Price increases

Discussion in 'Managing Your Business' started by JBC88, Mar 23, 2016.

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  1. JBC88

    JBC88 Member
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    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?
     
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  2. Green Pro Clean Ltd

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    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.
     
  3. peter rogers

    peter rogers Grand Master
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    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
     
  4. JBC88

    JBC88 Member
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    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.
     
  5. peter rogers

    peter rogers Grand Master
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    How much ph u get ? How many hours week u do . Ya might need to do more
     
  6. adamangler

    adamangler Wakefield Window Warrior
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    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
     
  7. TolishAPurd

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    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.
     
  8. peter rogers

    peter rogers Grand Master
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  9. sllab

    sllab Active Member
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    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.
     
  10. Green Pro Clean Ltd

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    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.
     
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