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AuRavelling79

  • Posts: 23987
Customer reduces price - advice please.
« on: November 17, 2008, 10:39:26 am »
Here's a good one; I find an envelope put thru' my letterbox, hand delivered with one of my payment slips adjusted from £11.00 to £10.00 and this note written on the back:-

"(My neighbours,) No.'s X, Y, Z pay £11, sorry but I don't think there is so much for you to do at my house and I think £10 covers what you have to do thank you and have a nice Xmas, Mrs P_______"

Now normally I would take decisive action but please hear me out.

These 3 house owners are "good friends" in their 70's who all pay for each other and are done every other month. One in particular provides tea and biccies and recommended me to the other two.

Firstly her note is wrong in that house x - not one of the 3 she is paying for - has a small conservatory and pays £16, the others do indeed pay £11 and so did she for the past two years, but because she is paying for all of them and brought the money to my house she has taken it upon herself to count the windows and decide her price is unfair.

So I have 4 houses in a cul-de-sac and they add up to £49. It is also complicated in that one of them (the £16 one) is a friend of my wife and it is a close knit community.

There is also "a ladder man" in the street who is on nodding acquaintance terms with me who is presumably able to take on anyone I dump.

-----

These houses are 1930's have two triple pane bays at the front and are 3 bed private owned in blocks of 4. The reason this custy has two less windows is that she is mid block whereas the others are end terrace - but access is more difficult for hers as I have to take the hose right round the back, climb over the adjoining wall and work from her neighbours - hence the same price. (one of the others has a con. which they do themselves which this old bat may think I include in the price)


Do I dump her and take the consequences? - I lose a tenner (or the most I could lose is £33 but it may be awkward for the wife's friend.)

Do I write a letter explain the access issue and overlook the lost £1 (as she delivered all three's money) this time but insist on £11 from now on.

Do I write a letter explain the access issue and insist on getting the lost £1 this time.

Do I "take it."
It's a game of three halves!

Re: Customer reduces price - advice please.
« Reply #1 on: November 17, 2008, 10:56:11 am »
Many customers do not realise issues such as access., they just look at the windows to be cleaned.

I think you need to explain to her your concerns regarding access to her property. Say you price hers relating to the access, if you didn't have to climb over a wall, then you would have no problem doing it for £10.

so personally i would go for the option

Quote
Do I write a letter explain the access issue and overlook the lost £1 (as she delivered all three's money) this time but insist on £11 from now on.

Then again as you say she delivers the money so you dont have to go and collect it. So perhaps include that as your willing to just keep it to £10 for good customer relations (if she always collects the money for you :P )

But this is your decision, i have only given my opinion.

lovewindows

  • Posts: 416
Re: Customer reduces price - advice please.
« Reply #2 on: November 17, 2008, 11:00:35 am »
£1 for collecting and delivering the money, fine by me.
dont look who's to blame, look how to fix it. anon

Mike 108

  • Posts: 650
Re: Customer reduces price - advice please.
« Reply #3 on: November 17, 2008, 11:04:51 am »
I agree with both of Chris's views

Re: Customer reduces price - advice please.
« Reply #4 on: November 17, 2008, 11:06:38 am »
That reminds me of an old englsih law.

If you went to a resturaunt and had a meal.. and the bill came to £45.00 and you thought the meal was only worth £30.00 you can refuse to pay the £45.00 and hand over what you believe the value of that meal.

Now think of this... not saying your pricing structure is wrong, but what would the cost be if you were traditional. Would it have been £11.00 would someone else charge £11.00 for traditional.

