There is no doubt that we are in a very volatile market right now. Inflation is at its highest for 31 years, the supply chain is in crisis and the availability of materials remains uncertain. For these reasons, industry veteran Fred Haskett, senior partner of TrueWinds Consulting, says lawn and landscaping companies need to set a pricing strategy for 2022. In fact, he and his veteran colleague at the green industry Beth Berry are organizing a virtual seminar on December 14th on the same topic.
“A lot of my clients have never been through an inflation spiral before, so it’s a stressful time,” says Haskett. “But a situation like this calls for a new approach. Now is not the time to be the status quo. Many lawn and landscaping companies say they always add a two or five percent increase every year or two. Well, this is not the year to do what you’ve always done.
Haskett says lawn and landscaping companies that don’t raise prices enough for 2022 will find themselves in trouble. The supply chain problem is real and it will impact our industry until 2022 and beyond.
“Business owners should discuss with their suppliers what they expect to be their pricing and availability,” says Haskett. “They need to look at their finances and be able to accurately project what they need to increase their prices in order to maintain their gross margins. This is not the year to choose an arbitrary number, it must be based on data. “
Price increases will be a necessity in 2022
Proactive businesses that start thinking about these issues now will fare better. Many vendors have already issued warnings that they expect their prices to increase. While lawn and landscaping business owners have been known to delay price increases, most customers understand that costs are rising all around them.
According to Haskett, there are ways to increase prices without completely shocking customers. The best strategies include budget billing and consolidation services. These approaches will be discussed at the next seminar.
“We’ll see how you can accurately assess what your price increases should be and how you can mitigate the customer’s perception of those increases,” says Haskett. “On the commercial side, many lawn and landscaping companies have been using these bill cycle strategies for decades, but many residential lawn and landscaping companies are new to them. ”
Industry professionals who wish to delve into pricing strategies can register for the seminar by click here. The cost is $ 395 and the session runs from 10 a.m. to 2 p.m.