Clean It Up
UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: LWC on February 26, 2009, 06:45:08 pm
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Got a letter today saying that we're approaching the "credit crunch" and have asked around and got cheaper quotes than mine and have asked if i would be interested in re quoting
Ive always looked after this one and have had it for years so it would be a shame to loose, but i dont realy want to drop my price. Ive never raised it.
What would you do? Ive had on person say just drop it you dont want to loose it and another saying dont drop it and theyre trying it on. They did say they were happy with me and said thank you.
Shall i tell them pay peanuts and get monkeys...un insured monkeys ;D
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A friend of mine who works for a fair sized company told me yesterday he has being tasked to reduce the cost of window cleaning by 25% . [ thats a full stop ]
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Matt, suggest lengthening the cleaning frequency instead of the price.
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i'd cut the price. the recession won't last for ever and when it picks up you can get the price right again. i've had to cut out some extras on my best shop that doubled the price but the shop had to lay a member of staff off. she'd been there 10 years. the recession hurts everyone, window cleaners included. you have to be realistic; you'll still be earning a decent whack, (hopefully).
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I agree with lenghthening the duration of each clean.I did this with a global company this year instead of reducing my price and they were fine.
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Try and lengthen time between cleans mate...
If you drop the price it will be difficult to put it back up later on...
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I'd agree w/ lengthening the time between cleans. If you lower the price and then when the economy turns around try to raise it they may drop you and go w/ a cheaper company (they always seem to be around) or cry about "paying that much" even when it was what they had be paying. People seem to have a faulty memory when it comes to what they had been paying.
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Got a letter today saying that we're approaching the "credit crunch" and have asked around and got cheaper quotes than mine and have asked if i would be interested in re quoting
Ive always looked after this one and have had it for years so it would be a shame to loose, but i dont realy want to drop my price. Ive never raised it.
What would you do? Ive had on person say just drop it you dont want to loose it and another saying dont drop it and theyre trying it on. They did say they were happy with me and said thank you.
Shall i tell them pay peanuts and get monkeys...un insured monkeys ;D
And on the other side they've called me in to do a cheaper quote while they admitt they are happy with the existing people.......
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Had the same thing happen to me, and I have other work very near, so I was loathed to lose it completely.
We reached an agreement to cut some parts of the job and my price, kind of met in the middle.
Bit gutty but it's still worth doing. :)
So I agree with other posts, don't just cut your price but agree to do less cleaning as well. So that all in all you are almost on the same hourly rate.
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If I was you forget about changing the cleaning cycle, if they have other companies who are cheaper and will still clean their window on the cleaning cycle you are already doing it at, why would they want to have their windows cleaned less often but still be paying more than the other cleaner.
Have a look at the job and price, if its is still profitable at the new lower rate then go with it, you could also try offering them a price cut for say 12 or 18 months, after this time you will re-alter the price back to its original figure.
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Got a letter today saying that we're approaching the "credit crunch" and have asked around and got cheaper quotes than mine and have asked if i would be interested in re quoting
Ive always looked after this one and have had it for years so it would be a shame to loose, but i dont realy want to drop my price. Ive never raised it.
What would you do? Ive had on person say just drop it you dont want to loose it and another saying dont drop it and theyre trying it on. They did say they were happy with me and said thank you.
Shall i tell them pay peanuts and get monkeys...un insured monkeys ;D
I wouldn,t drop the price as it then looks like you have been overcharging them, come up with a different spec for them>......just out of interset is it one of yr best paying jobs by a mile?
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Alternatively you could be a bit sly and cut your price and then spend less time on the job.
At least that way you will have time to replace it before they sack you, which they almost certainly won't. I've looked at other peoples work and people get away with murder.
Then again I can't do that myself cos I'd worry about it :
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i have a feeling this is going to be more and more common
i am waiting for mine to do the same, i dread to think what i will do, half say " tell them to go away " half of me says " well they will still be a ok earner "
i dunno what i will do ? ? ? ?
