Carpet Cleaning Issues - Carpet construction, upholstery cleaning, stain removal, equipment, events, etc.
How to JUSTIFY increasing your prices!
Posted by chris_rushton (Chris_R), 12 March 2004Having just read through the very long thread on under pricing it occurred to me that no one is offering advice on the best way to increase your prices, without losing too many customers!
I have managed to do just that over the last four years, so I thought I might share the info with you all.
The hardest bit is telling a previous customer that your prices have gone up (a lot !) and then listening to the silence down the phone line, you have to JUSTIFY your price rise.
The reasons that I have used are;
1. New cleaning equipment -(CFR PRO 400 ,a couple of years ago!) better results and drying times.
2. New chemicals (micro -splitters ? )- better results, environmentally friendly, and dry faster.
3 service/results/drying time than before.
So if you do something that improves the service to your customers- CHARGE THEM FOR IT!
Posted by Cloverleaf (Cloverleaf), 12 March 2004I have just increased my prices a lot due to falling behind.
I was also wondering what to tell my customers.
I would first tell them that I had not increased my prices for the last 3 years which is true!
And I would also tell them that that the price of cleaning products insurance etc has gone up considerably, which is also true.
Posted by jmj (jmj), 12 March 2004I to have increased my prices this year. The old customers understand that costs go up so its fairly straight forward. I think the most effective way is to explain what you've done to improve your service since your last visit.Mainly investment ie equipment,training and also remind them how good a job you did before.
Posted by Ivar_Haglund (Ivar_Haglund), 12 March 2004If all your customes just say is that all after you give price
your not charging enough.
Posted by Derek (Derek Bolton), 13 March 2004Hi
I would refer you to a previous post from 'our Ken' where he says he increases his prices annually ..carpets one year upholstery the next.
It is wise to have a slight increase each year, to keep pace with inflation, this will be relatively unnoticeable rather than a large price hyke every few years
Posted by John_Flynn (John_Flynn), 13 March 2004Keep up with inflation 1.5% !!!
Hike up your prices 10% and lets CAUSE Phony Blair some INFLATION.
Posted by mike_halliday (mike_halliday), 13 March 2004Was'nt Ken saying a couple of weeks a go he'd raised his prices by 25%
Most of my existing customers don't know I've put up my prices until it s too late, I've finished the cleaning and they ask " How much do I owe you"
I think most customers will accept a 10% raise without questioning it.
Posted by strakercleaning (strakercleaning), 13 March 2004Chris. I like the logical explanation .......re- doing my pricelist as i speak
New efficient machinery and chemicals is my reason for increases............people ask " whats your excuse for increase ..........dont need an excuse only a GOOD reason
Posted by Dave_Lee (Dave_Lee), 13 March 2004I think most repeat clients would accept a 10% increase from the year before, but if they havent called you for 3 years - its 30%. If you hike your charges substantialy, the best and most acceptable way of justifying it is by them visually being able to see for themselves the extra investment you have put in - new equipment, extra drying procedures etc.
Posted by Derek (Derek Bolton), 13 March 2004Hi Guys
Point taken...I should have said.."if ONLY to keep pace with inflation"
John....'Phoney Blair' needs inflation of a different kind!
Still, we have an opportunity to vote him out soon... But I have a sneaky feeling that 'Teflon Tony' will still be there for another term... big grin and all
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