Most times I'm $89 per room and the last ten jobs we have no complaints if they ask for a deal I just try and feel them out, when they see the results I'm getting things just go great
Let me say what I said before "you set your price on cost plus production rates".
You said you charge $89 dollars per room.
Let's think like the customer.
I went on Stanley Steemer used their price calculator for zip code 02205.
Here is what they are asking
$175 tip min
- 1 room $73 dollars but you still pay the trip min Your price $89 Your 49% less
- 2 room $66 dollars each but still tip min Your price $178 Your 2% less
- 3 rooms $57 dollars still trip min Your price $267 You cost 36% more
- 4 Rooms $53 dollars per room $212 Your price $356 you cost 41% more
If I was a client in this area comparing you an unknown company to the largest most well-advertised carpet cleaning company in the USA. I wouldn't even think of using you. You are more costly.
I would say most would agree the average job is probably 3-4 rooms, hall and a set of stairs.
Yes you are cheaper for 1-2 rooms but then it is no contest you cost too much!
Thinking like a client remember.
At this rate you are 30 -40% more than the largest name in the industry.
Maybe a one room client might give you a chance. But after that why would I risk using an unknown cleaner compared to the biggest name in the industry?
Sure some will want a local guy, most will not care. Its carpet cleaning not heart surgery few have loyalties in the beginning.
Seeing that most consumers are totally clueless to what good cleaning is and
this not the point of this exercise, you on price alone are out of the game before you ever get in the door.
Only 40% of carpet is ever cleaned, so most of your clients will probably have used another cleaner. They might use you, see how expensive it was and just move on. You also have the disadvantages that others like SS and I am sure there are quite few truck mounted great companies in your area have been in their home.
You are arriving with a portable and the bucket brigade. They are arriving with clean hoses and a shiny wand. How does that appear to the client? What are they thinking?
They the national franchise will show up with a bright shiny truck uniformed technicians, two of them, corner guards, mats, with their name on them, shiny service specific brochures and professional technical presentation. Don't forget the nice commercials during prime time TV?
- You are arriving how?
- How are you presenting yourself?
Your biggest problem is getting in the door.
I would address the competitive advantageous others have on you.
What makes you a value? Just saying I do a better job is not going to be the answer on this one.
You may have to buy market share.
If you are looking for a magic flyer, coupon or ad that is the silver bullet there is none.
Their are some strategies that will work and bring in cash very quickly.
Think about these areas of your business.
- Are you competitively priced to your market and experience? You do not have the luxury that many of the top cleaners on MB with 20 years’ experience and refined customer list have to be the most expensive guy.
- Do you look like a national franchise? A crappy logo on a polo shirt, khaki shorts, business card and 2 foot square magnet on the side of your min van will not get it done.
- Are you an industry expert? Standing in the isle listening to your local distributor try to pitch his home made juice is not professional training.
- Do you have a system to how you are running your business? Set pricing, taking calls, setting appointments, follow up, warranty. All of this is in writing?
- Can your customer find you? Do you look like a real business or a ghost that shows up from time to time? Website, Address people can drive to and find you, social media accounts, and references.
It is tough being the new guy and it takes a focus on lots of things to find a place in the market.
Let me end with how I started. If you can not get your cost and production rates to be competitive or better than your established competition you will not make it in your market.
That is the law of the jungle.
I am launching a new retail line in our flooring store and we are asking the same questions. How do we compete against 100 year old companies with 50,000 sf show rooms? It is not easy.
You can do it! I and many others on here started with crappy equipment no name, no money and only a dream.
Good luck. Again feel free to call.