From supply chain issues to rising inflation, there are a myriad of reasons lawn care companies need to raise prices. Luke Hawthorne, the owner of Texas-based Emerald Lawns, doesn’t anticipate this trend changing anytime soon.
“It’s an interesting time to be in the market,” Hawthorne says. “I’m not so worried about myself, but I am worried about how the littler guys are going to navigate the waters with supply line issues, the prices of fertilizer and gas and everything else. I’m concerned about those guys.”
Prior to last season, Hawthorne says his company instituted its highest price increase since it was established in 2006.
“We did a 10% price increase last year,” he says. “In 16 years of business, that was by far our biggest price increase. Before that, I think the biggest one was like 2%. Usually, every two to three years we’ll add a $1 to everybody’s application price. It’s been really minuscule.”
Without any resolution to inflation in sight, Hawthorne says he raised prices again this year and is already planning another increase in 2023.
“Moving forward I was just going to do that annual increase, but that’s not going to cover all the added expenses as the price of fuel, fertilizer and labor have gone way up,” he says.
Like for everyone else, Hawthorne says labor is always a worry.
“A few years ago, we were starting people at $15 or $16 an hour and now it’s up to $19 and it needs to go up from there,” he says. “So, we’re trying to find the money somewhere to make that happen. It’s challenging.”
To keep from having to constantly hire, Hawthorne says culture and employee retention should be top of everyone’s to-do lists.
