[Perfect Windows]

This is a response to a bundle of threads recently that seem to lack economic common sense.

It seems clear to me that if I ask a price that is accepted most (but not all) of the time, then I've probably got it about right.  I've had a handful of people say I charge too much, but it really has been a handful - and bear in mind that in a recent "how much for this job?" thread, I was amongst the most expensive responses. http://www.cleanitup.co.uk/smf/index.php?topic=104955.0;all

I think people need a dose of basic economics.  If your customer is happy to pay £X for a clean, then you are simply emptying your own pockets if you charge a smaller amount.  Now, that amount will vary across the country, but the variations I see are ridiculous.   This is all symptomatic of a bigger malaise in our industry.  There seems to be a feeling that if we charge what the customer will pay we are, in some way, ripping them off. 

There's a guy in my city who charges £7.50 for houses I rate as £19.  Who's the mug?  I guarantee it's not me.  And am I ripping my customers off?  Basic economic theory suggest not.  It's a free market, so they have alternatives (one of which is to keep their windows dirty).  They choose to pay me the amount I charge.

And yet, and yet, I still hear people complain about "ripping off customers" or "not treating customers fairly".

Apologies if this feels like an invitation to an argument.  It's meant to clarify basic economic theory and ask why we, as an industry, seem to ignore it.

Vin

[Steven01903]

U R right 

[deeege]

Your right, but there will always be chancers who think they can work for that £7.50 and good luck to them if they can. There will also always be new starters desperate for the work so will be underpricing.

If you have a full round and don't need the work then why not price that house at £19? If they don't like your price then fine, the next customer will though, and so will the one after that.

[Richard Neal]

It is the same as the retail/ housing market where an item is only worth what someone will pay for it. I think with this trade it is also what the wc is comfortable to charge, i am not cheap but i am not the most expensive in my area, your £19 house may be a £15 house to me or i may charge £22!
We are all different and all need to earn different amounts for mortgages, repayments, advertising etc.

[dai]

A chimney sweep recently charged me £50 for a twenty minute job. Not many sweeps about, I moaned but paid up, that was his price and he got it.

[Moderator David@stives]

Charge what you like, dont be influenced by others, some people would spend 1/2 hour to to clean a £15 house, some other window cleaner would charge £5 and do it in 10 mins.

Do the mathes , both ways work.

Customer is happy both ways, one way gets a quality job, second way customer gets cheap job.

Can't see the problem myself.

That's why we have lidl and M&S, both are busy

[Smudger]

A cracking post/topic - hit the nail right on the head

Darran

[mci services]

I agree with david charge what you want and don't worry about everyone else but if you do go for really high prices don't come on here moaning when you lose a few

[David Kent @ KentKleen]

here here Dave. I clean a house wfp takes me 15 mins i charge 7.50 another company cleans next door charges 4.00 but is done in 6 or 7 mins. 2 houses cleaned both customers happy, wheres the problem?? there isnt one!!!
happy cleaning..    

[Clive McDonald]

Hi Vin.

[Perfect Windows]

Hi Vin.

?

[Clive McDonald]

Just saying hi mate ive been working on my talkable difference and referal system.

A lot of the same topics pop up on here and eventually you get your own take even if you don't 'get' all the aspects. A few examples might be JW, daily earnings, simple leaflet or better one, which works best? Hot water or cold, signed van or mondeo, etc etc.

The only thing i'm really sure about is that collectively the forum/body of information has sprung me forward immensely.But this job is getting tougher, and you have to have your best game or you wil get stuffed.

[Perfect Windows]

Charge what you like, dont be influenced by others, some people would spend 1/2 hour to to clean a £15 house, some other window cleaner would charge £5 and do it in 10 mins.

Do the mathes , both ways work.

Customer is happy both ways, one way gets a quality job, second way customer gets cheap job.

Can't see the problem myself.

That's why we have lidl and M&S, both are busy

You're correct.  Different levels of service demand different prices and I didn't mean to mistake the two points.

I should have been clearer.  To use a favourite economics phrase, all othe things being equal anyone charging less than they could for a given level of service is losing out.  In my opinion, plenty of people in our game are doing so.

I do disagree with your point about the time taken being part of the equation; the cost of supply is largely irrelevant, what matters is how much the customer is prepared to pay.  I don't see Mercedes saying a car should cost £60,000 because of the time and materials that go into it.  No, they charge £60,000 because their customers see that as a reasonable price for what they are getting.  The cost of manufacture never comes into it.

Yet, the moment we get gassing, the cost of supply comes up every time in conversations along the lines of "you must be a thief to get £xx per hour" or "I look after my customers by not overcharging".  If the customer pays, no-one is stealing from anyone.

Vin

[Clive McDonald]

This isn't on my radar, my figures aren't that different to anyone elses, but i have to work like a dog.Dave earns three times as much and swanns about all day.

The mercedes example is that they have managed to  add value beyond a car. To match your favourite economic phrase with one of Dave's he once described himself as being 'reassuringly expensive'.

The variables are price, volume and quality.

[mci services]

Vin why you bothered? if others were doing it wrong they will not last in the business so all the better for you, but if they don't fail then they are doing something right, either way just do what you want to do and ignore the stuff you don't like on forums. pick out the info you like and use it

[Clive McDonald]

I think thats what i was trying to say.I got tired of saying hot was better, electric was better, slx was better, 400 is better than 200.No one cares.

It is a good thing to think out loud.

[deeege]

Vin why you bothered? if others were doing it wrong they will not last in the business so all the better for you, but if they don't fail then they are doing something right, either way just do what you want to do and ignore the stuff you don't like on forums. pick out the info you like and use it

Stu, as always, talks sense.

[mci services]

I think thats what i was trying to say.I got tired of saying hot was better, electric was better, slx was better, 400 is better than 200.No one cares.

It is a good thing to think out loud.

a lot of people read between the lines and pick out the best from posters well thats what I do, I was advised years ago to listen to all advice given and take the bits that I liked and use them and keep the bits i didnt like at the back of my mind in case it did not work my way, he also said I was free to disregard that bit of advice

[mikecam]

This is a response to a bundle of threads recently that seem to lack economic common sense.

Its horrible when everyone doesn't agree with you or listen to what you say and just do their own thing anyway, isn't it? Just type out the industry standard rates for us and we'll abide by them. And send to hell anyoe who undercuts !!

[mci services]

This is a response to a bundle of threads recently that seem to lack economic common sense.

Its horrible when everyone doesn't agree with you or listen to what you say and just do their own thing anyway, isn't it? Just type out the industry standard rates for us and we'll abide by them. And send to hell anyoe who undercuts !!