Has anyone tested flat rate pricing?

[tmiklethun]

For your normal cleaning packages just charging a flat labor rate of $125 for the first hour and $25 for each additional 15 minutes. Or whatever numbers work.

Then any premium services would get labor + fee

Carpet Protectors
Tile Sealing
Speed drying ect.

I am currently a sq ft guy, but have considered testing this out with some of my current clients.

I think it fixes a couple problems, but may create some additional problems

Has anyone had any experience trying this?

 

[smastio]

I like the creativity, but I see the model being like Obamacare. The "un"intended consequences will probably put you under! Simple is best for most consumer needs. Just my two cents... FYI - no premium fee will be charged for this add-on advise.

 

[tmiklethun]

I like the creativity, but I see the model being like Obamacare. The "un"intended consequences will probably put you under! Simple is best for most consumer needs. Just my two cents... FYI - no premium fee will be charged for this add-on advise.

Whoa, I never thought I would be compared to Obamacare. Whats funny is I was trying to simplify things a little. Right now I offer three different cleaning packages for every cleaning category all with different prices. Then premium add ons.

If I could say all the cleaning packages are billed under this hourly rate, but the production rates are different based on the level of the soil. In my head I can see that being simpler, however the consumer doesn't always see things the way a business owner does.

I also thought it might inspire the customers to prep their house right. I love going into houses where I have to pick up the kids clothes and toys just to start cleaning the carpet. On a production rate I would be compensated for that.

However my fear is the consumer will always be nervous that I am padding my time or moving slow on purpose. That one issue may torpedo the whole idea.

Thanks for your input though, it's important to get out of my own head and see others reactions to things.

 

[Nate The Great]

You could have moved faster resulting in charging me less... There's the good and the bad... I'd stick with your 3 packages, but depending on how you package it, you can include the protection in the top package..

Many ways to skin a cat, but charging hourly or even quarterly is not an ideal way...

 

[FB7777]

I'm assuming this is a pricing model based on working solo?

I suppose it would ' level out' your daily take

But you'd be leaving money on the table frequently

 

[BIG WOOD]

The first thing that came to mind when I saw being charged hourly, is I feel you put yourself in the position as an employee. We should charge by the job, not by the hour. That's what makes us professionals. We should know an average of how long it'll take to do the job. If you charge hourly, that'll put your customer in charge of the job, and I think the main problem you'll run into is your customer butting in the job looking over your shoulder the whole time, making sure you're working.

 

[BIG WOOD]

And while you're working, you'll probably get your customer changing the job while you're halfway done, because you're taking too long, when, if you charged by the sq. ft or by the room, they'll appreciate you not being in a hurry, and you'll remain in control of the job the whole time

 

[Joel D]

People would absolutely flip here if I tried that.

Most have no idea how much it costs to run a business like this and probably think I should be making $35 an hour. If I tell them your hourly rate, especially on the phone-click.

Once the job is done and they see the final result they don't care so much.

 

[jwfoulk12]

I dont think hourly would ever work. When a customer starts realizing what we make per hour thats when the issues start. Ask Meg...
Ive had many jobs where I make 3-400 per hour but you also have to factor in the times that you work for free or next to nothing. It all evens out in the end but the customer never would see that. They would just see the hourly and think you are farming it.

 

[Onfire_02_01]

My advise, so take it for what its worth, is to simplify your package pricing first. While you may understand everything and how it works together, your customer is already trying to compare apples to pears when they are getting quotes. Make it easy on them to understand what you are offering.
I use to offer 3 cleaning packages $30 per room, $45 per room, and $55 per room. Some people wouldn't get it and would just see $30 per room is cheapest and I will take that one. I dropped the $30 per room and now only have the $45 and the $55 options. My average ticket went from the $30 a room to $55 a room because they see the "value" difference between the two options where before they were only seeing the "price" difference, since price is default setting when someone doesn't understand what is being said.
Just remember Americans are stupid and need to be bottle fed everything, the shorter the sound bite the better.

