 lawns a day. And everyone had just quit. So it was just me. And I was kind of had to cut. I have to cut down to something manageable. So we sent out and said, we're raising by $50 a month. And I did it terribly. I did it like three days before we were billing everyone. I forgot to tell you the worst part. We offered refunds. And I told them, if you don't like the way that my hair looks, ask for a refund. They did. So I built this offer in this package, but it didn't work because I priced it because no one could refuse it. It was so good. It was. And so looking at. Exactly. So out of the 175,000 that we made last year, that's not including refunds. 60% of what we made last year was refunded. 60, 60%.
So close to $200,000 in refunds, basically. And that' that was performed.
