Any big customer loses?

[Chris34]

I definitely don’t think average joe has more money in their pocket. Things are just so accessible nowadays and what you can afford on paper with finance agreements normally differ in reality. But it appears to me that people aren’t tightening their belts despite, what we are being told and continue to just spend, spend, spend. Our mortgage will be going up a few hundred pounds a month in Mach and we are definitely seeing the reduction of money we have on a monthly basis because of this col rise. I think inflation is much higher than what they are telling us. Well done for getting your prices up. I need to do the same but thinking it’s a bad time now with Christmas and winter round the corner.

I think people are not better off but they have got more money to pay the higher prices. A bit like us, if we put all our prices up we might get an extra £500 per month, but then if all our other costs go up by £500 per month then we are no better off... but we can afford the new higher prices because our own earning have gone up.

That's why it's so critical to keep up with inflation so you don't get left behind.

For reference, it's only those who are a bit out of touch with the current pricing of everything that are complaining about the price. Those who are working fully understand it and either pay it or are working with me to find a solution that works for me and for them.

I'm not bothering with a quid here and a couple of pound there though, that's just not going to cut it. It's £5 increments for me, £5 is nothing these days.

 

[Elliott randall]

Hi, hope you all are well, with the current rises has anyone had any big customer loses or customers trying to get seasonal cleans instead.

No losses really. If anything we are growing the most we’ve ever been!! Onwards and upwards

 

[scottish cleaning service]

I think people are not better off but they have got more money to pay the higher prices. A bit like us, if we put all our prices up we might get an extra £500 per month, but then if all our other costs go up by £500 per month then we are no better off... but we can afford the new higher prices because our own earning have gone up.

That's why it's so critical to keep up with inflation so you don't get left behind.

For reference, it's only those who are a bit out of touch with the current pricing of everything that are complaining about the price. Those who are working fully understand it and either pay it or are working with me to find a solution that works for me and for them.

I'm not bothering with a quid here and a couple of pound there though, that's just not going to cut it. It's £5 increments for me, £5 is nothing these days.

I think people will cut back on luxuries like foreign holidays. If foreign travel shoots up then folk will holiday nearby or take weekend holidays instead meaning they have more money to spend on their homes. Tonight I was looking at houses for sale and noticed a home for sale at a fixed price in one of the best streets in Paisley. 7 weeks ago they would be fighting over owning this home, now no interest. I called Liz the Bulldozer, in less than 6 weeks she has singlehandedly destroyed our housing market.?

 

[Chris34]

I think people will cut back on luxuries like foreign holidays. If foreign travel shoots up then folk will holiday nearby or take weekend holidays instead meaning they have more money to spend on their homes. Tonight I was looking at houses for sale and noticed a home for sale at a fixed price in one of the best streets in Paisley. 7 weeks ago they would be fighting over owning this home, now no interest. I called Liz the Bulldozer, in less than 6 weeks she has singlehandedly destroyed our housing market.?

That's not Liz's fault, inflation is rocketing and interest rates are going to rise a lot more than they are now. They're blaming it on Liz but the problem with inflation goes way back. Put it this way, if Boris stayed in then there wouldn't have been a panic... but interest rates would still need to rise significantly to try and control inflation.

It makes you wonder whether interest rates alone will curb inflation. There are lots of people who own their own home, so are not affected by interest rate rises, they also benefit from having more money, so they spend it on luxury items. They can put up interest rates all they like but it won't affect all these people who don't have a mortgage and all this rising of incomes will just mean more spending.

 

[ched999uk]

I think a couple of decades ago most people were on variable rate mortgages (not much in the way of fixed around then) so inflation was easier to try and control by just upping mortgage rate. The people with mortgages would rein in spending and inflation would fall back.
The problem today is that the current inflation isn't caused by consumer spending it's supposedly been caused by demand after Covid. So it's a supply and demand issue but not locally, it's worldwide. So upping UK interest rates won't cause global demand to subside!!!
I can't see a way to get it back down, which will lead to some mega problems - peoples wages will buy less so they want a pay rise, companies don't can't really afford the rise, then their are strikes..... and that subsequent pay rises causes products prices to rise and just spirals out of control!!

