Aggravated!

BLewis

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Billy Lewis
While at our first appt today, I received a call from office (wife) saying the 11 had called and she had did some price shopping and had found her 3 rooms (2 rooms and set of stairs) could be cleaned for $79. She told the office that 3 different carpet cleaners had quoted her that and she wanted to know if we would honor that price. I told the wife no we couldn't, so she went with one of the other cleaners and now "she" called and said to cancel her neighbors 1 o'clock cuz they were going with the same cleaner. WTH! Here I was planning on increasing prices next spring and all the cleaners here are going down. One company has 5 billboards adv. 3 areas for $89. I did away with the truck fee earlier in the year but, don't plan on going down anytime soon on pricing. Insurance, fuel, groceries aren't going down any are they! I know I shouldn't be this upset over price shoppers however, we turned down other jobs when these were scheduled for today.

Well, I guess I will enjoy my extended weekend.
 

Charlie Lyman

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Don't worry about it. It seems like I go through times where that happens. Then I get busy and forget about the price shoppers.
 

Dolly Llama

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Rant away if it makes feel better, Bro..just buck up and put it behind you

it's a fact of life
We've all had our "throats cut" by competitors .

and the truth is, no one's cost of doing biz is the same.
That outfit doing the $79 deal may very well be doing a great job and making more profit to boot due to having lower costs


Nature of the biz (any biz)


..L.T.A.
 

Desk Jockey

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Billy
That sucks when that happens and it usually makes you question your pricing. However just as you mentioned your costs are not going down, so an occasional discount that still allows a reasonable margin probably wouldn't hurt you much. Now price matching someone else s price with no regards to your overhead really could.

You'll never be able to fit in everyone's budget and this sounds like an isolated incident. I wouldn't worry about it, I'd just keep moving forward!
8)
 
G

George V

Guest
I'm working to reduce overhead.

Diesel is about $3.39 gallon here.

My next rig will be an absolute fuel miser!

I got a few TM's in mind to help reduce overhead.

Nordic1, Savage, and anything with under a 13hp engine.
 

Ken Snow

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It is the new economy folks, even the "rich" are price shopping things. Adjust your costs, adjust your attitude and make money. Or consider it an isolated incident (until it isn't) and move on. 3 rooms for $79.99 price point is very profitable in my opinion, especially if you wow them and have add-on sales of more cleanig or Scotchgard.
 
G

George V

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Ken,

Do you still send a two-man cleaning crew on every job site?

I'm amazed!

The upsells must be your bread and butter.
 

Johnny

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It's quite possible that $79 job will cost her a lot more. Low-ballers around here jack up the price once they get to the job.

One even bragged to me about it. When I asked him how he could work so cheap, he said: "I bet I walk away from the job with more than you do."
 

sweendogg

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.. or what if the guys show up with a porty in a car, with no customer appeal, and leave it wet for days because they didn't take the time needed to clean it well.
 

Brian R

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I would have spoke to the customer myself...even given an in home quote.

I usually tell people that a company will usually have low prices over the phone and then try to raise them once they are in your home...this is true.
It's really is true for every company but the lower the ad price...the more likely they will try to price gouge you to make up for the other ones they couldn't.

The higher the price over the phone, the more likely they will stick to that price.

I wouldn't have said "no" over the phone and left it at that...I've had this happen plenty.

"let me have a look at the carpet and I'll give you the best price possible. I will try my best to match that price".
 
G

George V

Guest
i can't recall the number of times low-ballers have called wanting me to match prices.

I'd always refer them to Jaurez Carpet Care for the cheapest prices and then give em Ron Lippolds phone #.

shiteatinggrin
 

sam gm

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Hate when that happens, be differnt and do good work.
Stick with quality, it will always prevail.
People just want value, cant blame them. Once u get ure foot in the door,
Let them see why there paying a little more.
When its slow do what you got to do to eat, theres no shame in it.
Eventually you can turn down those low ballers.
 

Desk Jockey

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Ken is the real profit on the job the upsell? I think when we job cost we would struggle to get out of the red at $79.00. Don't your guys also have a great closing rate on protector sales also?
 
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I did that business model for a few years. Three and a hallway for 49 dollars and upsold deodirizer, protector, and rotary scrub on most jobs. My repeat rate with those customers was pretty low, but I also did not market to them like I should have.
 

BLewis

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Sorry guys for getting bent out of shape. I had tried to call the 2nd appt myself (her home number) to "verify" that she wanted to be canceled as her neighbor instructed, however she was apparently still at work. However, the phone rang while I was in the office and it was a Church calling to get pricing on some spot cleaning, my wife said hey we can come and give you an estimate today and if you like it we would be able to do the job today as well. So, I just got back and we landed that job (small one) still more that what I would have made on the 2 houses. They were really pleased and said they would be getting the whole Church done after spring semester was out and they would be calling us back.

Yeah, someone mentioned it, and was correct, this happens very rarely to us, the second appt. I have done work for before even an emergency service for cat pee, so this was the one that bothered me. I looked back and saw that her previous jobs had the truck fee added so that was probably an issue. However, I will make sure in future correspondence to her that I let her know we dropped the truck fee. All of my clients will be receiving our Christmas cards here in the next few days. And we are going to announce the truck fee has been dropped in our next newsletter that will go out in the spring.

