Time to cut out the freebies

rhino1

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Do you do that small rug for the customer or hit that one little spot in a room they don't actually want to pay to clean? Knock it off!

I started paying real attention to the amount of time and money we lose doing these "favors" for the customer and realized how quickly they add up. A free throw rug turns into 2 or 3 the next trip out, and the customer will be shocked and angered that you have to charge for this stuff. Certain customers will just keep taking from you till you haven't made a dime, all the while giving you the poor little old lady routine while whittling away your profits.

Unless you have something free offered in your marketing to get you in the door, don't just give a service away. You work hard for your money, these small extras - even $10 extra - help with the bottom line.
 

Royal Man

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Little extras can have BIG rewards. It doesn't to be just cleaning.

It can be time spent in conversation, wiping down baseboards or whatever

Sure it take a little time. But, it helps with client retention and referrals.
 

rhino1

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Freebies means items you clean for free in this context. Whatever steps you take as part of your cleaning process I wouldn't consider a freebie, just part of your job.
 

bob vawter

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Soon you will be kissin Mrs Phift on the kiester to get work....
ain't you payin' attention .........
 

XTREME1

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we are learning get in, clean, get paid, get out
Impress on the phone and on time and quality work at a reasonable price
 

Ken Snow

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I agree with Dave and Mike- those few minutes can mean the difference between client retention and a 1 time customer. Don;t be pennywise and pound foolish.
 

rhino1

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Surprised to hear that from you Ken. What would it cost if u cleaned a rug for free at half your homes?
 

Becker

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Bleed them dry huh?

I'll keep saying, oh I'll just do it.

2 mins of free work can end up being worth an ounce of gold.
 

rhino1

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There's nothing about this post about bleeding a customer dry. Just get paid for what you do. You get free fries with your burger just because McD's hopes you'll come back? Not.
 

Brian R

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Comes down to reading a customer....Will you ever see them again? Do you not care to ever see them again?

I'll do free stuff for people who are not assholes, not moving out, not cheap already etc etc.

I also believe a $10.00 free service can earn you repeats and referrals.....But after a few years in this business you tend to know what is going where....Usually.

It all depends on that customer. Shame on me.
 
G

Guest

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Giving a little away is not a bad thing but a valid strategy is bid low and make it up on the "change orders". I think it all depends on how tight you bid the job and how busy you are. If you have several other jobs booked that day then you can't do too much for free. For is it not said that, "The laborer is worthy of his hire".
Best wishes,
Barry O'Connell
http://www.SpongoBongo.com
 

randy

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I agree with everything that has been said in this thread thus far but realize the key word is balance. A few people will take advantage when you do the occasional little freebie but 98% of customers won't. Don't create business strategy based on the situational feedback from 2% of your customers, that's crazy. The other day I spent 45 minutes changing light bulbs in a condo that looked like dracula's castle. Almost every bulb was out but the resident is a only about 3 1/2 feet dwarf and can't reach even with a step stool . (I'm not sure if I'm correct in calling her a dwarf or if their is a kinder description and mean no offense.) Getting on a ladder over a few feet tall can be life threatening for her as she has some motor control issues and can't hang on very well. Needless to say her handy man hasn't been able to come by and she was pretty frustrated. How much did it cost me ? Zip, zero. She gave me a envelope with a nice note and a $40 tip. So far we have booked three referrals from her that total over $1,000.

Recently I asked one of my employees (a high school junior) in another venture (sub shop) why she honored a competitor's coupon. Her response, " I thought it made more since then giving her directions to Subway." I nearly kissed her, it's so cool when they "get it" and you know they have been listening. Another guy comes in and wants to add things that don't come on a certain item, literally he combines two sandwiches into one. She just does it and doesn't up charge him. He comes in every work day at 11:45 on the dot. That is where we make our money. Food cost on his sale is maybe 3-4% higher, so what. On an annualized bases he is worth around $2,200.