I thought that WFP would reduce the time it takes... so would I not be right in saying you should be able to charge less than traditional as you would be quicker...with WFP

Dave

trike

Re: Customer reduces price - advice please.
« Reply #5 on: November 17, 2008, 11:12:42 am »
using wfp is a lot quicker,i have kept my prices the same,cost to run is not that exspensive,some people are putting prices up for usng wfp. :o

dmlservices

  • Posts: 981
Re: Customer reduces price - advice please.
« Reply #6 on: November 17, 2008, 11:14:11 am »
i would do excactly as chris said,

tell her the price should be £11.00 , then make the adjustment due to the fact that she brings money,

she will then know that £11 is fair ( due to access issues)

but will also see you are being fair (she brings money(s).

then it is you that has  decided price.

in these tough times, we all need to think about alterering our policies, to some extent ,but at the same time still maintaining control.

you do not want to give the other guy, a chance to get his foot in.


daz

AuRavelling79

  • Posts: 23987
Re: Customer reduces price - advice please.
« Reply #7 on: November 17, 2008, 12:19:46 pm »
Thanks for the advice chaps - actually this is the only time she has brought the money and known what the others are paying.

This is actually only average-paying work for me as it is and if the trad-man wants her at £10 he's welcome.  It's only just worth my while at £11 a shot as there are four together.

It's the arbitrary reduction that rankles with me and I don't feel I can allow it as it would irritate me out of all proportion to it's financial significance.

If the others know she's done this will they all want a further reduction?

I'll think on it overnight but am leaning towards a letter explaining and holding my price.

More thoughts welcome please...
It's a game of three halves!

Glyn H

Re: Customer reduces price - advice please.
« Reply #8 on: November 17, 2008, 12:48:07 pm »
For a £1 is it worth sending a letter?
It will cost you much more than £1 in lost time and you could have knocked on several neighbours doors and got maybe another local customer for £12.00 to cover the lost £1.00


Re: Customer reduces price - advice please.
« Reply #9 on: November 17, 2008, 12:55:06 pm »
As she is an old lady, it may be best to talk to her. A letter may cause unnecessary stress nad she may think as you have known her for some time she would have expected some courtesy.

After all we are human and meant to show that we are concerned and caring.

Well thats what I would expect.. But if you want to seem firm. Well then the letter is the best way to go but will probably end up losing the customer.

I fully understand that some people cannot drop their prices or just wont but lets face it, over the year that £12.00 on that particular customer. If its a monthly clean.

I also understand that then people say oh but if all my customers did that it would mount up to alot so I cant... well some income is better than none.

Dave

steven ainger

  • Posts: 1953
Re: Customer reduces price - advice please.
« Reply #10 on: November 17, 2008, 01:00:01 pm »
dont bother about the letter, next time you are round, just explain what you have said on here, and if she still doesnt like it, then its up to you.

Ian W

  • Posts: 1161
Re: Customer reduces price - advice please.
« Reply #11 on: November 17, 2008, 01:06:29 pm »
I would explain the access issues are what makes the prices the same. Overlook the pound this time, but insist on £11 for future cleans.

I guess you could write a letter, but hand deliver it and speak to her at the same time. Just say you brought the letter in case she wasn't in, but she may as well have it anyway (once you have explained the price).

I reckon that if she wants you to do the windows, she will accept it.
Do all the good you can, and make as little fuss about it as possible.
Charles Dickens

seandyer2003

Re: Customer reduces price - advice please.
« Reply #12 on: November 17, 2008, 01:08:18 pm »
i think the issue is is it worth it to you , can you afford the loss if you say no - the price is x amount, i run my business and decide the price, you the customer has a choice....

If you want the work, suck it up, if not, stick to your principles....... hard one though

Good luck :)

Re: Customer reduces price - advice please.
« Reply #13 on: November 17, 2008, 01:22:19 pm »
I would say to this lady that the price is £11, and will not go up this year due to her collecting payments on your behalf and if she wants to collect and deliver payment each time you clean then she can have it for £10 (saves you time that has to be worth a pound I would say that to her aswell, if not then £11 it will be, I would no let a customer dictate my prices unless it was in my interest to let them, stay in control and tread careful. show weakness in pricing  and they will exploit it more and more. I know before anyone says it's only a pound, it is more the point they think they can tell you what they are paying. "seems like she maybe one of these people that look down on window cleaners"

if you just accept it, next year will she say as money is tight I will now pay £9 and come to think of it my friends now only want to pay £10 aswell.....................where would it stop ?. someone said about another cleaner coming and getting his foot in, I would not want to keep customers that do this type of thing as to me they would fall into the messers catagory and others are welcome to have the hassle.

