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How to tell your customers you are raising rates
News
June 14, 2022
How to tell your customers you are raising rates

Chemical prices triple, average price of gasoline reachesabove$4.70asservicetechsfeelthesqueeze

Have you raised your monthly service charge yet?

According to pool service professionals across the country, monthly service charges are going up and are expected to rise more still. What was in many regions a $100-per-month service charge, generally including chemicals, has risen dramatically this year, as pool professionals struggle to keep up with the cost of doing business.

This year, service firms are raising rates by anywhere from $10 to $40 a month, are charging extra for chemicals, and some are including a gasoline surcharge.

For many, increasing prices has not been an easy decision. The fear of losing accounts or upsetting longstanding and loyal customers can weigh heavy on the minds of some business owners. But for most, it’s simply a practical business decision and a necessity.

In the past two years, chemical prices have tripled. All materials are more expensive.

At press time, the national average for gasoline is $4.70, compared to $3.04 last year, according to American Automobile Association. And if you work in California, you’re

These times are sure tough! With prices increasing everywhere, service techs face difficult challenges ahead on how and whether to raise rates. paying more than $6 a gallon.

In fact, as of June 2, according to data from Gasbuddy, more than a handful of locations in California are charging as much or more than the federal minimum wage of $7.25. For example, a service station in Furnace Creek, California, is charging a whopping $8.84 a gallon. While it is true that the minimum wage in California is far above the federal minimum, with workers earning a minimum of $14 an hour – paying more than half your hourly wage just to commute to work is rough.

For businesses that operate out of a vehicle like pool service professionals do, the only thing left to do is to raise rates.

It’s useful to remember that pool ownership is a luxury. The same person who is paying $5 a day for a Starbucks coffee should be willing to pay a living wage to the person who ensures the hygiene and longevity of the backyard investment. If not, they are probably not worth the trouble.

It is true that you will likely lose some accounts when you raise your rates. But if you provide good service, you are not likely to lose many customers because — unless they are living under a rock — most people understand the current market.

Above is a prototype of a price increase letter.

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