louisthe3rd

  • Posts: 13
Bought Round + Prices 2 Low
« on: February 11, 2005, 09:28:17 pm »
I have this slight problem, i have just bought some work and having done most of it now it appears that a lot of ot is under priced.Today i done this street and 1 house alone was priced at a mear £5 this included a conservatory..A lad that works for me told me this and the customer told him the conservatory was included in the price and she was a bit to the point, his attitude was "does it include the conservatory" she said yes thats what the old window cleaner charged... She then went on to say will the prices rise and he said im sure they will..Now is my problem the guy who sold me the work has been doing that round for the past 14 years there are a lot of difficult 1s where you have obsticals and i have never put up a price and paying  £1000 as a 1 off payment for a £1000 worth a month putting up the prices could reduce this by a large amount.In all honesty i think some of the work is fairly priced but others need to be inflated by at least 30%.........Any views welcomed as to how i go around this

Grafters Cleaning Services

  • Posts: 1287
Re: Bought Round + Prices 2 Low
« Reply #1 on: February 11, 2005, 10:11:19 pm »
hi there i see your problem, this is how i would deal with it, do them for 1 more month at original price that way you will recoup your £1000-00 outlay. then on the 3rd month put up the prices that suits you, it may be that you will lose 1 or 2 then so be it but by then the customers will be used to your services and i should think that at least 95% will stick with you as long as you don't over price. good luck
JAY "GRAFTERS"
From Southampton
www.high-shine.co.uk

Majestic

Re: Bought Round + Prices 2 Low
« Reply #2 on: February 11, 2005, 10:16:19 pm »
Did you not go around the round with him before you bought it .I would just tell the customers that you are sorry but the price will have to go up . If you lose some the price increase on the others should make up for it

rosskesava

Re: Bought Round + Prices 2 Low
« Reply #3 on: February 12, 2005, 01:39:31 am »
We done the same except the price we paid was much lower.

To start with we did the jobs. We did some jobs that were so ridicously low that now, later on, it seems daft we done that.

Now a year or so later we have got new work at much higher (or reasonable) prices).

If you need the money then do the work. If you don't then pass it on or just don't do it or hard as it is to do, put the prices up and hope they accept it.

I think it's a bit by bit thing. By that I mean that as time goes on, you will get new work and you will charge more and you will get better work.

During January we gave a quote next to a house we used to do early last year. Both houses are similar but January's quote was £25, which the owners accepted, and the house next door that we did do a year ago, was priced at £10.

The only thing that has changed is 'us' and our own sense of self value as w/c's and how much work we have.

There's no easy answer except to stick with it and judge things for yourself.

texas girl

  • Posts: 348
Re: Bought Round + Prices 2 Low
« Reply #4 on: February 12, 2005, 03:30:24 am »
Louis,

I agree that you should do the round a month and recover your investment and then raise the ones that are priced below market. :)

By doing all of the accounts the customers will be familiar with your work and will be willing to increase as needed. :P

When I purchased accounts from my ex-husband I had the same problem.  ::) I have explained to some that the price of fuel has gone way up, he never raised his rates, etc.   :o

But it is more challenging to increase a rate that has been the same for years, than it is to price correctly a new account. ;D

I have a few accounts that I have had for 20 years. Those customers receive lower rates just because customer service is first before money. ;D

It seems to even out in the long run.  8) Maybe raise slightly the ones you must, and give it time.  :-*

Take care,

Texas Girl :-*
Debbie

ian davison

Re: Bought Round + Prices 2 Low
« Reply #5 on: February 12, 2005, 09:43:15 am »
I had exactly the same problem,i brought a 1000 of work without doing my home work.My prices were worse 3.50 for a large 3 bed semi and 4.50 with a conservertary. The only thing the round had going for it was that they were all together.I were cleaning some houses and thinking "whats the point". It were my own fault for jumping in without thinking. I put mine up 50p in December and didnt lose a single customer.People know when their onto a good thing and wont sack you for putting the prices up 50p or£1 when another w/c will charge £7-£8.I see my round as an investment and will putting the prices up yearly!
             Keep plugging away and dont lose heart!

Re: Bought Round + Prices 2 Low
« Reply #6 on: February 12, 2005, 12:23:24 pm »
Hi,

I've just put my prices up for about a third of my round.  I've got to get around the rest of it, but this is the letter I use.  So far I've only lost one customer who asked me to clean their windows every other month.  I've refused and they found another window cleaner who'll do this for them.