It's a world wide issue that needs a global solution!

Hold on tight, it's going to be a bumpy ride!

 

[THL4KEL]

A bumpy ride thanks to Rishi who blew a massive hole in our economy in 2020/21...

 

[Chris34]

I think a couple of decades ago most people were on variable rate mortgages (not much in the way of fixed around then) so inflation was easier to try and control by just upping mortgage rate. The people with mortgages would rein in spending and inflation would fall back.
The problem today is that the current inflation isn't caused by consumer spending it's supposedly been caused by demand after Covid. So it's a supply and demand issue but not locally, it's worldwide. So upping UK interest rates won't cause global demand to subside!!!
I can't see a way to get it back down, which will lead to some mega problems - peoples wages will buy less so they want a pay rise, companies don't can't really afford the rise, then their are strikes..... and that subsequent pay rises causes products prices to rise and just spirals out of control!!

It's a world wide issue that needs a global solution!

Hold on tight, it's going to be a bumpy ride!

Yeah that's exactly what I'm thinking. Like when everyone hits the 40% tax bracket, what happens then? Everyone will be paying so much tax and then the basic bills will be so high, there will be nothing left, so it's either put someone who is on £50k to £100k so they get an extra £25k (roughly) after tax so they've got some money left or having people struggling to live on £60k with huge food costs, energy costs etc.

So yeah upping the interest rate isn't going to fix it, it's just going to make people who are having to borrow, struggle even more. Those with money who don't need to borrow are going to find lots of easy pickings and become very rich very quickly, picking up lots of cheap property and assets whilst those who are borrowing will be on their knees.

They've not mentioned any of this. You can guarantee that the penny will drop and then they will say the usual 'it's unprecedented, we didn't see this situation happening...etc'

 

[Iron Giant]

I think people are not better off but they have got more money to pay the higher prices. A bit like us, if we put all our prices up we might get an extra £500 per month, but then if all our other costs go up by £500 per month then we are no better off... but we can afford the new higher prices because our own earning have gone up.

That's why it's so critical to keep up with inflation so you don't get left behind.

For reference, it's only those who are a bit out of touch with the current pricing of everything that are complaining about the price. Those who are working fully understand it and either pay it or are working with me to find a solution that works for me and for them.

I'm not bothering with a quid here and a couple of pound there though, that's just not going to cut it. It's £5 increments for me, £5 is nothing these days.

I'd say my only concern regarding your pricing though is at some point you're going to hit the ceiling and at what point will you hit that then in 10 years you can't raise your prices any higher because £20-25 for let's say an average 1970's 3-bed semi people most likely just won't pay that unless you are pushed to only doing an 8 weekly service at those prices

 

[Chris34]

I'd say my only concern regarding your pricing though is at some point you're going to hit the ceiling and at what point will you hit that then in 10 years you can't raise your prices any higher because £20-25 for let's say an average 1970's 3-bed semi people most likely just won't pay that unless you are pushed to only doing an 8 weekly service at those prices

Yeah my strategy is just for things as it is now. So far though it's working ok. Must say it's the hardest thing I've had to do, I feel sick when I send out the text messages each night, most don't reply but the ones that don't reply I've seen some the next day which I don't normally see and they have brought it up with me and said it's absolutely fine.

My theory is though that once prices get higher, well £5 increases will be less of a % jump. So the quicker the prices rise the easier it will be to keep increasing by £5 increments.

Two so far have got back to me from last nights messages saying it's fine, one was a very small £15 increased to £20 and one was one of those town houses that I pictured (the one with the fire next door) increased from £20 to £25 but that one was always too cheap anyway for the effort involved.