Also, a good comment about bending a little from time to time so as not to loose potential customers.
 

Ken Snow

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Doc Holliday said:
Ken is the real profit on the job the upsell? I think when we job cost we would struggle to get out of the red at $79.00. Don't your guys also have a great closing rate on protector sales also?

We will make a profit on virtually any job size as our crews are commissioned. The gas/supplies are relatively inexpensive and I would rather have full crews going out day and night than trucks sitting with all the office, warehouse, fleet, maintenance, telephone, benefits, etc., etc., not being offset by revenue coming in.

Yes, we have a pretty high rate of closure for protectant. Also a $79.00 over the phoine quote is just for the clenaing intended. If the client is amazed at the work and adds an additional room, a flight of stauirs, a sofa/loveseat etc. the cleaning portion of the ticlet can go up quickly. We have many jobs every day that call in at 59, 79, 99 that end up being 200+ just in cleaning. That is without any of the so called B & S selling, which we do not do, just additional cleaning.
 

Royal Man

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Price shopping is just part of this business.

The right kind of marketing can keep it to the minimum or even make it non-existent.

By doing such things as selling value and insuring trust with your marketing.

Ironclad guarantee, photos of your work, testimonials, positive on-line client reviews , building referral groups and having referral systems can almost eliminate price shopping.
 

dday

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meAt said:
...and the truth is, no one's cost of doing biz is the same. That outfit doing the $79 deal may very well be doing a great job and making more profit to boot due to having lower costs ...Nature of the biz (any biz)...

Ken Snow said:
We will make a profit on virtually any job size as our crews are commissioned. The gas/supplies are relatively inexpensive and I would rather have full crews going out day and night than trucks sitting with all the office, warehouse, fleet, maintenance, telephone, benefits, etc., etc., not being offset by revenue coming in...

Two excellent posts - For a long time, as an owner/op, I did not appreciate these facts of business. Rather, I myself took the "my price is my price - take it or leave it" stance. However, if I learned one thing from the recession, it is this - getting a prospect to pick up the phone is the hardest part of turning a prospect into a paying customer. I cannot afford not to convert each and every call, especially when the calls get fewer and farther between. And once I get them scheduled, I will not allow them to break that appointment over price!

I now to take the position that I can beat anybody's price, so long as the customer understands that I will have to match the other cleaner's service level as well. Hard costs for simply pre-spraying and HWE'ing a few rooms is relatively low. My higher priced packages are higher priced because when I pre-scrub, and especially when I pre-vac and pre-scrub, the time factor/job increases substantially. I can steam clean as quickly as the next guy. And if I have a choice between making $158 to prespray and steam clean 2 rooms and a set a stairs in two homes in the same neighborhood, or to sit in front of my computer and post to an internet forum about how aggravated I am that I am now making $0 because I turned down the $158 ... with all due respect to the OP, I'd take $158 seven days/week 365 days/year. After all, I am already out on the road, and I already have the truck, the equipment, the gasoline, the supplies, and I've already paid for the advertisement that prompted them to pick up the phone in the first place! How can I not do the jobs? Since they are neighbors, even working by myself, without a helper, I'd be able to finish both jobs in about two hours including chit chat - And all with no aggravation on my part.
 

BLewis

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Excellent point DD. I am still new to this thing so I will live and learn, haven't been through the ropes as much as you and others here. Like I said before it doesn't happen very often so maybe next time it does I will take the jobs. Thanks for your input
 
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Hey Bill hows this lots of mail outs they say $6.95 a room any size well that never happens. Some guys charge less for the more rooms they do. The larger cleaners are 4-rooms $99.00. Then others have $150.00 min. charge ,so it,s all over the board. There is work out there but you need to know what your needs are. jz.
 

Steve Toburen

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BLewis said:
Excellent point DD. I am still new to this thing so I will live and learn, haven't been through the ropes as much as you and others here. Like I said before it doesn't happen very often so maybe next time it does I will take the jobs. Thanks for your input
There are many ways to your definition of success in this industry, Billy. That is what makes it so great.

Steve Toburen
http://www.SFS.JonDon.com

PS I recently wrote a three part ICS series on "Dealing with the Value Client' which basically means how to negotiate with a price haggling, high end customer and still keep your dignity and your profit margin. Matt is installing MS Office 2010 on my computer so i can't access them. I'll try to post some of the high points tomorrow.
 

Ken Snow

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Well said by all. Know your costs, know what your market is and adjust as you feel you are able.

Ken
Ps We never need to lower our price to the 6.95 price point prospects, we advertise our pricing so they already are calling someone else. We get who we target, which is middle to upper middle class primarily with a healthy dose of upper class, esp in our rug care spa.
 

joe harper

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BLewis said:
Excellent point DD. I am still new to this thing so I will live and learn, haven't been through the ropes as much as you and others here. Like I said before it doesn't happen very often so maybe next time it does I will take the jobs. Thanks for your input

Billy,

I happen to DISAGREE....with d day...!

