Raising our prices letter

[Jamesh921]

Anybody got one they're willing to share?

Thanks

 

[Desk Jockey]

James we never send a letter we just raise them.

It's usually just a penny a sq/ft or two at most, so we just raise them.

 

[Ken Snow]

I agree with Richard- no win in sending a letter. 1. It may give them a reason to shop and 2. You are spending money to promote a negative.

When we have raised prices barely anyone has noticed and the rare time they have we let them know it has been X since we last raised our price and costs of most everything in our business have gone up. Rarely has anyone still had a problem with it.

Remember we are not really very important in the lives of our customers. They do not keep track of a trivial thing like the cost of carpet cleaning that is done every 6 months to 2+ years.

 

[Desk Jockey]

Like Ken said very few if any will question the rate increase. Those that do question it's easy to justify why. (Chems, fuel, insurance, utilities, tech's, taxes.)

Gezzz it time to raise rates again! :mrgreen:

 

[Jamesh921]

I was thinking of sending it to new accts, especially commercial accts. Raising prices by 1.5¢ per sq. ft. adds up quick on a commercial acct.

 

[Wayne Miller]

People generally accept the idea that prices go up. When we finally started raising our prices we jumped in 2 to 6 cent increments several times over a couple of years or so. Hardly anyone noticed or cared.

It's not nearly as big a deal to your customers as it is to you. Why try to make a big deal out of it?

 

[Desk Jockey]

You're right on larger sq/ft, that cent & half will add up $150.00 on 10,000 sq/ft.

However I might still wait until they call for service to let them know.

 

[Ken Snow]

If I got a letter telling me this, it would certainly trigger getting new quotes. Sending to commercial accounts is an even bigger no-no in my opinion. Wait till the next sheduled call back date to let them know.

 

[Brian R]

I concur with the responses.
Why tell your customers "Hey, we are raising our prices so you may not want to use us anymore"?

You may not be saying it....but that's what they're gonna hear.


spelling edit...thanks Ken.

 

[Ken Snow]

That is exactly what I would hear (not here :-) ). Why spend money to tell someone to go get other quotes?

 

[Steve Toburen]

Anybody got one they're willing to share?

Thanks

Sounds like it is unanimous, James. Your idea really stinks! When you have 3 of the smartest people in the industry (plus Richard!) all in agreement you better pay attention!

Steve
www.SFS.JonDon.com

PS I would really, really work my numbers before I bumped a regular commercial account by 1.5 cents. If you truly are losing money on it sure- go for it. But the second someone raises their price on me it triggers an automatic response- "I'm going to put this out for bid". So just don't do it emotionally.

BTW, Chavez is pretty smart too.

 

[Lee Stockwell]

Wal*mart is always advertising price "rollbacks" and often show them on their signage. Regular shoppers of those product happen to know that the prices actually are going UP over time. The "rolled back" prices have usually taken a recent hike, and were subsequently rolled back a little bit.

They NEVER advertise a price hike, or say "buy now before the price increase".

 

[Ken Snow]

Good one Steve- and I agree that it is very dangerous to raise prices for an existing comm account.

 

[Desk Jockey]

Sounds like it is unanimous, James. Your idea really stinks! When you have 3 of the smartest people in the industry (plus Richard!) all in agreement you better pay attention!

:shock:

:mrgreen:

James
Are there ways to increase productivity so as to maintain profitability on those accounts needing the increase? I'm not saying don't increase but if there are ways to be more productive maybe you don't need such a sizable jump. Encap or Op less soiled areas using HWE in only the areas that need flushing?

 

[Steve Toburen]

Are there ways to increase productivity so as to maintain profitability on those accounts needing the increase? I'm not saying don't increase but if there are ways to be more productive maybe you don't need such a sizable jump. Encap or Op less soiled areas using HWE in only the areas that need flushing?

This is a discussion board at its finest, James. You are getting "priceless" advice from some of the best minds in the industry and it is all free!

Richard makes a good point. We get so wrapped up in how to charge more (nothing wrong in that!) we forget about the other side of the "profit equation"- PRODUCTIVITY! Now you can only go so fast with the home owner watching- but on most commercial work you can let 'er rip!

Steve
www.SFS.JonDon.com

PS As a perhaps extreme example of not raising prices when I sold my business we were still doing the first monthly account (a small restaurant) I ever picked up for the same exact price I bid it at sixteen years earlier and we were still making money. How? I bid it at doing it with a portable and 16 years later we were ripping through it with a high heat truck mount plus we had the job down like a "routine ballet". so once again, if you NEED to raise your prices go for it. But do so with the knowledge you are "opening Pandora's box".

 

[Brian R]

My first property manager that I acquired was a little upset when I had to raise the price on her 2 cents. Even at that price she was and is the lowest priced account I have. Luckily she is in love with me so she was OK with it. She even said it was still the best "value" she could find. We cater to her so she was OK with it.

So another thing to consider is how good is your relationship with the accounts you want to raise...or need to raise? Are you willing to lose them if things don't go well? Are you trying to lose them unless they pay more? Can you do better with or without them?

Like said, don't let emotions out number the numbers.


Edit: Oh and Mr. Steve, I pale in comparison to you either you or Ken in the brain dept. Most of what I say has probably been said by either of you....Chavez? Not so much. lmao.
J/k Chavez...I'm pretty sure it's safe to say you have be by a nose.

 

[Desk Jockey]

Hey I never claimed to be shhhmart!

I just listen to them that is and regurgitate it. :shock:

 

[Brian R]

Hey I never claimed to be shhhmart!

I just listen to them that is and regurgitate it. :shock:

You're smart Chavez....































Not like people say.



















:mrgreen:

 

[Desk Jockey]

Ass

 

[Willy P]

Hey I never claimed to be shhhmart!

I just listen to them that is and regurgitate it. :shock:

 

[Desk Jockey]

:shock:
Sick!




Does she have underwear on?

"Nate the Great" on Richard's PC

:mrgreen:

 

[Willy P]

:shock:
Sick!




Does she have underwear on?

"Nate the Great" on Richard's PC

:mrgreen:

Yep - These ones.

 

[Desk Jockey]

I was kidding....ummm Nate was kidding! :mrgreen:

 

[Brian R]

Ass

!gotcha!

 

[Jamesh921]

Well, two things are settled then -
1). I won't send out a "Raising Prices" letter and
2) Willy has a very sick girlfriend shiteatinggrin

 

[Willy P]

2) Willy has a very sick girlfriend shiteatinggrin

Spitter, not a swallower. :shock: