Clean It Up
UK Floor Cleaning Forum => Carpet Cleaning Forum => Topic started by: maxcarpets on April 09, 2008, 09:15:22 am
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I have over the last few years slowly increased my prices to a fairly good level without problem, however I have noticed that since my last price increase in Jan work seems to be slowing. My question is, in your opinion is this just the time of year or is this due to the economic slow down and maybe not the best time to have an increase.
To test this I am having a 15% sale in May as May is always slow for us, if the sale makes us busy than I think price is becoming a major factor.
More proof of this is I had a call from one of my regular customers last night saying they had a leaflet through the offering a lounge clean for £20.00, I did it last time for £49.99 she asked if I could beat this but I declined and explained about costs and insurance etc, she said she would give them a go anyway
Is it time to think about reducing prices?
I look forward to your responses on this.
Justin
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Do you advertise your prices on leaflets or website?
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Have kept mine pretty much the same in the 4 years i have been running,still get people moaning i am too expensive though ! .28p per sq ft on wool .25p on polly ,there are people around this way that charge .34p.
I got a letting agy contract a couple of years ago as their previous carpet bloke upgraded to a t/m and put his prices up.
Just picked up another letting agy with 500+ houses on their books they will want a % of what i charge prob 10 or 15% but i will alter my price to cover this ;)..
I want to keep putting £ into the business,looking into the RX20 or the rotary drimaster as my next big purchase,anyone use either of thease machines ? do they have any pitfalls ? i am assuming i couldn`t use them on long pile carpet ?
Got an info pack from the states yesterday and they both look top notch,does any other company make a comparable machine ?
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Davep
I advertise prices on leaflets sometimes if I want to have a sale, not on website.
Justin
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Why is that Justin? I am thinking of putting prices on site, after all the customer wants to know them.. What are the downsides of this?
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You have to be very cheap otherwise people will not even bother to contact you.
I only do it in slow Months Jan, Feb, May & Sept I put a price on then have a special offer I.E 10% or 20% discount throughout that month.
Cheers
Justin
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So if someone calls you and you are still not as cheap as the other quotes is it your salesman skills that get the work?
I think people will like the idea of a price page as its transparent that there are no extras, and after all people dont really enjoy phoning around.
May be wrong mind!
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I agree keeping as a simple to use service is best, but I'm not getting into that as I was attacked for this opinion not so long ago.
Justin
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I am in the process of removing the prices from my websites. They do get lots of work but I am now putting up my prices by upto 200%. Working on the basis that I will do less for more.
The big problem with price lists is even though you put a minimum booking amount on the page. They still ring asking for a bedroom to be done at £20.00 even though our minimum is £65.00.
Also you loss all scope for getting higher prices. Its makes you sick when they say somrthing like you are charging £100.00 for the work the other quote from chemdry was £400.00. You know that you could have got double or three times what you have got as they have priced it themselves from your price list.
Price lists on leaflets and websites have kept me very busy over the last few years. However I am feed up having to work like a dog to earn a crust.
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Advertising prices on websites or leaflets gives the customer an instant comparison to your competitors. The idea in this game is to build up, over a period of 2-5 years a customer base of excellent customers who want to use your services on a regular basis and who you want to work for.
People who buy on price alone are never loyal to you as they just go to the cheapest offer everytime they want something done.
Just think of the women who has just been quoted £250 to have her suite cleaned by a franchise. She may think this is a little expensive and may try and ring around a few other cleaners to compare. Now if she rings you and you say you will do it for 40 quid is she going to use you, not on your nelly.
If you'd said a 140 then you are in with a chance.
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Prodry, So does your price for a lounge for example differ depending on who has phoned you? If you want a high price then put that on your site, you can explain your pricing on the site at the same time?
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Problem with price list is you have to honor prices so not much hope of getting better prices. Some dont even look at the price list before calling and when I quote them they are shocked as to how cheap I am.
I am finding that I am getting lots of price sensitive customers with my low prices. Like end of tenancy. Used to get much more high end/good prices before I put low prices on sites.
I have been getting plenty of work. Last week I did 7 jobs in one day (4 empty and I had keys). £645.00 of work. I am 28 years old so I feel that I am in no way struggling money wise and the price lists have done there job. I thought about putting higher prices on the sites but then I could alienate to ones that do want a cheap job done.
I have a truckmount and doing an empty house with polyprop carpets doesnt take more then 2 hours. So having a per room rate for that type of job compared to a nice house doing just the lounge and stairs (ie lots of expensive things to move and a nice wooven wool carpet) taking 2 hours.
Using a per room rate price:
Pricing high then the whole house job will be put of by the high total price
Pricing low then the person with the nice house will be put off by the cheap rate and you know you could have got more for the job.
I would be good if I could put two prices one for soap dodgers and one for Mr & Mrs Middle-class.
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Prodry if you are getting regular work from your website why not just put your prices up by £5 each item on some of the small items put them up £2-3 so you can reach the £65 with less carpets cleaned.
