There are major updates in the next 2 weeks, although mostly unheard of its called The Venice Update.
It seems to be quietly tucked away but it is a MAJOR change , and believe it or not I think it is good news for local businesses like carpet cleaners.
Basically Google are making the search results local, this is good news for tradesmen like carpet cleaners because if someone just types in "carpet cleaner" they will get local searches by default. Seems to me the trick is to get your town name in as often as you can which most people have done anyway.
You will no longer be competing with the heavily back linked and SEO'd national companies and directories. My thinking is those 'bigger players' with more money will have to find another way to advertise nationally and for that there is Adwords.
I think it is more important than ever to get a good ranking on Google Places, it makes sense that is where they will start to figure out who is local and who isn't.
One drawback..... the automatic location finder on Google is pretty awful and I have to reset mine more than once a week.
In short don't panic too much, those that have dropped like the original poster can get that ranking back and suggest they make it a priority. You say its been SEO'd? REALLY?? Who by? Ask for a refund!
"Carpet Cleaner Dublin" Google first page is littered with rubbish that Venice will hopefully eliminate and get you back up but the site does need a bit of work anyway.
The named domains won't do you any harm, I'm currently doing the SEO on a site that wants to rank for "Gates Hampshire", "Wooden Gates Hampshire" and "Electric Gates Hampshire", and its doing pretty well for a company that has only been in existence for 4 months, guess what that company is called?
For those of you on the fence about spending money on website promotion think about this..... EIGHTY per cent of your customers only use the top 3 places, the traffic drop off to 4th and 5th place is unbelievable, so you have to ask yourself is it worth the £100-150 per month to be in those places?