Price Increases Advice

[mike007]

I was doing a pvc clean today and the guy was saying that 3 lads cleans his windows with ladders. They are in and out fairly quick and only take a fiver Trad the glass. I couldn't believe it as I would be £10 to £12 to clean them because its a 3 bed detached then he said they are every fortnight. So then I realised I'm much the same with every month but clean the frames, doors and garage door. 

You would only visit once a Month though and they have worked the property twice for same money. They are beer token guys.

 

[scottish cleaning service]

You would only visit once a Month though and they have worked the property twice for same money. They are beer token guys.

Aye but the frames were a mess with black soot, maybe its because its next to an airport and motorway. I think all customers will come over to wfp in the fullness of time.

 

[Robt100]

Well, did a little test of the water today on one house...
Current price is £16, but it takes 2 people about 20-25mins. So said it'll be £33 monthly or £40 bi-monthly, the reply??
"Lets stick to monthly", not even a single comment about the fact the price has doubled, and quite happy for us to carry on. Now I just have to do the same for a few £20-25 that need to double?

 

[scottish cleaning service]

Well, did a little test of the water today on one house...
Current price is £16, but it takes 2 people about 20-25mins. So said it'll be £33 monthly or £40 bi-monthly, the reply??
"Lets stick to monthly", not even a single comment about the fact the price has doubled, and quite happy for us to carry on. Now I just have to do the same for a few £20-25 that need to double?

I feel it just depends on the person and household. If they have a good public sector pension then they don't bother much about the price. I'm working for a company at the moment who have plenty of work and need things done quickly, price doesn't come into it. I have recently found out the best contract to have up here and its with the NHS.

 

[Robt100]

Told another one they are going from £16 to nearer £40 yesterday, perfectly happy with it, said they were expecting something of around that price.
First full village to be upped in price (3 days worth) will start next week with slips through the door, we shall see how that goes.....

 

[Incheck]

I agree with what people are saying on this thread. Trying to keep your existing custom is very important, raising prices by £1 per year is about the norm now, maybe £2-3 for larger properties. and important to stick to or its so easy to get left behind. All the while taking new custom on at higher rates than existing custom to allow for profit well in to the future. Inflation and operating costs/cost of living are rising so fast now that a price you offer to a customer that seems reasonable this year can soon seem like you’re working at a loss two or 3 years down the line if you dont raise it, and that time soon comes around. 

 

[NewGuy]

Problem with putting prices up by at least £1 every year is that this can be way over the inflation rate and difficult to justify.  So I'm a little cautious about doing this.

I can either put them up by a £1 or more every couple of years, or calculate the actual rate of inflation and start introducing "pence" rather than rounding up to the nearest £1.  This will only work for online payees though.

 

[Robt100]

Problem with putting prices up by at least £1 every year is that this can be way over the inflation rate and difficult to justify.  So I'm a little cautious about doing this.

I can either put them up by a £1 or more every couple of years, or calculate the actual rate of inflation and start introducing "pence" rather than rounding up to the nearest £1.  This will only work for online payees though.

From what Ive seen over the last few years, the general rule for inflation would be £1 increase on £10 every 2 years. It seems to have slowed since the 2008 crash a little compared to the 10 years before.

 

[Pjj]

From what Ive seen over the last few years, the general rule for inflation would be £1 increase on £10 every 2 years. It seems to have slowed since the 2008 crash a little compared to the 10 years before.

I don’t see any point in increases less than a pound all our prices are straight pounds no pence 

 

[Jaygti]

I don’t see any point in increases less than a pound all our prices are straight pounds no pence 

This. 
I haven’t used pence for 20 years now, always whole pounds. 
in fact if I quote a new job now I tend to go up in £5.00 increments ,starting at £15 just to basically turn up. 

 

[NewGuy]

From what Ive seen over the last few years, the general rule for inflation would be £1 increase on £10 every 2 years. It seems to have slowed since the 2008 crash a little compared to the 10 years before.

Yes I understand but that's still a 5% annual increase, which is quite high given the low rate of inflation over recent years. 

