[cleanimperial]

Hi

I notified my client the other day that we were increasing our hourly rate to £10.00 it was £9.50 15 hours per week . I have been with them for three years we have never had a complaint and often get positive comments about the standard of cleaning. But I heard from the office manager today that the manager is not happy  she thinks £10.00 an hour is to much for cleaning (cheeky *****) I don’t no what to do now it is one of our best jobs. This is our first price increase.

This job is in Camberley surrey what would you do is this the going rate for this area.

[Robert Parry]

Can i assume that this is office cleaning?

If so, £10 per hour is way too low!

Do you employ staff?

If so, how on earth are you making a profit?
By the time you factor in wages, holiday pay, consumables, uniforms, training etc, etc. you cant be making much from this contract.

Clients will always try to keep your charges low, this is why, you should never ever let them convice you to charge for your services by the hour. The min wage is due to be increased again later on this year, which makes your current charges again look far too low.

My advice, would be to go back to the customer and explain, that you are properly insured, you are covered for product liability, key loss etc, arent you? The cost of your chemicals, materials, equipment etc, and that your prices reflect this.

I think that you may have to bite the bullet on this one, especially as this contract seems very important to you, but your increase is only an extra £7:50 per week.

Out of that increase, you must pay the min wage increase, allow for inflation etc!

Good luck!!!!

You must educate your client, perhaps it may be to late for this customer, but in future, you must explain that your charges reflect your real costs in offering your services, which are much more than just "the cleaning", insurance, training, equipment, maintenance of equipment, health & safety, admin, advertising etc etc.

My opinion, you are charging far too little for your services, regards Rob.

[Kevin White]

I have always increased every contract at the end of october and referenced it to minimum wage, something every one is aware of, i have never had anyone question an increase, just a thought for the future.

PS. I wish i could get away with a tenner an hour, mention £8.50 in the north and you can get a funny look.

Just a back up point to mention to your customer your rise is just over 5% the next NMW is about 6%. or tell him you drive a 4x4 and blame Gordon.

[Fox]

It's very difficult for you to do anything until the actual manager you deal with tells you personally they are not happy, otherwise what are you going to say 'your office manager tells me your not happy?' sounds awful doesn't it!

Anyway other than that you could negotiate, how did you approach putting your prices up?  Did you explain the reasons behind it or did you just write saying they were going up?  We always say a rise of 7% is due because of fuel, wages etc etc then the sweetner comes when we also say our company is prepared to meet x% of these costs leaving the client with a x% increase.  This has always been acceptable to our clients, however if it wasn't I would prob tell them that we would meet another x% but they really would need to meet us half way.

For the record I also agree with Rob, try not to charge per hour but by the job.

Fox

[J. Deans]

At last!
Cleaners are starting to get the message.
Don't CHARGE by the hour - only PAY wages by the hour!

If you had originaly quoted a set price for the job, you wouldn't be having so much trouble now. An hourly increase always sounds worse.

In any case, I wouldn't worry too much about office politics. The buck is being passed down the line. The old 'whisper in the ear' that the boss is not happy - is an old trick. Call their bluff. I think they would not be bothered trying to find another cleaning firm over £7.50 per week! Your prices sound a bit low anyway!

Whenever you increase your prices, you should always do it in writing and only send it to whoever controls the cleaning budget.
You should always justify any price increase - using the methods mentioned above.

[cleanimperial]

Hi thanks for your replies this is what i wrote to them

As from the 1st May 2007, Imperial Cleaning Services is forced to increase its rate to £10.00 per hour. This is due, which I’m sure you will understand, to the increase in the price of materials etc.
etc etc.

I spoke to the office manager last night and he said the manager will definitely not pay for any increase. But like you said
are they going to go through the hassel of hiring a new cleaning firm for the sake of £7.50 a week. Basically she thinks she is paying to much for the cleaning anyway. So the ball is in my court so he said.

Would  you  give them notice.

[Fox]

When you send them the next invoice do it at the new rate, either they will pay it or be forced to talk properly with you about the increase.  They certainly don't very professional though so they may even ignore it and pay you your old rate! 

Take the decision on whether to keep the contract at the low price or give notice and use your time to keep a profitable contract running from there.

Get out some marketing, the larger you are the less you will worry losing the pain in the butt clients.

Fox

[Dust Knights]

I'd arrange a meeting with the manager.

Explain that as the NMW went up by 30 pence (5.94%) in October you need to pass the increase on and that any alternative contractor would be in exactly the same position as you. Say that you have absorbed the cost so far but that you cannot afford to carry on doing so.

On top of that you have increased insurance costs, materials that go up each year and that this affects the industry as a whole not just you.

Outline that you have to have any agreed increase in place by May 1st as in your letter.

You may find that they have a squeeze on their overheads in which case you may find that agreeing to £9.75/£9.80 is an acceptable compromise. You wont get to this point without a proper conversation with the decision maker.

If they cannot agree to this then you need to look at whether you are making enough profit on the contract (doubtful) and whether you can carry on at those levels. Remember that the NMW goes up again in October this year to £5.55.

There is always a risk in switching contractors, and as any incoming firm would probably be more expensive than you (even at £10 per hour) you may find that once they start shopping around they'll agree to your increase.

You also need to re-think your price increase letter, oh and get some more contracts.

Chris

[cleanimperial]

Thank you all for your advice.

I get payed 3 hours per night but it only takes 40 to 60 minutes so i am still makeing a profit.

Fred

[Dust Knights]

So you're being paid £28.50 for an average of 50 minutes. That's £34.20 per hour.

You're surprised they don't want to give you an increase?

You're considering giving them notice?

Chris

[Art]

Thank you all for your advice.

I get payed 3 hours per night but it only takes 40 to 60 minutes so i am still makeing a profit.

Fred

Does the client know that your only there for this length of time?

If they do you'd be mad to go for an increase and risk losing it.

[Fox]

Think you have just shot yourself in the foot! 

Now you have asked for an hourly pay rise on the three hours they may insit that you stay on site the three hours or else they will pay you accordingly! 

Another problem with quoting hourly.

Fox

[Robert Parry]

Oh well !!!!!!!!!!!!!!!

And people wonder why cleaners are treated so badly by their clients!!!!!!!!!!

Regards,

Rob

[cleanimperial]

As long as the work is done to a high standard they do not care so It might as well be per visit.

I always average £25.00 to £31.00 per hr when I am cleaning the once a week contracts myself.

I started a new contract last Wednesday and that works out £49.00 per visit and it only takes about 1 ½ hrs.

I think we are worth that money the crap we all have to put up with.

Fred.

[Bizzie Lizzie]

To those of you that charge per job - How do you do it?

First cleans usually take longer, I think thats is why certain people charge per hour (including myself) and as you say you then have to stay for the quoted hours.

Any advice would be appriciated (to all) thank you 
BL

[Art]

Evening Gary 

[garyj]

LOL

Good 'ere init 

(Thought I'd better censor myself, before someone does it for me  : :)

[J. Deans]

Bizzie Lizzie.

It is the same as charging by the hour - you just don't tell the client that!
You first have to decide how much YOU want to earn per hour.

Then, when you are quoting for a new contract, go and do the survey. If the first clean is going to take you 3 hours and you want £15 p/hour - you quote £45 for the job. Simple.

Don't mention to the client how long you expect it to take, unless they ask, then you tell them 4 hours and make sure it takes that long for the first clean!
If further cleans take less time - great! You get paid the same and the client is happy, so long as your standards don't slip.