I do agree that there is a limit on freebies but have only really found it to be a problem in 3-4 cases over twenty years, so when you really analysis things , it's a non-issue really.

That is why little things add up to big profits.
 

randy

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danielc said:
Mikey P said:
MickyDees makes about .10 profit off a burger and fries.

Yes and like 90 percent profit on the soda.


Believe it or not the cup, lid and straw costs 3 times what the soda does. Everything together it's about 12.5 cents.
 

BLewis

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I agree that I don't give anything for free for those that you can read as free loaders, however, when the customer doesn't expect it and has treated you right a little gratitude goes a very long way.
 

Brian R

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bob vawter said:
Once you give something for FREE.......
you've established it's WORTH........!


Scuze me.....Not "free"....Included in the price. :mrgreen:

When you say "free" it's a gift...not a worth.....The value of that can be priceless.
 

XTREME1

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Some of our service you guys may charge extra for
We can not be late for the next job and most times we are doing everything
 

Desk Jockey

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A few people will take advantage when you do the occasional little freebie but 98% of customers won't. Don't create business strategy based on the situational feedback from 2% of your customers, that's crazy.
I agree, too often we try to fill the crack these people find to keep them from taking advantage of us.

However as Randy said it's such a small percent that hurt you, you're actually hurting yourself more by not rewarding your good clients (your bread and butter) with little "give me's" by making those changes.

I'd do all you can to secure them as "your" clients, 5-minutes relationship building is the cheapest marketing money spent.
 

GCP

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sometime or somethings or free but not usually and definitely not to become a routine.... be as kind as possible but a firm business owner as well. or people will walk all over you.
 

XTREME1

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I go with the you break it you own it philosophy if you are going to just go over it then you leave a bad impression. If you are going to throroughly clean it I usually have to know when I start the job. If you don't have time to do you due diligence don't bother and be honest. I would do an area rug free but I would offer it after pre inspection and do it with the other stuff but at the end of the job I am not doing throw ins

I give plenty away all the time just not at the end of the job, if you can't do it right don't do it at all
 
S

sam miller

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Brian R said:
Comes down to reading a customer....Will you ever see them again? Do you not care to ever see them again?

I'll do free stuff for people who are not assholes, not moving out, not cheap already etc etc.

I also believe a $10.00 free service can earn you repeats and referrals.....But after a few years in this business you tend to know what is going where....Usually.

It all depends on that customer. Shame on me.

Nice customer profiling Brian You should be ashamed.
 

Ron Werner

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I will clean two to three small mats, "at no charge"

I never do anything for "Free", but I tell them I will include it at no extra charge.
That way they know there is a value to it.

Sometimes on the work order, I'll add the item, lets say to clean a small rug for $30, but then I'll discount it buy $30. Then they see the value and know that someone paid for it, but it wasn't them.

I don't mind doing a few extras, as has been said, depends on the client. You know you've a good client when they really honestly appreciate what you have done.
 

Steve Toburen

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randy said:
I agree with everything that has been said in this thread thus far but realize the key word is balance. A few people will take advantage when you do the occasional little freebie but 98% of customers won't. Don't create business strategy based on the situational feedback from 2% of your customers, that's crazy... I do agree that there is a limit on freebies but have only really found it to be a problem in 3-4 cases over twenty years, so when you really analysis things , it's a non-issue really.

That is why little things add up to big profits.[/b]
I hope you guys paid attention to what Randy said. His words are golden. (The phrase "situational feedback" is a little strange though.)

Steve Toburen
http://www.SFS.JonDon.com

PS My new Toyota Highlander had a flat and I took the tire in to be repaired at the local "Big O Tire" store. When I came back to pick the car up I had my credit card out and the guy said, "No charge." I even argued with him by saying, "You don't understand. It's a new car. I didn't buy the tires from you." He just smiled and said, "You will."

BTW, I also like the comment above re: comp work is never "free". It is always "no charge" and yes, we always wrote it up that way on the invoice. I just viewed it as a very effective marketing investment.
 

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