Price increases is it wise?

[scottish cleaning service]

Ive raised this new year and raising again by summer, fuel and food is only going up.

I have raised because of diesel price and now the cost of maintaining my van. Only lost one up till now and it was a nightmare so very happy to loose it.

 

[David K]

I have raised because of diesel price and now the cost of maintaining my van. Only lost one up till now and it was a nightmare so very happy to loose it.

That my experience too, people are used to pricehikes by now. Lost 1 too, i dont mind. ?

 

[cleaniac]

Again, too much thought about this will make it worse. You need to increase your prices every year, don't think about weather you should or shouldn't just do it and get on with it, don't make a big deal about it. Inflation is always going to happen, as the fact remains that money loses its value every year.

People are very forgetful, we all knew that when the government started giving out money in the name of a bad cold, it was going to result in inflation. When the credit card companies almost doubled the contactless limit to £100, that to me was an indication that we are in for some serious inflation. The fact that gas prices and fuel has increased is because they know that we have no choice, the market is cornered, and capitalism dictates that you increase your prices.

It's the same with us, if you are doing a good job, and your customers are happy with you they will pay more to keep you. If they are penny pinching, let them go to someone cheaper, you will never be out of work if you keep your word, be reliable, do a good job and charge the correct price for the times. The cheaper cleaners wont last, because they will realise they are running ragged for naff all.

This thread is like broken record, mostly from those who lack confidence in their abilities, and command the correct rate for the times. You are your own worst enemies.

 

[Poles Apart]

I have every confidence in my ability and I have a good reputation for what I do but when you get dropped for increasing prices for something people see as not essential it's concerning.

 

[spruce]

I've had a few customers telling me I need to raise my prices due to the price of diesel and other rising costs - two this week.

 

[Chris34]

I increased one of my 8 weekly jobs today, first one I've done since starting 3 years ago. It was £25 but was a bit under priced when I originally priced it, should have been £30. So I ummed and arred when I was cleaning it today on whether it should be £35 or £40. In the end it took me 40 minutes (usually about 35) so I spoke to the customer, explained that it was originally under priced and said that naturally with business it will increase but the increase will be bigger due to the fact it was under priced and the costs of everything are rising so fast, so it will now be £40. He understood and said it was ok.

The thing is even though I'll be happy with the £40 now, but the way things are going I could see it being £50 in the near future. The horse bolted with inflation a long time ago and I think it's too late now, it's out of control.

 

[Iron Giant]

I have every confidence in my ability and I have a good reputation for what I do but when you get dropped for increasing prices for something people see as not essential it's concerning.

It really depends where you are at with your business, I assume after more than 7 years you are well established, when we raise prices we will lose work that's a simple fact because not everyone will be able to accept the increase, after 7 years you need to raise your prices you're doing a job that is no doubt valued by your regular customers and the vast majority will fully understand why you need to raise your prices,

I have been texting jobs this week informing them of increases stating my business costs have increased by as much as 40% over the last 2 years, now that sounds quite dramatic 40% which it is, but that's only really window cleaning stuff and fuel, I don't do many miles and only fill my van every 5 weeks and I don't often spend that much on new poles and brushes etc, but food prices energy prices and everything else has also gone up we need to be ahead of those rises to stay in a good position in business and for our families, we should be thriving not surviving (That last bit may have been from @Davy G)

 

[Chris34]

we should be thriving not surviving (That last bit may have been from @Davy G)

That's the key bit, we shouldn't be bottom of the food chain in business, I think it's easy to put ourselves down because even we ourselves don't really see it as a necessity to get your windows cleaned.

I think another point that hasn't been mentioned and something I've been thinking about. When everybody is affected by rising prices there is a tendency for compassion across a wide majority of public opinion. When it's well reported it's like it's drilled into everyone what's going on and they see lots of stories on the news from struggling business owners. So when we come along saying there is going to be an increase I think there is a greater chance that they are far more understanding, and even if they themselves are struggling they don't get rid of you as they regard you as a small business that they don't won't to pull the plug on if they can avoid it. So they might stretch themselves and put themselves through hardship just to please us and keep us going.

I think for that reason it's only fair for us to try and price as fairly as possible whilst still protecting our own interests. I've got customers who I could probably charge £100 per clean and they would still consider it as they trust me, so I think it's wise to be wary when we increase the prices, not to overdo it and abuse that trust.

