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Price Increases Advice


chris70

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18 hours ago, NewGuy said:

Once again, I have changed my mind!

I have decided to put a blog up on my website, post a FB message and have texted ALL of my customers (with a link to my blog page) informing them that I have carried out a review of my business after operating for one year and specifically looking at my scheduling and pricing.  I have now informed everyone that I will be moving people onto 6-weekly intervals and that prices will be increasing for some as they were under-priced due to my inexperience.

I will now be approaching customers directly and informing them of their specific changes over the next few weeks.

I have lost 3 customers already and I did not even bother to engage in a discussion as to why they have cancelled, although one has recently lost her job.  I have had a few responses confirming they are happy with my suggestions and await to hear more as to any specific changes affecting them. 

I know I'm going to lose more customers but I think due to my inexperience last year, I was too relaxed and desperate to sign customers up and I now know I need to be far more stricter in setting out the way I want to work, and not they way they want me to work.

I'm prepared to lose a fair number of customers doing this. Effectively I'm starting again this year under a new regime and whilst I initially decided to adopt the new regime on new customers only before eventually migrating existing customers at a later date, I've decided to do it all in one big hit and lose the customers that are not worthwhile holding on to.

Wish me luck!

Well done for making that decision. I think you may be surprised at how many know they were either cheap/too infrequent/not the usual customer, and will stay on with the new 'rules'. Certainly surprised me with the round I'm increasing at the moment. Had my 7th no/cancel today, going up from £8 to £14 after 20 years. Yet two others didn't bat an eyelid, and they went from £11 to £27 and £18 to £38 respectively!🤪

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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

Right then, a small update to my price rise 'cull'. 1 Village done, 32 properties, £250 worth of increases. 2 cancellations and one moved to 8 weekly.....not a bad result so far. Expecting that t

She agreed to my increase and to move to 6 weekly.  A few others have agreed to move from 12 weekly to 6 weekly, no questions asked. One declined but I expected her to.  Another in a flat ag

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On 06/04/2021 at 00:15, NewGuy said:

Once again, I have changed my mind!

I have decided to put a blog up on my website, post a FB message and have texted ALL of my customers (with a link to my blog page) informing them that I have carried out a review of my business after operating for one year and specifically looking at my scheduling and pricing.  I have now informed everyone that I will be moving people onto 6-weekly intervals and that prices will be increasing for some as they were under-priced due to my inexperience.

I will now be approaching customers directly and informing them of their specific changes over the next few weeks.

I have lost 3 customers already and I did not even bother to engage in a discussion as to why they have cancelled, although one has recently lost her job.  I have had a few responses confirming they are happy with my suggestions and await to hear more as to any specific changes affecting them. 

I know I'm going to lose more customers but I think due to my inexperience last year, I was too relaxed and desperate to sign customers up and I now know I need to be far more stricter in setting out the way I want to work, and not they way they want me to work.

I'm prepared to lose a fair number of customers doing this. Effectively I'm starting again this year under a new regime and whilst I initially decided to adopt the new regime on new customers only before eventually migrating existing customers at a later date, I've decided to do it all in one big hit and lose the customers that are not worthwhile holding on to.

Wish me luck!

Hope your timing is right especially posting it on you website and facebook. I personally would contact each customer individually.And as for timing...the time of year when you start seeing newbies starting up....competition that need work...and will price accordingly!!!!!

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8 minutes ago, mike007 said:

Hope your timing is right especially posting it on you website and facebook. I personally would contact each customer individually.And as for timing...the time of year when you start seeing newbies starting up....competition that need work...and will price accordingly!!!!!

You are always going to get that though, far better just to concentrate on ones own business,

I know there is cheaper lads than me in my area and some of them are getting a decent reputation on local FB pages, I ain't picking up the amount work I was before but I do know of two lads that are living on estates where there is residents only FB pages so no doubt they are getting first dibs on the work as I have had people message me and then not respond to my reply. 

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3 hours ago, mike007 said:

Hope your timing is right especially posting it on you website and facebook. I personally would contact each customer individually.And as for timing...the time of year when you start seeing newbies starting up....competition that need work...and will price accordingly!!!!!

There's never a right time though. I have pre-warned customers in a public manner as I'm running a business and believe openness and transparency is important and gives me a platform to explain what I'm doing and why. 

3 hours ago, Iron Giant said:

You are always going to get that though, far better just to concentrate on ones own business,

I know there is cheaper lads than me in my area and some of them are getting a decent reputation on local FB pages, I ain't picking up the amount work I was before but I do know of two lads that are living on estates where there is residents only FB pages so no doubt they are getting first dibs on the work as I have had people message me and then not respond to my reply. 

Agreed, There's always going to be people cheaper, we can't avoid it or worry about it. 

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15 hours ago, Robt100 said:

Well done for making that decision. I think you may be surprised at how many know they were either cheap/too infrequent/not the usual customer, and will stay on with the new 'rules'. Certainly surprised me with the round I'm increasing at the moment. Had my 7th no/cancel today, going up from £8 to £14 after 20 years. Yet two others didn't bat an eyelid, and they went from £11 to £27 and £18 to £38 respectively!🤪

Good work and good luck with the others! Whilst it's disappointing to lose some customers, I would rather lose them than clean their windows for a pittance which is soul destroying. 

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9 hours ago, NewGuy said:

Good work and good luck with the others! Whilst it's disappointing to lose some customers, I would rather lose them than clean their windows for a pittance which is soul destroying. 

Talking of which, had another 2 from the same close cancel the new prices within 10mins of each other. One of them even put in the message "we were expecting a substantial rise but not 100% . The residents in the close have disccused it and decided you would be much better putting the prices up incrementaly rather than a step of 100%, its disgraceful!"

Made me chuckle, as thats the whole reason the prices are so far behind, and the price went up by £12....I think that classes as substantial?? Don't want to have to wait another 5 years before I even start making a profit, they'd sack me off as soon as I reached their pre-determined limit anyway....

I did think of replying suggesting she starts a window cleaning business but thought better of it. If she thinks £10 is a fair price for a 4 bed detached with extensions she would be better off with a time machine🤣. Also, when the round started, it was 5 houses that size for a whopping £61. I now have 3 in there that Haven't cancelled and they now get me £65😇

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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. 

 

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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😇

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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.

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1 hour ago, Robt100 said:

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 

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