I Raised the Prices TOO HIGH TOO FAST in My Landscaping Business; This Inflation is Very Serious
This inflation is so serious that it forced me to raise my prices too fast and too high to survive. The opposite actually happened - we lost clients and were almost out of work.
This high inflation seems to affect all businesses regardless of industry. The economy is deteriorating, businesses are closing, and the stock market is tumbling. A sacrifice must be made for a company to survive, and that sacrifice is your pricing. Even though it seems easy to manage, the reality is different from what you envision and plan. It is challenging to strike the right balance. However, you need to choose which areas to sacrifice.
Join me in this episode as I share how I was able to keep my business running as I went out of this inflation’s rabbit hole.
“It’s smart to stay positive and keep your head up. Don’t go down any dark paths or rabbit holes, but do what you feel you need to be smart, alert, and prepared.”
– Keith Kalfas
Why do you have to listen to today's episode.
02:42 – Stan Genadek’s trick: Sell high tickets a year in advance so you won’t have to worry about going through a work shortage.
05:18 – I needed to lower my salary to ensure there was money for everything we needed. America is not ready for this inflation.
08:04 – It looks like we’re going into recession. You now have to work twice the amount for half of the money you used to earn years back.
10:43 – Tighten your belt and work your ass off. My uncle once told me, “Stay small; stay around.”
12:59 – Don’t go down into deep rabbit holes. Be smart, be alert, and be prepared.
Key Takeaways
“Stan Genadek, the Dirt Monkey, said something awesome – he’s never had a shortage for work or having to lower his prices ever because the fall before, the year before, he’s out selling high ticket landscaping jobs. That way, when the spring rolls in, he just rolls right into doing the jobs he’s already had a contract to the year before.”
“We never went without work once. I would not let that happen; I would try everything. But I was writing the line of keeping the prices as high as possible within accordance with the inflation and making sure everything is dialed in. I’m not trying to price gouge or anything like that; I’ve never tried to do that. I’m trying to run a profitable business, and a profitable business allows you enough money so you can have an abundant business.”
“I was pressured into immediately dropping the prices back down in order to fill up our calendar with new work. We’re now booked out for a month, and we’re back up to a 30% close rate, with more new landscaping jobs coming in every day and the phones ringing. We’re doing fine. But this tells me that America is not ready for this extreme inflation.”
“The inflation is insane right now. I’m feeling it in my business. I’m making sure that we have work and that my guys are paid. I lowered my salary to ensure that there’s money in the hopper to pay for everything we need.”
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