For anyone thinking it's a bad time to increase prices, well I was thinking about this, it's probably a good time. Most people want clean windows for Christmas and most of the cheap window cleaners who are doing it on the side won't be here come January. So if the customer decides to shop around for a better price well they'll find it harder compared to say March / April time, by which time if they haven't dropped you then they will probably have already got used to the new higher price and won't be thinking about it. There is never a good time to increase prices, but I don't think now is a bad one.

 

[Iron Giant]

Yeah my strategy is just for things as it is now. So far though it's working ok. Must say it's the hardest thing I've had to do, I feel sick when I send out the text messages each night, most don't reply but the ones that don't reply I've seen some the next day which I don't normally see and they have brought it up with me and said it's absolutely fine.

My theory is though that once prices get higher, well £5 increases will be less of a % jump. So the quicker the prices rise the easier it will be to keep increasing by £5 increments.

Two so far have got back to me from last nights messages saying it's fine, one was a very small £15 increased to £20 and one was one of those town houses that I pictured (the one with the fire next door) increased from £20 to £25 but that one was always too cheap anyway for the effort involved.

For anyone thinking it's a bad time to increase prices, well I was thinking about this, it's probably a good time. Most people want clean windows for Christmas and most of the cheap window cleaners who are doing it on the side won't be here come January. So if the customer decides to shop around for a better price well they'll find it harder compared to say March / April time, by which time if they haven't dropped you then they will probably have already got used to the new higher price and won't be thinking about it. There is never a good time to increase prices, but I don't think now is a bad one.

I totally get why you want your prices up with the way things are and correct me if I'm wrong it's been 2 years or so since you started and have raised prices, I'd feel sick sending out texts for £5 increases, but I ain't texting over 440 jobs my increases get written on a card,

It will no doubt depend on the customer a job of mine was telling me how the dog groomer who they use put the prices up from £25 to £35 this is a 8 weekly service for them and she was considering going elsewhere due to the 40% increase, £5 ain't so bad by comparison but what will also matter is how often the £5 increases are implemented and what the job price is jobs would have to be £30 upwards for the £5 increase to seem too high

Personally I will go with a increase in Spring around Easter time as people are always in a much better mood and the winter and extra costs are behind them, those fair weather cheap boys can now last through the winter due to mild winters but they'll only mostly be getting work in old terraced streets and councils estates, providing a high quality service been professional uniform etc and having good communication will beat the scroats everytime

 

[Chris34]

I totally get why you want your prices up with the way things are and correct me if I'm wrong it's been 2 years or so since you started and have raised prices, I'd feel sick sending out texts for £5 increases, but I ain't texting over 440 jobs my increases get written on a card,

It will no doubt depend on the customer a job of mine was telling me how the dog groomer who they use put the prices up from £25 to £35 this is a 8 weekly service for them and she was considering going elsewhere due to the 40% increase, £5 ain't so bad by comparison but what will also matter is how often the £5 increases are implemented and what the job price is jobs would have to be £30 upwards for the £5 increase to seem too high

Personally I will go with a increase in Spring around Easter time as people are always in a much better mood and the winter and extra costs are behind them, those fair weather cheap boys can now last through the winter due to mild winters but they'll only mostly be getting work in old terraced streets and councils estates, providing a high quality service been professional uniform etc and having good communication will beat the scroats everytime

Yeah it's my first increases since starting, however I've bitten the bullet and decided to increase ones that I've only had for a year at the same rate. Some of the new ones were really well priced last year so I didn't really need to put them up as the current price would still have hit my target, the thing is, all this texting and feeling sick sent be a bit loopy and I decided to just rise them all. It's actually working well, one from today got back to me and said it was 'ok' with a thumbs up and that was a £30 to £35, another for tomorrow has already got back to me, same price and only had them a year and said the same. Had another get back to me for tomorrow which I've had 18 months, just a semi and put it up from £25 to £30, again I would probably have been satisfied with the £25 as it takes 25 minutes, but come March I probably wouldn't be happy with that price.