I clean every month - no exceptions.  Anway, this is the letter I used for customers who's prices I REALLY hiked up.  It's quick, easy and says about it all:

I've another letter for those I just put up by a 50p or a £1.00 or so.

Obviously use a quality paper, with your own personalised letter head.

-------------------------------------------------------------------------
Dear Customer,

WINDOW CLEANING – PRICE INCREASE

We have increased our price for the monthly cleaning of your property from

£________ to £ ________.  This increase will be effective at our next clean.

It is realised that this is a sharp increase in price, however when I first quoted for your property, I severely underestimated the price.  It is hoped that this will not deter you from being one of our valued customers and if you wish to discuss the above, please do not hesitate to phone me.  You may (of course) also ask other window cleaners for a quote and I am sure you will find that we are still extremely competitive.

I would also like to remind you that:

   We are fully covered by public liability insurance, up to two million pounds,    for your safety.

   We are as professional as possible.  This is our full time occupation and we do    not clean windows for extra 'beer/drug money'.

   We are not 'fly by nights', who have started window cleaning, then three
   months later – pack it all in.

This is the first time we have increased our prices in two years, and it will remain fixed for at least a year.  As we have built our business, we have increased our prices for the new cleans we have taken on.  This price increase will bring you in-line with which we are charging already and means that we will continue to clean your house, rather than abandoning you for more lucrative business.

We look forward to cleaning your windows in the future.

Ken and Helen

matt

Re: Bought Round + Prices 2 Low
« Reply #7 on: February 12, 2005, 08:39:25 pm »
i did the same

i put out a letter expalining that i was taking over (even though i had worked the round once with the guy)

i put in the letter, we come around every 4 - 6 weeks

and the price will stay the same for a few cleans intill we work out what pays and what doesnt

then put the prices up after about 6 months, by this time, they have got to know you, and you are on good terms with them

Re: Bought Round + Prices 2 Low
« Reply #8 on: February 13, 2005, 02:37:35 pm »
Use a flyer as suggested by Windows_chepstow. you could add that one reason the other guy sold the work was because of the prices. even if he told you it wasn't, nobody sells work that is profitable, sadly when you buy work, you tend to get the dregs. Remember, "there is no such thing as bad houses, just bad prices, there is no such thing as bad weather, just bad clothing"

Re: Bought Round + Prices 2 Low
« Reply #9 on: February 13, 2005, 02:43:41 pm »
I had exactly the same problem,i brought a 1000 of work without doing my home work.My prices were worse 3.50 for a large 3 bed semi and 4.50 with a conservertary. The only thing the round had going for it was that they were all together.I were cleaning some houses and thinking "whats the point". It were my own fault for jumping in without thinking. I put mine up 50p in December and didnt lose a single customer.People know when their onto a good thing and wont sack you for putting the prices up 50p or£1 when another w/c will charge £7-£8.I see my round as an investment and will putting the prices up yearly!
             Keep plugging away and dont lose heart!

Sorry simon, I must ask, if other window cleaners will charge £7-£8 why dont you? ??? If your worried about loosing them, charge a bit less, but not half price. 50p a year will leave you skint, and your customers on to a good thing for years to come. Bite the bullet, if you do a good job, they will pay.

ian davison

Re: Bought Round + Prices 2 Low
« Reply #10 on: February 13, 2005, 03:09:10 pm »
Im far to soft! My problem is i havent the balls to put them up £3.I will probably put them up £1 this year and 50p next. 

roo

  • Posts: 69
Re: Bought Round + Prices 2 Low
« Reply #11 on: February 13, 2005, 03:35:17 pm »
hi simon.i bought some work and 1 house in particular stands out.the rate i paid was at 13.00 per clean.then i saw the size of the conservatory.i promptly spoke to the owner and said i couldnt possibley do it for less then 20.00.she accepted with no probs.i clean this house in 35 mins.speak out or youl hate the job even more.

Re: Bought Round + Prices 2 Low
« Reply #12 on: February 13, 2005, 04:19:25 pm »
hi simon, send them a flyer 2 weeks before there due. that way you dont have to face them ;)

ian davison

Re: Bought Round + Prices 2 Low
« Reply #13 on: February 13, 2005, 05:54:42 pm »
Good idea!
 Im too bloody friendly with them to start with and then i feel bad when i put them up.
Gonna have to start to be more ruthless!

Re: Bought Round + Prices 2 Low
« Reply #14 on: February 13, 2005, 06:51:43 pm »
That's the spirit. Their customers not friends.