Customer Power.. who blinks first....

[mike007]

What @mike007?!! This is what I mean! Why is it we are the only trade or industry where some people seem to think they have to explain and justify a price rise to customers?! Nobody else does and no customer expects it. What it does do is give them the wriggle room then to start a conversation about it and think about it!  If your doing a good job and they like you the price goes up you tell them and get on with it! What make you feel you have to personally explain why your price has gone up?!

Because we are a Trade that basically lots can do....including the home owners themselves...and reality is windows can be cleaned without purchasing a new van and a state of the art WFP system, RO system etc.....all of which has to be paid for...HOW...by having CUSTOMERS.

Guy lost something like 40 customers in the Cul de sac, that is a lot of customers, where I would of spoken personally to them thats all I am saying.

People say the industry is getting more competitive by the day due to more entering it...and they are using the exact sort of system you are WFP...both you and a new starter have basically the same USP....and what if he /she undercuts you in your area by £5 a job? lots of your existing customers may decide to change....unless they KNOW you...as I say customer relations is important.

 

[chris clean]

@chris clean I think the need to justify the price is the fact that we offer a regular service, the other trades you have mentioned don't, I have no idea what the price was last year when I had my boiler serviced compared to this year, the vast majority of people view regular payment's differently

some folk will jump ship because of a £1 increase, just like they would if their car insurance renewal is £30 dearer than last year, but that's just some people, I personally will always stick with a good service provider even if they might be more expensive purely on quality of service, the lad who services our combi I let him in then go off to work and he locks up behind him, I trust him and we get on well and got his windows to clean some years ago after he did some work for us.

@Iron Giant I agree with alot of what you say mate and dwfiantely when people trust you and know your reliable will happily accept without explanation that as with everything in life prices gradually rise. The biggest thing I think is just gradually doing it by a small amount not skipping years then adding 3 or 4 quid a clean cos your suddenly way behind all the other cleaners.  I dont agree with it needing an explanation though cos it's a regular service cos the most regular thing to buy in tesco is bread and milk but they dont send you or personally offer you an explanation when they put a few pennies on each regularly. But to be honest it comes down to the old thing about our game we are all our own bosses and do whatevers best for our business ?

 

[dmw]

@Iron Giant I agree with alot of what you say mate and dwfiantely when people trust you and know your reliable will happily accept without explanation that as with everything in life prices gradually rise. The biggest thing I think is just gradually doing it by a small amount not skipping years then adding 3 or 4 quid a clean cos your suddenly way behind all the other cleaners.  I dont agree with it needing an explanation though cos it's a regular service cos the most regular thing to buy in tesco is bread and milk but they dont send you or personally offer you an explanation when they put a few pennies on each regularly. But to be honest it comes down to the old thing about our game we are all our own bosses and do whatevers best for our business ?

Agreed, I don't like to flyer them because it gives them time to complain. Rather than putting prices up ad-hoc when you feel you're slipping behind the other guys, I always put them up in the first of March every other year so the customer can't say "what again!" (although invariably some do.)

I know I shouldn't but I never look forward to price increase time, my BACS payments I just add automatically but my cash customers I tell face to face one clean in advance so they'll have the correct amount ready for next time.

I always feel slightly embarrassed when asking, even though I know I shouldn't, even though the vast majority are fine with it.

 

[Master Jedi Alejandro]

Agreed, I don't like to flyer them because it gives them time to complain. Rather than putting prices up ad-hoc when you feel you're slipping behind the other guys, I always put them up in the first of March every other year so the customer can't say "what again!" (although invariably some do.)

I know I shouldn't but I never look forward to price increase time, my BACS payments I just add automatically but my cash customers I tell face to face one clean in advance so they'll have the correct amount ready for next time.

I always feel slightly embarrassed when asking, even though I know I shouldn't, even though the vast majority are fine with it.

So can I ask them how you guys go about it? Some of my oldest customers will be due a rise. First one ever (2 years cleaning them). Not sure if I should just add 50p or go the whole £1. Also, how do you word the text? 

 

[Pjj]

So can I ask them how you guys go about it? Some of my oldest customers will be due a rise. First one ever (2 years cleaning them). Not sure if I should just add 50p or go the whole £1. Also, how do you word the text? 

I have no ideal  about  your pricing but 50p is nothing theses days I would say £1 starting point for cheaper jobs and more than that for bigger jobs we increase prices every other year . 

 

[chris clean]

So can I ask them how you guys go about it? Some of my oldest customers will be due a rise. First one ever (2 years cleaning them). Not sure if I should just add 50p or go the whole £1. Also, how do you word the text? 