I'd definitely recommend texting over face to face. A few weeks ago when I first started I thought it was better to do them face to face, but it makes it more awkward. There was the odd one that were not even listening and just said 'yeah whatever it is Chris, no worries at all', but most you can tell that they're trying to not show their emotions and the fact that it's not the news they want to hear but in trying to hide their reaction it just makes it more awkward for them and for me.

I'm finding that if you text them the night before and tell them the increase is at the next clean (the month later), well it gives them time for it to sink in and for them to consider it before seeing you. When they then see you the next day they're much better about it, they actually bring it up and say 'it's fine'.

One thing I have been thinking about today though, inflation for the last 12 months is 10%, so that means that a £30 job would have to be £33 today to keep up with inflation. So a £5 increase isn't much higher than what it should be. Coupled with that is that inflation is still here, so even if it remained at 10% for the next year (which I expect it will be a lot higher) but even 10% would mean that that £30 job in October 2021 would have to be priced at £36.30 by October 2023 just to keep up with inflation. Obviously if inflation is above 10% in the next coming year then that figure would be even higher.

So keeping up with inflation will mean being bold with the pricing. I think I'm being bold but the more I look at it the more I think it's not being quite so bold when you start to factor in the headline inflation rate. I think moving it from £35 to £40 for next year though should be relatively straight forward, I wouldn't like to try and go from say £33 to £40. It's easier to get there in even steps.

 

[Chris34]

Yeah it's my first increases since starting, however I've bitten the bullet and decided to increase ones that I've only had for a year at the same rate. Some of the new ones were really well priced last year so I didn't really need to put them up as the current price would still have hit my target, the thing is, all this texting and feeling sick sent be a bit loopy and I decided to just rise them all. It's actually working well, one from today got back to me and said it was 'ok' with a thumbs up and that was a £30 to £35, another for tomorrow has already got back to me, same price and only had them a year and said the same. Had another get back to me for tomorrow which I've had 18 months, just a semi and put it up from £25 to £30, again I would probably have been satisfied with the £25 as it takes 25 minutes, but come March I probably wouldn't be happy with that price.

I'd definitely recommend texting over face to face. A few weeks ago when I first started I thought it was better to do them face to face, but it makes it more awkward. There was the odd one that were not even listening and just said 'yeah whatever it is Chris, no worries at all', but most you can tell that they're trying to not show their emotions and the fact that it's not the news they want to hear but in trying to hide their reaction it just makes it more awkward for them and for me.

I'm finding that if you text them the night before and tell them the increase is at the next clean (the month later), well it gives them time for it to sink in and for them to consider it before seeing you. When they then see you the next day they're much better about it, they actually bring it up and say 'it's fine'.

One thing I have been thinking about today though, inflation for the last 12 months is 10%, so that means that a £30 job would have to be £33 today to keep up with inflation. So a £5 increase isn't much higher than what it should be. Coupled with that is that inflation is still here, so even if it remained at 10% for the next year (which I expect it will be a lot higher) but even 10% would mean that that £30 job in October 2021 would have to be priced at £36.30 by October 2023 just to keep up with inflation. Obviously if inflation is above 10% in the next coming year then that figure would be even higher.

So keeping up with inflation will mean being bold with the pricing. I think I'm being bold but the more I look at it the more I think it's not being quite so bold when you start to factor in the headline inflation rate. I think moving it from £35 to £40 for next year though should be relatively straight forward, I wouldn't like to try and go from say £33 to £40. It's easier to get there in even steps.

