Clean It Up

UK Floor Cleaning Forum => Carpet Cleaning Forum => Topic started by: John Kelly on November 23, 2010, 06:35:41 pm

Title: Increasing or reducing your prices
Post by: John Kelly on November 23, 2010, 06:35:41 pm
Thought I would post this once again. Makes interesting reading and highlights the folly of discounting your prices.
Title: Re: Increasing or reducing your prices
Post by: Mike Halliday on November 23, 2010, 06:51:19 pm
so if i increase my prices by 15% i can lose 23% of my customer ( or do 23% less work) and still make the same profit :) :)
Title: Re: Increasing or reducing your prices
Post by: Neil Williams on November 23, 2010, 06:56:28 pm
Sorry John but this chart only applies when the economy is good.

Whilst I agree with it in principle, principles don't put food on the table.
I will quote anywhere between £2 and £4 sq/m depending on what I think is going to be acceptable, bringing into play all the factors.
I would rather do a job for £1 sq/m than earn nothing that particular day. I hope it never comes to that but food is more important to me than hunger.
Title: Re: Increasing or reducing your prices
Post by: wynne jones on November 23, 2010, 07:05:05 pm
Sorry Neil but Johns right.

It's maths, it not economy dependant.

As I am on a Zen role at the moment here's something to do (if you are brave) Ditch your worst 10% of customers. The vacuum will suck in more work than 60HP TM.

It's a cosmic thing.
Title: Re: Increasing or reducing your prices
Post by: Neil Williams on November 23, 2010, 07:30:01 pm
Ditch your worst 10% of customers. The vacuum will suck in more work than 60HP TM.

That's fine if you have a database of hundreds of regulars, where you can ditch the bottom 10% sadly this doesn't apply if most of the work are one offs or only get/need doing every 2 years.
When we used to do window cleaning we did just the formula John is on about. We'd ditch the bottom 10%, increase everyone elses prices knowing we would lose some more but end up doing less for the same income or more. But like I said only works if you have a book full of regulars (as window cleaners do)
Title: Re: Increasing or reducing your prices
Post by: wynne jones on November 23, 2010, 07:37:53 pm
Neil

Did you lose more than that percentage then?
Title: Re: Increasing or reducing your prices
Post by: Carpet Dawg on November 23, 2010, 07:44:26 pm
I've ditched loads of crap customers this year :) its great fun! Good for the soul not needing to put up with thier shenanigans. Plus it makes room for new premium clients :)

Tony
Title: Re: Increasing or reducing your prices
Post by: derek west on November 23, 2010, 07:48:11 pm
enlighten me, whats a crap customer?
Title: Re: Increasing or reducing your prices
Post by: wynne jones on November 23, 2010, 07:49:52 pm
Agree Tony

We choose, not them.

And yes you can afford to do it.
Title: Re: Increasing or reducing your prices
Post by: Neil Williams on November 23, 2010, 07:50:35 pm
Did you lose more than that percentage then?

Would you believe it......No
We wanted to lose enough 'small ones' in order to replace with bigger and better. Trouble is we were doing such a good job and offering a top service that people stuck with us, even in the one year when we had to go Vat registered and stuck the prices up 17.5% overnight.
Title: Re: Increasing or reducing your prices
Post by: wynne jones on November 23, 2010, 07:52:35 pm
enlighten me, whats a crap customer?

Derek everybodies criteria is different.

What's yours?
Title: Re: Increasing or reducing your prices
Post by: wynne jones on November 23, 2010, 07:56:51 pm
Neil

Well that's good in a way isn't it. You get the extra income with hardly any attrition. Now if you want a tool to ditch someone you really don't want but don't want to p1ss off then that's another story.

The Zen thing I was on about is different thing though. By purposefully creating a space for something else/better to come in. Don't ask me how but it does seem to work for me. This is what I keep telling my current Mrs anyway. ;D
Title: Re: Increasing or reducing your prices
Post by: derek west on November 23, 2010, 08:00:44 pm
enlighten me, whats a crap customer?

Derek everybodies criteria is different.

What's yours?

the ones that don't pay.
Title: Re: Increasing or reducing your prices
Post by: Carpet Dawg on November 23, 2010, 08:10:52 pm
enlighten me, whats a crap customer?

Mainly the tight t*ats, the ones that always moaned about the price or the ones that didn't take well to a price increase.
Also the ones that never respected me i.e. house was always a mess, never moved anything, never had hot water on, they walked all over the carpet while i was cleaning, kids would mess around with my spotting kit, they where late, the once that canceled on me a few times, the ones that look over you etc etc life's too short to be putting up with that rubbish!

You know the jobs that make you say "F*uck!! i'm glad not ever job is like this!!"  ;D

p.s. usually a combination of the above, i'm not that fussy who i clean for as long as they pay lol
Title: Re: Increasing or reducing your prices
Post by: wynne jones on November 23, 2010, 09:07:55 pm
Whos the new guy on here who always gets the poo jobs, Waynne? I started out like that. ;D
Title: Re: Increasing or reducing your prices
Post by: PaulKing on November 23, 2010, 09:22:05 pm
Johns right, we followed that advice and it does work you should increase your price year on year


Title: Re: Increasing or reducing your prices
Post by: M.Acorn on November 23, 2010, 09:43:15 pm
No such thing as a crap customer,i will gladly take anyone's money !!

Some can be a p in the a,but i am pretty thick skinned,and it takes quite a bit for me to lose it.
Title: Re: Increasing or reducing your prices
Post by: wynne jones on November 23, 2010, 09:44:28 pm
And Paul you've done pretty well for yourself haven't you.
Title: Re: Increasing or reducing your prices
Post by: Carpet Dawg on November 23, 2010, 09:51:04 pm
I used to be like that Mark, Did any job that came my way! Its a great way of staying busy. But as i said, lifes too short to put up with that specialy when you dont need to :)
Title: Re: Increasing or reducing your prices
Post by: wynne jones on November 23, 2010, 09:52:01 pm
No such thing as a crap customer,i will gladly take anyone's money !!

Some can be a p in the a,but i am pretty thick skinned,and it takes quite a bit for me to lose it.

Mark

I look like Brad Pitt and you look like Herman Munster, lets say. ;D

OK, now I've got women buzzing around me like flies and I can't shag them all. Do you think I'm going to pick the ugliest? Herman on the other hand can shag all the ones around him.

Edit.

The boss has told me I'm spending too much time on here these days and says people must be pretty hacked off with all the rubbish I've been writing lately.  ;D

All the best lads.  :)