gordons

  • Posts: 163
Why is price cutting wrong?
« on: August 10, 2005, 10:29:03 pm »
Why does evrone on here except me believe that price cutting is wroing? Look at companys like Asda and Tesco they always try to undercut. If you think your customers will stop you if someone else offers them cheaper or at the same price but a higher quality then i would advise you to quit window cleaning now.

P @ F

  • Posts: 6312
Re: WHY
« Reply #1 on: August 10, 2005, 10:37:20 pm »
Well i have only been on here less than a week and i reckon i could answer your question ........ If everybody went around doing a cheaper job than the last man then we would all end up doing it for naff all , if you dont want to earn much money then crack on .......
BUT PLEASE DONT COME TO PLYMOUTH ....... ;D

         Rich    P @ F
I'm so lazy I'm getting tired of it !

Ray Pickering

  • Posts: 143
Re: WHY
« Reply #2 on: August 10, 2005, 10:49:02 pm »
Price cutting is no good to anybody!!

It's like what's been mentioned on here loads of time.

Would you rather do 10 houses for £5 or 10 houses for £10

You undercut & you will be working for 8hrs for the same money as working 4hrs.

Continue price cutting & your going to work some very long days for rubbish money

Don't forget you get no holiday or sick pay etc;

The big boys like Asda etc; have a turnover of millions & sell certain goods as a lost leader to draw customers in store.

Ray.

gaza

  • Posts: 1642
Re: WHY
« Reply #3 on: August 10, 2005, 11:49:34 pm »
RAY :YOUR GETTING THE DRIFT NOW ARNT YOU PAL. TESCO AND THE REST HAVE LOSS LESDERS ,We only have loss of money.my friend the chepo w/c has been warned that if he takes work from the other window cleaner anymore 5 ladfs who work for him will pay a visit,He also says it totally wrong what hes done to me,but wonder if the bloke with a gang of 5 will say its wrong what Im going to do to the chepo w/c { tell you when we meet again { know his first name now /know his mobile / no the exact address he lives the only thinhg I dont know now is his last name got someone on that case, then dhs and hse gets phone calls ;D,he employs young lad trying to find out his name to try and protect him from the wrong working practices hes working in ie no employees liability,no safety proceedures. we will see whos smart ;D
 gaza
IM AT THAT AGE MY BACK GOES OUT MORE THAN I DO

Re: WHY
« Reply #4 on: August 11, 2005, 12:20:57 am »
Gaza,
I like what I read about you.  you seem like a grafter, but your posts??
Are you Italian?  You work for the Mafia??  The Mob??  I know you're ahead of me because you use wfp..bigger earner than me,  so respect... but explain!!!....What is bugging you?
I'm only a trad W/c so what do I know?
I think you mean Tesco etc. use "lost leaders".  In other words, they will stand a loss on one product to draw you to another, because they know if you buy the second product they make even bigger profit.
Is someone undercutting you?  Squeezing you out?
No good that stuff.
I guess you've heard about the two tramps sitting on the park bench...One says to the other, "I thought I was giving the best discounts in town!"
Price wars are bad news.  Healthy competition should be about helping one another.
Who are these guys that are annoying you?  They need educating.
Pj

Mike_Boxall

  • Posts: 1394
Re: Why is price cutting wrong?
« Reply #5 on: August 11, 2005, 09:22:33 am »
As others have said, supermarkets do appear to undercut each other all the time but they keep making more and more money by offering other higher margin products.

It's OK to charge £4 for windows if you're also getting regular high value extras such as conservatories or facias.

What's wrong is when you're only getting £4 for windows and nothing else.

Regards

Mike

Grafters Cleaning Services

  • Posts: 1287
Re: Why is price cutting wrong?
« Reply #6 on: August 11, 2005, 09:26:53 am »
if you continue to price cut (like tescos etc) it's you and your living that will suffer in the long run,

DON'T DO IT!

The other day i was asked for a qoute for a 3 bed semi
i told the customer it would be £9

she replied "my old w/c was only £5"

where is he now? packed in ofcourse, not making a living
probally started under-pricing others.

remember..... it's easy to start off with a low price but not so easy to put them up to a realistic price at a later date.

jay
JAY "GRAFTERS"
From Southampton
www.high-shine.co.uk

Re: Why is price cutting wrong?
« Reply #7 on: August 11, 2005, 09:45:41 am »
There is no point comparing window cleaners with Tesco.  Huge supermarket chains can afford to price cut as much as they like.  They have so much money in the bank, they are the bank.  They own the market, they control the suppliers, the end product just keeps the whole thing turning over, they can't lose.  But when Mr Cohen (Tesco) first started on his own he had to make it where he could.  You could say he got lucky.
We don't really have a product, we're a service, keep the service good and charge accordingly.  Don't be fooled Supermarkets are not cheap.  Ask your wife if the bill has gone down in the last 5 years!
Pj

Ray Pickering

  • Posts: 143
Re: Why is price cutting wrong?
« Reply #8 on: August 11, 2005, 10:41:38 am »
PJ.
You must have been on another planet if you missed Gaza's other thread!  :)

The topic went on forever (it seems)
The man's lost hundred's of pounds to these scumbags undercutting his prices--he's got to almost start again!

