That Old Chestnut Pricing

Discussion in 'Traditional Window Cleaning' started by sam walton, Sep 22, 2012.

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  1. sam walton

    sam walton Guest

    Hi lads,
    been asked to tender for a ground floor furniture shop, 12 windows in all, each window is 9 feet by 9 feet, price they want is for inside and out, I want to get this right, I would sooner undercharge and rob myself, than overcharge and lose it entirely.
    What is the correct pricing formula.
    Geordie sam.
    Haway the lads.
     
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  2. M.K Cleaners.co.uk

    M.K Cleaners.co.uk Grand Master
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    Theres is no formula (I think). Work out how much you want to make per hour, Estimate how long it will take = Price?
     
  3. CNS-southwest

    CNS-southwest Grand Master
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    As above, how long will it take?
     
  4. Masons

    Masons Guru
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    ^

    Simple systems which can undermine your business.

    What are your costs for the job?
    Fuel is a variable.
    What are the fixed costs you pay each month, insurances and taxes etc.

    Don't price fixed totally on money per hour, as this will only work for a while and will not genuinely profit you in the long term.

    I priced a job up the other day which sounds similar to yours.

    It was 3-4minutes drive away first of all, so I added a small charge either way to pay for the fuel and time.
    I then looked at the fact I pay for insurance, taxes for the job and based on it's size and a personal system of pricing I've developed for my business which I shall keep to myself, I added a £5.00 charge added for business expenses for just the one job.

    So already without me doing work, the potential customer will be covering my business bills.

    I then when arriving look round the job for a basic idea of what amount of work there will be in time and size. and using a system of price per unit I use the units to put together a add a rough price.
    I look to see what state the windows were in and asked the owner when they were last done and how often he would want them doing.

    If they're bad and were done recently I take it into consideration as some jobs get muckier quicker (for example, chip shops have grease from customers hands and grease in the air to make the windows worse, and as such take more time, effort and cleaning chemicals).

    This equals a percentage on to the units figure.

    I also look to see wether steps or ladders would be needed, and both increase the RISK of:
    injury to myself and others,
    wear and tear of cleaning equipment,
    damage to property,
    time.

    So these are only a small amount of the factors I take into my quotes.

    For small jobs like chip shops, salons and post offices I have a different system and spend only 2minutes making a quote as they're straight forward and use little factors.

    But jobs like this I spend around 5-10minutes using rough variables and fixed prices to get a quote. I have a pricing sheet with figures on I can take for the job.

    I will get a figure in the end I will meditate on and if certain outside factors may affect this I may change it to fit the job.

    I look at how the price (including adding personal and business targets for monies needing to be earned) will profit myself and keep the business going.

    I then discuss the quote with the customer and why the price has been achieved, which may or may not help them come to terms with such a high or low price or at least let them know I take care and consideration to benefit the customer and myself and reach a mutual goal.

    It sounds complicated but by doing this I never rob myself or the customer, and for all you doubters I have had ONLY ONE customer cancel my services based on price in the last 2 years.

    Every business is different.

    Wanting to earn so much an hour won't work, as one day you may want to earn 20 an hour while you're able to walk to all your work from home and have little overheads yet when any small changes happen your wage is immediately affected. Yet looking at all aspects of your business and how it affects your pricing will help long term.

    I get the feeling my comment will get scoffed at as over complicating things, yet, not having the businesses finances in mind when taking on work isn't logical, helpful or at all smart business practise.

    Buying Richard's book; Winning at Window Cleaning has helped me on this regard.

    Some of the idea's I've mentioned come from his book, and as such I have left some out.

    Take more thought into your work and don't rob yourself, no big business robs itself, and if they can't afford to, then small businesses will survive if they do.

    You only need to spend 20-30 minutes taking into consideration costs, and then using this information make an informed decision.

    Robbing yourself will make you resent a job, believe me.
     
  5. Masons

    Masons Guru
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    That sounds complicated, but it's one in the morning and I'm knackered. Will edit it in the daylight. lol
     
  6. Dodger

    Dodger Hero
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    No not complicated, makes sense really.
     
  7. Richard

    Richard Forum Addict
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    Masons has kindly taken the time explaining to you, that you need to look at your own business to get the price. This way you will win more work, price in your favour and still be competitive.

    After you have done this, it’s just a case to price any new work above you current prices. It should be an ongoing process, because you are always increasing your prices with each new customer.

    It’s very easy to implement and takes no extra time than usual to price, once you have those handful of key figures. Without those figures, you’re guessing.

    Richard
     
  8. Bingo

    Bingo Grand Master
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    Yup! No need to edit.........even I can make sense of all that :) .
     
  9. M.K Cleaners.co.uk

    M.K Cleaners.co.uk Grand Master
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    It sounds allright to me
     
  10. C-THROUGH

    C-THROUGH Active Member
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    I agree that it sounds ok but Im with MK on this one.
    Just work out how much you want to earn per hour!!!!
    This includes fuel, insurance etc SURELY!
    Then work out how long the job will take.
    Thats your price.
    I really do think that people try to over complicate window cleaning!
    Its a good skilled and honest pfofession/trade but lets be honest itys not complicated!
     
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