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Pricing right
« on: October 01, 2009, 06:39:32 pm »
I will shortly be restarting my Carpet cleaning business,( from a few years ago), to go along side my window cleaning business. I also plan to keep my overheads low.

But I am concerned about pricing jobs right.
I am guessing, that if my prices are good and my customer service is good, then over time I will get lots of repeat customers and referrals for carpet cleaning. 
 
I can understand not pricing to low, you would be in business for more than 5 minutes.

Then if I price to high, I will be spending a fortune on marketing, and not getting many repeat customers or referrals. being know has a rip off. That is what concerns me about pricing to high.


I do not know if their is any truth to that?





 


Re: Pricing right
« Reply #1 on: October 01, 2009, 06:44:48 pm »
Track the ratio of quotes to jobs.

Keep adding 10% to your prices until you get 8/10 NO more 9 is too cheap.

Keep improving your quoting skills

Start with your current custies, so long as they are not real cheapy areas

Just my approach, it's not the be all and end all.

derek west

Re: Pricing right
« Reply #2 on: October 01, 2009, 06:50:31 pm »
i get 9 out of 10 jobs when i visit, i don't think i'm cheap, i average £70 an hour. maybe that is cheap! who knows, who cares.

do a cash flow, then add on what you want out of the job, theres your hourly rate, simples

derek

Re: Pricing right
« Reply #3 on: October 01, 2009, 07:00:45 pm »
When people say they get 10/10 instead of being impressed I think two things, and the other one is they could have made more for less.

But another way to look at it is if you are 'cheap' you don't have to sell and they will tell all their friends about you so whatever works as you say Derek horses for courses.

rich hand

  • Posts: 302
Re: Pricing right
« Reply #4 on: October 01, 2009, 08:01:16 pm »
It's very difficult to have a standard rate, some jobs need to be priced for what is seen. I believe pricing comes with experience and reflects the time the job will take and not specifically the area. Whether the customer accepts your price is probably down to your explanation and persona.

mark_roberts

  • Posts: 1899
Re: Pricing right
« Reply #5 on: October 01, 2009, 09:14:56 pm »
If your getting over 6 out of 10 quotes from general marketing eg. ypages etc then your either an excellant sales person or very cheap IMO.

Mark

Re: Pricing right
« Reply #6 on: October 01, 2009, 09:21:57 pm »
It's a good point to make Mark, the source is important. If you get referrals they are far easier than getting someone to book who intended to shop around.

The 8/10 is a way that I think is far better than saying I charge this that or the other. It's more a mechanism to maintain progress on your pricing and takes into account your current abilities and area/market.

derek west

Re: Pricing right New
« Reply #7 on: October 02, 2009, 12:34:01 am »
what a load of crock

mike
so you think 8 out of 10 is about right, but does that mean that everyone thats getting 8 out of 10 is charging the same, i.e the perfect price., no it  isn't.
your 8 out of 10 could be my 10 out of ten, its how you come across, what you charge and how the 2 relate.

pricing right is not about 8 out of 10's, its about getting enough money for the amount of conversions you get.

8 out of 10, 6 out of 10, what a complete load of rubbish.

derek