Clean It Up

UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: Sunshine/Cleaning on November 22, 2010, 05:32:15 pm

Title: Price rise factors
Post by: Sunshine/Cleaning on November 22, 2010, 05:32:15 pm
What factors do you take into account when explaining a price rise?

ie. General cost of living rise, additional work on the house....
Title: Re: Price rise factors
Post by: lyndy on November 22, 2010, 05:47:52 pm
I would say inflation,if it's say 3% at the end of the year and you don't put prices up,the following year you will have a 3% pay cut
Title: Re: Price rise factors
Post by: steven ainger on November 22, 2010, 05:52:34 pm
also vat is going up at the end of the year, which will increase the price of more or less everything you buy for your business
Title: Re: Price rise factors
Post by: TomCrowther on November 22, 2010, 05:56:05 pm
I haven't implemented a price rise yet as only been going for 12 months or so. I think the sensible option is to increase the price every two years and base it on the previous two years rpi increase. I would explain to the customers that the price is increasing by x amount and the reasons why, but that this new price is fixed for two years. Then do the same again in two years.
Title: Re: Price rise factors
Post by: ronnie paton on November 22, 2010, 06:05:04 pm
what you have to consider is how many pf your customers are actually getting a pay rise???

not many i bet and i bet many have had hours/pay reduced or even been made redundant.

is the work ok-to well priced? if yes leave it send a letter explaining how your freezing prices due to economic circumstances even though expenses are increasing you just want yo show your appreciate there continued custom
Title: Re: Price rise factors
Post by: Johnny B on November 22, 2010, 10:08:17 pm
Since the credit crunch first started to bite, I have held almost all of my prices. The only ones I put up were really underpriced, so felt that I had nothing to lose by increasing them. All were accepted without complaint.

Quite a few customers have asked me 'has it gone up yet?' and I have said no, and explained that because everyone is under the cosh, as it were, I didn't want to add to their financial pressures, even in a relatively small way. I also said how much I appreciate their loyal custom. They know the prices will go up eventually, but only when the pressure is such that it won't be such a burden to them.

John.