 

[Onfire_02_01]

I dont think hourly would ever work. When a customer starts realizing what we make per hour thats when the issues start. Ask Meg...
Ive had many jobs where I make 3-400 per hour but you also have to factor in the times that you work for free or next to nothing. It all evens out in the end but the customer never would see that. They would just see the hourly and think you are farming it.

I heard a story once, cant remember who told me. A cleaner went into a house to solve an issue, 1 spot or something simple like that, he charged the customer several hundered dollars to fix the issue and spent about 15 min doing the fix. The customer was irate that he charged that much for so little work. The cleaner calmly said to the client, you didn't pay for the 15 minutes of work that I did. You paid for the 15 years of experience that allowed me to fix your problem in 15 minutes.

 

[Desk Jockey]

...and the customer kicked his smart azz out on his can.

 

[Bob Pruitt]

I don't get the package pricing for residential at all. Why would there be 3 prices to clean the same carpet? Bronze Silver Gold... or whatever. People not getting the gold standard are going to feel like they didn't get the best job for their money. Not a recipe for life long clients and cheerleader clients IMO. Next guy that comes along and includes vacuuming, light furniture moving, pre-spray...has a truck mount in a van even sprays a scotch guard on her traffic lanes is the guy that gets the gold. Congratulations on the A+ rating with the BBB.

 

[FB7777]

Bingo Bob

 

[hogjowl]

He's Mormon; not Catholic.

 

[tmiklethun]

Thanks all. I think I will probably trash can this idea.

When I get in front of the client I close about 90% of my bids, but over the phone I am only getting about 60% closed. Trying to figure out a more friendly way to explain over the phone.

The way I do my packages play really well in the home, but I have to be looking at the condition of each room to make it work.

Here is what I can tell my clients. I offer customized cleaning packages based on the level of soil in each room. This way you will always get exceptional results without having to pay for unnecessary steps to achieve the results.

Basic cleaning is Pre-vac, extraction only with a mild ph soap free emulsifier and an enzyme deodorizer, rinse baseboards, groom. This is designed for low use rooms that have a dusting, but no traffic patterns or spots. Think spare bedroom

Certified clean adds prespray. powerscrub with CRB, extract with same rinse as above and groom. For normal soiling, normal traffic patterns and carpet matting.

Certified deep clean Includes above with speed drying and anti resoiling spray to eliminate soil wicking

When in the home and I can point to each room and say here is why I am doing this package here, it works really well. I also get some low use rooms that I didn't use to get when I say. This room only has a dusting so I only recommend my basic cleaning to freshen it up which is about 30% cheaper then my normal cleaning. (I think I actually make more on this package, based on production rate)

Trying to say all of that over the phone without looking at the carpet I tend to lose people.

To fix this problem do I need to bite the bullet and just try to do upfront inspection for all new clients?

 

[hogjowl]

Buy a vacuum. Hack!

 

[tmiklethun]

Are you talking about me??

He's Mormon; not Catholic.

I don't get the package pricing for residential at all. Why would there be 3 prices to clean the same carpet? Bronze Silver Gold... or whatever. People not getting the gold standard are going to feel like they didn't get the best job for their money. Not a recipe for life long clients and cheerleader clients IMO. Next guy that comes along and includes vacuuming, light furniture moving, pre-spray...has a truck mount in a van even sprays a scotch guard on her traffic lanes is the guy that gets the gold. Congratulations on the A+ rating with the BBB.

Thanks Bob, I understand what you saying about packages but I do mine very different. Read my above post I would enjoy your thoughts on it.

 

[tmiklethun]

Buy a vacuum. Hack!

I have a kirby sentria,

I include vacuuming with my normal prices but will discount the price if the customer vacuums before I arrive

 

[Cleanworks]

...and the customer kicked his smart azz out on his can.

Oh, was that you?

 

[Cleanworks]

Thanks all. I think I will probably trash can this idea.

When I get in front of the client I close about 90% of my bids, but over the phone I am only getting about 60% closed. Trying to figure out a more friendly way to explain over the phone.

The way I do my packages play really well in the home, but I have to be looking at the condition of each room to make it work.

Here is what I can tell my clients. I offer customized cleaning packages based on the level of soil in each room. This way you will always get exceptional results without having to pay for unnecessary steps to achieve the results.