I'm just concerned that there aren't many other businesses that would get away with this and perhaps there's a danger we are eventually going to price ourselves out of work. 

Maybe I'm wrong. I'm still a newbie in the window cleaning world but a veteran in the world of economics ?

 

[Robt100]

Yes I understand but that's still a 5% annual increase, which is quite high given the low rate of inflation over recent years. 

I'm just concerned that there aren't many other businesses that would get away with this and perhaps there's a danger we are eventually going to price ourselves out of work. 

Maybe I'm wrong. I'm still a newbie in the window cleaning world but a veteran in the world of economics ?

Actual inflation would be 60-70p, so you wouldn't be far off. Add to that the inflation on all the expenses we go through as window cleaners and you probably only just about end up earning the same as you did 2 years ago.
I had one customer today ask me if the price is up by £1 now, only been going for 11months! Her reasoning was, "everything else has gone up, so I expect you to as well." If the customer is expecting an increase, dont look a gift horse in the mouth?

 

[Part Timer]

Yes I understand but that's still a 5% annual increase, which is quite high given the low rate of inflation over recent years. 

I'm just concerned that there aren't many other businesses that would get away with this and perhaps there's a danger we are eventually going to price ourselves out of work. 

Maybe I'm wrong. I'm still a newbie in the window cleaning world but a veteran in the world of economics ?

This is why I think by using a higher quoting price on new work tests the water first.

 

[NewGuy]

Actual inflation would be 60-70p, so you wouldn't be far off. Add to that the inflation on all the expenses we go through as window cleaners and you probably only just about end up earning the same as you did 2 years ago.
I had one customer today ask me if the price is up by £1 now, only been going for 11months! Her reasoning was, "everything else has gone up, so I expect you to as well." If the customer is expecting an increase, dont look a gift horse in the mouth?

Yes, I agree prices need to go up. I just need to determine how I do it. I'm thinking of doing something in April, start of the tax year. 

This is why I think by using a higher quoting price on new work tests the water first.

Yes, I'm certainly doing this now. My higher charges are highlighting some of the jobs I picked up last year are a little low. 

There are a handful of jobs that needs to come up by a fiver or so. The rest of them will just need to rise in line with inflation or thereabouts. 

Just to figure out if I need to increase everyone or just focus on those that I picked up early last year. I don't want to put prices up for those that I have picked up in the past few months. 

 

[Pjj]

Yes I understand but that's still a 5% annual increase, which is quite high given the low rate of inflation over recent years. 

I'm just concerned that there aren't many other businesses that would get away with this and perhaps there's a danger we are eventually going to price ourselves out of work. 

Maybe I'm wrong. I'm still a newbie in the window cleaning world but a veteran in the world of economics ?

I don’t think a pound increase is a lot some will scrutinise it and say that’s above the inflation rate and if it is then that’s fine if they don’t want to pay that thank them for there custom and move on , Ime not interested in increasing a price by 27 pence or what ever it’s straight pounds my next increase will be £2 on my cheapest jobs I did this a couple of years ago and lost a couple of jobs out of 4000 they were pain customers anyway . I will be increasing some jobs from next month didn't put up anything last year due to covid , but will be increasing some not all though . 

 

[NewGuy]

I don’t think a pound increase is a lot some will scrutinise it and say that’s above the inflation rate and if it is then that’s fine if they don’t want to pay that thank them for there custom and move on , Ime not interested in increasing a price by 27 pence or what ever it’s straight pounds my next increase will be £2 on my cheapest jobs I did this a couple of years ago and lost a couple of jobs out of 4000 they were pain customers anyway . I will be increasing some jobs from next month didn't put up anything last year due to covid , but will be increasing some not all though . 

I've already had a text from a customer accusing me of increasing her price by £1. Maybe she was annoyed that I hadn't informed her. 

Needless to say, I hadn't increased her price at all and she got it wrong. I'm prepared to lose a few customers but I've already lost a few over winter that wanted me to stop until April. 

I've got to get the timing right where I can afford to lose a few more. I need to give this some thought on how I approach this, and set up a procedure for this so that I'm consistent in future years. 

