Ep 325. We Raised Out Prices, Lost Customers and Still Won!

Summary

Side Hustle Squad Podcast with Mike Garvey
Episode 325: "We Raised Our Prices, Lost Customers and Still Won!"
Release Date: April 14, 2026

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Episode Overview

In this episode, host Mike Garvey shares a candid solo update on his lawn care business and the strategic decision to raise service prices by 7%. He discusses the impact of this move—losing some customers, yet ultimately improving his client base and increasing profitability. Mike addresses overcoming fear around raising prices, emphasizes the bigger picture of building a premium business, and affirms the importance of knowing your numbers. Throughout, he encourages listeners to "raise the bar" in their side hustles and embrace an abundance mindset.

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Key Discussion Points & Insights

1. Business Updates and Exciting Growth

• Personal Update & Ongoing Projects:

  • Mike returns from a short family vacation, emphasizing the balancing act between family, business, and new projects.
    • "Just got back from a small vacation with the family. It was really good to get away for a couple days, not too long, but still was moving the ball down the field on some projects." [00:54]
  • Updates on shop construction, permitting, and new equipment for the business.
  • Plans for major industry events like the upcoming Equip Expo 2026 in Louisville.

• North Jersey Branch Launch:

  • Opening "Coastal Fertilization of North Jersey" with business partner Rob, expanding into new territories and markets.
  • Setting up separate systems for branch management (Jobber accounts, relay accounts).
  • Acknowledges the slower start typical of penetrating a new market.

2. The Rationale and Results of Raising Prices

• Facing Ultra-Competitive Pricing:

  • Mike expresses shock at low competitor rates in his new market.
    • "It seriously makes me question how people are in business... are you going there to do a 2 acre property to make $20 an hour?" [03:36]
  • Observes that unsustainably low pricing can only result in tiny profit margins or cutting corners.

• Direct Outcomes of Price Increase:

  • Raised prices by 7% across all services—lost about 7% of customers.
    • "We raised our prices 7% across the board on all services. And yeah, we lost. We lost. We lost customers. We lost some and not a lot. I mean probably equates out to the 7%..." [04:37]
  • Stresses that losing customers isn't a negative—it filters out low-margin clients and makes room for higher-quality, better paying customers.
    • "We're replacing them with better customers at higher prices... Raising your prices, it's not only okay, it's necessary." [05:09]

• Philosophy & Strategy:

  • Price increases reflect a brand’s value, professionalism, and goal to elevate industry standards.
    • "We've done it three times, maybe four times over our eight years. And it's a reflection of your brand, it's a reflection of your professionalism. It's raising the bar in the industry." [05:41]
  • Reminds listeners: Higher prices demand service excellence and premium presentation (communication, branded trucks, professionalism).

3. Overcoming Fear of Raising Prices

• Acknowledges common anxieties business owners face.

  • "I was scared too. I was even lower. You know, just starting out... my prices were super low and it took years and years to build it up to get them to where they need to be because I just wanted customers." [09:25]
  • Urges listeners to focus on the type of business they want to build, not just holding onto all customers at any cost.
    • "Start thinking: what kind of company am I trying to build?" [07:49]

• Encourages a mindset shift:

  • Don't view customer loss as failure—see it as a filter for ideal clients and financial health.
  • "Stop thinking, you know, what if I lose? What if I lose customers? Well, start thinking: what kind of company am I trying to build?" [07:49]

4. Know Your Numbers and Get Support

• Know Your True Costs:

  • Stresses the importance of understanding financials—costs, margins, profitability.
    • "If you don't know your numbers, I encourage you reach out to John Pajak, johnpajack.com Profits with Pajak... you may not even be realizing how much money you're leaving on the table or, you know, not realizing that your prices are not right." [10:16]

• Continuous Learning:

  • Recommends business coaching, peer groups, and working with pros.
  • Shares his own involvement in coaching groups and calls.

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Notable Quotes & Memorable Moments

• On Raising Prices and Losing Customers:
  • "We raised our prices 7% across the board on all services. And yeah, we lost... some and not a lot. I mean probably equates out to the 7%... And you know what? That’s fine. That is exactly... That’s okay. Because here’s the twist. We’re replacing them with better customers at higher prices."
    —Mike Garvey [04:37]
• On Setting Standards:
  • "I can’t be, you know, $375 for a fertilizer application and another guy’s $150—raise the bar, set the standard. I don’t understand. Like, have you not raised your prices since 1991?"
    —Mike Garvey [06:08]
• On Mindset:
  • "Stop thinking, what if I lose? What if I lose customers? Well, start thinking, what kind of company am I trying to build?"
    —Mike Garvey [07:49]
• On Professionalism:
  • "We have branded trucks. It shows up, we show up like a premium service, like a premium company that we always wanted to be. And I think year after year we're fine tuning and getting better and better." —Mike Garvey [07:09]
• Advice on Knowing Your Numbers:
  • "If you don’t know your numbers, I encourage you reach out to John Pajak... You may not even be realizing how much money you’re leaving on the table." —Mike Garvey [10:16]

