Re-thinking your prices

[CleanEvo]

There's some discussion in the Clean Room regarding cheap cleaners, it led to a good point brought up by Gary C. He pointed out that the guys on this board who are able to charge more than most of us have carved out a niche for themselves and their customers like to pay more because they prefer quality and they know what they are getting. We all know those customers are out there, but if we keep advertising "average" prices, they may never call us.

I have been struggling with my pricing, which would fall into the "average" category...$400 - $600 per day (that's average in my area). Now that I have my TM on order and am going to be increasing my overhead significantly, I really need to think about where I want to be with price (I really want to get to the $1000 per day mark)

Do I just start advertising higher prices? Is there some secret formula that I'm not aware of? I may loose out on some of the work I really don't want anyways, however I'm not interested in starving either.

Any suggestions?

 

[Al]

I would just raise them, I'm sure others will tell you to do it by the penny, so nobody will notice. I jumped my price up significantly as soon as I found out you could. TY to Ron Curtis for that.

You can do it with new callers and see how it feels. It's your business.

I have been helping a friend CC'er and he raised his prices and sells by the SF now and is doing 700. dollar jobs all of a sudden.

Why be so concerned with what the others in your area are charging?

Sure I like to know what the comp is charging but it doesn't regulate my prices.

We just had a team meeting, with the topic being "how would we try to out do our company if we were our competition." We continually try to provide more value to our service.

We are so different, we have no competition.

 

[CleanEvo]

Thanks Al,

So do I even advertise price?

 

[-JB-]

No

Advertise service; value; quality

Answer this this question for your customers ...

"What's in it for me?"


.... easy yo say harder to do.

 

[Guest]

We raised our prices 85% over a two year or so period several years ago. Hardly anyone noticed. We lost more jobs over the phone but what we got more than made up for it. I can remember only one customer raising her eyebrows. It was an eye opening experience.

 

[Jimmy L]

In order to succeed you have to first learn how to spell "Lose".

 

[John Watson]

We specialize in cleaning clean or lightly soiled carpet for a premium price. We insist on leaving most of the heavily soiled ones to the other guys. Helen gets upset when I work her to hard...

When we do have a job that is heavily soiled we increase our rates, Of our regular clientele we hardly ever get a rejection. They know time is money and like the lady speaker at connections said (Senior moment, can't remember her name) Our clients have money, they love to pay us because they will just go make more!!!!!

 

[CleanEvo]

In order to succeed you have to first learn how to spell "Lose".

Kinda like Loser?

 

[Ron Werner]

I remember a story of a painter who advertised that he was the most expensive in town. Now, it was only this one call, but this lady phoned him up, asked if he was the most expensive, he said yes, she said come on over.

Advertising that you are higher priced will certainly eliminate a lot of price shoppers, so you will save in time and phone costs (esp if on a cell).

As was already mentioned, advertise the service and that it is far above what most have experienced. Keep marketing and then keep following up with those that choose you above the rest, thank you cards, follow up phone call ie quality control, reminders, and newsletters. Have a good referral program and encourage referrals. After a while, people won't even ask price except new clients. Raise your price with them first.

 

[Guest]

Ask whatever reasonable price that you want.

That's it. Ask.

If they ask why so much tell them you gotta make your modest profit. Remind them that they are calling for a service. Services cost money, especially your quality services.

If they can't afford it then let them rent the rug doctor or let a bait and switcher show up and quote them a price that is probably much higher than yours. Even if you don't make this sale, keep sending them postcards. They may not bite this time, but there will be a next time.

I don't think that increasing your prices a few cents every week or month is worth it. You may think that you are easing into it, but the fact of the matter is the customer is going to call you only once every six months to a year, so in that time frame they will not have been slowly immersed into you slowly increasing rates, they will just see it all at one time. So go ahead and increase your rates NOW to what you need to get the per hour amount required to be profitable.