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Andy Hogarth

  • Posts: 501
Market research - how much should I charge?
« on: April 23, 2006, 01:05:00 pm »
O.K. so I'm filling in my business plan slowly but surely, I have a rough idea of what start up costs I can expect, Machinery, legal,marketing etc, Now I'm looking into prices I can expect to charge and who to market to.

Now don't all jump at once ;D I know it's a minefield and everyone charges different amounts but my question is how you charge ie per meter per job per time taken etc for a domestic job.

I also want to contact a few cc's in my area to get a feel of the prices they are able to charge locally, How would be the best way to put this over the phone without them feeling I'm scoping their business? I was thinking of asking for the price of a three piece suite, and my room measurments and comparing. Any good? I just want basic pricing without them wanting to come and do a qoute, (I Have Laminate >:( )

Please bere with me, I know I'm probably asking b/s questions but I like to run things by this forum before I act, I'm new as new can be to this and need the help.

Cheers All

Andy ;)
Www.2venturegroup.com

Andy Hogarth

  • Posts: 501
Re: Market research
« Reply #1 on: April 24, 2006, 01:37:11 pm »
Does Anybody have ANY advice on how to structure pricing?

How do you guys know what to charge? Is it just a basic cover all overheads then add whatever rate you think is appropriate on top?

Anyone?? ?? ??

Andy
Www.2venturegroup.com

stains-away

Re: Market research
« Reply #2 on: April 24, 2006, 01:52:45 pm »
I like most charge at a set price per square metre for carpet cleaning, if protection is wanted with the clean then its at half the clean price, on suites i charge by the seating space, again i charge half the cleaning price for protection, on leather again i price by the seating space but with protection charged at the same rate as the clean, hope this helps, Andy

I almost forgot, i find that a minimum callout charge is useful, if not you will get people expecting you to quote them for their downstairs toilet on a flat price as per its size.

Andy Hogarth

  • Posts: 501
Re: Market research
« Reply #3 on: April 24, 2006, 02:45:59 pm »
Cheers Andy, Real helpfull mate.

Do you do free onsite quotes or just quote over the phone?? If you say gave a quote over the phone and you get to the job and the carpet/sofa is horrendous would the price increase or is it set upon the job?

Andy
Www.2venturegroup.com

John Kelly

  • Posts: 4461
Re: Market research
« Reply #4 on: April 24, 2006, 06:56:39 pm »
Hi Andy

Personally I think there are two price pitches depending on where you envisage your business to be.
The first one is to charge high rates, however the service has to match this, onsite quote always, full survey sheet filled out, fancy folder left with quote. Full thorough vacuum on every job, carpet & upholstery. Wear uniform, use dryers. By doing all this you can charge optimum prices, however don't forget a lot also depends on you. Can you project an air of authority, have the training and knowledge to answer all the questions.
People do this and make a lot of money, however it doesn't suit everyone and everybody can not do it.
The second option is to pitch at a medium rate, you should still do all the things above however in the real world people don't. If you can quote on site then it will enable you to obtain a higher price. If you decide to quote over the phone then you will win some and lose some when it comes to the quality of the jobs. All the nice clean ones will make up for the odd minging one.
I can't advise exactly what to charge as this depends on your area and the local competition. Guidelines are minimum £40-50. This would cover say a lounge carpet. Upholstery £85-200 for a suite. This is the rate in the North East and other people will be more expensive.
There is a 3rd option but we won't even go there.
Basically this is bloody hard work and you need to be rewarded for it. If you charge 25 quid for a suite then you will feel robbed when you finish the job!

Andy Hogarth

  • Posts: 501
Re: Market research
« Reply #5 on: April 24, 2006, 08:07:49 pm »
Thanks John, Much appreciated. I've been talking to people who regularly get their carpets cleaned (soon by me ;D ), Like you said they never pay less than £50 but usually end up getting a few carpets done anyhow so it pays ( most paid around £100 which is a 2 days work for me at the moment.)
None of them however mentioned a survey sheet which is a fantastic idea, These are the tips that are invaluable matey cheers,

I'll aim for the first option  ;)

Thanks,

Andy
Www.2venturegroup.com

Spot On cleaning

  • Posts: 478
Re: Market research
« Reply #6 on: April 24, 2006, 09:18:10 pm »

Andy, as John correctly said, if you don't charge the correct rate you will nfeel cheated. When i first started in 2002 i cleaned a six seater suite for £45. The guy used to come home in his greasy overalls and the suite, which was velour was caked in grease, especially the arms. It took me 5 hours as i was drying it as well, but it taught me a valuable lesson.

If you want a set amount for a job, hold out and if necessary walk away from it if they do not want to pay. If on the other hand you need the money coming in, take the job. I went through all the same. The more work you get, the slicker you become and you can build a good reputation and progress to the next level.

Selling yourself is an art form and people will judge you on appearance. I always try and go to price every job in person rather than by phone, but some people just want a quick estimate over the phone. With these never give an accurate price, because the chances are when you get there, it is worst than they are letting on, and they think that because you have turned up on the day, you will not turn the job down.

