Best strategy for going high end?

Jim Williams

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If a person wanted to go from a middle market cleaner to high end, what is the best strategy to make the move. Just raise prices and hope all your customers don't jump ship?

Price your current customers only slightly higher than they are now until you build up a good base of high paying clients?

Any thoughts?
 

Rob Lyon

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Raise the value and create a (USP) unique selling proposition or
an (evp) extra value proposition.Call or E-mail me and tell me a
little about your company and I will See what I can come up with.





All The Best, Rob
 

Numero Uno

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What Rob sez,we have numerous usp-s...

You should tweak them to the type of client you are facing either comm/res...

but you also need to enhance there perception of you...

make phone calls to ask if they need a spot removed,ask them how it looks a day or two after.Thank You cards and so much more...

The sublimely will understand this cost money what you are doing,you are raising the level of customer service big time...

So your costs should reflect that,but be aware you raise your prices with out a image change and the above extra steps...

You might lose more then you hope to gain...

I remember a fella in Ct.Nice fella that listened to posts on BBS,and had marketing skills but never really put .You can have all the ingredients t o bake something.

But if you do not go in the right order,measure and allow for time to work...I aint eatin it...They wont eat it ,and you wont neither...

But if you do,it will be awesome...Catch my drift...

Make a list of truck image,uniforms,etc and go tweak anything you can...
 

Jim Williams

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Does this mean I have to buy a vacuum cleaner, some booties and cornerguards?

Seriously,, I think I am already projecting a pretty professional image. Nice shirts and pants, nice looking van, and the customers are thrilled with my cleaning, one lady almost cried after she saw how clean it was.

I do have some high end clients as well as poor folks, but in order to really provide a good living for my wife and kids I'm going to have to make the move or work myself to death in the middle market.

I would love to take you up on your offer for some over the phone advice Rob, thanks!

Great advice,,keep it coming,,please.
 

GRHeacock

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Here's a thought, that has worked for me.

I solicited referral business from interior designers and high end stores, and antique dealers.

Some I got, some I did not get as referral sources.

The really high end customer won't go for a flyer, a post card or door knocking.

But when the interior designer who the customer has spent $500,000 with wants something cleaned- they will ask the designer first. And usually go with their recommendation.

This way, there is no competition to get in the door of these customers.

BUT!! Ya gotta be able to handle $10,00 silk rugs, $15,000 silk sofas, and other custom made items that cost the customer a bundle.

For instance, one customer had custom made 27 inch narrow loom Wilton Carpet, custom dyed pink, widths sewn together, and fitted WTW in the living and dining rooms. Not something you see every day now, but was common in the 1930 and 1940's, and rare but still available today- for a price.

Same customer had a $15,000 silk velvet sofa, matching easy chairs and ottoman in the living room, all dyed pink, silk dining chairs, also pink, upholstered walls, pink too, even upholstered walls and ceiling in the Master Bedroom, all pink. I originally went there to take out fingerprints of the delivery men on the sofa. I told her that I was silk specialist, and also an expert with Wilton wool carpets, and they had to be cleaned every 6 months minimum.

I made a lot of money at this one customer's house over the next 4 or 5 years.

And guess what. She had friends who were in the same financial boat, and of course she referred me to her friends.

One friend had 2 silk sofas in the Music Room, and their cat urinated on one of the sofas. WHO ya gonna call? Someone in your own circle to see who she used. And that's ME!!

So... a niche is great, and in my opinion, should be part of your marketing strategy.

I let other cleaners know I was a silk specialist too, and they referred me to their customers when the cleaner would not or could not do work for their customers on special items.

Gary
Proud inventor of the Furniture Kickstand.
 

Jim Pemberton

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Take Rob Lyon up on his offer.

If you look where he lives in PA, its in the "Anthracite Coal region" of our state. Its a depressed area no matter how you cut it. Rob knows how to target his key prospects and is rapidly building a good business up that way.

Nice of you to offer help, Rob.