One other thing I want to point out to any others looking to increase their prices, always have a back up plan for if they say no to it. The back up plan should be once every 8 weeks or 2 months. If you have a back up plan then it gives them another option which sort of saves face for them and makes it less awkward for you. There will be some who won't accept it, but that's got to be expected, you have to look at the bigger picture. If 7 say fine but 1 kicks up a right stink about it, don't focus on that one, focus on the 7 that said ok.

I also wouldn't advise having anyone stay at their current price, if the newly priced customers find out you have not increased everyone's price then you have to consider how you're going to tell them why they're paying more but their friend down the road isn't. You have to be fair for everyone in my opinion, it shows professionalism.

 

[Pjj]

Yeah it's my first increases since starting, however I've bitten the bullet and decided to increase ones that I've only had for a year at the same rate. Some of the new ones were really well priced last year so I didn't really need to put them up as the current price would still have hit my target, the thing is, all this texting and feeling sick sent be a bit loopy and I decided to just rise them all. It's actually working well, one from today got back to me and said it was 'ok' with a thumbs up and that was a £30 to £35, another for tomorrow has already got back to me, same price and only had them a year and said the same. Had another get back to me for tomorrow which I've had 18 months, just a semi and put it up from £25 to £30, again I would probably have been satisfied with the £25 as it takes 25 minutes, but come March I probably wouldn't be happy with that price.

I'd definitely recommend texting over face to face. A few weeks ago when I first started I thought it was better to do them face to face, but it makes it more awkward. There was the odd one that were not even listening and just said 'yeah whatever it is Chris, no worries at all', but most you can tell that they're trying to not show their emotions and the fact that it's not the news they want to hear but in trying to hide their reaction it just makes it more awkward for them and for me.

I'm finding that if you text them the night before and tell them the increase is at the next clean (the month later), well it gives them time for it to sink in and for them to consider it before seeing you. When they then see you the next day they're much better about it, they actually bring it up and say 'it's fine'.

One thing I have been thinking about today though, inflation for the last 12 months is 10%, so that means that a £30 job would have to be £33 today to keep up with inflation. So a £5 increase isn't much higher than what it should be. Coupled with that is that inflation is still here, so even if it remained at 10% for the next year (which I expect it will be a lot higher) but even 10% would mean that that £30 job in October 2021 would have to be priced at £36.30 by October 2023 just to keep up with inflation. Obviously if inflation is above 10% in the next coming year then that figure would be even higher.

So keeping up with inflation will mean being bold with the pricing. I think I'm being bold but the more I look at it the more I think it's not being quite so bold when you start to factor in the headline inflation rate. I think moving it from £35 to £40 for next year though should be relatively straight forward, I wouldn't like to try and go from say £33 to £40. It's easier to get there in even steps.

Customers might accept a £5 rise now but if you were to put it up by a further £5 next year I think they might feel a bit differently about it , well done for pushing the boundaries just don’t overdo it and loose a load of good customers. When we put up prices we speak face to face with those that are in , those that aren’t we leave a note on their ticket saying due to ever rising costs the price will be xx from the next clean please let us know if that’s not acceptable , we lost less than a handful in total I was very surprised.

 

[Chris34]

Customers might accept a £5 rise now but if you were to put it up by a further £5 next year I think they might feel a bit differently about it , well done for pushing the boundaries just don’t overdo it and loose a load of good customers. When we put up prices we speak face to face with those that are in , those that aren’t we leave a not on their ticket saying due to ever rising costs the price will be xx from the next clean please let us know if that’s not acceptable , we lost less than a handful in total I was very surprised.

Good advice as always. I'm gauging the price based on new customers what they're prepared to pay, so come next year if new customers are not going to pay £40 then I won't increase them, maybe wait a year longer or something... it all depends on inflation and what the customer is prepared to pay.

It is certainly testing times though for keeping your eye on the ball. About 4 years ago I was on £8.21 per hour in a minimum wage job, the difference in that time to now is crazy. Even 3 years ago to now the difference is crazy. It has gone up a lot everywhere though. Recently my old employer got in touch to ask if I could do office cleaning, a key job at £15 per hour. Those rates were never on offer 3 years ago. You were lucky if you got £10 per hour.