Basic cleaning is Pre-vac, extraction only with a mild ph soap free emulsifier and an enzyme deodorizer, rinse baseboards, groom. This is designed for low use rooms that have a dusting, but no traffic patterns or spots. Think spare bedroom

Certified clean adds prespray. powerscrub with CRB, extract with same rinse as above and groom. For normal soiling, normal traffic patterns and carpet matting.

Certified deep clean Includes above with speed drying and anti resoiling spray to eliminate soil wicking

When in the home and I can point to each room and say here is why I am doing this package here, it works really well. I also get some low use rooms that I didn't use to get when I say. This room only has a dusting so I only recommend my basic cleaning to freshen it up which is about 30% cheaper then my normal cleaning. (I think I actually make more on this package, based on production rate)

Trying to say all of that over the phone without looking at the carpet I tend to lose people.

To fix this problem do I need to bite the bullet and just try to do upfront inspection for all new clients?

Your customers don't know what the fook you are talking about. They don't talk "carpet cleaning speak". The 60 % are just tired of talking and the 40 % can't afford to hire some one who won't thoroughly clean the carpet.

 

[tmiklethun]

Your customers don't know what the fook you are talking about. They don't talk "carpet cleaning speak". The 60 % are just tired of talking and the 40 % can't afford to hire some one who won't thoroughly clean the carpet.

I think you underestimate the intelligence of our clients. They can understand the level of soiling in a carpet. They can understand a dirtier carpet would benefit from a more aggressive cleaning.

The carpet cleaner talk was for the benefit of this board. To my clients I talk the benefits of the steps. I am assuming that I don't need to explain the benefits of powerscrubbing with a CRB on matted traffic lanes.

I am trying to figure out if you were attempting an insult or if you just typed it weird. Are you suggesting that I don't thoroughly cleaning the carpet?

 

[Cleanworks]

What I am suggesting is that those customers who choose the cheaper package understand that you are not cleaning the carpet as thoroughly as you would if they paid you more. I think you need to leave your options open a little so that when you arrive on a job and it is more heavily soiled than you thought, you can explain to the customer why it will cost more than you quoted on the phone.

 

[tmiklethun]

What I am suggesting is that those customers who choose the cheaper package understand that you are not cleaning the carpet as thoroughly as you would if they paid you more. I think you need to leave your options open a little so that when you arrive on a job and it is more heavily soiled than you thought, you can explain to the customer why it will cost more than you quoted on the phone.

What they understand is if the carpet just has a dusting of soil with no carpet matting or traffic lanes it doesn't require and aggressive cleaning to remove the soil. If I can remove the soil and have the carpet looking great at a basic cleaning and it's .10 a sq foot cheaper then a more aggressive cleaning. Why would I make them pay for steps they don't need to get the job done.

They also don't really "choose" the package. I assign the room the package they need for each room during the cleaning evaluation. I then show them what I will do in each price and give them the total price. They approve it or they don't.
I actually don't quote it on the phone. I tell them about the customized cleaning package and will even tell the square footage cost of each package, but i can't quote it until I see the job and look at the soil level.

Some just want a quote over the phone. I think they are normally looking for the cheapest price.

 

[Cleanworks]

I agree that if the first thing is the price, they are just shopping. I just find it more effective (for me) to sell them on all my steps at the highest price, then suggest I may discount my price if the job is easier.

 

[Nate The Great]

I could never sell a "power scrub" or "rotary extraction" as an upsell... It's included in the job.. Selling a cleaner carpet is for the bait and switchers...

I quote one price that includes whatever it takes to get the carpets clean... Don't package a cleaner carpet, package furniture moving and protection/deodorizer.... IMHO

 

[FB7777]

Agree Nate

I don't want my landscaper charging more cause the grass was "extra long " this week

I understand offering options but clean is clean

Every transaction has become so complicated, just walk into a cell phone store and have them explain all the charges on your bill

My customers like the no BS pricing

 

[tmiklethun]

Sorry, but I think you full of shit Nate. I have been in business for 15 years and a great reputation. I have never been accused of bait and switch, which by the way is quoting an extremely low price over the phone, or in an ad, and jacking it up when you get into the house.