Two more points:

Mike's questions: What you need to make in Pittsboro is likely not what Mike needs to make where he lives. When discussing what price should be charged, its not just what the client will pay, but what it costs you to be in business in your area.

Odin's point: He and I have discussed some sad stories of cleaners who have bought into packaged marketing programs and who (for a variety of reasons) did not benefit from them. (How's that for a tactful translation of your comment, "t"?)

My concern is that sometimes there is a tendency to think (as regards marketing programs) that "one size fits all" across our country and in every community. Before you make such an investment, why not share with us the demographics of your area, then people here who market in similar regions can share what has worked for them.

Look at the great tips you have already gotten from Gary and Caesar; those alone are worth thousands of dollars.
 

Jim Williams

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Thanks for all the replies guys! You are right Mr. Pemberton, the info. here IS worth thousands.

To start with I live in one of the fastest growing areas in the country near research triangle park. Plenty of doctors and scientists and folks making good money.

Right now I charge $90 for the first 2 rooms and $40 for each additional up to 250 sq. ft. then .30 per ft. and I am considered almost high for the middle market. There are guys down the road cxharging alot less.

We also have a large wealthy retirement community I advertise in with postcards, but even those folks seem a little tight.

The cost of living here is alot lower than in the northeast or other areas, but slowly rising. I don't need to make a fortune, I can survive as long as I can pay myself $30,000 a year, but who wants to just survive? I want to send my girls to college someday.

Anyways thanks for the help!
 

JohnnyV

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People in Retirement communities are not going to pay to have their carpets cleaned....not much anyways....Neither or people under 30 unless its because they're moving and they want their Deposit back. Then they won't pay anything. I think Don was talking the other day about demographics and it was mid 30's to early 60's, professionals with Kids and pets. Those will be your bread and butter.
 

-JB-

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But if you do not go in the right order,measure and allow for time to work...I ain't eatin it...They wont eat it ,and you wont neither...

But if you do,it will be awesome...Catch my drift...

What is really more important to me than being a "high end" cleaner is to keep our service a priority to those that do use you. I started out at $10. a room 15 yrs. ago and now earn a very comfortable living at .XX cents a sq. ft. but the price is really reflective of the time you spend on a job. To get .XX/ sq. you should/ better be doing a hell a of a lot more than you did at $10 a room. When I was $10 a room I would work 5-7 jobs a day, now I do 2 maybe 3 and make twice as much in the course of the day, HOWEVER, the cost of doing business is a lot higher, I spend a lot more time "giving " thing s to my clients now than I did before, but I also have much better knowledge of who they are, and why they choose us.
So in the end do what you like. Like what you do. That is all that matters ultimately. (holy crap I sound like a cheap tee shirt)
 

Jim Pemberton

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John just hit on something that I agree with:

There are a number of marketing programs that tell you "how to get the big bucks", but not all of them tell you that you have to be "worth the big bucks" to charge for them.

As John says, he does less jobs for more money, but he isn't necessarily making it easy for himself. What it takes to show the value of that higher charge is more work.

Its not just taking several extra steps to clean the carpet, though that will deliver an "ultimate job", its often other services and guarantees after the sale and throughout the year that keeps that customer coming back to him.

I know a few people like John who deliver what they charge for, and keep their customers coming back.

But I know more who buy into a "marketing package", find a way to "sell" a premium price, but after the bill is paid and a few days pass, many of their (now former) clients get buyers remorse and feel they paid too much for a job that, in all fairness, is just the same as someone who charges less.

Find the price you need to charge to get the children through college, then make sure you're worth it.
 

Steve Toburen

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Good points from Jim P above, Jim. And certainly there is nothing wrong in attracting high end customers. But let me ask you a question:

"Is your business 'broke' or does it just need tweaking?"

Here's why I ask. You already have a business model you are comfortable with. And evidently you are making a living with loyal customers. You just want more and nothing wrong with that. But before you basically tear apart and reassemble your company why not work your numbers.

For example, calculate what would happen to your bottom line if starting right now you raised your prices across the board 14%. This doesn't sound like much but remember this is 14% of your gross charges. And it will all go straight to your bottom line.

