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Price increases

JBC88

Active member
Messages
145
Location
Yorkshire
Hi guys,

I know I need to put prices up this year just not sure by how much. Ive had these prices since 2013.

What's a good way to work it out?

I'm thinking check inflation rate since 2013 and go by how much % biz cost have increased since then.

How do you guys work it out?

 
Some time back I decided I wanted a minimum of £1 per minute whilst 'on the glass' I had some jobs that came below that so I canvassed new business to replace it, once I had the new business at the price I wanted I put up the old prices expecting to loose a load and lost maybe 2% of those old customers but already had a load of new ones so was winner winner.

This year I decided my new minimum price is £12 and I have perhaps 70 that are still at £10 (my old minimum) so as soon as I have canvased a new 70 at the new price I will increase the old ones without worrying about drop offs as they will have already been 'replaced' if they decide to go.

 
You do it by how much unwanted per hour say u can do 4 houses a hour u want 40 per hour there's ur price

I'm putting prices up on my old customers ( anything before jan 2016 ). Will send letters in September for price increase jan 2017 everything I'm taking on now is already higher price

On the letter I say that the there will be a price increase of .... Starting jan 2017 But state that the price will be fixed for. The next 3 years .. It's all about planing ahead

 
Yeah I like how you both think there. For me I wanna make sure I'm increasing prices at right time and amount. It's got difficult to make a living now. I make ends meet but little spare cash to save and also enjoy trips out and little holidays here n there.

I think it's cos my prices haven't kept up with increasing cost of living etc.I last put prices up by £1 in 2013. Before then it was before recession.

 
If youre working full time and still struggling, then its fairly obvious you need to increase prices.

Ive never done it but what i would do is this

say you have 400 customers

put prices up on 10% so 40

see how many drop off

if 10, canvass 10 more

put another 40 prices up

5 drop off

replace

put 100 up

15 drop off

replace

etc

what im saying is rather than put the lot up and risk losing loads at once test the waters first and replace as you go along

pretty much what @Green Pro Clean Ltd said

 
On this subject, has anyone got an example letter i can bounce some ideas off? I dont want a blanket increase yet, but i have a few im going to write to.

 
Once you are at full capacity there are only 2 ways to make more money.

Increase capacity or put prices up.

It is always a good idea to get rid of the lowest paying customers and replace them with higher paying work if you can (or put prices up on those that will take it).

Always expand the top and dissolve the bottom.

 
On this subject, has anyone got an example letter i can bounce some ideas off? I dont want a blanket increase yet, but i have a few im going to write to.
Personally I have found a face to face chat produces best result with a letter they may write back... face to face they see you are just human (ish) and say OK.

Once you are at full capacity there are only 2 ways to make more money.
Increase capacity or put prices up.

It is always a good idea to get rid of the lowest paying customers and replace them with higher paying work if you can (or put prices up on those that will take it).

Always expand the top and dissolve the bottom.
I dissagree. I have often found that the lower paid jobs on my round pay promptly compared to the higher paid work.

A £10 pay on the day customer is better in my book than a £15 keep you waiting weeks for the money type.

It is not about axing the lower priced work it is about axing those intent on staying poor payers.

 
Personally I have found a face to face chat produces best result with a letter they may write back... face to face they see you are just human (ish) and say OK.

I dissagree. I have often found that the lower paid jobs on my round pay promptly compared to the higher paid work.

A £10 pay on the day customer is better in my book than a £15 keep you waiting weeks for the money type.

It is not about axing the lower priced work it is about axing those intent on staying poor payers.
Okay let me put it this way. Axe the lower profitability jobs and take into account the value of your time following up for payments and things. A couple of phone calls can quickly take 10 mins out of your day, 10 mins that you could be using to do another clean and earn another £8-10 for example meaning on a £15 job that job is now only making you £5 once you include the opportunity cost of following up payment.

 
I increased one customers from £17 to £22 (absolutely fine, loads of compliments)

Another from £18 to £22 and it's been painful negotiating but got there in the end.

Either way - more money in the pocket and no customers lost........today anyway /emoticons/smile.png

 
I increased one customers from £17 to £22 (absolutely fine, loads of compliments)
Another from £18 to £22 and it's been painful negotiating but got there in the end.

Either way - more money in the pocket and no customers lost........today anyway /emoticons/smile.png
I would of put em both up to £20

 
I would of put em both up to £20
Don't do 'small' increases.

Those 2 examples have had price freeze for over 2 years and I've guaranteed them both that they've got at least another 2 years before / if they go up again.

 
I still think it's a big increase. Not worth the risk of losing em to me. However if it works for you.....
95% success rate over 3 years.

Lost one customer but he came back after 3 months so I suppose that takes it back up to 100% /emoticons/smile.png

 
There's lots of good ways here and suggestions... it's a delicate thing putting prices up. Think it depends how often and how much each time as to if customers get annoyed and you start losing them. Saying that I know one round where I put them up £1 after no increase for 4yrs. I lost about 5 out of 40. They grumbled over the amount I'd increased by.

Did anyone regularly increase prices during recession?

I was put off incase I lost it all so waited it out.

 
Here's the deal.

There's a difference between increase price to whatever you can get away with as opposed to increase because of inflation.

Really, you set an hourly rate you want (£60) and once all your customers houses reflect that, your price increase would then only reflect inflation (around 50p every two years I believe).

If you hike it up £5 every two years, it could work, or it could be a bad business move. Obviously depends how good you are at marketing, you can make people pay £1000 for a phone if you sell it right

 
I have just put my prices up for the first time. I just tell them face to face. If there a customer that's never in then I just put a note on the invoice. I have only put the one's up that are under priced and not earning what I want. Not had any drop off so far......

 
It's a sales pitch at the end of the day.

Just get the customer to say Yes a few times:

The weathers lovely today isn't it: yes

Bet your pleased 'your football team won on the weekend: yes

Your windows look nice and clean now don't they: yes

Lastly, my running costs have gone up so would you be happy to pay £22 for the next 2 years? ...........yes.

 
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