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Got a letter today saying that we're approaching the "credit crunch" and have asked around and got cheaper quotes than mine and have asked if i would be interested in re quoting
Ive always looked after this one and have had it for years so it would be a shame to loose, but i dont realy want to drop my price. Ive never raised it.
What would you do? Ive had on person say just drop it you dont want to loose it and another saying dont drop it and theyre trying it on. They did say they were happy with me and said thank you.
Shall i tell them pay peanuts and get monkeys...un insured monkeys ;D
I wouldn,t drop the price as it then looks like you have been overcharging them, come up with a different spec for them>......just out of interset is it one of yr best paying jobs by a mile?
my thoughts too....if you drop the price iitl be that way for a LONG time!
when i get in a situation like this i get out there and knock, canvass untill i have replaced the loss and some... then i stand my ground....
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in the late 80s early 90s this happened a lot round my way and once the prices drop its hard to put them up again. hence commercial round my way is well under priced.
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I would drop the price - think about it - if its your second biggest income provider then surely its worth hanging onto.
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Can you find out the prices they have been quoted somehow? (sleep with the secretary for a night)
The other prices may be so far away from yours that your going to lose it anyway.
I think i would reduce my price but not by a huge amount, just to show i was willing to compromise - if you refuse to budge in any way i'm sure you'll lose the job.
If you've been cleaning it for some time then your probably able to whip round it now and earn reletively easy money.
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Yeh it is a big one that is quite a way off my other work.
Window washers gave me a great idea on the other forum
"I would say we are willing to look at our prices and try and make them more keen if possible for you in this credit crunch, please could you provide us with the written quotes and will see if there is a way of doing this for you as you have been a good client of ours and we have never let you down in the past ...years."
Do you know what the most anonoying part about all this though...i know we all look to save money but i know for a fact they ill not be dropping they're prices for their customers
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no one likes dropping there price but its about the business and what is best fro the business for example i recently lowered a quote to be competive in a new job now i agreed for a 3 month period to make sure it paid well it ends up a really good paying job.
only you know what you could do it for for example i have work that pays £20 per hour or slightly more this would not be lowered for any thing, but i have work that pays upto £80 per hour both of these one man well i would drop it due to the circumstances and still have a good job.
or you could lower till you replace, but only you can make the decision
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Hi LWC, If you do decide to lower your price then I don't think it's unreasonable for you to ask what quote you're competing against. Also I think reducing the frequency of cleans is a risky business because chances are the customer will notice that the difference between glass cleaned every 4 weeks and glass cleaned every 6 is negligable (there are exceptions of course eg: fast food outlets etc).
On the plus side at least the customer has given you a chance to compete rather than just send you packing.
Good luck
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LWC
I think you have had some good points from a few members & i personally would decide do you realy want to keep it.
I am not going to give figures out but i lost one recently valued at many thousands of ponds per annum, it is not necessarily the person you deal with that holds the purse strings its somebody somewhere in an office who doesnt care about you & your business only black & white what they save.
Acouple of examples:
1: This was a large bi-yearly contract & they wanted it reduced to one clean per annum, i told them no, it had to be two, they wanted me to carry on, so i just doubled the price & lost it.
2: Large monthly priced less gone. No say done by invisible people, not even aware of that one.
3:Lots of smaller jobs, lost or change of frequency.
Theres people out there everyday undercutting, so you need to work with the client closely, look at reducing your price slightly somewhere half way to where they want, but also change the frequency & do an annual figure.
i.e. Said Building
Currently; £100 per month int/ext = £1200 per annum.
Change to Option 1: £90 per six weeks = £810 per annum (Saving £390.00)
Option 2: £45 ext monthly & £45 int quarterly = £720 per annum (Saving £480)
Theres many other combinations but, if you want to keep it you only need to find the difference between todays price & the revised price not the full £1200
I am down 10s of k at the minute but still operating & will come out the other side with a business but slightly reduced.
Hope this helps
Gary
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I'm Afraid "can you drop the price" is the new buzz word.
There was a successful businesswoman on working lunch who said the key to survival in this reccession is to phone your suppliers and ask them for a lower price.
I also heard it at a seminar i went to recently.