Basically explain that you carry a full professional range of chemicals that can in many cases rectify most problems, but you can never guarantee all stain removal. It took me 3 years before moving from portable equipment to a newish van and new tm if this is what you want in the future, and because we took the time to post tens of thousands of leaflets come rain or shine, rather than just using directories and expecting the work to come looking for you.

Good luck in your new venture.

Dave

stains-away

Re: Market research
« Reply #7 on: April 24, 2006, 10:21:09 pm »
Andy, I always quote in the customers house, If people insist on a quote over the phone then they are just price shopping, if they are genuinely interested they will let you go and survey the job before pricing, there are a few simple questions you can ask them that will more or less guaruntee to get you off the phone and past the front door, once there as John said its down to how you look and act, I find that the best approach is to give the customer a small folder containing training certs, insurance, before and after pics and written testimonials to look at whilst I survey the areas to be cleaned, then get them to hold the end of the tape measure whilst pricing, once I give a price I wont back down from it, I found out very quickly that if you give in to one customer then get a referral from them they want as big if not a bigger discount from you, hope this helps, Andy

therapist

Re: Market research
« Reply #8 on: April 24, 2006, 11:41:41 pm »
Andy

All the above, is good advice, from people who know. The only thing I'd add.....is, make sure you are capable of delivering 'the goods'

If you intend pricing your service at the higher end of the scale, make sure you earn it by paying attention to detail

If you impress your clients ......they become your unpaid salesmen

good luck

rob m




Andy Hogarth

  • Posts: 501
Re: Market research
« Reply #9 on: April 25, 2006, 08:13:00 pm »
Quote
there are a few simple questions you can ask them that will more or less guaruntee to get you off the phone and past the front door,

Come on then spill the beans :D

Cheers everyone great advice  ;D ;D ;D ;D ;D ;D

Andy
Www.2venturegroup.com

stains-away

Re: Market research
« Reply #10 on: April 25, 2006, 08:46:25 pm »
Andy, you have mail, Andy

craigp

Re: Market research
« Reply #11 on: April 25, 2006, 08:47:16 pm »
dont want to be the negitive one ::)

but not sure you should go straight to high end,

to produce exellent results takes a bit of experience, might be a good idea to progress and charge more the better you get.

being a postie will help you, being used to delivering should mean your be able to get out more leaflets,

2 hours enough for me in one day ;D

Andy Hogarth

  • Posts: 501
Re: Market research
« Reply #12 on: April 25, 2006, 09:23:15 pm »
yeah I agree mate, When I say I'll aim for the top I understand it's a fair bit away, But the aim is there.

To be honest I have to get this right, Working as a postie is not a long term strat for me, I have one child and another on-route so I have to be realistic, I have a little cash in the bank and when I sell my beloved camper van thats all my savings s oI have to make this work . However I'll be able to drop my hours as I go along (if I still have a job) and eventually become a full time carpet cleaner charging top prices.

I still have loads to learn, training to do equipment to buy but thanks for all the advice

2 Hours a day - I wanna be on your prices ;D ;D ;D
Cheers

Andy, I didn't get the mail Mate :(

Andy
Www.2venturegroup.com

craigp

Re: Market research
« Reply #13 on: April 25, 2006, 10:05:30 pm »
2 hours a day leaflets that is :)

therapist

Re: Market research
« Reply #14 on: April 25, 2006, 10:36:56 pm »
Andy h

Refreshing to find some realism with newstarts..................I helped a couple of lads, in their 20's get started about 4 years ago.

At the time, I made them aware of the, general pricing, at the lower, to middle ranges and recommended they charged double the average.

Armed with a CFR 400 / Rawlins, water filtration vacuum / M/S and a weeks hands on training, off they went and they never looked back

rob m

Robert Watson

  • Posts: 1058
Re: Market research - how much should I charge?
« Reply #15 on: April 27, 2006, 05:30:55 pm »
Hi Andy,
I think you will be OK.
When I started (the first time) I never had a clue, two small kids, nagging wife,
and a mortgage. Guess what, yeah, went tits up big time. Had I started the way you are, I would be well sorted by now, Be careful, and work hard ( I mean marketing, I`ts to easy to get lazy)
Good Luck mate.   ;)

My VW campers one of the newer ones 1985 :)
The missus drove it into a ditch at 30 mph. After getting over fright and tow out charge, with great anxiety I inspected the damage. I kid you not, we lost the back mudflap, that was it, Great vans. But I think the lord must have been shining on me that day.
The Kitchen Door Centre

Andy Hogarth

  • Posts: 501
Re: Market research - how much should I charge?
« Reply #16 on: April 27, 2006, 06:17:48 pm »
Ha Ha cheers matey, Gutted about the mud flap :D :D One things for certain they're robust, Next time I was thinking of getting a devon pop top model for the extra space, might go newer as mine is friggn freezing when driving in winter.

Cheers for the advice, Hows business now?

Andy
Www.2venturegroup.com

Robert Watson

  • Posts: 1058
Re: Market research - how much should I charge?
« Reply #17 on: April 27, 2006, 06:37:23 pm »
Yeah me to, but after several months of counseling, I think I`m over it.
Business is not to bad. I just have to practice what I preach  ;)
The Kitchen Door Centre