Price Increases Advice

[NewGuy]

To be honest, I've not needed to do many large scale increases so I feel your pain! 

I've a fair few customers on 8 weekly, and I'm converting them all to 6 weekly with no objections at the moment. So these are effectively a pay increase! 

The customers on 4 weekly are going onto 6 weekly for a couple of pounds extra. 

I've identified a batch that just needs a few quids added on, nothing too much. 

I do 5 houses next door to each other on a gated estate on a 4 weekly, quite happy to keep them on 4 weekly ? £100 for 90 mins work doesn't need adjustments. 

 

[Robt100]

Almost the final update:

172 down, 8 to go.....

so far cancellations = 10

so 95% acceptance rate, though im expecting a few more the drop out over the next 2 weeks as they find cheaper cleaners.
I've had 4 move from 4 weekly to 8 weekly, but added 20% on top of the new price to cover it.

I've also dropped about 15-20 customers that dont fit in with the rest of the areas.

Currently on for 30% more income a month?

 

[NewGuy]

Well done! I'm still working through my customers and I'm only half way and have noticed a similar pattern ?

 

[Robt100]

All increases done, 180 customers.

Still Cancelations trickling though as expected. But it is still less than 20.
But currently on for 4 days less work and £1k more income, it actually looks like a viable business now! Unlike the 20year old prices it came with.

 

[Pjj]

All increases done, 180 customers.

Still Cancelations trickling though as expected. But it is still less than 20.
But currently on for 4 days less work and £1k more income, it actually looks like a viable business now! Unlike the 20year old prices it came with.

Well done for having the courage to do it and sharing your experience on hear , we all need to take a lesson from this and have realistic prices while ones are prepared to charge low prices it will keep our industry in the dark ages , we need to change with the times everything is going up in price and unless we follow suite our standard of living and wages will take a nose dive 

 

[Chris34]

Well done for having the courage to do it and sharing your experience on hear , we all need to take a lesson from this and have realistic prices while ones are prepared to charge low prices it will keep our industry in the dark ages , we need to change with the times everything is going up in price and unless we follow suite our standard of living and wages will take a nose dive 

I put up a post not so long ago about whether everyone is considering high inflation and adjusting their prices.  Majority of the replies was everyone thinking that people are hard up and they were just keeping things as is.  However a few months into this year has got me thinking I was correct in considering bumping up the prices a fair bit.

I believe we are experiencing high inflation currently but it's just hidden from the official data.  The amount of spending I'm seeing is unreal, I'm talking £1,000's on driveways, garden buildings, landscaping, extensions... the list is endless.  People have got lots of money, I don't know how but there is loads of it about and for it not to affect inflation I find it hard to believe.

When I first started 2 years ago I set myself and hourly target of £30 to £35.  Now that target is £35 to £40.  But I now actually feel it needs to be £50 to keep pace with inflation.  Not so long ago £200 per day seemed good money, but now that's almost to be expected.  I'm hearing daily rates of anything from £250 to £400 for similar lines of work.  Obviously not everybody is charging these prices, but if others are charging those rates and getting them then that is where our targets should be.

As such I'm now looking at £50 ph windows, £60 ph for add ons and £70 ph for gutters.  My minimum price used to be £15, but that's nothing now so that will have to go to £20.  

It sounds like a lot but once you factor in holidays, bank holidays and sickness / bad weather days well it's good money but I really don't think £60k to £70k a year is a lot of money to earn these days, not for running a business anyway.

Don't get me wrong, it feels like loads of money to me, but it's not a case of earning what your happy with, it's a case of earning what you should be earning, or to put it another way, earning your full potential.  

 

[swc1]

All increases done, 180 customers.

Still Cancelations trickling though as expected. But it is still less than 20.
But currently on for 4 days less work and £1k more income, it actually looks like a viable business now! Unlike the 20year old prices it came with.

Nice work!

 

[Pjj]

I put up a post not so long ago about whether everyone is considering high inflation and adjusting their prices.  Majority of the replies was everyone thinking that people are hard up and they were just keeping things as is.  However a few months into this year has got me thinking I was correct in considering bumping up the prices a fair bit.

I believe we are experiencing high inflation currently but it's just hidden from the official data.  The amount of spending I'm seeing is unreal, I'm talking £1,000's on driveways, garden buildings, landscaping, extensions... the list is endless.  People have got lots of money, I don't know how but there is loads of it about and for it not to affect inflation I find it hard to believe.

When I first started 2 years ago I set myself and hourly target of £30 to £35.  Now that target is £35 to £40.  But I now actually feel it needs to be £50 to keep pace with inflation.  Not so long ago £200 per day seemed good money, but now that's almost to be expected.  I'm hearing daily rates of anything from £250 to £400 for similar lines of work.  Obviously not everybody is charging these prices, but if others are charging those rates and getting them then that is where our targets should be.

As such I'm now looking at £50 ph windows, £60 ph for add ons and £70 ph for gutters.  My minimum price used to be £15, but that's nothing now so that will have to go to £20.  

It sounds like a lot but once you factor in holidays, bank holidays and sickness / bad weather days well it's good money but I really don't think £60k to £70k a year is a lot of money to earn these days, not for running a business anyway.

Don't get me wrong, it feels like loads of money to me, but it's not a case of earning what your happy with, it's a case of earning what you should be earning, or to put it another way, earning your full potential.  

A very sensible and logical thinking post , I agree with you entirely but it seams you snd I are in the minority ????

