Man this industry is just all over the map for pricing...

Don't forget some not all commercial properties have deeper pockets than most residential clients. Its more of a hassle to replace carpet in a commercial setting. Theres furniture to move, down time, loss of income, everything that goes into getting a big building ready to remove and replace carpet. Some commercial clients are willing to pay for good service if you're going to give quality work, and maintain their carpet. Not to mention you're saving them a lot of hassle, and employee frustration. Plus extending the live of their original investment as well as providing a cleaner establishment to work in.

Commercial accounts can be your bread and butter when times are slow residentially, especially if they pay a portion each month you still have money coming in.

I now see what Jay was trying to say. There are some companies that are strictly commercial care companies, and when they get to residential or get a call for one, they have no clue how to price it. So they low ball it to compete with low ball companies to get the work, because they think they have to in a residential market.

I totally agree that it really messes it up for everyone else. But if they're charging .09 and doing good work, they're hurting their company. When some other company that does quality work comes back in to clean for that person again, and charges higher they think we're gouging.

Good points all. Thats just crazy, because in my experience, commercial jobs, seem to want to go "low bid". Residential, I think you can succeed in, since thats 90% of my work, and I'm not the cheap guy. Do a top notch job, and command the price for it. Yeah we all can do 800 square feet for $75, but that just wouldn't be right. You have to make what pays your bills, and being profitable. Just look at, you have a truckmounted unit that costs minimum of $15,000, plus your van, plus chemicals, gas, your labor, advertising, phone, your time to do the job, employees if you have them, the list goes on. That doesn't count your expenses to live, your house payment/rent, food, power, etc. Break that down with your square foot charge, are you making enough? Maybe everyone who hasn't raised prices should tack on an extra .05 cents psf, I like Jay's math point if you added .5 psf on every job, the extra you'd get, while still doing top quality work, I think you could do it.

Rob has a good point of an introductory price, to test drive his service, he does a good job, and gets a new client and profitable price for himself.

Having higher prices in and of itself can be a solid marketing strategy, when it is of course backed up with great workmanship, because the higher rate separates the price shoppers from the quality shoppers.

I write about this in this month's Cleanfax (getting higher prices and better clients) ... because it is the one factor that can dramatically turn your company from having to fight over the low-ball jobs when you really don't have to.

There are two ways to go broke ... do jobs where you lose money, or sit back home and do nothing. I guess I'd rather relax and go broke than break my back.

We raised our prices in April to $4.00-$5.00/sq ft. This was before fuel prices skyrocketed super high (up to $4.99 in San Diego), and before all this bank and Wall Street mess ... but we still have large jobs coming in every day. We are actually having our best year in our 30 years.

Now, you could say it's because all my clients are rich ... but they aren't. What they share is that they all care about their textiles, many with an emotional attachment to them (belonged to their grandmother, or they bought it overseas on a life-changing trip, or it was the rug they designed their home around).

What I've found in my experience, having used to be 50 cents per sq ft, almost entirely whoelsale work, to now almost 100% residential retail work is that I have clients who come to us for help, who respect highly what we do, who pay on time and happily, and that the rugs are much cleaner when they come to us than they used to be. We are cleaning less soiled rugs now, more often, and will a much better client experience.

Because the profit margin is higher, and the work is not as tedious as it used to be, we can concentrate more time per piece to do our best, and more time to build the relationships with each client. And that people aspect is powerful ... and also worth the higher price. Many business often forget to recognize how infrequently any of us receives a fantastic customer experience ... and how much we value it when we do receive it.

Coming back from Connections, I had stayed next door at the Hilton Grand Resorts because I wanted a suite and it was only a little bit more cash than the Vegas Hilton (I also don't care for casinos and smoke) ... and when I called downstairs to ask where I could buy some water, they ran up with bottles for me for free, simply because they wanted me to enjoy my stay. They all continually asked "what can I do right now to make your stay even better?" ... from the bellman to the housekeeping crew ... and I left the property saying that I would ONLY stay there when I return to Vegas again.

How often does that happen when you stay at hotels? I travel a lot, and it's rare for me. And I don't care if it's more money ... I will pay for that experience of knowing the staff truly appreciates my business.

Point is ... when you package what you do properly, you can charge more and there will always be business that will come your way, no matter what the economy. You simply need to be a better marketer and better service provider.

You can find the article over at Cleanfax Online :: Brought to you by Grand View Media if you want to read it.

Great topic,
Lisa Wagner

Yeah thats a great article on Cleanfax. I also enjoyed listening to the same topic when Joe and Lisa were in Seattle at the seminar. It all makes perfect sense to me, even more so now!

I had a customer call, Gave her my price. Then she wanted to know my price for just a BASIC cleaning... I told her I don't do that and explained why (she didn't know the difference) The last guy cleaned her house for $250 but she wasn't happy with the way it turned out. imagine that My price $525 that's an $.18 a sqft difference but you know what. When I left there she was more than happy to pay the difference and already got a referral from her... :AddEmoticons04233:

Did I mention I got 3LBS of dog hair out of her carpet...

Once again, The Rug Chick nails it! Thank you Lisa for your continued support of the industry as a whole.

Let the low ballers play their game and do crappie work, then their customer will find us and they will be our customers from then on.

I agree with a lot of this. I also think that there are different markets out there. People keep talking about "Marketing". That word in and of it's self explains everything. The Market.

We also have a restaurant here that is really cheap and REALLY REALLY good. $3-4 for a breakfast I can't finish, on a good day (and the pancakes are out of this world). The place is jammed everyday all day. It has a huge following of scruffy bearded men and their wives and friends. This place has found it's niche. I love the food but hate the staff. Now from time to time I will eat there but would rather go somewhere I feel welcome. I will pay the extra $$ for the service. The market I fall into is middle to upper and I like to be served.

There is a market for everyone and for everyone there is a market. Do you think the guys at "The Four Seasons" are worried about everyone in the world staying in their hotel. No. They know their market and thats who they cater to. Just like Motel 8 caters to their cliental.

So let the guys who cater to the low end, cater to the lower end. Let the guys who cater to the higher end, cater to the high end. And the guys who cater to the middle class, cater to the middle class. When you realize that there is a market for everyone, you will not be so afraid of the different companies messing up the market you cater to.

If you don't know your customer/market is.... Well you better figure it out.

The point: Every industry is all over the place for pricing. It's called "Marketing"

Was that 3lbs wet or 3lbs dry?

Any way...I don't get less than .49 to .59sq/ft according to the amt of soiling and type of carpet. With protector I get .69 to .79sq/ft Residential.

I was a BSC from 1986 to 2000 and and had my fill of it. Now I am very particular what commercial work I do. I won't work at night, especially after a long day, for anything less than .35sq/ft I did 1400sq/ft of tile and grout in a bagel store and was paid $800. That was clean only. Residential I would get $1.50 to $2 sq/ft clean & seal.

We have CC"s here that will work at night doing restaurants and office bldgs. for .09 to .15sq/ft.

I would rather WOW my res. Clients, make a whole lot more money and be home for dinner.
peace