This is EXACTLY why our industry is and always will be ....considered a UNSKILLED
profession..! When you call a plumber or an electrician..You EXPECT to pay a minimum
service CALL of a least $150.00..!

Their tools of the trade..."investment"...are minuscule compared to our "INVESTMENT"..!

Try calling a plumber..@ 2 am in the morning and ask them..."to meet another plumbers price"
CLICK... :shock: This is a business...you should KNOW your "profit margin's"...!!!!

NEVER...let the client "KNOW you are DESPERATE"...! One of the reasons we charge by the
sq. ft. is to offer ALL clients a consistent RATE...! If you drop your price for 1 client on 3
rooms & a hall...and she tells her friend.."That referred YOU"..you charged HER less than
the referring client... :shock: You have now PISSED-OFF and lost a good client..!

If you make ENOUGH profit...on you service...You CAN afford...to let the EQUIPMENT sit
in the YARD... !gotcha! KEN's,advice while is GOSPEL for his business modle.! Does not
apply to the O/O.."so much".. :idea:

You having 1 or 2 trucks sitting in the YARD..for a day is survivable..! If 30 trucks sit in the YARD...a couple of days he will loose a months PROFIT... :shock: "I can ONLY speak for
MYSELF." But EVERY-TIME we have taken these type of client's...WE GET "BIT-IN-THE ASS"

JUST be PATIENT....These low-ballers...NEVER last more than a year... !gotcha!
Don't crank the TRUCK...if you can't..make a profit..!!!!!!

HINT....always keep enough MONEY in the bank...To cover 1 months EXPENSES.... :idea:
Then you want have to "LABOR" over these dIlEMmAs... 8)

ps..{John Olsin}.."Not ALL money ....is good money"
 

dday

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HARPER said:
I happen to DISAGREE....with d day...!

This is EXACTLY why our industry is and always will be ....considered a UNSKILLED
profession..! When you call a plumber or an electrician..You EXPECT to pay a minimum
service CALL ...


1) The level of skill required to be a competent carpet cleaner is no where near that required for the trades mentioned above. We are not doctors or surgeons, lawyers or accountants, electricians or plumbers. So what? No one "price shops" for a neurosurgeon. But carpet cleaning is not brain surgery, now is it? There is no shame in being a carpet cleaner, so do not let yourself fall into the "self-esteem" trap that causes many o/o's to pass over dollars for no sound business reason but only that of pride.

2) The need for a plumber or electrician, especially at 2 AM, is nearly always out of urgent need. Carpet cleaning is almost always a discretionary purchase. Not always, but almost always ... for example, when I used to do water damage, I honestly can say I was never price shopped at 2 AM. They needed me, and they needed me an hour ago!

3) I never act out of desperation, hence my caution above to make sure the customer knows that the level of service I can provide for a lower price is not going to be equal to the level of service I provide at the higher quoted rate. For as long as there have been carpet cleaning bulletin boards I have read of this "imagined" and much warned of problem of angering one customer because you provide one of their referrals service at a lower cost than that paid by the referring customer. All of my advertising makes clear that I offer three different levels of service, and this is renforced through my contact with the customer. If Sally buys my two rooms for $104 and gets pre-vac through Scotchgard, she will not be angry if her twin sister Suzy buys my two rooms for $60 but gets only pre-spray and steam clean while their mother Betty paid $89 for pre-spray, pre-scrub, and steam clean. Get it?

4) Low-ballers do not last, but those who provide a reasonable quality of service at a fair price thrive so long as they maintain pricing consistent with that quality.

5) a. Keep enough money in the bank to cover six months expenses and do whatever you need to do to never, ever have to draw it down. Saving money is hard. Once it is banked, spend it very, very reluctantly.
b. This is courtesy of my good friend Ken Raddon - In addition to the above six months living/business expenses, save sufficient dollars for January, February, & March living expenses and Spring marketing costs. Winters are much more relaxing and much less stressful if you are sitting on three months living expenses and your spring marketing campaign money. If you have money left over as the spring cleaning season ramps up, add it to your retirement account. Each year you should save anew for the winter dead season.

6) Most of the cliches you read in carpet cleaning internet forums are so far removed from whatever kernel of truth inspired them as to make them not merely worthless, but dangerous. If I had learned this sooner, I'd have had a much easier time during this past recession.

7) Not all money is good money ... but most of it is. Certainly a truck sitting in the yard for a day or two is survivable. But a truck out making $158 has just covered its liability insurance cost for a month or two.

Be real, be realistic, and and do not confuse diligence with desperation. I don't pretend not to know what it is to be desperate. I wish I could say that I am as rich and well-to-do as your typical bulletin board carpet cleaner. But that is not the case. Adhering to many of the bulletin board sacred cows nearly took me down. Adopting the type of good sense exhibited by folks like Ken Raddon and Ken Snow (something to do with the name Ken, perhaps?) allowed me to turn things around and survive.

There is no shame in getting work and keeping work.

And brother, there is no pride in a parked truck.
 

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