 

[ched999uk]

Don't get me wrong, it feels like loads of money to me, but it's not a case of earning what your happy with, it's a case of earning what you should be earning, or to put it another way, earning your full potential.  

Well said. Work to live not the other way round. Charge more work less ? 

 

[ks789]

I need to put some of mine up, but not all. Sometimes you get the odd customer put it up themselves which is always appreciated.

 

[Jaygti]

I put up a post not so long ago about whether everyone is considering high inflation and adjusting their prices.  Majority of the replies was everyone thinking that people are hard up and they were just keeping things as is.  However a few months into this year has got me thinking I was correct in considering bumping up the prices a fair bit.

I believe we are experiencing high inflation currently but it's just hidden from the official data.  The amount of spending I'm seeing is unreal, I'm talking £1,000's on driveways, garden buildings, landscaping, extensions... the list is endless.  People have got lots of money, I don't know how but there is loads of it about and for it not to affect inflation I find it hard to believe.

When I first started 2 years ago I set myself and hourly target of £30 to £35.  Now that target is £35 to £40.  But I now actually feel it needs to be £50 to keep pace with inflation.  Not so long ago £200 per day seemed good money, but now that's almost to be expected.  I'm hearing daily rates of anything from £250 to £400 for similar lines of work.  Obviously not everybody is charging these prices, but if others are charging those rates and getting them then that is where our targets should be.

As such I'm now looking at £50 ph windows, £60 ph for add ons and £70 ph for gutters.  My minimum price used to be £15, but that's nothing now so that will have to go to £20.  

It sounds like a lot but once you factor in holidays, bank holidays and sickness / bad weather days well it's good money but I really don't think £60k to £70k a year is a lot of money to earn these days, not for running a business anyway.

Don't get me wrong, it feels like loads of money to me, but it's not a case of earning what your happy with, it's a case of earning what you should be earning, or to put it another way, earning your full potential.  

yes agree fully. 
my aim is £50 per hour total not per job. 
so if I leave the house at 8.00 and get home at 4.00, I’m aiming for £400. 
it’s doable. The right prices, work as efficiently as possible, and make sure any new work is close to where my current work is. 

 

[Robt100]

Slowly getting through the round for the first time on new prices. Had 1 more go to 8 weekly, another cancel. But in return have picked up 8 leads on new work, and a house for over £100 a month by itself?.

I also did my monthly accounts today, From the start of the tax year to the end of April (so 25 days) we received 25% of the profit we made all of last year!??
Now just time to budget for the tax bill next year?

 

[ched999uk]

Now just time to budget for the tax bill next year?

I assume you don't have to 'pay on account' do you??????

 

[Robt100]

I assume you don't have to 'pay on account' do you??????

Not a clue. All I know is I didnt get anywhere near the tax threshold for 20-21.

 

[ched999uk]

Not a clue. All I know is I didnt get anywhere near the tax threshold for 20-21.

I don't know the exact details but it's something like if your last Self Assessment tax bill was less than £1,000 then no payment on account. If your last years tax bill was above £1000 then you have to make 2 payments a year that total your last years payments. So you are always 6 months in 'credit'!!! 

Obviously you should check with an accountant - not me ? as HMRC can be very nasty!

 

[Robt100]

Yeah thanks @ched999uk, I looked it up after you mentioned it, and theres no payments on account for the last tax year, but there probably will be next year, looks like I will need to save quite a lot.........or buy a new van (current one is 13 years old with 300k on the clock, so probably due one!) to offset the profit.

 

[Spit & polish]

On all my quotes i put theirs a yearly price rise every january to cover rising costs, it cant help with past customers but makes sure future customers understand.

Price rises always some customers

In building work i am probably 50% more than when some customers first used me.

So the bargin hunters leave but the ones who know i go above and beyond stayed.

With the window cleaning i hope say a £1-£5 (depending on size shouldn't lose many and keep it profitable and hopefully add a bit of profit each year per customer)

 

[dazmond]

On all my quotes i put theirs a yearly price rise every january to cover rising costs, it cant help with past customers but makes sure future customers understand.

Price rises always some customers

In building work i am probably 50% more than when some customers first used me.

So the bargin hunters leave but the ones who know i go above and beyond stayed.

With the window cleaning i hope say a £1-£5 (depending on size shouldn't lose many and keep it profitable and hopefully add a bit of profit each year per customer)

putting prices up every year is too often IMO.....on 2 monthly jobs that means your putting their price up every 7th clean!every 2 or 3 years is ok,some of mine i dont put up for 5 years.....some 10 years if their very well priced

 

[Jaygti]

putting prices up every year is too often IMO.....on 2 monthly jobs that means your putting their price up every 7th clean!every 2 or 3 years is ok,some of mine i dont put up for 5 years.....some 10 years if their very well priced

Yes , every 2 years seems about right for me.  

 

[Spit & polish]

@dazmondi might only put it up from a quid per house (if its really off a fiver) but gets them use to it. my expenses would go up within year so if i kept them the same im losing money.

 

[dazmond]

@dazmondi might only put it up from a quid per house (if its really off a fiver) but gets them use to it. my expenses would go up within year so if i kept them the same im losing money.

sorry mate i disagree.....you will lose customers if you put their prices up every year.its too often.....a year goes by in the flash of an eye....you wont lose money because over the year you ll be compacting your work so your hourly rate will go up as well as your overall earnings.....