As you rightly say fair competition is healthy competition but not the way this man has lied to Gaza's (ex) customers--but like Gaza has said this man can't last.

Gaza is probably seeking revenge--would'nt you.

Regards Ray.

Re: Why is price cutting wrong?
« Reply #9 on: August 11, 2005, 12:06:29 pm »
I apologize Ray.  And especially to Gaza.  Thats what comes of not knowing the full story.  If Gaza has had to deal with that kind of ruthlessness - credit to him for picking up and getting going again, probably a better man than me.  I don't want to upset any genuine guys on here.  From the help I've read there is a good comeraderie on here.  out there in the street I try to be that way too.  If I call where another W/c has been I tell the client I don't take work off others because i don't want them taking work off me.  If customer drops them, then they'll probably drop me - so far not too much bother.  but not everyone thinks that way I agree, and I don't want them on my patch, so if I've spoken out of turn sorry.  Hope the scumbags get their come-uppance.  Keep going gaza
Pj

williamx

Re: Why is price cutting wrong?
« Reply #10 on: August 11, 2005, 01:06:37 pm »
Gaza

If you want to know his surname and you have his address, then check the local voting list which will have the full names of anyone at that address.

williamx

Re: Why is price cutting wrong?
« Reply #11 on: August 11, 2005, 01:20:13 pm »
Gordons

I think everyone on this forum believes that the price of the job has to be correctly priced, to give their customers valve for money.

But if you believe that if is fair to undercut some cleaner, so you can get his work then I think you are wrong.

It is also wrong for the customers concerned. Some will go to the cheapest priced cleaner but when that cleaner either moves on or goes out of business because he is not earning enough to live on, where does that customer then get a window cleaner, because if they were my customers, and they left me for someone who had undercut me, then I would not take them back on my list.

At the moment there are more customers out there who are looking for a decent window cleaner than there are window cleaners.

So why start a price war.

Ray Pickering

  • Posts: 143
Re: Why is price cutting wrong?
« Reply #12 on: August 11, 2005, 01:24:46 pm »
PJ.

Apologies accepted mate.

It's now more than obvious you had no idea about Gaza's predicament

Sorry if i seemed to attack you on your opinions, but like us all he's got a family to feed & pay the bills etc;

You sound like a genuine bloke with feelings--so all the best to you PJ. hope business booms.

Regards Ray.



Paul Coleman

Re: Why is price cutting wrong?
« Reply #13 on: August 11, 2005, 02:01:02 pm »
I apologize Ray.  And especially to Gaza.  Thats what comes of not knowing the full story.  If Gaza has had to deal with that kind of ruthlessness - credit to him for picking up and getting going again, probably a better man than me.  I don't want to upset any genuine guys on here.  From the help I've read there is a good comeraderie on here.  out there in the street I try to be that way too.  If I call where another W/c has been I tell the client I don't take work off others because i don't want them taking work off me.  If customer drops them, then they'll probably drop me - so far not too much bother.  but not everyone thinks that way I agree, and I don't want them on my patch, so if I've spoken out of turn sorry.  Hope the scumbags get their come-uppance.  Keep going gaza
Pj

PJ.  With Gaza, it wasn't simply that some guy undercut him on about £800 worth of work.  Ok it's a free market and the ethics of that are up for negotiation.  The biggest problem, in my view, was that the guy went around saying that Gaza had quit window cleaning.  I've had people try that one on a few of my customers over the years too.  I didn't lose any though as I make sure they all have my contact details.
When I first started in 1991, a window cleaner told me to spread my work around in case anyone came around undercutting.  That way, if I lost some work, it wouldn't hurt too much.  Sound advice too.  I have work up to 9 miles to the East of where I live, 10 miles to the North and 7 miles to the West.  I have none to the South because that was my original work and the prices were so rubbishy (I didn't know better then) that I gave that away a few years ago.  I wouldn't have had the cheek to ask money for it.  The guy was delighted.  It was about £500 worth of work mostly every 6 weeks.  The rates were rubbish but it gave him a start to build on.