Dont be suprised if more customers dont phone you asking for the same, I suppose its all down to how bad and how long the downturn is.
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If they've genuinely got cheaper quotes, yet they've come back to you to ask you to reconsider, it's you they want.
If you genuinely still value the work, ask them to be straight with you, you've worked for them for years, what would be acceptable to them? Go back rework your price and let them know what a special favour you've done. You'll soon find ways to speed up and get back near the right hourly rate ;)
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When I am looking for commercial work, I state on my letter that I will beat any realistic price that they already have.
This does not mean that I will do the job at a lose, if I feel that there is enough profit for me then I will go with that figure.
I would ask them what they would consider is a fair price in the current climate, don't give them a quote untill they give you this figure, if they won't give you a figure just walk away from the job.
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What gary evans has said is exactly what I've done with one of my commercials at their request - the Jury's out at the moment on their decision. Go and see them face to face if you can - get the body language - do they want to keep you?
I have given options showing the savings they can have by reducing frequency from 4 weekly to monthly (12 per year instead of 13) and reducing their internal cleans from "everything" to high traffic areas. (Doorways and entrances)
I have done this contract for ten years and last year they let me raise my prices for those massive fuel increases by 5%. (First rise ever - but originally priced for ladders and now done wfp so reasonable hourly rate.)
But it is also useful in that I can start early, do the insides when it rains etc and is a prestige name in the area.
So sweating on this one. It is about 6% of my annual turnover. So not a deal breaker, but a morale hit if I were to lose it.
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When I am looking for commercial work, I state on my letter that I will beat any realistic price that they already have.
This does not mean that I will do the job at a lose, if I feel that there is enough profit for me then I will go with that figure.
I would ask them what they would consider is a fair price in the current climate, don't give them a quote untill they give you this figure, if they won't give you a figure just walk away from the job.
i dont know how you can state you will beat any realistic price as every business is different and just because someone is willing to work for less than you doesnt make their price unrealistic.
im not having a go at you but me personally think it might come accross unprofessional to ask them what they think is a fair price as they dont know what your overheads are etc and just looks like yor fishing for a price to give them to get the job.
on large contractcs all tenders are placed in sealed envelopes i think if you wher to ask them for price they think is fair your quote would be thrown straight in the bin.
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When I am looking for commercial work, I state on my letter that I will beat any realistic price that they already have.
This does not mean that I will do the job at a lose, if I feel that there is enough profit for me then I will go with that figure.
I would ask them what they would consider is a fair price in the current climate, don't give them a quote untill they give you this figure, if they won't give you a figure just walk away from the job.
i dont know how you can state you will beat any realistic price as every business is different and just because someone is willing to work for less than you doesnt make their price unrealistic.
im not having a go at you but me personally think it might come accross unprofessional to ask them what they think is a fair price as they dont know what your overheads are etc and just looks like yor fishing for a price to give them to get the job.
on large contractcs all tenders are placed in sealed envelopes i think if you wher to ask them for price they think is fair your quote would be thrown straight in the bin.
When I am summiting tenders I do not put that paragraph in my tender, but on my 1st contact letter it is on it.
The customers don't tell me what they are already paying first, I always give my price and service package first, if they like me and what I am willing to do, but I have priced the job at a higher rate than they are already paying, that the time when they tell me how much they are paying.
These are some examples
I quoted 1 shop £12 every week (inside &out), the customers wanted the windows cleaned on a Monday (their cleaners won't do it that day instead he cleans them on a friday) he also only charges £8, which I think is unrealistic to beat.
Another one is a care home for 12 people with a consertory, I quoted £25 per month he charges £10. Unrealisic to beat.
Finally I quoted £175 for a 6 weekly clean on a nursing home, they where already paying £150, I dropped my price to £145 and got the job.
It is realistic for me to lower my 1st price by £30 because the job only takes 2 1/2 hours to do, and I have a hourly target of £30 to meet.
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When I am looking for commercial work, I state on my letter that I will beat any realistic price that they already have.
This does not mean that I will do the job at a lose, if I feel that there is enough profit for me then I will go with that figure.