Shaun
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Or sate terms like price may vary if no furniture/type of carpet, i agree with your points but dont want to price someone i a nice area more than someone in a more deprived area for the same size job, only if it takes longer..
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I stress that you only get what you pay for--if you want a rubbish job pay rubbish prices. I have raised my prices again this year.
I have found that although I am reasonably busy it is quieter this year. Probably due to ever rising household costs. They can put up with a dirty carpet for a couple of weeks longer. If every one did that there would be no work for two weeks.
Trevor
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If you drop your prices you either cut corners or make less money. Do painters or plumbers give discounts? No they dont but what you can do is give volume discounts. That way the saving for the customer is based on your time saving on a bigger job.
Lets be honest the difference in the household bill for a month is only a few pounds unless you mortgage is huge so for those customers this affects are probably low end anyway.
I think the real issue is a loss of confidence with all the doom and gloom talk on the news every night so people are holding back as opposed to being less wealthly.
Mark
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I never advertise prices and never will.
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I have never advertised prices either, as soon as you advertise price you take away any reason for a customer to ring you as they will just compare you with another cleaner who sells on price alone.
All the best
John
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Prodry,
I did a house in your area (Church Langley) this week, £80 for an open lounge stairs and landing.
Slightly furnished, TM in through the back gate just over an hour to do it. And I am going back next week to do her neighbours.
With respect how you can go from Colchester to say Harlow for £75 to do lounge, hall, stairs and landing is beyond me.
With fuel, a TM, Insurance etc etc
Alan Sugar would say you are a busy fool.
Murky
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I am with John on this one.You probably just wont get the oppurtunity to sell yourself when they ring as a result.
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Can I just say the question was is it time to think about reducing our prices as hard times hit, not weather we advertise prices or not.
Justin
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With respect how you can go from Colchester to say Harlow for £75 to do lounge, hall, stairs and landing is beyond me.
With fuel, a TM, Insurance etc etc
Alan Sugar would say you are a busy fool.
Murky
I am busy therfore If I go to somewhere like Harlow then it is usually to do a couple of jobs at least.
Thursday next week I have two jobs in Harlow and two other jobs on the same day one on the way to harlow (braintree) and one on the way back (chelmsford).
Harlow is 40 miles (1hour) from me. That day is worth £340.00 to me.
I can see your point but the logic of staying in hometown fighting, spending £'s on adverising and leaflets to get work when I get jobs for free/very little from the internet, albeit that I have to drive about a bit and spend more on diesel.
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Don't sell yourself short I'm increasing my prices shortly due to increased running costs most genuine customers understand this.How can someone who started in 1988 and charge £15 now be charging £20 and still be making a profit? You will always get price shoppers looking for the cheapest price not for the best clean.
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no steve,i do charge much more than that to clean a room..
Wasn't meaning you we have one who advertises in my local paper with these prices
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if you reduce your prices the custy will still want your "bargin" clean when you are busier or will you still clean for that discount.......do you think she will pay your "busy" price?? or just wait for you to have another "bargin" clean??
just a thought..........
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spindle
Do you think that we will have a "busy price" time this year?
Justin
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yes i hope that its the late winter and things will pick up with the warmer weather . i also think that how the childrens school holidays and half terms have been different with easter being early.
i dont change my prices..........certainly not lower............i will offer discount if cleaning a larger property ........or if paid in ££££ ;)
although i am thinking of increasing them
i am experiencing an rise in my own cc work.......but i am not ready to give in my "day job" as many others are struggling for work
i must point out that i am not dependant on cc for a living(parttime cc).so there for i dont feel the need to panic with a downturn in business.......but i am reading the posts about how business is declining and how some are thinking of getting a part time job to make ends meet.
i had thoughts of going f/t but i think i may wait a while longer :)
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Prodry you are very very cheap (I think you know that) but why not become just very cheap and raise prices a little and watch the response, I bet there is no detrimental effect just added profit, image if your day at £340 was £390 adding £50 a day would make you happier for the same work.
Shaun
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Shaun
Its doing the same amount work that is driving me mad and tiring me out. Doing 4 - 6 jobs a day over 4-5 days a week. Happy with the money but thinking of doing half the jobs for more money. i also have other business interests (handyman/property maintenance) so could do a bit more on that side.
This week I priced 5 upholstery jobs over the phone. Used to charge between £65-£85. Priced all at £150.00 and got 4 out of 5 at £150.00. So am really upbeat about raising my prices.
I had got to the stage were I wasnt ringing people back as was to busy or couldnt be bothered. Not turning up to jobs. Passing work to others.
Appreciate your comments about just raising them slightly but I think I need this wholesale change otherwise I will be in the same position in few years time but proabably more worn out and bitter
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Spindle
I think that is a wise move.
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Prodry you are spot on with what you have done, I thought you were trying to get your head around the bigger prices but it sounds like you have already done it!, well done.
Where did you get the jobs from, website or other?
Shaun