Has anyone tested flat rate pricing?

[smastio]

Travis - Is the reason that you started this post because you wanted others opinions "because" you are seeking "more" business or trying to polish up your approach? If it is, then I would try and think more like a marketing strategist than a bio-chemical engineer. What do they want? Yes consumers want a great clean at a fair price, but according to your stats on the phone you're striking out twice before you get a hit. These people "I assume new" are taking the time out of their day to learn about you. Are you telling them how the watch works or giving them the time? Your goal on the phone should be to meet them and then dazzle them with your charm and skills. Might I suggest that you put a informational video together about 60 seconds to introduce yourself and explain, without confusing them, why they need your particular skill set. I wonder if they would rather just watch that then spend the time on the phone. I would, and I'm a consumer. I'm going out on a limb here and suggest that you really aren't interested in letting them book themselves! LOL You'd be surprised, but I know that's not going to happen. There is an old saying in sales that after you have made the pitch - SHUT UP! He who speaks next loses. I seriously have waiting silently for about 30 secs before just waiting for their verbal thoughts on my pitch. Could you be interrupting them as they are internally processing. Try it sometime. just stop and let them process and let them tell you what they might be thinking. FYI - I'm NOT saying that you are interrupting, because I don't even know you... I'm just saying be aware of it. Merry Christmas!

 

[tmiklethun]

Prima Donna. First thank you for you well thought out input.

Second: How do you only quote pieces of post. I was going to quote you but it pulled your whole quote and I wanted to respond to pieces of it.

I agree with you on the hourly rate as I looked over the past week of jobs it turns out I would have lost money on several jobs and the one thing I was always thought was a problem is the customer scrutinizing every thing I would do and the time spent doing it.

As far as my customized cleaning packages I sell it to my client much different then I listed above. I listed the steps here because I knew everyone here would know what it means. When I talk to my clients it's all about benefits and needs.

I also don't have them pick the package as the consultant I advise them what they need.

The one thing that has become clear in this discussion to me is that I need to focus at getting in front of the prospect for an cleaning evaluation. Trying to do it all the phone does become cumbersome and I need to see the condition of the rooms anyway.

Thanks again for the response

 

[tmiklethun]

Travis - Is the reason that you started this post because you wanted others opinions "because" you are seeking "more" business or trying to polish up your approach? If it is, then I would try and think more like a marketing strategist than a bio-chemical engineer. What do they want? Yes consumers want a great clean at a fair price, but according to your stats on the phone you're striking out twice before you get a hit. These people "I assume new" are taking the time out of their day to learn about you. Are you telling them how the watch works or giving them the time? Your goal on the phone should be to meet them and then dazzle them with your charm and skills. Might I suggest that you put a informational video together about 60 seconds to introduce yourself and explain, without confusing them, why they need your particular skill set. I wonder if they would rather just watch that then spend the time on the phone. I would, and I'm a consumer. I'm going out on a limb here and suggest that you really aren't interested in letting them book themselves! LOL You'd be surprised, but I know that's not going to happen. There is an old saying in sales that after you have made the pitch - SHUT UP! He who speaks next loses. I seriously have waiting silently for about 30 secs before just waiting for their verbal thoughts on my pitch. Could you be interrupting them as they are internally processing. Try it sometime. just stop and let them process and let them tell you what they might be thinking. FYI - I'm NOT saying that you are interrupting, because I don't even know you... I'm just saying be aware of it. Merry Christmas!

What I was actually looking for was simple. Had anyone tried hourly pricing and how did it work out?

It seemed to turn into something else.

I am a big believer in video, have several on my site, and just before I read you post I decided I would do a video on my pricing philosophy. Great minds right??

Yeah I don't talk to my clients the same way I talk here.

I do have an online scheduling page on my website, but find that my current clients will use it. New clients typically want to talk to me first.

Why did you ask about that? Do you have thoughts on it?

 

[Shane Deubell]

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?

Simple thing you can do to increase phone closing is make an outline up in word (or whatever) and offer to email it to people who don't schedule right there. This should increase your rates 10% easy if not more.

The problem for consumers is we all have different definitions of clean, different number of steps, some include furniture moving some don't, some vacuum, some dont. So its just easier to put it in writing and help them compare fairly. People don't really know what they are getting, just help them.

 

[smastio]

What I was actually looking for was simple. Had anyone tried hourly pricing and how did it work out?

I do have an online scheduling page on my website, but find that my current clients will use it. New clients typically want to talk to me first.

Why did you ask about that? Do you have thoughts on it?

LOL - Clear your Calendar my friend! LOL Stand by for NEWS....

 

[steve_64]

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

It's not an up sell but if it's that nasty it will cost more to clean. If they take care of their carpet and make my job easy I charge a flat room rate
On the phone I explain it like this
$60 first room $40 each additional. If I need to treat for odors or heavy soiling I need to see it first. My increases are typically $25 increments. If I have to move furniture the price goes up. I don't mind moving a couch or chair out to clean behind and block or tab it so move out what you can.

