Raising Prices!

[Driguy]

I work for a guy that believes $55 for initial area, and $25 per area after that is all most to much to ask for when cleaning carpets.

I was taken on to show him that he should not only be charging more for his services, but he should be marketing to higher end clients.

FINALLY i got a break through this week. We landed a job in a 1.5 mil dollar condo from a phone book ref.

The owner usually pre-quals the job over the phone, and sets a price based on area. this guy was a clean slate when i showed up.

turned a $150 clean into a $400 clean by raising his area prices 25%. and the customer still thought it was cheap.

so proud of my self

 

[Harry Myers]

Driguy raising your prices will only benefit you. And when you get more comfortable . You will raise your prices more. The carpet industry whether cleaning or installing has always been a low balling procedure. people need to start getting on the same page.

 

[Driguy]

Yes, and the owner is extremely skeptical about raising the prices for every one. But i said just go $10 at a time. and blame the increase on things like inflation, gas prices and the cost of doing business. Those that appreciate the quality of work we do will stick around.. Those that don't. Well our increased prices will cover the loss of those PIA customers

 

[Becker]

1.5 million condo?

I have no idea if that is the norm in your area. did not look.

but wouldn't look odd if the owner of the condo compared notes with a friend in a lesser or avg house.

so was the price increase because it was a pricey home? figured they could pay it?

don't price of a standard price sheet?

either way. if you are working for him, then he must be doing something right.


btw. I hope you got to keep the overage.

 

[Driguy]

No, there are some disagreements on what some one with knowledge i have, and lack of training he had to put into a new employee is worth.

that's a sore subject at the moment. He is only paying 17% of what i bring in. that is not include the hours i spend on his clerical work, gassing his vehicle, and advising him on water damage business practices.

 

[steve r]

you need to take your own advice and charge more than 17%.

 

[White-Magic rebuilder]

you need to take your own advice and charge more than 17%.

Now that's a good one!

I'll hire you at 20% if you are good as you say!

 

[Driguy]

My point is not to talk Bad about how his business has been run for the past 10 years, but it was very exciting to show what raising prices on your services by a marginal amount can do to the profit you bring in each day.

if it costs 500 a day to run the business and you bring in 150 a job and do 4 jobs a day that is 600 bucks. if you turn those same jobs into 300 dollar jobs but lose 2 jobs a day its still 600 bucks.

I plan on spiking the prices on all of our added services as well. It may move us out of apartment complexes but i hate doing those $55 jobs anyway.