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Key Timestamps

• [00:53] — Mike’s business updates: shop progress, new equipment, event plans
• [02:13] — North Jersey branch launch and market entry
• [03:36] — Reaction to competitor pricing; shock at low profit margins
• [04:37] — Decision and process of raising prices 7%; immediate results
• [05:41] — Price hikes as reflection of brand value; “raising the bar”
• [07:09] — Building a premium company through service and appearance
• [07:49] — Mindset reset: focus on building a real business, not just keeping every customer
• [09:25] — Mike’s own journey with pricing anxiety; encouragement to listeners
• [10:16] — Financial clarity and recommendation to work with business coaches

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Takeaways for Listeners

• Don’t be afraid to raise your prices; it can improve your business and client base, even if you lose some customers.
• Habitually review your costs and margins, and don’t compete on price at the expense of quality or profitability.
• Present your business professionally to justify premium pricing.
• Seek out support, coaching, and peer groups to ensure your financials are on track.
• Focus on building the business you want, not just clinging to the status quo.

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Side Hustle Squad with Mike Garvey delivers honest, actionable advice for side hustlers in the green industry, emphasizing bold choices and professional growth.

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Transcript

[A]

Are you ready to kick back and get inspired? Grab your favorite drink, pop the top and join the Side Hustle Squad with Mike Garvey. This podcast is the perfect resource for anyone who's already started their Side Hustle or is just considering taking the lead. With in depth interviews featuring guests from the green industry and beyond, you'll gain valuable insights and learn what it takes to succeed in running a business while juggling a full time career. From personal stories to practical tips, the Soc Hustle Squad podcast has everything you need to turn your passion into a thriving business. Now, here's your Side Hustle Squad host, Mike Garvey.

[B]

What's going on guys? It's your host, Mike Garvey with the Side Hustle Squad podcast coming at you from the Branded Bull Studio here on a beautiful Tuesday start of the week. Just got back from a small vacation with the family. It was really good to get away for a couple days, not too long, but still was moving the ball down the field on some projects. Very close to getting back under construction with the shop, getting permits in place, final site approval, all of that. For those of you that know, it's been over two years of that process which is so much fun to go through. I would love to do it 20 more times, but just kidding, I mean it is a grueling process with engineering. We're not even building a building, we're just developing the land that has a small shop on it. But anyway, we're moving right along with that. Should be getting some updates with that. It's good to be back on the airwaves, if you will. Been doing a lot of stuff with Pod House with traveling with Eric Triplett. We have the NAB convention coming up in Vegas. Gonna do another Pod House. Pod House number three. I hope you enjoyed some of that. The chatter between me, him, jt, talking down at Sponsor Games with Justin Moore. Kind of give you another look into what we got going on and you know, attending live events, have some things coming up with Relco, developing some things with Cress, also with our dealership here at the Jersey Shore, we're moving again the ball down the field. Setting up some robots for robotic mowing on Larry's property. My property made some things happen with some handheld equipment and just really, you know, getting that done. Got the trailer delivered, the mobile showroom that is getting upfitted, wrapped up and can't wait to show that off and you know, bring that around town and whatnot into some live events. Hopefully again, looking Forward to equip 2026 Louisville, Kentucky. Get your tickets now. Hit the link in the show bio. I think they're like $12. Use our code, show that we're supporting them. Can't wait for that. That is going to be the biggest pot house that we're going to have of the season. It's our Super Bowl. Really. That man. So that's the update on that, on all of those things that we are going on. Also to opening coastal fertilization of North Jersey. Formerly it was coast thinking it was going to be coastal fertilization of 100 and Warren counties. I think we're going to expand a little bit out of that also and have this new branch working with my good friend Rob who's going to be taking the branch, you know, heading it and running it up north. And it's cool. Opened up a separate jobber account just for that branch, keeping everything separate, separate relay accounts. And so it's been exciting. It's been opening coastal again eight years later, being ahead of the game of where we were eight years ago. But you know, it's been exciting. It's also been eye opening and some things that we're seeing out there, you know, tapping into a new market, it's just going to be slower than down here. It's a slower start. But I got to see some competitor pricing of a neighborhood that we're working in. And it seriously makes me question how people are in business and like why like are you going there to do a 2 acre property to make $20 an hour? It's incredible. I can't even believe a competitor's pricing that I saw up there for something that we were doing that was similar. It's not. My big takeaway is we raised our prices 7% across the board on all services. And yeah, we lost. We lost. We lost customers. We lost some and not a lot. I mean probably equates out to the 7% of the. And you know what? That's fine. That is exactly. That's okay. Because here's the twist. We're replacing them with better customers at higher prices. And I want to talk about why. Raising your prices, it's not only okay, it's necessary. We've done it three times, maybe four times over our eight years. And it's a reflection of your brand, it's a reflection of your professionalism. It's raising the bar in the industry. I can't raise. I can't be, you know, 375 for a fertilizer application and another guy's 150 like raise the bar, like set the standard. I don't understand. Like, have you not raised your prices since 1991? And if I'm talking to you then and you're like nam, yeah, I haven't. I think now is raise the bar. Think long and hard at, you know, what we're doing. Look at gas, look at fertilizer, look at labor, look at what's going on all over. I mean, I saw this pricing. I don't even know there's, there can be almost zero profit margin or they're cutting corners or they're not sustainable long term. But I guess they are. I like, probably because they just have so much bulk. But raising prices is good. It creates margin. It will again, you'll be less stressed. You could have may have less work at higher margins because you're filtering out the cheap customers and you're gaining new ones. And it forces you to level up to raise your prices, raise the bar, build a real business, not just a little side thing that you're just doing for fun. It's not a hobby to fill your time. Okay? So if you're gonna raise your prices, I want you to again, provide the service that justifies the better pricing. And I think we do. We have great communication, we have great service. We have branded trucks. It shows up, we show up like a premium service, like a premium company that we always wanted to be. And I think year after year we're fine tuning and getting better and better and communicating with customers and being responsive and answering the phone and, and answering any billing question the day of or anything that they need and providing that service that all just that comes along with the service. So stop thinking, you know, what if I lose? What if I lose customers? Well start thinking, what kind of company am I trying to build? Let's take a quick break here from the show sponsors. We'll come right back.

[A]

I'm going to make this simple. If you run a landscape or outdoor power equipment business, Equipe exposition needs to be on your calendar October 20th through the 23rd in Louisville. This isn't a trade show where you walk around collecting pins. This is where you get hands on with equipment, Find software that actually fits your operation, level up your cruise training and invest a few days in your own growth as a business owner. The contractors building real systems are the ones winning right now. And Equip is where everything comes together. The super early rate is $25 before May 31st. Go to equipexposition.comday to register.

[B]

Register now at Equip exposition.com or use the link in the podcast description. Save 50% off your registration when you apply the code Side Hustle at checkout.

[C]

Hey guys. Adam Fullerton here with Branded Bull. As a proud sponsor of the Side Hustle Squad podcast, we're all about helping lawn care and landscaping businesses make their mark and stand out from the competition. Visit [e-mail] to learn more about our professional branding website and graphic design services and how we can help your business look awesome and grow.

[B]

All right, so we're back. I'm not overly going to beat this to death, but it's something that I'm passionate about because I was scared too. I was even lower. You know, start just starting out to my prices were super low and it took years and years to build it up. To build it up to get them to where they need to be because I just wanted customers. But I want the right customers and I don't necessarily want the tons of customers at cheap prices because you're doing more work for less money. So stop thinking about, if I lose customers, I raise my prices. I mean, let's look at gas right now. Let's look at everything else. Let's look at insurance. All of this stuff adds up. Okay? And if you don't know your numbers, I encourage you reach out to John Pajak, johnpajack.com Profits with PayJack. Talk with John, get your numbers squared away. He has coaching groups, I'm in them, that we have calls and it's awesome. So I encourage you to look at that because you may not even be realizing how much money you're leaving on the table or, you know, not realizing that your prices are not right. So I encourage you to look at that, look at that stuff. Johnpajak.com so take a quick look at what's going on, you know, and. Cause it's eye opening on what I saw. Now I'm building a new business, building it all over again in a different area, bringing it to a new location, website, Google business profile, all of this stuff, a lot of it I do have set up already, but it's building a new business again and it's exciting. But let's make sure that all of our pricing is right and everything is where it needs to be. Don't be afraid. Okay? Let's level up. Let's bring everybody up. Let's raise the bar and let's make some money and level up.

[A]

Thanks for tuning in to the Side Hustle Squad podcast with Mike Garvey. We hope you enjoyed this episode and gained valuable insights to help you succeed in your side Hustle journey. Connect with Mike using the links in the podcast description. If you love the show, please leave us a well worded follow five star review on Apple Podcasts. Your feedback and support help us grow and continue to provide you with the best content. And don't forget to follow the show to be notified when the next edition of the side Hustle Squad Podcast is available. We have many exciting guests and topics lined up so you won't want to miss a single episode. Thanks again for listening and we'll catch you next time on the side Hustle Squad Podcast.