Jump to content

Price Increases Advice


chris70

Recommended Posts

Just wondering about price increases i have not put prices up in 4 years and really need to do so now but don't want to loose to many customers because of it for example houses i currently clean for £15 i wanted to put up to £20 and and ones i clean for £20 want to put up to £25 does this seem to much just wondering what other people on here do Cheers

Link to post

That’s a 33% and 25% increase respectively. I think a jump of that much would not be welcomed especially as some people may have been financially affected by COVID or worried what the future may bring. Putting up prices by  quid or two perhaps but not this much. 
that said I don’t know your area your competition or your customers. 

  • Like 2
Link to post

I tend to put a couple of quid on every 2 or 3 years but any new business now is quoted 20 - 30% higher as I'm close to being full.

Personally think putting prices up by 33% is a bit much but like everything in this job it depends how strong a business you have.

Without trawling through inflation rates over the last 4 years I'd have thought it will be circa 10%.

I'll be going VAT registered around June and I expect to lose a few and the majority of my older residential customers are £10 and are due a price rise but will keep it where it is until the VAT becomes applicable.

If I were you I'd do it for a quarter of your  business and gauge how it's received. If you lose 20% then you're still better off financially. If you lose 25% you're down.

The other potential downside is the customers you lose, if you do, could then bring cheaper competition to your doorstep.

Ultimately your business and your decision, good luck and let us know how you get on.

 

Edited by Part Timer
  • Like 1
  • Agree 2
Link to post
29 minutes ago, chris70 said:

Just wondering about price increases i have not put prices up in 4 years and really need to do so now but don't want to loose to many customers because of it for example houses i currently clean for £15 i wanted to put up to £20 and and ones i clean for £20 want to put up to £25 does this seem to much just wondering what other people on here do Cheers

Chances are you'll get binned in a heartbeat £15 in todays money with inflation taken into account is £17 https://www.hl.co.uk/tools/calculators/inflation-calculator 

Link to post

yeah i thought it would be bit to much it was only other cleaners in my area seem to be charging quite a bit more than i do so it set me thinking for example some are charging £30 for same houses i charge £15 

Link to post
Just now, chris70 said:

yeah i thought it would be bit to much it was only other cleaners in my area seem to be charging quite a bit more than i do so it set me thinking for example some are charging £30 for same houses i charge £15 

What size, frequency and area, are they doing houses for £30. Also I wouldn't necessarily believe numbers banded around by fellow windies.

 

  • Like 1
  • Agree 2
Link to post
2 minutes ago, Part Timer said:

What size, frequency and area, are they doing houses for £30. Also I wouldn't necessarily believe numbers banded around by fellow windies.

 

This is in Hertfordshire mate what made me think also is when i have priced some jobs they have said is that just for fronts that also made me think i was to low

2 minutes ago, Iron Giant said:

Springs to mind 

images.jpg

LOL true

Link to post
5 minutes ago, chris70 said:

This is in Hertfordshire mate what made me think also is when i have priced some jobs they have said is that just for fronts that also made me think i was to low

For me you can play it one of 2 ways, firstly any new enquires quote significantly higher and see what your acceptance rate is. Secondly do as I suggested, stagger the amount of existing custys you hike the prices to and if accepted roll it out to the rest of them.

Personally I'd do it the first way and if you have a high acceptance rate then go for it with your current customer base.

  • Like 1
  • Agree 2
Link to post

You've got it easy with a 4 year break. I've just taken over a round, turns out some of it hasn't had the price increased in 15-20years....Try telling your customers it needs to go up 60-80% and then a bit more to cover WFP running costs🤣

Though I have used a similar technique to what Part Timer says above. New customers have come in at my normal rate and said yes straight away. and then one of the old customers rang me up when they heard I had taken over the round and asked how much I charge, told them its a £10 minimum, they said thats fine quote when youre here.....they 'currently' pay £5. So it can be done, just be confident and it will work out.
Had another round I was renting for a while that was similar, put that up by £3 per person, lost maybe 10% of the customers. So worked out for the better in the end.

Link to post
9 hours ago, Part Timer said:

For me you can play it one of 2 ways, firstly any new enquires quote significantly higher and see what your acceptance rate is. Secondly do as I suggested, stagger the amount of existing custys you hike the prices to and if accepted roll it out to the rest of them.

Personally I'd do it the first way and if you have a high acceptance rate then go for it with your current customer base.

This is exactly what I did with our work , all new enquires are at least 25-50 % higher priced  than an equivalent existing customer and Ime still getting the vast majority that I quote , so what I have started doing is putting up my cheapest prices up to the new higher price if they accept it it’s a win win if they don’t ime not bothered as I replace it with a new higher priced job , if you are worried about loosing work when you pick up a higher priced job then stick up a cheap one if you loose it you are still earning more . 

  • Like 3
Link to post

cheers for all your reply's guys yeah im going to price all new ones higher and increase my old ones a little bit for min then go from there

Link to post
Neil.. Lancashire
On 21/11/2020 at 09:34, chris70 said:

yeah i thought it would be bit to much it was only other cleaners in my area seem to be charging quite a bit more than i do so it set me thinking for example some are charging £30 for same houses i charge £15 

I raised 4 jobs by £5 12 months ago and all excepted it without question.

I was happy tp lose them as they were slightly out of the way.

Link to post
53 minutes ago, Neil.. Lancashire said:

 

I was happy to lose them as they were slightly out of the way.

Thats probably the most fustrating thing, when you hike a price up to try and get rid of them and they still say yes🤣

  • Haha 1
  • Agree 1
Link to post
8 hours ago, Robt100 said:

Thats probably the most fustrating thing, when you hike a price up to try and get rid of them and they still say yes🤣

I have a smallish commercial job I hate so when I tripped on my hose reel doing it I thought no more. Sent them the invoice and put on the email that next time I'd have to put the price up from £50 to £100, it's a quarterly job.  About 4 weeks later they replied ok

So now I have a £100 job I hate, and I have to do it next Friday. 

  • Haha 4
Link to post
scottish cleaning service
1 hour ago, Part Timer said:

I have a smallish commercial job I hate so when I tripped on my hose reel doing it I thought no more. Sent them the invoice and put on the email that next time I'd have to put the price up from £50 to £100, it's a quarterly job.  About 4 weeks later they replied ok

So now I have a £100 job I hate, and I have to do it next Friday. 

As a professor once said, doing a job you hate and the money is poor doesn't bode well.

Link to post

Time to put up prices for me also, I’m priced well but know others in my area are well below what I see as acceptable. Many of my jobs are front only terraced properties.
I know some have a minimum charge on a job, I have compact work, what is the highest price you have on a regular 4 weekly cycle for 3 small terraced windows and door? I’m trying to get an idea of what the market cap is.

Link to post
52 minutes ago, BigFoot said:

what is the highest price you have on a regular 4 weekly cycle for 3 small terraced windows and door? I’m trying to get an idea of what the market cap is.

What is the highest price job you have currently that fits that's criteria?

Remember one of the pricing factors is based on supply and demand in your area. 

Is your round solid and full to compasity? 

Link to post

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.