 

[Chris34]

and also (sorry for rambling on, lol) , I think the best way to decide on the price is pick three prices, what you regard is too cheap and not happy with, what you're satisfied with right now and what you would be happy with and then pick the highest of the 3.

So a house that is currently £20, for an increase you might say £22 would be too cheap £23 you would be satisfied with, £25 you would be happy with. Well if you pick the £25 one and prices keep rising then you will still be at least satisfied by the end of the year, if they don't keep rising then you will be happy.

That's how I'm looking at it, doesn't mean it's right or anyone should do that but picking three figures helps me decide what the price should be. Also it could be £25, £30, £35. Or £30, £40, £50. Only the person increasing the price can decide their level of what they're happy with.

 

[Part Timer]

and also (sorry for rambling on, lol) , I think the best way to decide on the price is pick three prices, what you regard is too cheap and not happy with, what you're satisfied with right now and what you would be happy with and then pick the highest of the 3.

I have a very simple pricing method, if I lost a job on price would it worry me. If the answer to that is yes then I would be inclined to leave it as it is, unless I had a very appreciative customer. If the answer to that is no then the price would need to go up.

 

[Iron Giant]

and also (sorry for rambling on, lol) , I think the best way to decide on the price is pick three prices, what you regard is too cheap and not happy with, what you're satisfied with right now and what you would be happy with and then pick the highest of the 3.

So a house that is currently £20, for an increase you might say £22 would be too cheap £23 you would be satisfied with, £25 you would be happy with. Well if you pick the £25 one and prices keep rising then you will still be at least satisfied by the end of the year, if they don't keep rising then you will be happy.

That's how I'm looking at it, doesn't mean it's right or anyone should do that but picking three figures helps me decide what the price should be. Also it could be £25, £30, £35. Or £30, £40, £50. Only the person increasing the price can decide their level of what they're happy with.

I think you've made some good points, got to say after 22 years it still bugs me a little about where my pricing should/needs to be and where it is now and if I lose customers, but on the flip side I have a thriving business and I'm very fortunate

As for the pick 3 prices, my current prices are good I need them to go up but I don't see any point in rocking the boat too much so on average they need to increase by £2 which to a point I'd be happy with that but not overjoyed, the ones I'm increasing this year will be a good testbed for the 100's of jobs I'll be increasing next year.

 

[Chris34]

I have a very simple pricing method, if I lost a job on price would it worry me. If the answer to that is yes then I would be inclined to leave it as it is, unless I had a very appreciative customer. If the answer to that is no then the price would need to go up.

Yes I was actually going to state that but didn't get around to it. Obviously I'm new to increasing prices, but already what I'm finding is the ones that I clean with gritted teeth because it's under priced, well they're the first jobs that I'll be increasing because I won't really care if I lose them. I'm going to increase all those type of jobs slowly one by one and then carefully move onto the ones where it's borderline for a small increase.

One other thing though, the jobs that were priced higher than the standard rate, you know the ones that actually take faster than you thought (I've got some after 3 years that still seem well priced) and end up being the best jobs, well what do you do about them ones? I think I'm going to leave them as they are, it's swings and roundabouts and the well priced ones will effectively fall into the standard rate over time. I'd be interested in others views on that point though, I mean it's well paid but after 3 years surely they would expect an increase, so it would mean that they would always be on the high side, like forever on the high side?

 

[scottish cleaning service]

You have got to charge a realistic price. I did a few pvc cleans today and made everyone happy with the result. I also made a few bob and eventually did 5 houses on a small crescent. Getting your windows cleaned is good for the residents mental health. I can't imagine living in a home without getting my windows cleaned because it would effect me. I actually see it as an essential service which makes folk feel good, a bit like getting your haircut. I have an interesting first clean tomorrow on a million pound property which should be interesting and a few quotes for PW. Beginning to heat up with work but the problem is they want it done yesterday.

 

[ched999uk]

Beginning to heat up with work but the problem is they want it done yesterday.

When you have too much work coming in to deal with, that's the time you jack up your PW quotes, that way you cut down on demand but earn more per job. It's all supply vs demand as you only have so many hours in a day!

