[Simon Gerrard]

Sorry, Mike, I think you're disconnected from reality or you've got a customer retention problem because what little time we commit to keeping in touch with customers yields us thousands in sales.

You keep saying your prices are high, do they include vat or plus vat?

Simon

[Mike Halliday]

no I'm not vat reg'd, i do believe i have a customer retention problem which is one of the reasons for this post  to see if it is high price issue or do low priced companies suffer the same problem.

to be honest I believe its the point i made in my first post other companies aggressively target what is the affluent areas which i cover

[Shaun_Ashmore]

Biggest problem I have is remembering customers, when they call they can sometimes say, "it's mrs smith you cleaned my suite last year can I have it done again" and can I remember who they are? Can I hell but they just go in the book! I bet Mick is having some amnesia problems because I've worked with him and he cleans very well and is always on time and polite there's nothing wrong with his application (may be rumblings of an old man) perhaps a little kitchen sink marketing wouldn't go amiss.

Shaun

[The Carpet Cleaning Pro]

Amnesia Mick or Mike ?

[Shaun_Ashmore]

When I reread my post it did look confusing Monte/Mick = Mick Bulous = Monte Rooney hopefully this clarifies everything.

Shaun

[Simon Gerrard]

Mike,
You keep,saying your prices are high, I don't think they are and I don't think there is a link between price and customer loyalty. The defining factor in customer loyalty is quality and to look for reasons other than that when you've got a customer retention problem is in my view folly. I'm not suggesting you do a bad job but if you can't retain your customers at an economic price and £800 per month (against maximum below vat threshold sales off £5,800) seems a more attractive proposition then you do have something of a conundrum on your hands.

Simon

[Fintan_Coll]

A difficult one to figure out Mike, your prices are not unreasonably high by any means, broadly in line with my own prices although I deal in Euros whereas yours are Pound Sterling, but more or less near enough. Most of my customers are repeats, some going back twenty years and I gets loads of referrals all the time.
My advertising spend would be around £50 per week at most and I make no big effort to keep in touch with any of my customers, they just ring me when they need me again.
The only difference that I detect Mike is this, my customer base is largely rural, farmers,and small towns and villages whereas I think you live and operate in a large City with a higher concentration of opposition. But then on the other hand you must have a vast population of potential customers. But having said that you appear to me to be one of the most succesful cleaners on these boards so you are certainly doing something right.
 

[Mike Halliday]

to be straight i don't believe my prices are high...... my use of the terms 'high: or 'higher prices' is relative to my area which i'm one of the most expensive (on average suite are still under a £100 and L/R £35) and of prices mentioned on this forum ( eg Monty who does 3 rooms for £45)

it is a conundrum, without blowing my own trumpet I do a good job, I'm a nice guy, technically I'm very proficient and run a professional set-up.

do you think its becuase I'm a transvestite and tend to work as my alto-ego' Michelle' ?

[AshWhite]

I know some would pay extra for that

[from edge2edge]

Mike do you do the simple things like leaving a spotter with your name on it with every customer(sometimes more for family friends if it might get more work as it works out well for me.)I personally get more referals from higher priced jobs but there again i do alot of one off types eg rental move out.................Alan

[robert meldrum]

To my paying customer............I'm that really nice, polite gentleman who is always on time, is perfectly willing to put himself out to pop into a neighbour to give a quote, does a little mat at the door ( or similar ) and refuses payment, and tries to keep his prices as low as possible ( or so he says )

Some will pounce on this and suggest ................That's not how to run a business. Or, Bl**dy fool working for nothing, etc, etc.

I don't set out to be Mr Popular but how I behave with customers has a bearing and has had a bearing on how many keep phoning each year and on occasions go to a lot of trouble to find me.

Perhaps I should add that my productivity has always been a lot higher than most on here judging by many posts over the years, so even with lowish charges my hourly rate will be higher than many who charge more than me and my marketing costs are extremely low.