mark dew

  • Posts: 2901
Re: Why is price cutting wrong?
« Reply #14 on: August 11, 2005, 05:01:57 pm »
Can't access electoral roll anymore for free at the library. You can buy a CD with that and much more besides but it was 250+ quid a couple of years ago. You can go online a to access it but you have to buy credits to search though. Try www.192.com.
As for price cutting, why cut your own throat?
I suspect its mostly people who are just starting out and  like myself, had a rough guide to charge per window but assumed all windows are equal. I charged a fiver for a conservatory roof if i was asked to clean one while i was there. I charged 20 for similar a week ago. Better to educate by putting them in touch with a forum like this.
Better still, i have found that people who are unhappy with their existing cleaner can't wait to tell you why as soon as you see them. When i hear that i decline to even give a quote saying i'd rather not tread on anyones toes. If they were that unhappy with their window cleaner then they wouldn't have one, is how i see it.
If you really can make a living by being cheaper then good luck to you.
Though i think you're making a rod for your own back.
If you are quoting intentionally cheaper to pick up jobs that have W/C already then you are bound to cause bad feeling at the very least.
I personally refuse to live my life looking over my shoulder.

www.mrgutters.co.uk

  • Posts: 871
Re: Why is price cutting wrong?
« Reply #15 on: August 11, 2005, 05:25:03 pm »
lets say in the space of one month you lost half your customers , because 10 window cleaners all had the same viewpoint as you and nicked your customers, lets say you earned 1500 a month then all of a sudden you are taking 750 home we would all be annoyed ,, and so would you , its not about bthe money its more morals.

shawn ;D
If a job's worth doing, it's worth doing well.

Walter Pole

  • Posts: 199
Re: Why is price cutting wrong?
« Reply #16 on: August 11, 2005, 06:32:45 pm »
Surely it's just business..not good business, but it happens.  Maybe I am fortunate in my town there is a real shortage of window cleaners and I am now turning business away because I don't want to work any harder than I do already.  Maybe for Gazza he is faced with an over-supply of w/cs and so should consider expanding into other areas, like patio cleaning, gutters and facia boards, car valeting etc.  Point I am making is to adjust the business to suit the market conditions in a particular area.
taking panes to exceed expectations

Trevor Knight

  • Posts: 1825
Re: Why is price cutting wrong?
« Reply #17 on: August 11, 2005, 06:44:47 pm »
If you have to steal work from fellow window cleaners by cutting their price then that says alot about you and your ethics. We are all trying to make a living and unless I am wrong, as far as I know not every single house in the UK has a window cleaner. DONT be lazy, try the next door neighbour and don't sell yourself cheap, further more, leave other window cleaners work alone!!!!!
Covering Hampshire, Dorset, Surrey, Berkshire

Walter Pole

  • Posts: 199
Re: Why is price cutting wrong?
« Reply #18 on: August 11, 2005, 07:02:02 pm »
You are right Trevor, treat others as you would hope to be treated.  I never underprice, if I canvass and a householder says they already have a w/c I say that's great and go.  If they then say but how much do you charge I also say it's OK you already have a window cleaner I am not going to take someone else's work.
taking panes to exceed expectations

Re: Why is price cutting wrong?
« Reply #19 on: August 11, 2005, 07:33:34 pm »
Why does evrone on here except me believe that price cutting is wroing? Look at companys like Asda and Tesco they always try to undercut.

Gordon,

I don't think you're talking about reducing your prices for existing customers who're happy with your work and what you already charge them.  Unless you're bonkers that is.

You're either saying you'd be happy to charge less than an area's going rate; or; you'd undercut another window cleaner to get his/(her) business.

In all three scenarios, the only winner is the customer; until you tire of working so cheaply; feel you can't up your price and dump them in favour of more lucrative business. 

So even the customer loses out in the end.

Gordon, are you in the process of building up a new round?  If you are, price at least what you think is the going rate.  At least.  Many here would say 'price higher'.  But I know what it's like when you've bills to pay, the wolf is at the door and you're desperate for work.

The Yellow Pages lady told me that if a potential customer goes to the trouble of looking through the Yellow Book and phoning you, you're pretty much guaranteed to have a 'keen customer'. 

The same goes, I expect, for potential customers who grab you on the street.

So don't price to low, mate.  You and your customers will both end up in a lose-lose situation when you dump the lot of them and get a job in a factory, because you couldn't make ends meet with window cleaning.

PS.  I've found I received  little work from the Yellow Pages.  So that's not the answer to building up a round in itself.