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Green Pro Clean Ltd

Pricing and price increases

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Green Pro Clean Ltd

We are all guilty of the occasional (too often for some of us) under priced customer.   And I too suffer from this at present. 

 

On reflection I have never really put my prices up and pricing strategy seems the same as it has been for 10 years now.  

 

If I were to have upped my price just 50p per year houses that were £8 When I started in 2007 would be £13 today.... truthfully about where they should be.  

 

However I could do 3 houses per hour in the 50p pay rise bracket so that means an hourly rise of £1.50.  So for houses taking an hour a go the rise needs to be £1.50.   For those taking 30 minutes 75p and so on.... this would make my largest residential a £12 increas as I am there all day long. 

Many of us worry that any price increase will cause a drop off or two but if you have steady growth these will soon be replaced with regular better priced work anyhow.  

 

As almost all are on GoCardless now moving forward the annual price hike will be standard and automated by Cleaner Planner.  

 

Everything else goes up year on year so why shouldn't we?  Usually our own unfounded fears that a customer will dump us over 50p! 

 

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Neilmnwc
We are all guilty of the occasional (too often for some of us) under priced customer.   And I too suffer from this at present. 
 
On reflection I have never really put my prices up and pricing strategy seems the same as it has been for 10 years now.  
 
If I were to have upped my price just 50p per year houses that were £8 When I started in 2007 would be £13 today.... truthfully about where they should be.  
 
However I could do 3 houses per hour in the 50p pay rise bracket so that means an hourly rise of £1.50.  So for houses taking an hour a go the rise needs to be £1.50.   For those taking 30 minutes 75p and so on.... this would make my largest residential a £12 increas as I am there all day long. 
Many of us worry that any price increase will cause a drop off or two but if you have steady growth these will soon be replaced with regular better priced work anyhow.  
 
As almost all are on GoCardless now moving forward the annual price hike will be standard and automated by Cleaner Planner.  
 
Everything else goes up year on year so why shouldn't we?  Usually our own unfounded fears that a customer will dump us over 50p! 
 

Hi Green,

Some good points you’ve covered there & arguments I have with myself all the time...much of it is down to our own confidence in our profession imho.

I’ve begun increasing my round in stages of a £1 or so the last year and for the following year. So far I haven’t lost any due to the increase. I haven’t ever given a reason to customers and they haven’t asked.
The only ones I really struggle with is commercial customers as they would be greater hit to lose. I may go on a percentage increase annually for them.

I don’t know if another profession that worries over increasing prices by a quid. It’s throw away money, the price of a chocolate bar a month.

If we don’t increase over the years I think it would have a knock on effect for the whole industry.

You can guarantee everything else will go up in January.


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Incheck

You’re right, you have to follow suit before you get left behind, & dont feel guilty about it. You’re self employed. From the day you start work to the end of your life there will never ever, ever, be an end to the need for cash. People have all these retirement plans, but then your kids need university fees, 20 years down the line they’re popping out your grandchildren, you could find one day that someone close needs a life saving operation paid for privately because the waiting list on the nhs is so long that they just wont make it if they wait that long. Keep working as long as you physically can and earn as much as you can get away with because the days of putting your feet up and having a long settled retirement will be long out of the window by the time we get there. If they cant afford the price increases then say thank you and all the best, and find work that you can afford to work for. Unless youre earning over 80k a year or wayne rooneys nephew i dont think anyone can say they’re comfortable in this day & age. And the state pension wont be a lot to shout about


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Neilmnwc
You’re right, you have to follow suit before you get left behind, & dont feel guilty about it. You’re self employed. From the day you start work to the end of your life there will never ever, ever, be an end to the need for cash. People have all these retirement plans, but then your kids need university fees, 20 years down the line they’re popping out your grandchildren, you could find one day that someone close needs a life saving operation paid for privately because the waiting list on the nhs is so long that they just wont make it if they wait that long. Keep working as long as you physically can and earn as much as you can get away with because the days of putting your feet up and having a long settled retirement will be long out of the window by the time we get there. If they cant afford the price increases then say thank you and all the best, and find work that you can afford to work for. Unless youre earning over 80k a year or wayne rooneys nephew i dont think anyone can say they’re comfortable in this day & age. And the state pension wont be a lot to shout about


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Well said & I share your sentiments about retiring and putting my feet up. Those days are largely gone. Personally if I can still get up and earn I will.


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Part Timer

I don't do many residential houses, however if I did I would use the small but often method. If you're doing a house for £10 and put it up £1 every other year then I would expect to keep the vast majority. If you wait 5 years and then tell everyone it's now £12.50 I think that would be harder to justify, in the customers eyes.

