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Re: Am I Competitive or an Undercutter?
« Reply #60 on: January 31, 2009, 11:20:54 pm »
Oh yes  ;D
The churchill dog better watch out there is a new kid on the block  ;)

Davo

  • Posts: 412
Re: Am I Competitive or an Undercutter?
« Reply #61 on: February 01, 2009, 08:47:01 am »
Quote
That makes even less sense to me. Why would you want to reduce the cleaning frequency and still charge the same price as a 6 week clean for an 8 week visit? I understand you want to give your customers value for money but I presume your existing customers still pay £6.50 a clean but now will only see you every 8 weeks not the original 6.

Mark

Quote

Why doesn't 8 weeks make sense? It doesn't take any longer to clean, you're still earning £30/hour andit matters less when you lose customers. You can always drop back to 6?weeks.

Kevin




Because your still working the same hours every week and are no better off financially. And losing a customer on an 8 week frequency loses you the same ammount of money per week as it did before.

The way your proposal comes accross to me is that in theory say you charged £6.50 a clean and only cleaned once a year then you you would still earn £30 an hour  PROVIDED you had  6500 customers.

If your gross margin was 60% of turnover and you increased your price by 10% you could afford to lose 14% of your customer base and still earn £30 an hour. And you can do this easily on an 8 week call frequency and still save the customer money on what they pay per week for a clean now.

eg Current Price  6 weekly £6.50 =£1.08 a week
10% increase on £6.50 = £7.25 which would equal 90.65 p per week on an 8 week call cycle.

Customer pays less per week and you earn more. And if you lose 14% of them through the recession your still earning the £30 an hour you want to protect( and these figures are based on you not picking up a single new customer just working with the ones you already have)

Mark






GTR Windows

  • Posts: 20
Re: Am I Competitive or an Undercutter?
« Reply #62 on: February 01, 2009, 10:31:43 am »
id say if your happy earning £200 a day then fair play, i would, thats still a very good wage per week, id say £6.50 is about right tbh, there are far too many that charge way over the odds imo, fair enough these guys will have larger outgoings as they may have got 15k in the hole for a ionics system and van that a domestic customer couldnt give a toss about, all they want is clean windows, and if a guy comes along and does it with his home built system and older van a tenner cheaper than the next guy of course they will change, they are still having the same job done for less

only exceptions would maybe be the "keeping up with the jones's" types

Paul Coleman

Re: Am I Competitive or an Undercutter?
« Reply #63 on: February 01, 2009, 10:41:56 am »
Your not competitive or an undercutter your desperate.

This all works cos 95% of my work is within 2 miles of me. So the £6.50 advert covers this area so I'm into consolidating further. This figure should bring in the folks who have never considered a window cleaner. Around a £1 a week?
Kevin

I thought that might be the case as I know you do it from a quad bike.  Even with a van, if all my round was within two miles and I was debt free, I could do it for £6.50 as well.  The low price feeds the compactness and the compactness allows a low price.  It's a business model that can work in certain situations.  It would not be practical for me.  I live in a town where 90% of the houses only have rear access via going through the house so I must travel out more.  I also am repaying some high debts so need to cover those too.  In addition to that, although I'm in the southeast, it's a more working class part of the southeast in my more immediate area, so I prefer to travel out a bit to get the rates.