Paul Moss

  • Posts: 2296
Re: Pricing too low can be as bad as pricing too high
« Reply #1 on: January 24, 2012, 07:11:58 pm »
 :D

Re: Pricing too low can be as bad as pricing too high
« Reply #2 on: January 24, 2012, 08:45:09 pm »
well...umm...yes
'My friends' up the road with the TM are at it again >:(
Now we have an extremely large property (value about half million) where they have priced and got 2 VERY large bedrooms and huge living room for ........... (wait for it)....... £80 or £66 as they are vat registered >:(

Just how are they doing it?

Craigp

  • Posts: 1272
Re: Pricing too low can be as bad as pricing too high
« Reply #3 on: January 24, 2012, 08:51:50 pm »
Sympathies Neil, it's very frustrating.

It is possible to win the work even at a much higher price, but you'll always lose a few that are determined to shop on price alone. Did you go out to quote?




Mike Halliday

  • Posts: 11581
Re: Pricing too low can be as bad as pricing too high
« Reply #4 on: January 24, 2012, 08:58:31 pm »
£80 or £66 as they are vat registered >:(

Just how are they doing it?

but they are taking over £73k so they are working for it but they are reaping the rewards....... plus they have got their marketing sorted out because at those prices they need a large flow of customers
Mike Halliday.  www.henryhalliday.co.uk

wynne jones

  • Posts: 2918
Re: Pricing too low can be as bad as pricing too high
« Reply #5 on: January 24, 2012, 09:06:35 pm »
Quoted £60 for a lounge today, woman (loud baby crying, dog barking) said 'Oh' asked her about it and she had two quotes already £40 and £30. I just said that I'm not your man then. AND THEN I FORGOT ABOUT IT. (Until now  ;D)

 
It's not expensive, you just can't afford it.

Re: Pricing too low can be as bad as pricing too high
« Reply #6 on: January 24, 2012, 09:09:46 pm »
It is possible to win the work even at a much higher price, but you'll always lose a few that are determined to shop on price alone. Did you go out to quote?

I have won work against them before based on getting off my backside and going out to quote which they didn't, with this one the info came from another tm'er that I get on with. In his text he said it was easily worth £200.

Mike, they might not being doing over £73k because you can become Vat registered at any level (if it suits your needs - I'm vat registered but do under £73k).
I don't understand your thinking here Mike, they must be flogging their arses to death if they are working at about £20/hour or less (remember the last job I mentioned about them) taking into consideration fuel costs, chemicals etc.

Craigp

  • Posts: 1272
Re: Pricing too low can be as bad as pricing too high
« Reply #7 on: January 24, 2012, 09:17:41 pm »
I look at it this way, the real cheap guys need four jobs a day, I can manage on as little as four jobs a week, so a slow January is still a breeze.

A while back I went out to quote a lounge that another TMer had already quoted over the phone at £50 I went out and quoted £130 (big lounge) She booked in there and then with me.

Paul Moss

  • Posts: 2296
Re: Pricing too low can be as bad as pricing too high
« Reply #8 on: January 24, 2012, 09:56:44 pm »
I look at it this way.
Its swings and roundabouts, some times you get the job and some times you dont ....for what ever reason.
At the end of the day we are in and getting worse a deeeep recession and as long as your business is going forward and you are making enough to pay your bills and have a few quid in your pocket, then crack on. And Stop Moaning  ;)

ian harper

Re: Pricing too low can be as bad as pricing too high New
« Reply #9 on: January 24, 2012, 10:08:39 pm »
respects

Craigp

  • Posts: 1272
Re: Pricing too low can be as bad as pricing too high
« Reply #10 on: January 24, 2012, 10:26:34 pm »
If you go back to 2004 ish on this forum you'll see me arguing with high priced carpet cleaners telling them their ripping people off etc.

I was wrong, I learned the error of my ways! ;D

I've been cheap, I never made any money :'(

Then I started seeking them out to soak up all the advice I could get.

Infact the first person I spoke to was a Mr Moss at the start of my journey.

Never looked back.

Paul Moss

  • Posts: 2296
Re: Pricing too low can be as bad as pricing too high
« Reply #11 on: January 24, 2012, 10:33:19 pm »
Craig. Well done...Spend a few hours wiith Dave L and see what you can earn by being really erm cheeky. Lots of good ideas and tips will be shared in May ;)

Shaun_Ashmore

  • Posts: 11381
Re: Pricing too low can be as bad as pricing too high
« Reply #12 on: January 24, 2012, 10:47:36 pm »
The 2 tricks to learn or to know are

1.Sell a great cleaning experience telling them that you can within reason solve this that or the other and with minimum disruption.

2.Be bold with your price

2a. Be prepared to justify your price if you haven't done No1 very well.

Dave L is very convincing, Colin Bright is they both charge some 'good' prices.

Shaun

Craigp

  • Posts: 1272
Re: Pricing too low can be as bad as pricing too high
« Reply #13 on: January 24, 2012, 10:54:27 pm »
Dave L. lives just up the road from me he was kind enough to teach me to clean rugs (his way) in about 2006. He's inspiring.

Never met Colin Bright, used to enjoy his posts on here, shame he no longer posts.

Paul Moss

  • Posts: 2296
Re: Pricing too low can be as bad as pricing too high
« Reply #14 on: January 24, 2012, 11:04:28 pm »
Yer Dave has come a long way, i trained him on rugs in 2005 and Shaun in carpet cleaning in 2006  ;D 8)

wynne jones

  • Posts: 2918
Re: Pricing too low can be as bad as pricing too high
« Reply #15 on: January 24, 2012, 11:16:14 pm »
Radiohead's most successful album for profit was "In Rainbows" and was "pay what you like" made them the most money on any of the past albums when with EMI

just shows that there is more that one pricing model. cost-plus, buyer-based pricing, or competition-based pricing are old hat nowdays

respects

Ian


Respects to you Ian but that comparison is bonkers.

They spend a week in a recording studio and after so many downloads it's all profit at 10p a click. We have to do the work EVERYTIME and we are a limited resource unless you have sussed out cloning or invented a time machine.


respects.
It's not expensive, you just can't afford it.

ian harper

Re: Pricing too low can be as bad as pricing too high New
« Reply #16 on: January 25, 2012, 06:46:26 am »
respects

John Kelly

  • Posts: 4461
Re: Pricing too low can be as bad as pricing too high
« Reply #17 on: January 25, 2012, 08:13:04 am »
I taught Paul how to dry buildings and he started to earn some "real" money ;D

Ian Gourlay

  • Posts: 5748
Re: Pricing too low can be as bad as pricing too high
« Reply #18 on: January 25, 2012, 11:31:25 am »
Dave L. lives just up the road from me he was kind enough to teach me to clean rugs (his way) in about 2006. He's inspiring.

Never met Colin Bright, used to enjoy his posts on here, shame he no longer posts.

Yeah  Have a drying room on top of your Shed ??? ??? ???