Why 14%? Two reasons:

1. Numerous studies have shown that people do not notice increase (or discounts) until they are at or above 15%!

2. For the few customers who even comment on your higher pricing (most won't even notice because they can't remember what they paid last time) you just calmly mention, "Yes, due to higher costs our accountant (me!) said we had to increase our pricing by 14% this year to stay even." 14% instead of a round number like ten or fifteen percent gives you more credibility.

Before you go through the agony of basically starting a new business with a whole different (and a much smaller) group of customers why not try this approach? When your previous customers call to book just say, "Let me pull your paperwork. OK, now what would you like us to do on this visit ... All right, I have you down for the living room, dining room, hall and the master bedroom. Your total with Scotchgard protection will be 187.45 and we will be there next Tuesday, January 16th at ..."

This is a subtle way of getting the price increase out in front of them. For the ones who say, "That seems kind of high", you offer the cleaning without Scotchgard. If they still complain use your "accountant line" from above and then wait for them to speak. The vast majority of the minority who even mention it will book with you anyway.

Steve Toburen CR
Director of Training
Jon-Don's Strategies for Success

PS Jim, why don't you suck it up and try this for a week? I think you will be amazed. Our biggest problem on charging more is our own insecurity.
 

GRHeacock

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You are NOT your customer. You do not know what they might or might not pay for a service.

You can say- "I would not pay $xx for that" but it does not mean someone else will not.

What car do you drive?

What kept you from buying a Lexus, Mercedes or Hummer?

Money?

"I would not pay that much for any car" is most likely.

However, plenty of people do buy a Lexus, Mercedes or Hummer every day, and that keeps the dealers going.

What is more, the individual profit per Mercedes is more than the individual profit on a Ford.

Of course, the quality of a Mercedes is higher than a Ford.

So, you do have to deliver the quality for the price, but certainly can be done.

Post bonnet. Use an Airpath for fast drying.

Or anything that is different and better than your competition.

Everybody and their uncle has a big fire breathing Truck Mount, so don't try and compete on that level.

Gary
Proud inventor of the Furniture Kickstand.
 

The Great Oz

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bryan
If a person wanted to go from a middle market cleaner to high end, what is the best strategy to make the move. Just raise prices and hope all your customers don't jump ship?

Price your current customers only slightly higher than they are now until you build up a good base of high paying clients?

Having a higher-end clientele is something you have to transition into over time, and doing this requires a certain level of technical skill and speaking ability as a base.

You need time to gain experience - take the courses and attend the events where cleaners meet and talk - to develop confidence. Quiet confidence means more to a customer than any amount of techno-baloney. This is number one.

Realize that how the customer feels about how you treat them and their furnishings is far more important than how you out-clean the other guys. This is 1-A.

You need to study other businesses to see how they advertise to those clients. Have you ever seen a Mercedes brochure that was all text with plenty of typos for "homeyness?"

The remainder of running your business is just maintaining a profit margin, which would require similar skills at any given price point.
 

Rob Lyon

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Thank you to all for the kind words. I am not a marketing
business but did help several franchise's grow rather quickly
The biggest marketing tool you have is your self, everything
else comes secondary.

Please call me when you have time, and I will be glad to help
any way I can.I am working back and forth with marketing ideas
with Craig Linquist and coming up with a lot!!!


My office # is (570) 443-8508 or (570) 760-5558

All The Best, Rob
 

Jim Williams

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Jim Williams
Wow! Where else can you get this much advice from carpet cleaning Gurus?

I'm definitely going with a price increase this year no matter what I do. Thanks for the advice on that Steve, and thanks everybody.

To tell you the truth, I enjoy working in the middle market. The folks I target are not the super rich, but they are in nice homes, and there are some great customers in my database. I just need to have the nads to charge a little more I guess.
 

Rob Lyon

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Rob Lyon
Sounds like you found the right market, they defiantly spend
the most and are usually your best referral source.



Best of luck, Rob
 

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