Clean It Up
UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: Phil Mitchell on January 28, 2008, 04:11:13 pm
-
....my prices?
This march I've been cleaning for exactly 2 years. No price increases in that time apart from new quotes in the last 3 months.
With everything going up in price its only fair I raise my cleans by £1 a property but with the economy scare is this a wise idea?
This is a difficult decision to make as from the end of feb my wife gives up work to have our baby and I become sole provider.
I could end up risking alot if I get this wrong, any advice boys n girls?
Phil.
-
mine go up £1 every 2 and 1/2 years
sure some complain, but the loss is VERY little, infact, last time it was 1 house, who 3 months later i picked back up with a £2 increase ;)
-
I raise my prices when I can no longer achieve my required hourly rate without over exerting myself.
In practice this means about once every three to four years, and they still moan that "it was only a few months ago you put them up before" ::)
-
But what about the economy? Thats my concern. theres plenty of posts concerning price increases but is anyone else thinking of holding back abit?
Is it worth the risk?
-
But what about the economy? Thats my concern. theres plenty of posts concerning price increases but is anyone else thinking of holding back abit?
Is it worth the risk?
if you think like that now what will you think in a couple more years, the same thing should I shouldnt I.
when I increase price I may lose one or two people, over all I gain. 2 lost cusomers and more money makes it wise choice IMO
-
Phil, I'm holding back. I don't take such a scientific approach to pricing as some do (and that's their choice), preferrng to judege each case on it's merits.
Generally I like to increase the prices on new custys, and hold on as longas possible before increasing the existing work, but then I am Mr Cautious about this.
Can you get more work to try to put off the dreadful deed? I'm holding back and taking it on the chin for the time being. I mean, we are all on £50k pa aren't we? And how are those geezers going to pay for their franchises? Oh, right, they have to scientific about it, as thier business plans DEMAND increases, in the smae way that the publics' mortgages DEMAND they pay more.
Play it cool if possible mate, and then dislodge the others who are putting up their prices.
-
Thanks Rosy, you seem to be on the same level. I can understand where everyone is coming from but things will be harder this year. I might hold back for 6 months and see what happens, whats another 6 months eh!
-
It's just my thinking, and most here know that's usually wrong ;D, seriously though, I know what window washer's saying about in two years... etc., but if can give yourself a break from raising for six months and see how you feel then, it wouldn't be a bad thing, but at the end of the day, it's your outgoings/income that you have to balance, so I think it's really down to that, but I hate the idea of being pressured into doing something that my guts said was not the right time. Every time I see a new wfp van on the road, it makes me think twice!
-
But what about the economy? Thats my concern. theres plenty of posts concerning price increases but is anyone else thinking of holding back abit?
Is it worth the risk?
Whenever I have lost a customer through a price increase, it might be a case of putting up 200 prices and losing 2 or 3 customers at most. Therefore, 200 customers x £1 = £200 extra per circuit. Losing 3 customers at say £20 = £60 lost per circuit. Gain = £140 per circuit but work done in less time enabling better paid work to be taken on.
In reality, I have only lost the occasional one like this. It's my view that if a customer is going to ditch you, it isn't due to the price increase. It's something that would have happened fairly soon anyway probably. After all, if you call monthly and increase by £1, that is £12 a year. 50 cigarettes, 4 pints of beer, etc etc. (btw I don't drink or smoke).
-
Phil
For the last 2 years you have not increased your prices, yet everything that you need to live and survive on has gone up, some of these prices are really quite small but others like car fuel, gas, electric and morgages have risen by more than 10 times the rate of inflation.
If you train your customers that every year or 2 you will increase your price to reflect the ecomony, they won't moan too much.
Times are going to be harder for some in the next few years, because of this credit crunch we are going though, but remember you have to look at your familys' interests first, and not increasing your prices will affect them.
If you have 150 customers and you charged them £10.00 per month for their windows to be cleaned, if you increased your prices by £1.00 a month, you might get 5 who might cancel, but 145 will pay the £1.00, so now you are making £145.00 per month for less work.
If you want to help those customers who simple cannot afford you, them change their cleaning rota to 6 weekly or 8 weekly, but you need to raise their total cost up by 50%, doing it this way, reduces your customers bill by 50%, but increases you take home pay by 50%.
-
Why would you put £1 on every property? Surely a % increase is more appropriate? a £15 property gives you £15.60 and a £50 property gives you £52.00 using 4%. We put prices up last October (first rise for 2 years), so have timed that right for any credit crunch that might hit, but we still lost a couple namely the lesser priced ones ::) We all run buisnesses so we do have to raise prices from time to time. Personally I would not use a baby on the way as a reason to customers, just increased overheads :) Good luck whatever you do
-
Why would you put £1 on every property? Surely a % increase is more appropriate? a £15 property gives you £15.60 and a £50 property gives you £52.00 using 4%. We put prices up last October (first rise for 2 years), so have timed that right for any credit crunch that might hit, but we still lost a couple namely the lesser priced ones ::) We all run buisnesses so we do have to raise prices from time to time. Personally I would not use a baby on the way as a reason to customers, just increased overheads :) Good luck whatever you do
On the other hand, you could say it's twins and ask for £2 extra ;D
-
i'v noticed that it's the ones who have been spoilt over the years ... the houses that were underpriced from the start and kept while i was building my round are the ones that cancell when you put the price up.... the ones that pay a fair price dont seem to mind....now i'm well established i have started telling people my price per window ,but a minimum charge of £10 ..and it seems to be working.....