[Richard Basey-Fisher]

mike if you use an online mailing company like docmail to do postcards letters etc it takes 5 min to send 500 letters once you have it sussed and its cheaper than buying stamps and doing it yourself

[Simon Gerrard]

Robert,
I agree with every word of that. We aren't the cheapest, far from it, but like you I do free rugs and mats and little extras that customers really appreciate. One of my goals as a professional is to try and put the customer in a position where they can't get what you do anywhere else. It doesn't always work, obviously not, but in the main customers appreciate an approach like that and it shows in their loyalty that has spanned more than three decades.

Simon

[Shaun_Ashmore]

Monte (it's easier to call you this) how long will it take you to clean say 2 rooms and a hsl of a 3 bed semi with your TM?

I also take it that you re location is a better place than your (ower) old one?

Shaun

[Neil Williams]

In my opinion it would be a serious mistake not to market to your existing customer base, every business does it as its people already familiar with your work.

If I send out 100 letters I know i will get 3 or 4 phone calls the following week from those clients, which has got to be a better return than trying to find new ones.

I'm sure one of the big reasons people get us back is that we try and make friends with them rather than just rushing in and doing the job and out again, that starts on the quote as I tend to go and quote nearly every job, even existing clients as it gives me a chance for a chat and really asses their needs etc.

Same as Steve.
In fact try this saying we use "They are not just our customers they are our friends" and treat accordingly.
It's not just being on time, wearing a uniform, being polite etc it's about taking an interest in how they've been, where they're going on holiday, discussing your own family etc that moves away from just a business transaction but makes them think you really care about the person.
Yes it can take up a bit of time but remember this is in effect free investment in your future.
Perhaps it because I have a police background that I know how to make people talk and to look for points of interest that you can strike up a conversation about.

I have never got my head around how you (Mike) need to constantly keep putting so many leaflets out, after so many years in the business. By this point you should have 70% repeat/referral rate and no body on here has such an eye catching van as what you have.

[Neil Williams]

As for prices try this analogy, but you'll need to know something about football to understand it.
Quickly rising through the ranks of the non league set up is a club called FC United of Manchester (FCUM for short).
This club was set up, run and well supported by former supporters of Manchester United. For all the League championships, European Cups, FA cups etc etc these supporters had reached the point where they weren't willing to pay the prices to watch Man Utd anymore, but loved football and loved their city, so set up their own club where you can watch football for £10 instead of the £60.

The point here is everyone has their price and if people can get their carpets cleaned for 40% less with just about the same end product what do you think is going to happen.

[Shaun_Ashmore]

If you keep 'pumping' leaflets out won't it grow your business more/faster? also there's the 2 other points 1. working in the areas he selects 2. keeping alot of other cleaners out which is impossible but if you do nowt you get nowt.

Shaun

[The Carpet Cleaning Pro]

2 rooms and a hsl of a 3 bed semi with TM = 50mins pulling up to pulling away...and that includes pre vaccing. Shaun... when have you ever worked with me> I think you getting me mixed up with someone else.

[wynne jones]

Loyalty has little to do with price and everything to do with setting yourself apart from the crowd. Although being 'cheap' is also what the crowd do.

[carpet_care]

Iwould certainly be worried if i was only getting 20% repeat custom.

I keep my prices what i percieve to be fair to the customer and enable me to earn a decent living. I dont do leaflets or keep in touch with my regulars through mail shots but wait for them to ring me when there ready.


 I have an add in yellow pages and go in local magazine the combined cost is about £260.00 a month but after 17 years in business i expect the large majority of my work to come from repeats and referals.


For instance next week i have 16 repeats 8 recommendations and just 5 from advertising and that is my typical ratio throughout the year. I obviously dont normally do that many jobs but the percentage of repeats is always high and if it wasnt i would definately be questioning why not.



 Regards Andy Locke.