AuRavelling79

  • Posts: 23987
Re: Customer reduces price - advice please.
« Reply #14 on: November 17, 2008, 02:09:00 pm »
I would say to this lady that the price is £11, and will not go up this year due to her collecting payments on your behalf and if she wants to collect and deliver payment each time you clean then she can have it for £10 (saves you time that has to be worth a pound I would say that to her aswell, if not then £11 it will be, I would no let a customer dictate my prices unless it was in my interest to let them, stay in control and tread careful. show weakness in pricing  and they will exploit it more and more. I know before anyone says it's only a pound, it is more the point they think they can tell you what they are paying. "seems like she maybe one of these people that look down on window cleaners"

if you just accept it, next year will she say as money is tight I will now pay £9 and come to think of it my friends now only want to pay £10 aswell.....................where would it stop ?. someone said about another cleaner coming and getting his foot in, I would not want to keep customers that do this type of thing as to me they would fall into the messers catagory and others are welcome to have the hassle.

Yep, I'm inclined towards this view - it isn't the money - really - I'm too busy with and trying to reduce mediocre work as it is.

I pay £179 a month for my van - If I went to Fiat finance and said "look your new prices are £10 a month cheaper and I want a reduction" what do you think they'd say?
It's a game of three halves!

peter holley

Re: Customer reduces price - advice please.
« Reply #15 on: November 17, 2008, 03:08:57 pm »
i think she has been very cheeky to take it upon herself to do this! leave her out next  with month,ant the next time untill she asks why you have left her out, then you can explain the access issue...custies with dirty windows will soon learn to appreciate their wc.

Ian Lancaster

  • Posts: 2811
Re: Customer reduces price - advice please.
« Reply #16 on: November 17, 2008, 04:33:49 pm »
What a lot of fuss over £1 :o

Haven't you got something you'd rather be doing?

You get £49 for the street, just think of it as a single job (which in effect it is as you get paid for the lot in one go) accept the reduction gracefully and carry on as usual.  Next time skimp a bit on her house to make up for it ;D

Tosh

Re: Customer reduces price - advice please.
« Reply #17 on: November 17, 2008, 05:49:48 pm »
What a lot of fuss over £1 :o

Haven't you got something you'd rather be doing?

You get £49 for the street, just think of it as a single job (which in effect it is as you get paid for the lot in one go) accept the reduction gracefully and carry on as usual.  Next time skimp a bit on her house to make up for it ;D

I agree with Ian, but I'd still explain why you charge her so; just so she didn't think I was 'ripping her off', that you'll turn a blind-eye to it purely because of the fact that she's such a good customer, in that she does the collecting for you.

Then I'd put everyone's prices up next year; including hers.  ;D

johnny_h

  • Posts: 689
Re: Customer reduces price - advice please.
« Reply #18 on: November 17, 2008, 05:51:31 pm »
my first reaction would be to dump as i wouldnt let a customer dictate my prices if you want to keep her be prepared for the others to follow its one of the reasons i wont work in the same street i live , if i was to keep her on i would stop doing the frames and sils
AUDI VIDE TACE

Paul Coleman

Re: Customer reduces price - advice please.
« Reply #19 on: November 17, 2008, 05:53:05 pm »
using wfp is a lot quicker,i have kept my prices the same,cost to run is not that exspensive,some people are putting prices up for usng wfp. :o

I've held back on price rises too because WFP is much faster for me on most jobs.