Mike Andes raised prices up to 50% across 25 Augusta Lawn Care locations and lost fewer than 10% of customers at each one. He argues for bold, one-time price increases instead of small annual bumps.
To hopefully prove the point, last year, dozens, over 25, Augusta Lawn Care locations raised prices by more than 15%, some as high as 50%, 5-0, meaning if they were charging $60 per cut, they were now charging $90 per cut. Here's what's crazy. Not one single location lost more than 10% of customers, and not one of those locations raised prices by less than 15%, because I don't believe in raising prices by 1%, 2%, 3%. Oh, we're doing an annual inflation. No. Just tear the band-aid off, raise price by 15%, 20%. And even with people raising prices 25%, 30%, 50%, that was the highest one, 50% price increase. And none of them, including the people that raised prices by 50%, none of them lost more than 10% of their customers.