The hourly rates work themselves out when quoted right.

I have very good closing rate on the phone too. Most calls are repeat anyway.

 

[smastio]

Travis - you said, "I do have an online scheduling page on my website,... "
No you don't, you have a FORM people can take their valuable time to complete only to wait by the phone for your return phone call to tell them that the time they said "THEY" were free is when you are busy. How would you feel if southwest airlines called you, interrupted your dinner and told you that the time you took to complete the rather lengthy form informing them of your interests of when you want to fly - was all for nothing! It really wasn't their availability or pricing! Probably not very good - huh? My guess is that when people tell you on the phone what they think they have and you price it based on that information, you change it quite often when you get there. See where I'm going with this - Get the client commitment first! Tell them "EXACTLY" when you are free based on what "THEY TOLD YOU" they wanted you to do - then the onus of order is on them. Your job is to get them in the ballpark of expectancy, not to be a neurosurgeon with your pricing. Millennials, who built the internet coincidently, will have no part of this type of approach. NEWS FLASH - Millennials have more purchasing power than any other group alive today! If you would like to see how others in your area do it, drop me a line.

Travis - G Howie wants your services... "Below really makes my point"...

Thank you for using on online scheduling form, you will be thrilled you choose Integrity Cleaning Systems for your cleaning needs. If one of your two requested appointment is available we will email will an appointment confirmation. If neither appointment is available we will call you to choose another available appointment. Feel free to look around the rest of our website, there is a ton of great information. Have a great day

 

[ruff]

Travis, threads always change into something else, its the norm here.
60% on the phone is not bad at all.

If your current way of doing it works well then keep it. On the other hand, there must be a reason why you're considering a change.
The sentiment that was expressed here is that you're selling "good,better, best", while it should all be best, as far as the quality of the cleaning. Therefore if you add something it should be something additional that has nothing to do with the quality of the cleaning.
To a certain degree they are correct and you run the risk that this is how it would be perceived by your clients (potential or existing.)

We all run our businesses differently, I charge by the square foot, never give an in home estimate and always charge more if the carpet was neglected and requires a restoration cleaning due to neglect and soil saturation. Therefore, I disagree with Nate. IMHO if he is charging the clients whose carpet is relatively clean the same as the trashed ones, he's ripping them off. In other words the clients with the clean carpets subsidize the ones with the trashed ones. Not fair.

All methods of pricing work, as long as they are presented well and people get the sense that you are honest and hard working, which I know you are. Some methods, like pricing by the room, make it faster and simpler to give an estimate. Working by the hour can be very fair to the client as long as they do not get the impression that you are dragging your feet, by the square feet works too. In every system you need to be aware what the clients "objections" (fears concern) may be and address them in advance.

Which method works better for your personality or business needs?

 

[tmiklethun]

Travis - you said, "I do have an online scheduling page on my website,... "
No you don't, you have a FORM people can take their valuable time to complete only to wait by the phone for your return phone call to tell them that the time they said "THEY" were free is when you are busy. How would you feel if southwest airlines called you, interrupted your dinner and told you that the time you took to complete the rather lengthy form informing them of your interests of when you want to fly - was all for nothing! It really wasn't their availability or pricing! Probably not very good - huh? My guess is that when people tell you on the phone what they think they have and you price it based on that information, you change it quite often when you get there. See where I'm going with this - Get the client commitment first! Tell them "EXACTLY" when you are free based on what "THEY TOLD YOU" they wanted you to do - then the onus of order is on them. Your job is to get them in the ballpark of expectancy, not to be a neurosurgeon with your pricing. Millennials, who built the internet coincidently, will have no part of this type of approach. NEWS FLASH - Millennials have more purchasing power than any other group alive today! If you would like to see how others in your area do it, drop me a line.

Travis - G Howie wants your services... "Below really makes my point"...

Thank you for using on online scheduling form, you will be thrilled you choose Integrity Cleaning Systems for your cleaning needs. If one of your two requested appointment is available we will email will an appointment confirmation. If neither appointment is available we will call you to choose another available appointment. Feel free to look around the rest of our website, there is a ton of great information. Have a great day

Well I guess I don't need to respond to that scheduling request. LOL

Yes I guess mine would be considered a form if you are comparing it against giving them access to my actual schedule and letting them "hard" schedule themselves in. I have never really had a problem with it, but like I said it is normally returning customers using the form. I also have a fair amount who have just started texting me for availability.

I don't know a lot about "hard" scheduling systems, but my initial concern would be two fold.

One they won't know how long to schedule the appointment for. Maybe a program could figure that out with a series of questions.