I have always used what I've put above. On the clean before I do price rise I just add a slip or card to the invoice that says

Dear Customer, I hope your well. Just to let you know from the next clean I have raised my prices slightly by just £1 per clean. As always your custom is much appreciated. Kind regards Chris.

As others have added I wouldn't bother with 50p personally go for th quid. 

I have personally found people just look at this and go ok cool never had an issue. If your asking them and trying to explain why your putting price up slightly it starts giving them wriggle room and time to think. We live in an age where many people happily spend 3 or 4 quid on a coffee etc most days I've never found anyone worried about £1 extra once a month or 6 weeks for a window clean if they are happy with you and the quality of your clean!

 

[Duncs]

Would very much depend on if the sell on covered the purchase price. Sometimes it's not worth the hassle 

Sounds like they are acting like a load of sheep,Me personally would of done50% of the graft .I think they was trying to be clever,chancing there luck.

 

[dmw]

I have no ideal  about  your pricing but 50p is nothing theses days I would say £1 starting point for cheaper jobs and more than that for bigger jobs we increase prices every other year . 

I'd go with a £1.00 and add that's guaranteed for 2 years to soften the blow... which to them will seem an age away when in fact you'll be able to do the same in 23 cleans time if they're monthlies, and it gets you on track for regular biannual increases.

As said for your dearer properties add a bit more on.

 

[Duncs]

I'd go with a £1.00 and add that's guaranteed for 2 years to soften the blow... which to them will seem an age away when in fact you'll be able to do the same in 23 cleans time if they're monthlies, and it gets you on track for regular biannual increases.

As said for your dearer properties add a bit more on.

If your adding 50p you will be having to sort change all day

 

[Davy G]

We put most of our prices up slightly every two or three years, mostly by at least £2. I wouldn't be doing with 50p increases. 50p smacks of nervousness and fear of losing the customers, is hardly worth the effort and would lead to a lot of messing with change in my case . They must not be allowed to smell fear. It's important to appear confident and businesslike.

We always say "If that's ok with you. To help us keep pace with inflation. We'll aim to hold the new price for at least two years". That's what we  say to help them see it our way. If they say "it's not ok",they are dropped.

Important to keep ownership and control of our businesses. Giving power over our business to the customers is a recipe for a struggling rather than a thriving business.

 

[Part Timer]

Sounds like they are acting like a load of sheep,Me personally would of done50% of the graft .I think they was trying to be clever,chancing there luck.

Personally think the original seller got rid of a load of pita customers.

 

[dmw]

Personally think the original seller got rid of a load of pita customers.

Agreed. And it's been sold on again, you can bet the same will happen.

 

[Davy G]

Personally think the original seller got rid of a load of pita customers.

I think so too. It's a learning curve from day one and I try to learn something every day. ?

 

[mike007]

So can I ask them how you guys go about it? Some of my oldest customers will be due a rise. First one ever (2 years cleaning them). Not sure if I should just add 50p or go the whole £1. Also, how do you word the text? 

If you increase by ONLY 50p and your round comprises of 200 customers a Month for example, that,s a straight £100 pay rise for you.Not bad pay rise that is equivalent to £25 per week. Bet not many shop/factory workers have had that sort of rise...more likely a couple of quid tops.

 

[wezza13]

When I put my prices up, I put them up £5 if over £40 or £2.50 if less than that. 

All of my customers that pay on the day via BACS, always leave the money out on the day or always offer me a cuppa, I don't raise their prices. I tell them that I've had price increases but haven't put them up for them for these very reasons. Keeps them happy and paying on time and have also had lots of referrals from them. Keep them happy and they'll keep you happy ?

 

[dmw]

When I put my prices up, I put them up £5 if over £40 or £2.50 if less than that. 

All of my customers that pay on the day via BACS, always leave the money out on the day or always offer me a cuppa, I don't raise their prices. I tell them that I've had price increases but haven't put them up for them for these very reasons. Keeps them happy and paying on time and have also had lots of referrals from them. Keep them happy and they'll keep you happy ?

You could increase your yield off your  beverage making customers by charging them extra with a Garibaldi or Rich Tea biscuit maybe?

 

[wezza13]

You could increase your yield off your  beverage making customers by charging them extra with a Garibaldi or Rich Tea biscuit maybe?

It'd have to be a bourbon or custard cream ? 

 

[mike007]

You could increase your yield off your  beverage making customers by charging them extra with a Garibaldi or Rich Tea biscuit maybe?

Personally when I read it, Crackers came to mind!!

 

[Iron Giant]

If your adding 50p you will be having to sort change all day

I really don't think there is that many that are dealing with cash all day every day, I have about 2 days a month and that's it 

 

[Danfire]

If the work is underpriced it is worth the square root of zero.