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Dave B

I will retire and have the business running for me

Only here once and be buggered if I'm working till i drop

My dad worked stupid hours for the future and died before his 54th birthday

What was the point of it if you can't sit back and enjoy life

42 now and will be off the tools before 54 and enjoying myself

As my grandad said you're a long time dead

Prices need to go up i agree but it is a balance between growing a business on ok prices and being a 1 man band on very good prices

However mine are going up in Jan as it has been 3 years since the last

13 minutes ago, Incheck said:

You’re right, you have to follow suit before you get left behind, & dont feel guilty about it. You’re self employed. From the day you start work to the end of your life there will never ever, ever, be an end to the need for cash. People have all these retirement plans, but then your kids need university fees, 20 years down the line they’re popping out your grandchildren, you could find one day that someone close needs a life saving operation paid for privately because the waiting list on the nhs is so long that they just wont make it if they wait that long. Keep working as long as you physically can and earn as much as you can get away with because the days of putting your feet up and having a long settled retirement will be long out of the window by the time we get there. If they cant afford the price increases then say thank you and all the best, and find work that you can afford to work for. Unless youre earning over 80k a year or wayne rooneys nephew i dont think anyone can say they’re comfortable in this day & age. And the state pension wont be a lot to shout about


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It all depends whether you want to be a 1 man band forever or a businessman earning from your businesses working for you while you reap the benefits of your hard work setting it up

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Incheck

I do debate about growing but at the end of the day you put a hell of a lot of trust in employees. Some people consider it no big deal but when they need pensions/holiday pay/sick pay/bereavement leave/paternity arrangements, then theres the training costs, extra vans/equipment. And are they gonna be with you long enough to make it all worthwhile? I feel a bit cowardly and steady eddy ish but ive worked hard to get where i am and nowhere near brave enough to take that plunge. When we get to 50 or 60 maybe but it frightens the **** out of me to be honest


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Dave B

A few years ago i was subbing off a big firm and used to take double what i could do and pay another guy to do the extra

I paid 20% and it was the trad days back then

I took £200 for a day for me so made £160

Took £200 for him and paid him £10 ph as long as he did £20 ph of work

Left me with £100 per day from him minus 20% so made £60 a day extra

Subbing and taking on self employed guys part time is a good way to get built up before going the employment route once you have the work

What's the worst that can happen?

Have an extra round falling behind until you fill it with someone

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Incheck

Dave you’ve got all the right ideas mate but to be honest i’m so occupied myself i honestly don’t think i’ve got the time to be organising a schedule for someone else or picking up the pieces when they dont show up for work or make mistakes. And i don’t know if i could put the trust of anyone with our customers and unless it was a young family member. My little un is disabled and my brother doesn’t have any kids as of yet. I also think of the extra paperwork, payroll etc, employers liability an all. We haven’t got a secretary or a proper office, so i ask myself where the hell am i gonna find the spare time i haven’t got to sort all that out?


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Incheck

Franchising could be the way if that’s what you’re suggesting? I’m a but clueless tbh


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Dave B

Franchising is a good idea but would cost more to set up

Once up and running though I reckon it could be quite lucrative

I have ideas but to start with will just be subbing out work until i have enough to fill a round full time for someone

The idea is to eventually get off the tools so running all the day to day worksheets and employees etc would be pretty much my only job

Edited by Dave B

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Part Timer

Ran a big business for 10 years and it was far more tiring then waving a pole around all day. Personally prefer to work as long as I can then either sell up or take a 25% cut and let someone else do the physical work. 

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adamangler

I think we all need a plan. Doesn't matter what it is as long as you have one.

 

Working as a sole trader till I'm 70 is not the life I want.

 

Of course you can grow a huge company, franchise or whatever you choose to do.

 

My personal plan is to invest quite heavily over the next few years to grow the business, I've just turned 36 by 40 I want to have a nice little business with a few employees. 

 

 

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Andy Cap

Interesting thread...I have been a trad cleaner for 8 years now and I personally have found a 3 and half day day week  6 hrs a day works for me as I have arthritis In my hand and can balance rest etc with it as well as dodging the worst of weather,as I do plan to do this job till I drop ....love the lifestyle and time it gives me with 2 kids etc..

sort of taking semi retirement now if you like I'm only 53.....works for me

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Part Timer
2 hours ago, Andy Cap said:

Interesting thread...I have been a trad cleaner for 8 years now and I personally have found a 3 and half day day week  6 hrs a day works for me as I have arthritis In my hand and can balance rest etc with it as well as dodging the worst of weather,as I do plan to do this job till I drop ....love the lifestyle and time it gives me with 2 kids etc..

sort of taking semi retirement now if you like I'm only 53.....works for me

I'm 54 

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Iron Giant

I raised some of my prices by £1 last year without issue but  I have been a bit nervy about increase some others as of next year it will have being 3 years without an increase on some I will wait till march/april people are in a more positive mindset. 

Right now at the age of 43 I will happily go out a work 2-3 half days in my 60's I will be pulling in far more money than a pension could ever provide, I really don't ever see myself being able to let go and employ or sub out work but who knows 

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dmw

I Increase mine every other March and the customers accept this,this year I went Wfp at the same time and thought I could reasonably afford to lose 20 customers . It turned out I lost just 5 which were soon replaced.
Regarding an exit strategy, I just plan to do similar in my sixties, keep the cream and do 2/3 days a week. I'm not the type to sit around and watch Jeremy Kyle all day.

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