 

[scottish cleaning service]

When you have too much work coming in to deal with, that's the time you jack up your PW quotes, that way you cut down on demand but earn more per job. It's all supply vs demand as you only have so many hours in a day!

One is a mile away so I priced it on the downside because I have got the monthly clean where I clean the next street. Second one is for a massive decking which I done 3 or 4 years ago. The third I got through Checkatrade and priced a fiver a metre hoping I wouldn't get it. Its a posh area and they now want me to price it, maybe they can't get anyone else. I offer free estimates but with the price of diesel I'm thinking of ways to put them off. I email back a fiver a metre and they want me out then I know they are not timewasters.

 

[Skxawng]

I've just done my price rises today. I've always been quite haphazard with them before but this is the first time I've really done a systematic review of all my job prices and I was surprised at how many had slipped through the net before. I even found houses that hadn't gone up since 2010! I've raised all of them but this time I've used a inflation calculator using RPI data from the Office of National Statistics. Its actually a pretty good calculator as you can select the month as well as the year: RPI Calculator. I keep pretty complete price history data on each job so know the date when each one last had a change in price.
It'd been helpful as it's given me the confidence that my price rises are justified and necessary, and there are prices I definitely wouldn't have put up enough if I hadn't used the calculator to see how much the value has dropped.
Haven't had any feedback yet, but I expect to loose a few customers. I think there will definitely be a substantial net increase in the total monthly amount though.
Plus I always find, it's the really annoying jobs that seem to cancel!

 

[scottish cleaning service]

I've just done my price rises today. I've always been quite haphazard with them before but this is the first time I've really done a systematic review of all my job prices and I was surprised at how many had slipped through the net before. I even found houses that hadn't gone up since 2010! I've raised all of them but this time I've used a inflation calculator using RPI data from the Office of National Statistics. Its actually a pretty good calculator as you can select the month as well as the year: RPI Calculator. I keep pretty complete price history data on each job so know the date when each one last had a change in price.
It'd been helpful as it's given me the confidence that my price rises are justified and necessary, and there are prices I definitely wouldn't have put up enough if I hadn't used the calculator to see how much the value has dropped.
Haven't had any feedback yet, but I expect to loose a few customers. I think there will definitely be a substantial net increase in the total monthly amount though.
Plus I always find, it's the really annoying jobs that seem to cancel!

That's the ones I love raising is the annoying ones with horrible householders. Had two toxic customers who used to boss me about and call me back regarding vents. Ended up telling them I couldn't give them the results they were wanting and told them to get someone else. They were taken aback and no one does them now nor wants to. I don't take any nonsense now but I have plenty more customers now to back me up.

 

[Yogi1872]

Put mines up £2 in January. I haven't put them up in around 7 years or maybe more. Got 2 cancels so happy with that. One said £2 was a big jump sitting with a range rover sport in the drive.

 

[Part Timer]

One other thing though, the jobs that were priced higher than the standard rate, you know the ones that actually take faster than you thought (I've got some after 3 years that still seem well priced) and end up being the best jobs, well what do you do about them ones

This is why I said unless I had a very appreciative customer. You should know who, even the really overpriced, that will accept a price increase. There will be some that get rid of you because you have. Those that were well priced would be the ones I regret losing. Those that are below what I would quote for a new custy are the ones I wouldn't.

 

[Jamesmarshall]

Put up the ones who can easily pay it
I won’t be putting up the family houses in standard 3 bed semis as they’ll be the first to cancel
I’ve had 6 cancellations so far without price increases, asked the reason all stated current increases and climate etc
All jobs acquired in last 2 years are quoted at a much higher rate so putting those up would be taking the piddle IMO
Some wc’s get too greedy putting them up every year 25-50p in some cases local to me I’ve heard of, much to my gain. A point every 3 years orso is plenty and doesn’t get their backs up
I’ve had 4 customers put there own prices up in the last 2 months

 

[scottish cleaning service]

Put mines up £2 in January. I haven't put them up in around 7 years or maybe more. Got 2 cancels so happy with that. One said £2 was a big jump sitting with a range rover sport in the drive.

You are better without them. A customer yesterday was saying his mate bought a nearly new Range Rover and quickly sold it. He said the reason was the cost to run it, it was drinking diesel.