More importantly I have a large service area, Phoenix AZ and I make a strong effort to group my appointments whenever possible.

If they had total control of my schedule I could be traveling 30 - 40 minutes between each job.

If they have no flexibility most of the time I will bite the bullet or occasionally I will refer them to another cleaner in my network.

I am so stupid sometimes that I didn't even realize you were selling an online scheduling system.

So I will ask you if your type of systems work better in smaller markets or how you control the "route issue" for a 1 truck company in a large market.

 

[tmiklethun]

It's not an up sell but if it's that nasty it will cost more to clean. If they take care of their carpet and make my job easy I charge a flat room rate
On the phone I explain it like this
$60 first room $40 each additional. If I need to treat for odors or heavy soiling I need to see it first. My increases are typically $25 increments. If I have to move furniture the price goes up. I don't mind moving a couch or chair out to clean behind and block or tab it so move out what you can.

The hourly rates work themselves out when quoted right.

I have very good closing rate on the phone too. Most calls are repeat anyway.

Do you cap the room size? How do you deal with a bedroom that is 60% furniture? I have never tried room pricing so those were honest questions. No attempt to be sarcastic.

 

[tmiklethun]

Travis, threads always change into something else, its the norm here.
60% on the phone is not bad at all.

If your current way of doing it works well then keep it. On the other hand, there must be a reason why you're considering a change.

Just end of year planning stuff.

You know what they say "The enemy of great, is the good"

 

[PrimaDonna]

Trying to do it all the phone does become cumbersome and I need to see the condition of the rooms anyway.

That eats up a huge amount of time to pre inspect every job. Useful strategy for the guy just starting out that wants to build credibility and gain trust with clients as they are building a reputation. Once you get to a point of repeat and referral business, the people already know they want to use you before you even quote. The price is a non issue because they know you are the one for them because of the recommendation from others.

We price by the room. Flat rate. Do all quotes over the phone. I ask a lot of questions so I can let them know where this verbal estimate may vary once we get there. Always more for pet urine contaminate, but we won't know how much it till we are there and evaluate. But I can give them price per "area" and how big an area if for us for the water claw process for pet urine. Some require more elbow grease and work if they are heavily soiled. Others don't need much. It all averages out. But, if you target the right clientele, they don't let their carpets get to the point that it takes all this extra work to clean them. Stay away from the people who let their carpets get trashed and then want a miracle for a low price.

To quote just a part of a post, use your mouse and click on where you want to start. Drag to the finish and a box will pop up that says Quote me. It will only quote what you have highlighted.

 

[BIG WOOD]

In my prices over the phone, I always quote high

If it's a new customer, they almost always object to it. I tell them this is a high quote because I don't know the condition of it and it's always easier to go down on the price than go up. I'm close to 90%closing on my price shoppers because they appreciate me being up front

 

[Nate The Great]

My pops started in this business the year I was born, going on 33 years this April... We learned the right questions to ask over the phone... We charge by the square foot for cleaning... I was never a "wand" only cleaner... I've always had RE tools and scrubbers at my disposal... To each their own...

I'm not saying your a bait and switcher, all I'm saying is I couldn't sell a cleaner level of clean... If I can't get it clean to the best of my ability, then I won't do it which is rarely...

 

[steve_64]

Do you cap the room size? How do you deal with a bedroom that is 60% furniture? I have never tried room pricing so those were honest questions. No attempt to be sarcastic.

I don't measure but L shape rooms or great rooms are two rooms or more. Furnished bedrooms are still a room and master bedrooms can be two or one and a half. Stairs are a room also.

It's really simple and easy to explain on the phone for estimating phone estimates are just an estimate but I try not to change it unless I feel I was being misled.

 

[Nate The Great]

My pops learned early on if pricing by room, have a SF limit on room sizes.. Explain that to the customer..

But if charging for 2 rooms when it's less, isn't that "padding or overcharging"... I prefer SF pricing over room pricing..

 

[Cleanworks]

I think sqft pricing is the way to go. I have been doing this long enough so that I can usually give a ballpark price over the phone. I let them know that I will measure accurately when on site and the price may fluctuate a little either up or down. I give discounts for cleaning traffic areas only. I am always prepared for a heavily soiled carpet and if it's not so bad and I finish early, I may give a bit of a discount. I try to steer the conversation away from price and concentrate on meeting the customers needs.

 

[Chris Howell]

We base our services on an hourly rate. $375 per hour for residential work and $900 per hour for commercial work. We don't disclose these rates to the customer, however. For example, if a commercial bleach spot repair is going to take half an hour we charge $450.00 We simply determine how long the repair will take and quote the customer our pricing based on the hourly rate.

For full room dyeing and our ColorClean process we charge by the square foot. Commercial carpets are $1.10 per square foot and residential jobs are Dollar $1.50 per square foot.

