Clean It Up

UK Floor Cleaning Forum => Carpet Cleaning Forum => Topic started by: Chris R on March 12, 2004, 10:38:15 pm

Title: How to JUSTIFY increasing your prices!
Post by: Chris R on March 12, 2004, 10:38:15 pm
Having just read through the very long thread on under pricing it occurred to me that no one is offering advice on the best way to increase your prices, without losing too many customers!
I have managed to do just that over the last four years, so I thought I might share the info with you all.
The hardest bit is telling a previous customer that your prices have gone up (a lot !) and then listening to the silence down the phone line, you have to JUSTIFY your price rise.
The reasons that I have used are;
1. New cleaning equipment  better results and drying times.
2. New chemicals (micro -splitters ? )- better results, environmentally friendly, and dry faster.
3 service/results/drying time than before.
So if you do something that improves the service to your customers- CHARGE THEM FOR IT!
Title: Re: How to JUSTIFY increasing your prices!
Post by: Cloverleaf on March 12, 2004, 11:13:32 pm
I have just increased my prices a lot due to falling behind.

I was also wondering what to tell my customers.

I would first tell them that I had not increased my prices for the last 3 years which is true! :o

And I would also tell them that that the price of cleaning products insurance etc has gone up considerably, which is also true.

John Milnes
Title: Re: How to JUSTIFY increasing your prices!
Post by: jmj on March 12, 2004, 11:55:33 pm
I to have increased my prices this year. The old customers understand that costs go up so its fairly straight forward. I think the most effective way is to explain what you've done to improve your service since your last visit.Mainly investment ie equipment,training and also remind them how good a job you did before.
joe
Title: Re: How to JUSTIFY increasing your prices!
Post by: Ivar_Haglund on March 13, 2004, 01:34:49 am
If all your customes just say is that all after you give price

your not charging enough.




IVAR ::) ::)
Title: Re: How to JUSTIFY increasing your prices!
Post by: Derek on March 13, 2004, 09:48:46 am
Hi

I would refer you to a previous post from 'our Ken' where he says he increases his prices annually ..carpets one year upholstery the next.

It is wise to have a slight increase each year, to keep pace with inflation, this will be relatively unnoticeable rather than a large price hyke every few years

Cheers
Derek
Title: Re: How to JUSTIFY increasing your prices!
Post by: John_Flynn on March 13, 2004, 11:04:16 am
Keep up with inflation 1.5% !!!

Hike up your prices 10% and lets CAUSE Phony Blair some INFLATION. ;D ;D ;D
Title: Re: How to JUSTIFY increasing your prices!
Post by: Mike Halliday on March 13, 2004, 11:15:04 am
Was'nt Ken saying a couple of weeks a go he'd raised his prices by 25% :o

Most of my existing customers don't know I've put up my prices until it s too late, I've finished the cleaning and they ask " How much do I owe you" :D

I think most customers will accept a 10% raise without questioning it.

Mike
Title: Re: How to JUSTIFY increasing your prices!
Post by: strakercleaning on March 13, 2004, 01:18:47 pm
Chris. I like the logical explanation ;D.......re- doing my pricelist as i speak ;)
New efficient machinery and chemicals is my reason for increases............people ask " whats your excuse for increase ..........dont need an excuse only a GOOD reason 8)
Title: Re: How to JUSTIFY increasing your prices!
Post by: Dave_Lee on March 13, 2004, 01:31:30 pm
I think most repeat clients would accept a 10% increase from the year before, but if they havent called you for 3 years - its 30%. If you hike your charges substantialy, the best and most acceptable way of justifying it is by them visually being able to see for themselves the extra investment you have put in - new equipment, extra drying procedures etc.
Dave.
Title: Re: How to JUSTIFY increasing your prices!
Post by: Derek on March 13, 2004, 01:39:50 pm
Hi Guys

Point taken...I should have said.."if ONLY to keep pace with inflation"

John....'Phoney Blair' needs inflation of a different kind!

Still, we have an opportunity to vote him out soon... But I have a sneaky feeling that 'Teflon Tony' will still be there for another term... big grin and all

Cheers
Derek