the answer is to charge what you need for your buisness but not be greedy......and be a good judge of charachter...discerning what you can get away with.... :)
taffy
-
lets face it a one pound increase per month per customer is not alot of money so go for it be bold. This time of year i bet you will get people asking if the price is still the same so they will be expecting it to go up. fuel gas electic council tax and car tax have all gone up in price so your 1 pound isn't going to be a great deal to them and if they say it is and they really can not afford it how long will they continue to have you clean their windows?
-
One pound per month per customer isn't much? So a £12 job is gonna be worth £24 this time next year? 100% increase. Ain't that aint much??? :o I'm too cheap ;D
-
one of my customers the other day asked me if i was competitive, i have been cleaning his windows nearly 2 years at £7.00 never put the price up he said his mum only pays a fiver down the road and a couple of his friends have told him 7 is a bit steep.
i explained to him that i clean his windows frames and doors for £7.00 and never put the price up but he semed shocked and upset that i wasnt going to drop my price, cheeky ba***rd there could be a number of reasons that the prices are different but he hasnt cancelled yet.
i wont loose any sleep over a customer like that
i think some customers would let you clean their windows for free, some would moan if you put the price up after 30 years theres just no pleasing some of them ::)
my works decently priced so i put my work up as appropriate approx every 2 years
Brett
-
I was going to put my prices up one one estate I do, [167 houses] I am holding fire because some young guy is going round canvassing all my customers, and I know he's cheaper. You have to play the cards your dealt with. Dai
-
I was going to put my prices up one one estate I do, [167 houses] I am holding fire because some young guy is going round canvassing all my customers, and I know he's cheaper. You have to play the cards your dealt with. Dai
so true Dai, there are so many window cleaners round our way canvassing most of them start putting low prices in then after a while dissapear
thats when the customers start saying, my last window cleaner only used to charge £5.50 when you ask them where is he now they say 'i dont know' more likely that he couldnt make it pay, so when we give them the realistic price because we are running a business the customer thinks we are over pricing
Brett
-
im with rosy to a degree, play it by ear, what you have to think about is, a £1 rise on a £10 house is a 10% increase, even if you only put them up evry 2 years its still 5% , not many people are getting that sort of rise these days and most of them might not clock it , so i think you have to judge each call individually
-
i put my £8 jobs upto £10 had a few moans about a 20%+ increase
-
I increase my prices by roughly 5% every 12-18 months rounded up to the nearest 50pence. That way I keep up with inflation and don't take a pay cut by not increasing my prices. I try to increase my prices just before they receive their new council and water bills if possible.
-
You will have a number of houses in mind that were underpriced in the early days or simply because you got it wrong.
Pick your 5 worst examples and put their prices up by £1. If that goes OK do the next 5 and so on.
You don't have to put all your prices up in one go right across the board.
-
You will have a number of houses in mind that were underpriced in the early days or simply because you got it wrong.
Pick your 5 worst examples and put their prices up by £1. If that goes OK do the next 5 and so on.
You don't have to put all your prices up in one go right across the board.
this psot is spot on IMO
also what helen said about not saying about having a baby for a reason for price increase, use increased costs like fuel ect
-
Agree - keep it on a business footing.
;)
-
lets face it a one pound increase per month per customer is not alot of money so go for it be bold. This time of year i bet you will get people asking if the price is still the same so they will be expecting it to go up. fuel gas electic council tax and car tax have all gone up in price so your 1 pound isn't going to be a great deal to them and if they say it is and they really can not afford it how long will they continue to have you clean their windows?
One pound per month per customer isn't much? So a £12 job is gonna be worth £24 this time next year? 100% increase. Ain't that aint much??? :o I'm too cheap ;D
I didn't mean increaseing the price every month i meant that if you charge 10 pounds currently and increase the price to 11 pounds most people wont have a problem with that.
-
I was going to put my prices up one one estate I do, [167 houses] I am holding fire because some young guy is going round canvassing all my customers, and I know he's cheaper. You have to play the cards your dealt with. Dai
It's not me Dai, honest 8)
-
Thanks everyone, great comments, and I've made a decision. I do need to raise my prices but I'm going to be selective.
There will be a £1 increase on all the jobs obtained in my first year to bring them in line with my newer customers. All other jobs will stay the same as I'm happy with what I'm charging them as they amount to a good hourly rate.
I'm not a greedy person, I just want to cover the rise in fuel costs etc and earn a few extra quid.
I'm not going to raise by x% as this would mean lots of change and faffing about and I like the easy life, thats why I'm a window cleaner ;)
Thanks again, I must post on here more often!!!
-
Well done Phil - that's how useful the forum can be. Undecided when you post - mind made up after replies! :)
Peter