 

[WillS]

I think explaining all the packages over the phone might be confusing your customers, leading to why your booking 60% of calls. I don't want to brag (maybe a bit), but we close 95% of calls. The ones we don't, are just used to the whole house cleaning for $69 cleaners.

The reason for this... it is easy to explain our pricing. $45 per room. Up to 250 sq. ft. $60 per room if traffic is heavier/more stains. Pee problems? Sure $85 for up to 2 rooms to remove urine and enzyme treat. A potential customer when told can understand that 250sq. ft. is about the size of a standard bedroom. Larger rooms add on $20. (Considered room and a half). I don't think Mrs. Baker really knows the total sq. ft. of her master bedroom. So do you want them to measure it out or half them guessing what your price might be? Did Alfredo the Carpet Cleaner she called before you explain pricing in a more simple manner to her than you are? The thing I hear from so many customers is........... the booking was so easy compared to other companies I called.

The $45 per room is for furniture in the room or not. When a customer asks, "Well there is furniture in one room that isn't being moved" I tell them no problem! Sometimes customers prefer not to move furniture, but we can work around things just fine. If I have to go into more detail with a PIA caller, I explain we also include Hallways/Closets free so this makes up for any sq. ft. the furniture in those rooms is taking up. "Oh we don't have any hallways with carpet" Well... its included as a courtesy.

I see so many ads on facebook now with carpet cleaners advertising, $40 for basic cleaning $60 for deep cleaning, etc. As a consumer who maybe only cleans their carpet once a year before finding you, how do I know what I need? Advertising your TM's as the best ProChem or Sapphire, or Best Zipper, or Best CRB, no one knows or cares about that. Maybe .0001%, and they are ex carpet cleaners. All of your cleaning in my opinion should be deep cleaning. Otherwise, why not as a competitor I advertise against you that, "We only offer Deep Cleaning, don't just have your carpets basic cleaned for the same price" or some shit like that.

I am glad most any of my competitors aren't on this board. I wouldn't want them reading @smastio posts about FittleBug. I'd rather them stick with simple online forms and respond to customers hours or days later, while my customers book right away.

Stick to making pricing & cleaning simple so you have more time to talk to Mrs. Baker about her new puppy that pees all over the carpet and what breed it is. You'll close a lot more.

 

[FB7777]

This place feels more like ICS every passing year

 

[Desk Jockey]

Red board exaggeration? Oh my!

 

[Willy P]

I charge $700 a room for traffic lanes, $1000 for a flight of stairs (tread only, riser is another $1000 and $3000 for a 3 seat sofa. I never get price objections.

 

[FB7777]

Not bad Willy

I hear if you add carpet coloring you can retire in 6 months

 

[Willy P]

Not bad Willy

I hear if you add carpet coloring you can retire in 6 months

I dye everything brown. If you want I can get you some of the brown dye concentrate pictured below. It's very expensive though.

 

[hogjowl]

I see that Jimmys been there.

 

[Chris Howell]

You'll never know until you try

 

[tmiklethun]

The reason for this... it is easy to explain our pricing. $45 per room. Up to 250 sq. ft. $60 per room if traffic is heavier/more stains. Pee problems? Sure $85 for up to 2 rooms to remove urine and enzyme treat. A potential customer when told can understand that 250sq. ft. is about the size of a standard bedroom.

There is no doubt room pricing is easier over the phone. For me though it seems a bit unequal. On a 10 x 10 room with furniture you may be charging close to $.80 a sq ft or $250 an hour. On a room thats vacant and 200 sq ft you are only charging $.22 a sq ft or about $120 an hour.

If I was a poorer customer with smaller rooms I would feel like i was getting a bit ripped off, compared to a person with a bigger house paying less. Customers may not run the numbers in their head the way I just did, but it wouldn't work on me.

Obviously it works, you have a great company. I just personally wouldn't feel comfortable with it.

If I am doing a in home audit, I will beat by the room guys all the time. On the flip side I think I lose phone booking to room guys.

 

[Cleanworks]

I think sqft is always a more honest way to go. For example, I clean 2-bedroom empty apts for $150. These usually have about 600-650 sqft. When you take out the kitchen and bathroom areas. However, I have a luxury building where a 2-bedroom apt is 1800 sqft. No, I don't do that for $150.

 

[steve_64]

My prices would be higher if I was charging by the sqft. My customers are getting a good deal and I explain to them how they are not being charged for measuring or extra trips for estimating.

A room full of furniture can take longer and usually does than an empty room. It all averages out.

 

[Mikey P]

Your new customers should already be convinced about your skills and trustworthyness from your online reviews, your reputation learned about from thier friends or your sincere and unique website.

When and price range should be a short discussion on the phone

Your first discussion in thier home should hardly be about carpet cleaning.


90% or more don't want nerdspeak.
Technical advice should be shared via blog link.