Real life no Internet answers please

[dealtimeman]

Are you happy?

Are you making money?

Is you company flatline or are you growing?

Are you working just to eat and provide for your family?


I am trying to understand the pricing that I am currently seeing in my local market. I don't have kids and just got married last year, so I don't have the great responsibility of providing for children or taking care of a financial burden like old parents yet.

I want to know what is a good reason for pricing that I have been seeing and what is driving it down lower and lower. Competition is good but cut throat is bad for all.

 

[Chris A]

Yes
Yes
Not sure yet. Last year was a huge growth year for us, so Im nervous about this year

Im working to live, eat, fix up my stupid house and make the payments on the toys, hopefully with enough left over to put a little gas in the boat

 

[Steve in Omaha]

"I am trying to understand the pricing that I am currently seeing in my local market. "

Dude, you have too much time on your hands, yer way over-thinking it. If you are providing the same service as the lower priced guys racing to the bottom...quit now.

On the other hand, if...you keep your equipment and truck spotless, wear a uniform, are neat, polite, somewhat intelligent, wear shoe covers on every job, respect your customers property and are getting most of your work via referral...your customers will pay you a huge premium over the unshaven, t-shirt / blue jean wearing smokers that show up that just dgas.

namaste

 

[Royal Man]

I'm doing well.

Sales are up.

If pricing is cut throat in your area the best thing toi do is just don't participate.

Let the other guys fight for jobs by price.

You just won't play that game.

Problem solved.

 

[Ken Snow]

I don't believe there is any downward pricing in our industry, maybe just a few more at the bottom end due to easy entry into the field. There have been $4.99 a room to $9.99 a room cleaners forever and I suspect they give their customers at least some semblance of that value unless they are true bait and switch.

Find your niche, price what you do accordingly, market the heck out of yourself and hopefully you will be in a place that you are content with. What that means for you will be different than anyone else~ as it should be.

Ken

 

[Ken Snow]

Dave- problem solved does not put food on the table or make the phones ring. Action does that, however that works for someone.

 

[Desk Jockey]

Are you happy? Always dude, I'm alive and kickin so I'm smiling!

Are you making money?Yes.......but I'm spending it too!

Is you company flatline or are you growing? Shrinking, 8-fewer people (technicians & office staff) from when the economy first took a slide.

Are you working just to eat and provide for your family? Well, yea! :shock: What else do you mean?

I am trying to understand the pricing that I am currently seeing in my local market. I don't have kids and just got married last year, so I don't have the great responsibility of providing for children or taking care of a financial burden like old parents yet.

I want to know what is a good reason for pricing that I have been seeing and what is driving it down lower and lower. Competition is good but cut throat is bad for all.

For us we are very much affected by the weather, even though we don't travel to hurricanes. If we miss a cold snap or two or if it doesn't storm then we are going to have a down year. Our month can change on a dime, for instance last week we had rain for a several days straight, no big storm just a lot of rain. Between the rain work and a hot water heater and a pipe break we had a dozen WDR losses last week. 8)

 

[idreadnought]

Do you think that mercedes gets worried about the low priced cars that exist. there will always be low priced carpet cleaners. I am not saying that charging a premium like mercedes does is what you should do but it is an example.

I believe your pricing should reflect what it would cost to pay someone a reasonable amount to do the work plus company profit.

I figure a minimum of $80 per hour working time and 6 hours a day of working time. That is $480 per day.

Many times the prices you see are bait and switch pricing. 9.95 per room wouldnt cover my expenses and I'm sure they wont cover theirs. They must be adding something to it for a profit to be realized.

Another dynamic, in my opinion the right customers expect to pay more for a service like ours and wouldn't call that type of company because they realize that it is too cheap for a quality job.

First you need to figure out if you are being effecient, We figure on 500 sq feet an hour. Second you need to figure out what it really takes for you to make money and price your service accordingly.

 

[Dmreed4311]

I love what I do, I really do enjoy getting up every morning and cleaning carpet and tile.
I have a healthy family and a fully funded retirement and I make a great living.
Will I ever be a huge multi truck operation? Hell no, two trucks is fine for me.

My wife on the other hand is a regional manager for a large property managment company and hates when the alarm goes off and usually has a horror story about her day at least a couple time a week.

 

[Brian R]

Price on image... Not on price.


You need to relay to the public who you are before they know who you are.


I can afford a lower price but I also have an image that will justify a higher price in the end.

If you think the "low price" guys are getting a low price at the end of the job... You are wrong.


The real issue is whether or not they are giving the customer what was paid for... Bait n Switchers will grab that high price and not perform for it.

They weed themselves out.

 

[Royal Man]

Dave- problem solved does not put food on the table or make the phones ring. Action does that, however that works for someone.

It really is that simple Ken.

Just don't play the price game and instead I recommend that his company emphasises all the other great things his company offers other than price and as you said advertise USP.

Don't just be like all the rest.

If he does then it only leaves price as the determining factor for prospects.

This is marketing 101

He now needs to work on USP and build business cred.

 

[Mike Draper]

"I am trying to understand the pricing that I am currently seeing in my local market. "

Dude, you have too much time on your hands, yer way over-thinking it. If you are providing the same service as the lower priced guys racing to the bottom...quit now.

On the other hand, if...you keep your equipment and truck spotless, wear a uniform, are neat, polite, somewhat intelligent, wear shoe covers on every job, respect your customers property and are getting most of your work via referral...your customers will pay you a huge premium over the unshaven, t-shirt / blue jean wearing smokers that show up that just dgas.

namaste

Thank you for describing my business. While we dont make $750,000 like Ben does 8) , we almost make that :roll: and we are super happy. I love my business, its not stressful, my customers are always happy, " I call every every one back to make sure" I send letters as well. I l love working every day and I take pride in my work and I believe my customers can see and appreciate that. We slightly raised our prices a few months ago while the others are the same or dropping. No complaints, price shoppers just move on to the next guy. And, I love working with my POS, BDCC moving truck that I taped and glued together in my driveway.

 

[Doug Cox]

Due to the fact my summer season started 2 months early, I can see having a record high year, although last year was the first year in 25 that I experienced a drop although slight. Prices are going up on Monday.

 

[Steve in Omaha]

I don't believe there is any downward pricing in our industry, maybe just a few more at the bottom end due to easy entry into the field. There have been $4.99 a room to $9.99 a room cleaners forever and I suspect they give their customers at least some semblance of that value unless they are true bait and switch.

Find your niche, price what you do accordingly, market the heck out of yourself and hopefully you will be in a place that you are content with. What that means for you will be different than anyone else~ as it should be.

Ken

genius

 

[Becker]

Are you happy?

Are you making money? YES

Is you company flatline or are you growing? Growing, sales are up 50% over last year to date.

Are you working just to eat and provide for your family? I'd like to think I enjoy more to life than eating and providing. I enjoy a few luxuries, vacations, etc.


I am trying to understand the pricing that I am currently seeing in my local market. I don't have kids and just got married last year, so I don't have the great responsibility of providing for children or taking care of a financial burden like old parents yet.

I want to know what is a good reason for pricing that I have been seeing and what is driving it down lower and lower. Competition is good but cut throat is bad for all.