How much business would you lose if you doubled your prices???

Interesting Rob
I market to the top end earner's and demand the best return possible. But, if I tried to double my price's, all the hard work done getting these customers on board would disappear at a rate of knots. At the end of the day these customers are my best friends (from a business approach)

I would say at least half...why?

Keith.

Like your thinking Rob.

I recently went up $10 per room and have been scheduling the same amount of work.

when will the book be done ?

I'm in bidding wars with 39 restaurants now so far the other guys are winning because they are just a few dollars less

I have got 1 of 39 so far had to bid under the other guy to get that one ..

As far as my restaurants after I build up the match what I have now then I'll try and get more $$ then if I lose them I can stll pay the bills ..

$1,000.00 per day with one truck with one man is easy to do. I do it and work less than 40 hours a week most weeks.

Dave

John there will always be those that want the cheapest price this isn't the type of client we try to get.

As for the original question if I doubled prices right now I would probably loose more than half for sure since we are already much higher than most. Average price for us now is $0.85 + $0.28 for protector.

Rob that is a sound philosophy we use that was taught to me by my first mentor.

Doubling your price depends what you are charging to start with. Is it 20,25,30,50,or 60 cents a sq. ft. right know we are at 65cents with a $350. minimum. Thinking to raise my minimum to $400. especially in high rises. Not worth doing it for less then that with the time it takes to get in and out of some of the buildings especially if they can't provide parking for their sevice people. We also charge any parking fees.

We also charge a higher min for High Rises or further out. So far when we have done a High Rise parking hasn't been an issue because we let the client know up-front we need parking arranged by them.

If I doubled prices, I would be out of business. I am actually charging less today than I was 15 years ago. Of course in my small town there were only two of us in the CC biz. Today we have 34 serving the same area. We have changed our pricing and marketing to compensate for this and still stay buzy and make a decent living. It really boils down to the area you serve, the ecomony in that area (I don't think I would be happy serving Detroit right now) Raising prices sounds good on the internet but it is not reality for us. I have been in this industry for 30 years and this is the worst I have seen it.

It may work as long as your are not in a elastic economy.

Interesting concept and some of the comments about where one is on the price scale is important to consider.

Let's just say one is a normal cleaner and their prices are somewhere in the middle, (where ever that may be but this is just for discussion sake). Let's say one's cost is consistent with each job, we'll just use 60% cost on each job with a 40% net profit, (it can be anything, this again is for discussion sake).

If one were to double their cost, they could lose right at 70% of their work and still make slightly more money, on the average. Pretty interesting when one looks at the math and the possibility of doing this.

Even though this is a hypothetical situation, doing the math on something like this on one's own business makes a real argument for raising prices and NEVER lowering them.

Just an interesting thought and it was a reasonable answer to understand at least the principle of what would or could happen.

Imagine, raising prices, losing some of the customers one may not want anyway and then having not only more money but maybe more time to spend with the family or..............

SAA

I like The Idea Rob, Write The Book!

We would probably lose 90%.