My number one priority is getting exceptional results, but not every carpet requires the same level of cleaning to achieve those results and l have to say if you guys are forcing your clients to buy steps they don't need to pad your bills I believe that is unethical.

If I can get an exceptional result in one room doing a more basic cleaning, because it is a low use area, saving my client money while making the same profit everyone wins. Sure you can get the same result doing the extra step and overcharge the client, but then only you win.

My clients don't see it as me charging them more for long grass, Fred. They see it as me charging them less if they were taking good care of it themselves.

 

[tmiklethun]

I agree that if the first thing is the price, they are just shopping. I just find it more effective (for me) to sell them on all my steps at the highest price, then suggest I may discount my price if the job is easier.

Yeah I have taken that approach too.

Something like "based on your estimated square footage the bill shouldn't go above $XXXX, but if some of the rooms are lighter soiling I may be able to bring that price down. I prefer to bid on the high side and then drop the price if I can, rather then quote you a low price and jack it up when I get there."

That approach works for many, but I am sure some just hear the price and the low ball price and take their chances.

Maybe I just need to accept that I will lose some of them and not worry about it.

 

[PrimaDonna]

I wouldn't go that route. Some people work slower than others. Some have better tools and equipment that make them more efficient.

You open yourself up to a customer critiquing that it should not have taken so long etc. The only way I see this working is if you can estimate very well and tell the person upfront, how many hours it will take to do the work. If you are ahead of schedule, you better pace yourself so you finish on time so they don't want to pay you less. If you estimated wrong and it takes you longer than you thought, you cannot go back to them and tell them they owe you more.

If you are a O/O, think about times you may be pulled away on the jobsite to take a call etc. What if equipment breaks down and then you have to stop to fix it. Are you able to keep track of the cleaning hours vs. you doing maintenance on the machine while at the customers house? Sounds like a hell of a lot to keep track of. Have them pay for what they are having cleaned.

Certified clean adds prespray. powerscrub with CRB, extract with same rinse as above and Groom. For normal soiling, normal traffic patterns and carpet matting.
Certified deep clean Includes above with speed drying and anti resoiling spray to eliminate soil wicking

Now all of us here know what you mean by this....but the average home owner has no idea. You're speaking a new language when you say CRB, Groom, Anti resoiling....They need it in laymans terms. Bottom line, will my carpet be clean when you are done with it? That is what the customer wants to know!!

Maybe you loose them cause of all the tech talk. They don't want to look stupid by asking what does that mean. Dumb it down. Maybe change the package names.

"We offer a maintenance or touch up clean for $X. Typically that is for a spare room or one that gets used once or twice a year between cleanings. Our second option is our standard package. This typically is for areas that get frequent use but aren't necessarily showing a lot of soiling. You can't see dark areas from soil coming off your shoes from where you walk. This may be your bedrooms that get daily use but you are in socks or by the time you make it up the stairs the soil has come off your shoes on the first floor areas and stairs. Our last is our restoration package. It costs X and we add steps that allow us to remove the deeply impeded soil that you see in traffic lanes and includes specialty spot cleaning. We also apply carpet protector with this option."

Then ask them, "Based on these descriptions, which do you think you need? If you aren't sure, I can price it more than one way and then I'll help you determine what is needed once I arrive".

That being said, I see some issues with this. It's still a boat load of information to throw at them. They are put on the spot trying to determine what they need. They may have a combination of packages they need and then it's very confusing to figure out the cost for doing Maintenance in the guest room, standard living in the Dining room and restoration package on the area coming in from the garage and the stairs and hall. You are already going to be a tolerated inconvenience coming in to their house and disrupting things. Now they have to think more about it. The other cleaners they called didn't have so many choices. I'm overwhelmed so I'm going with the other guy, because seems simpler. If you do it the wrong way you risk that.

BUT, this could make you stand out and differentiate yourself from the competition. Some clients will really like that. This is one of those things that you need to test it out for a month and see how it works. If you have a higher close rate then stick with it. If it's the same or less, then time to revisit. Best of luck!