 

[Iron Giant]

Customers might accept a £5 rise now but if you were to put it up by a further £5 next year I think they might feel a bit differently about it , well done for pushing the boundaries just don’t overdo it and loose a load of good customers.

This is what I was thinking also but I totally doff my cap to @Chris34 for pushing prices.

 

[Iron Giant]

One other thing I want to point out to any others looking to increase their prices, always have a back up plan for if they say no to it. The back up plan should be once every 8 weeks or 2 months. If you have a back up plan then it gives them another option which sort of saves face for them and makes it less awkward for you. There will be some who won't accept it, but that's got to be expected, you have to look at the bigger picture. If 7 say fine but 1 kicks up a right stink about it, don't focus on that one, focus on the 7 that said ok.

I also wouldn't advise having anyone stay at their current price, if the newly priced customers find out you have not increased everyone's price then you have to consider how you're going to tell them why they're paying more but their friend down the road isn't. You have to be fair for everyone in my opinion, it shows professionalism.

I am with you on this you have to be prepared for someone to say no and have that second price for a different schedule ready to offer more so face to face, some people would drop you if increased the price by £1 I have it myself longterm we all want rid of those jobs anyway,

I have tested new jobs with higher pricing that I know have no connections or are likely to find out a job two doors down is at a lower price, so I know exactly what increases I'll be rolling out next year but I may push the boundaries a bit yet

 

[Mattlekim]

I am with you on this you have to be prepared for someone to say no and have that second price for a different schedule ready to offer more so face to face, some people would drop you if increased the price by £1 I have it myself longterm we all want rid of those jobs anyway,

I have tested new jobs with higher pricing that I know have no connections or are likely to find out a job two doors down is at a lower price, so I know exactly what increases I'll be rolling out next year but I may push the boundaries a bit yet

Talking of dropping you when you increase the price. When I took over a round we used to do a terristed house. With a conservative the entire width of the house and awful access down each side. It was £5. A normal house without a con was £5. After a few months input it up to £6.50 they dropped me imdiatly. Iv never been so happy ?

So people will drop for any excuse

 

[Chris34]

I am with you on this you have to be prepared for someone to say no and have that second price for a different schedule ready to offer more so face to face, some people would drop you if increased the price by £1 I have it myself longterm we all want rid of those jobs anyway,

I have tested new jobs with higher pricing that I know have no connections or are likely to find out a job two doors down is at a lower price, so I know exactly what increases I'll be rolling out next year but I may push the boundaries a bit yet

Talking of dropping you when you increase the price. When I took over a round we used to do a terristed house. With a conservative the entire width of the house and awful access down each side. It was £5. A normal house without a con was £5. After a few months input it up to £6.50 they dropped me imdiatly. Iv never been so happy ?

So people will drop for any excuse

Definitely can relate to this. Obviously this is new territory for me but I'm going to make a diary of all what's going on to remind myself when I increase in the future. There are definitely jobs where any slight increase they'll use it as an excuse to cancel.

Great advice

 

[scottish cleaning service]

Jobs that are a nightmare then you price them correctly. If they cancel then its a win win situation.?

 

[Iron Giant]

Back on topic, so far in the last 3-4 months, I've lost 4 jobs and three stated the cost of living crisis the other one never stated anything but the following week they were having solar panels installed on both sides of the house so got me stumped as they'd always been good customers for over 10 years

 

[scottish cleaning service]

Back on topic, so far in the last 3-4 months, I've lost 4 jobs and three stated the cost of living crisis the other one never stated anything but the following week they were having solar panels installed on both sides of the house so got me stumped as they'd always been good customers for over 10 years

Probably call you back to clean the panels. My older rich customers are getting solar panels fitted so i will be asking them if they want them cleaned every March.