Posted by Eric F Wilt on July 03, 2003 at 00:43:55:
In Reply to: Re: Raising prices.... posted by Jim R. on July 02, 2003 at 01:14:46:
: : : OK last year we went up 5$ for basic shoeing no frills deal.
: : : Since then cost of doing business/ living and FUEL have gone up horribly. We want to go up another 5 $ end of August. We are only at 65 and should be at 70. One of those cases of underestimating your abilities and starting to low to begin with.
: : : The top guy is only 75 and should be at 90.
: : : I am working on the letter to our customers right now but do not feel great about jacking it up 5$ two years in a row.
: : : We went through the customer list and it seems the only clients we might loose are the SAME clients we have been trying to get rid of.
: : : Thanks
: : : Edith
: : Two pieces of advice:
: : 1-Easy one - do not raise $5.00, raise 7 or 8 so it does not look so arbitrary. Gas prices went up a lot faster then this and this is a major expense for you. To soften the blow, explain to clients that a price increase has been delayed for far too long trying to help them out and this is a necessary evil of doing business.
: : 2- Hard one - calculate what you want to make and how much you want to work then deduct your overhead costs and you should be able to accurately figure out how much you should really charge.
: : M. W. Myers, D.V.M.
: Here is something that allows me to raise prices and keep my regulars happy. I set prices $10-$15 dollars higher for new clients for shoeing and $3-$5 extra for trims. On regulars I keep shoeing and trim prices the same for a couple of years but I increase my service call fee by $5/year (same with new clients). This weeds out a number of one horse accounts but isn't a significant increase for my loyal clientele who have more than three horses. I also calculate my break even cost (figured from last years numbers) every year which lets me know how much prices need to go up for the following year along with my service call fee . If you attend a number of clinics every year make sure you give yourself a raise. These things aren't free and it makes you more valuable to your clientele. The bottom line is if your going to increase your fees(by more than the cost of living) you have to offer a better finished product and a better service to your clientele. You won't get many complaints if you strive to do this.
: Jim R.
I have a 'system ' for raising prices where I get a raise 2 out of every 3 years . It all got started when I first felt that I needed to jack my price up a bit,but didnt have the heart to do it to my good old customers that had been with me from the beginning.So- new customers paid the new rate,old customers paid the old rate.If an old customer quits me,he pays the new rate if he comes back.Owners that I bill through the mail,always pay the newest rate.Now ,last year,I had 4 different pay scales,this year I have 3.I raised the prices on my oldest customers,dropped that rate all together,and gave myself a raise.Next year I will have 4 pay scales again,when I come in with a new rate for new customers.The beauty of it is this-new customers dont realize theyre paying a cutting edge rate,they think theyre paying a going rate.Old customers get a small reward for being loyal,and when the time comes when you bump up their rate,youve worked for them long enough,and they know you well enough,that they wont 'throw themself' when you start to tack a little extra on the bill.It may be a little 'wishy-washy',and the pay increase isnt as drastic when you creep up the prices like this.But like I said,its a raise every 2 out of 3 years,nobody knows what youre doing,and you wont come off as 'Hitler with a cash register'. Good Luck, Eric Wilt