Raising rates

Discussion in 'The Corral' started by Stateline, Feb 3, 2009.

  1. Stateline

    Stateline New Member

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    After crunching numbers I realize that I am not making enough money off of the boarders. It costs a fortune to run a big boarding barn like mine. I have people that moved in when I first opened and they pay $40 less than the new boarders. I want to raise everyone up to the new rate. Self serve $200 and full care $315. Honestly I think that is cheap for what we offer. Do you think people are going to freak out with a $40 increase? The facility has improved so much since they moved in at the old rate and the cost of feed has went up. I have a full barn with just 1 stall available for boarding. I was planning on giving them a letter now and not increasing til May.
     
  2. horsefreak

    horsefreak New Member

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    Yes, some people are going to freak out. However you have do what you have to do to keep your place up and running and in good shape.
     

  3. Shadow

    Shadow New Member

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    Ya know ..everything is going up..from groceries to gas..we have come to expect it..no reason why it shouldn't effect the horse boarding businesses...your cost went up..the fact is ,it will be past on the the customers..I think giving the that much notice is fair..gives them time to consider their options..and come to terms with the change..and if they are Happy with what you do for them then they will saty and pay the monthly increase. JMHO GOOD LUCK!!
     
  4. AKPonygirl

    AKPonygirl New Member

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    Yep.. some will freak... but.. when they settle down and realize that it is necessary.. they will be fine with it... or they will try to find another barn and realize that they would rather just stay there... My old boarding barn upped my rate twice last year.. once for $50 and once for $20... I did find another boarding barn.. but not because of just the price increase.
     
  5. PT

    PT New Member

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    As long as you give a good enough warning (i.e. 60-90 days), it's fair.
     
  6. BUC

    BUC Administrator

    You could also do it in 2 steps. + $20 March and + another $20 May to reach the $40.
     
  7. Shell

    Shell New Member

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    Find out around your area what the boarding costs are. If you offer the same or more for the boarders, then price accordingly.

    It sounds like you've been keeping your board cost at a price to make only the boarders happy. A notice given about the increase happening in May, is a long notice in my opinion. The notices I've gotten were "boards going up next month". Increases were anywhere between $10-$25.
    The low increases that started at one barn happened every couple of months (where our old guy is). So I think it was a gradual increase to amount the BO needed without putting us in shock.
    (Edit in: Like what Buc just posted)

    The other barn I was at (with my riding horse) offered more for the boarders and for riding. Their rate was higher then some barns because of what they offered. But their increases were higher too. First $25, then the month I had already given my notice I was leaving, I was told by a boarder that board went up $50.
     
  8. glf01

    glf01 New Member

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    Wow your board comes out to 10.50 per day you are not making anything. When we turnout TB's we pay anywhere from 25-30 per day.
     
  9. MyTeDun

    MyTeDun Senior Member

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    All you have to do is look at the funds you are spending on hay, grain, shavings, labor, insurance, utilities.

    Sure some are going to freak out but there will always be someone that doesn't like it

    Around here you can't find a nice barn with an indoor for that price.

    Good luck
     
  10. Stateline

    Stateline New Member

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    Does this letter sound good?
    As of May 1st I will be raising everyone's board to $200 for Self care and $315 for Full Care. It will still be $35 extra for a stall with an attatched run. I hate to do this but I have no other choice. This barn coast a fortune to keep running. Things just keep going up. I wanted to ive plenty of notice. I have been holding off raising it for awhile now. I called around to other stables in the area and we are still the cheapest place for this type of facility. If you recently moved in, you are already at this rate so this will not apply to you. Thanks in advance, Shannon
     
  11. syndiego

    syndiego New Member

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    My :th_2cents:, I think you are being OVERLY apologetic. Perhaps leave out the "I called around to other stables...", and save that as a verbal response if anyone belly-aches.
     
  12. Stateline

    Stateline New Member

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    We are all friends. I have a personal relationship with all of my boarders except for a few that don't come around much. I am apologetic because I know that some of them struggle as it is. But the business side has to take over and I can not cut myself short. I do not make any of them own horses. Plus the same people that are always hurting for money have special shoes on there horses, regular chiro visits, etc. They may have to cut back a little on that. I am there horses home. That has to be worth something. Thanks for your opinion.
     
  13. MyTeDun

    MyTeDun Senior Member

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    Make sure you spellcheck it and stay firm----- don't be so apologetic. You are the boss, you do the work or get it done.

    As you stated, they are the ones owning the horses. They have to expect an increase once in awhile!
     
  14. darkhorse

    darkhorse New Member

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    You are raising TO $315? I thought you meant from $315 to $355 (which is still dirt cheap IMO.) I would love to be paying that!
     
  15. equusteacher

    equusteacher New Member

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    one thing we have done in the past is to show what hay, grain,shavings costs have gone up per yesr.
    Give 2007, then 2008 then this years to date so they can see jsut how much more it's costing you to provide the basics for the facility.
    Obviously this doesnt include electric/water/maintainence costs nor labor. but people can identify wtih hay/grain and shavings as they understand their hroses need those items.
     
  16. Shell

    Shell New Member

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    Some of what you wrote to us sounds good for your explaination to your boarders.
    Cutting it down and getting to the point......

    We are all friends. I have a personal relationship with all of you, except for a few that don't come around much. I understand some of you struggle as it is, But the business side has to take over, and I can not cut myself short. I am your horses home and enjoy having that privledge. But I need to raise board costs........(then go add in your board increases)

    Just an idea :)

    and...Whatever questions or concerns they have, I'm sure you'll be asked.
     
  17. Morganfan608

    Morganfan608 New Member

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    Business is business.....I too, am friendly/socialize w/my boarders (now boarder since my place has been on the market). I live in a small town, everyone knows and/or is related to each other. They know that there horse will be cared for as if they were my own (or better). I would keep the comments on your relationship w/them out and simply state that, due to the rising costs of hay, grain and bedding, there will be an increase in the boarding rates to $XXX on the XXX month. That's if you feel compelled to offer the an explanation. Give them 'respect and compassion' by giving them ample notice of the rate change. JMHO.

    BTW MTD, I was $225 for stall w/full care & turnout for eons....went to $250 for the same 9/07. ;) I didn't 'advertise' anywhere, filled the barn w/'word of mouth' boarders.
     
  18. Shell

    Shell New Member

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    Being a boarder I would prefere a friendly note, instead business is business note.
    Most of the increases I've had were told to me verbally first with small explaination, but it happened because we were having a conversation to begin with and they decided to tell me. It was still for the next month, but even mentioning the increase in a friendly manner whether verbally or written, makes it feel like, to me anyways, a friendly atmosphere still.
     
  19. Stateline

    Stateline New Member

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    The letter went out. I'll keep you posted on the boraders reactions.