I would ask them what they would consider is a fair price in the current climate, don't give them a quote untill they give you this figure, if they won't give you a figure just walk away from the job.
i dont know how you can state you will beat any realistic price as every business is different and just because someone is willing to work for less than you doesnt make their price unrealistic.
im not having a go at you but me personally think it might come accross unprofessional to ask them what they think is a fair price as they dont know what your overheads are etc and just looks like yor fishing for a price to give them to get the job.
on large contractcs all tenders are placed in sealed envelopes i think if you wher to ask them for price they think is fair your quote would be thrown straight in the bin.
When I am summiting tenders I do not put that paragraph in my tender, but on my 1st contact letter it is on it.
The customers don't tell me what they are already paying first, I always give my price and service package first, if they like me and what I am willing to do, but I have priced the job at a higher rate than they are already paying, that the time when they tell me how much they are paying.
These are some examples
I quoted 1 shop £12 every week (inside &out), the customers wanted the windows cleaned on a Monday (their cleaners won't do it that day instead he cleans them on a friday) he also only charges £8, which I think is unrealistic to beat.
Another one is a care home for 12 people with a consertory, I quoted £25 per month he charges £10. Unrealisic to beat.
Finally I quoted £175 for a 6 weekly clean on a nursing home, they where already paying £150, I dropped my price to £145 and got the job.
It is realistic for me to lower my 1st price by £30 because the job only takes 2 1/2 hours to do, and I have a hourly target of £30 to meet.
So you undercut the person who was already cleaning the property.
Chris
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When I am looking for commercial work, I state on my letter that I will beat any realistic price that they already have.
This does not mean that I will do the job at a lose, if I feel that there is enough profit for me then I will go with that figure.
I would ask them what they would consider is a fair price in the current climate, don't give them a quote untill they give you this figure, if they won't give you a figure just walk away from the job.
i dont know how you can state you will beat any realistic price as every business is different and just because someone is willing to work for less than you doesnt make their price unrealistic.
im not having a go at you but me personally think it might come accross unprofessional to ask them what they think is a fair price as they dont know what your overheads are etc and just looks like yor fishing for a price to give them to get the job.
on large contractcs all tenders are placed in sealed envelopes i think if you wher to ask them for price they think is fair your quote would be thrown straight in the bin.
When I am summiting tenders I do not put that paragraph in my tender, but on my 1st contact letter it is on it.
The customers don't tell me what they are already paying first, I always give my price and service package first, if they like me and what I am willing to do, but I have priced the job at a higher rate than they are already paying, that the time when they tell me how much they are paying.
These are some examples
I quoted 1 shop £12 every week (inside &out), the customers wanted the windows cleaned on a Monday (their cleaners won't do it that day instead he cleans them on a friday) he also only charges £8, which I think is unrealistic to beat.
Another one is a care home for 12 people with a consertory, I quoted £25 per month he charges £10. Unrealisic to beat.
Finally I quoted £175 for a 6 weekly clean on a nursing home, they where already paying £150, I dropped my price to £145 and got the job.
It is realistic for me to lower my 1st price by £30 because the job only takes 2 1/2 hours to do, and I have a hourly target of £30 to meet.
So you undercut the person who was already cleaning the property.
Chris
Yes why not, it called business.
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if i were you i'd try n have a chat with em, try n get a better insight and hopefully get someone there on your side, improve customer relations n all that. Bring up the fact that they have always been happy with the work etc and that they could end up with a complete gypo (obviously better phrased ofcourse)
i think suggesting lengthening the time is a good idea, i had to do that with one of my big jobs. Maybe even try and find out what the best quote they got is and see if you can match it, depends how well it pays. I know when i had to do that i wud have rathered drop the price by a few hundred and do it every month than do it every 2 months. Every job is different i spose
Hope this helps :)
Tim
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Well one of the sites i used to have to go up a 3 stage ladder to do the inside ones and it was pretty hairy to do, but now ive started using supalite with mop and blade on which makes the job quicker and ALOT safer
So im offering them a discount. Hope its enough! ;D