 

[Pjj]

I've already had a text from a customer accusing me of increasing her price by £1. Maybe she was annoyed that I hadn't informed her. 

Needless to say, I hadn't increased her price at all and she got it wrong. I'm prepared to lose a few customers but I've already lost a few over winter that wanted me to stop until April. 

I've got to get the timing right where I can afford to lose a few more. I need to give this some thought on how I approach this, and set up a procedure for this so that I'm consistent in future years. 

Try increasing the oldest jobs you have do a few at a time if you increase 10 jobs by a pound and loose one you are no worse off( if it’s a £10 job)  and doing less work . When did you last increase prices ?? I tend to be a bit lax and do it every 4-5 years but need to be doing it every 2 years , last price increase I put £3 on my cheapest jobs and dearest £15-40 they hadn't  been increased for many years I lost less than a dozen jobs . 

 

[NewGuy]

Try increasing the oldest jobs you have do a few at a time if you increase 10 jobs by a pound and loose one you are no worse off( if it’s a £10 job)  and doing less work . When did you last increase prices ?? I tend to be a bit lax and do it every 4-5 years but need to be doing it every 2 years , last price increase I put £3 on my cheapest jobs and dearest £15-40 they hadn't  been increased for many years I lost less than a dozen jobs . 

I've only been operating for 14 months so I haven't had any price increases yet. I'm perhaps thinking I should simply increase across the board once a year rather than a selection at a time otherwise it will start to get complicated. 

So an annual increase, say from April for everyone. It would be a small increase once a year, for everyone. I think this year I may just focus on increasing some customers to bring them up to a more realistic price (there aren't many). I'm already getting frustrated with these jobs because I know i should be charging more. 

 

[Iron Giant]

Somethings have shot up in price over the last 11 months last April I bought x2 boxes of disposable biodegradable gloves from Gardiners for £20 they now want £21.60 for one box ? I bought an Ultimate flocked brush last March for £28 before vat it's now £31 

these online inflation calculators are going of last April and will then be updated this April inflation will have been lower this past year I would have thought, but near enough everything is still going up, you can and will fall way behind if you don't keep on top of pricing. 

Last year I increased most of my jobs by £0.50 to £1 the vast majority will still be getting a price increase of £0.50 this year, I started price increases this week and no one has said a thing, some jobs are overdue an increase and they will be getting £2 upwards increases, I need to get all my jobs to a point where I will just blanket increase every job at the same time at say £1 increase 

Today might be a bit different with some jobs seen an increase of £2-3 these I haven't increased for 3 years now, I honestly don't see me losing any of the jobs but there will be be some grumbling and groaning from the old folks ? 

 

[Robt100]

Today might be a bit different with some jobs seen an increase of £2-3 these I haven't increased for 3 years now, I honestly don't see me losing any of the jobs but there will be be some grumbling and groaning from the old folks ? 

Its always the ones with an income that scales with inflation that complain when we do the same to the cost?

 

[BigFoot]

Somethings have shot up in price over the last 11 months last April I bought x2 boxes of disposable biodegradable gloves from Gardiners for £20 they now want £21.60 for one box ? I bought an Ultimate flocked brush last March for £28 before vat it's now £31 

these online inflation calculators are going of last April and will then be updated this April inflation will have been lower this past year I would have thought, but near enough everything is still going up, you can and will fall way behind if you don't keep on top of pricing. 

Last year I increased most of my jobs by £0.50 to £1 the vast majority will still be getting a price increase of £0.50 this year, I started price increases this week and no one has said a thing, some jobs are overdue an increase and they will be getting £2 upwards increases, I need to get all my jobs to a point where I will just blanket increase every job at the same time at say £1 increase 

Today might be a bit different with some jobs seen an increase of £2-3 these I haven't increased for 3 years now, I honestly don't see me losing any of the jobs but there will be be some grumbling and groaning from the old folks ? 

I know you are similar to me with mostly GC payment customers, do you email them price increase or talk with them and then make the change or some other way? I’m looking to streamline as much as possible and love listening to peoples methods that are already tried and tested.