How to set your prices for carpet cleaning - Do's & Don'ts

Discussion in 'Starting Your Business' started by rob allen, Sep 3, 2013.

  1. rob allen

    rob allen Administrator
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    Many are confused when starting a business of how to set their prices. They have a tendency to look in the wrong places. Here are a few valuable tips;

    1) Don't shop your competition.
    2) Don't think if I'm cheaper everyone will call me instead
    3) Don't start off with no business plan.
    4) Don't think people can't afford to pay more
    5) Don't set your prices according to YOUR living standards

    The problem with using the above model can lead a business to failure fast. Or keep you "in a job" rather "in a business". Actually if added up the profit to hour ratio you might as well kept working for someone else. So prices must be set properly to properly succeed. Really if your prices are not designed to generate handsome profits then your designing a business model of failure. Instead you must do the things below.

    1) Do set prices to generate good to very good profits.
    2) Do pick up a TMF pricing guide
    3) Do sit down and make a pricing plan
    4) Do realize a lot of people can and will pay more for quality.
    5) Do establish a vision for your company

    Like I said if your not sure what to charge TMF provides a complete suggested service price list for only 5.00. Less than a good hamburger. Then after you get it meditate on a vision of where you want to be in 1-2-3-4 and even 5 years. I am actually friends with a former IBM CEO. He told me he always plans out 5 years ahead. Most cleaners have no plan. Not good.

    Now back to setting prices. Figure up your expenses of doing a job based on;

    1) Equipment & Chemical costs
    2) Insurance & Taxes
    3) Gas & maintenance
    4) Time involved in doing a per quality job
    5) Marketing

    We have made it so simple with the TMF price listing. On average most cleaners are doing about 100.00 an hour. Make sure you elevate your perceived value for your services if they are low. Don't run ads or create marketing material below the consumers perceived value level. Now that being said there is nothing wrong with running a discount for "first time clients" and then charging your set prices from there. But use %'s off rather than set prices. Then if you deliver mind blowing quality and service the client will not care about price. Believe me I know. ;)

    Rob

    Link for Master Price List. (Yes you can blow it up and write down most of the prices or you could get this hard durable copy & spend 10.00 to support TMF. Oh and get a free carpet cleaning wristband too :D )

    http://cleaningsupplies.mybigcommerce.com/complete-industry-price-list/
     
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  2. Deco

    Deco Active Member

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    Hey Rob, I just glanced at the list, do you see any negatives to pricing couches or sectionals by the linear foot?
     
  3. Prosteam-sonomacounty

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    Great post. A ton of guys here give way to much creedence that customers can't afford to pay more IMO.
     
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  4. emeraldclean

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    That's because they are cheap themselves!
    Probably got into the industry thinking who the hell would drop $400 on CC ... Cause they sure in the hell wouldn't.
     
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  5. Frank DiGi

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    Very good post Rob!
     
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  6. rob allen

    rob allen Administrator
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    I think either is fine. If you believe in it so will your client. ;)
     
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  7. the rugman

    the rugman Well-Known Member

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    When I first started out a LONG time ago my thought was this -"well, somebody has to be the highest price and somebody has to be the lowest". I picked the highest (think I ended up being the 2nd highest guy around).
     
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  8. Prosteam-sonomacounty

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    IMO, when clients see you pulling out the tape measurer it appears much more precise and professional.
     
  9. Mrs.SpeedySteamer

    Mrs.SpeedySteamer Moderator ~ And Most Awesome Member
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    Great point...

    Having a clear cut breakdown of your prices helps with confidence.

    "Ma'am if you add the sofa your new price will be $375." The client sees that you already have an established price sheet and that you're not trying to cheat them. Don't hide your price sheets to your clients let them know why your prices are the way they are and let them see you using it to reach a total for their cleaning. I have had people look over my shoulder and see the prices and start adding items because they could "afford" that item too. It is awesome.

    I haven't rolled out a tape measure in anyone home ever. But I know how to sell my service and present my company. Any joe schmoe can roll out a tape measure, but can they roll it out and present their business? That is the difference.

    It is all in the presentation of you first, the equipment is just their to help.

    Speak clear and directly. Look them in the eyes. Ask them their concerns and listen. Ask to see their concerns. Read back concerns. Then use whatever tools you need to help look professional.
     
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  10. Prosteam-sonomacounty

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    Well, I usually pull out my tape measurer and say , "Mamm, Imma gonna clean caapet now otay?
     
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  11. Jose Rodriguez

    Jose Rodriguez Well-Known Member

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    When pulling a tape to measure, customers are way more concern because they might think that you don't know your business well enough to give an estimate right away, I never pull the tape measurement tool because I can use that time to explain to them and educate why my price is what it is, hey prosteam I'm not attacking ok this is just my opinion.
     
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  12. Jose Rodriguez

    Jose Rodriguez Well-Known Member

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    I like what I read, thanks Rob.
     
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  13. Mrs.SpeedySteamer

    Mrs.SpeedySteamer Moderator ~ And Most Awesome Member
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    Good for you... And after work is done you can go play in the alfalfa field and tend to the rabbits.
     
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  14. brian3180

    brian3180 Well-Known Member

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    It's hard to know when you are first starting out. When I first started, I charged exactly what the guy who I was working for charged. I remember after I bought my set up and started my business I was doing the numbers and I was in complete utter shock. I was never going make a lot of money. I would need 3-5 jobs per day just to feed the family. That was then, this is now... I realized the perceived value of the service, our profession. I feel I have truly mastered the craft(not completely but my clients pick up the vibe). I am confident in myself and my work to know that what I offer has a premium. I have my 100% satisfaction guarantee. I hate that I have so many I's in my post. Anyhow, I don't want "chump change" for all the time, effort and hard work that I have put into my business to be able to fully service and have solutions to my clients carpet cleaning needs. We all have families to feed. We should not be selling our families short.
     
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  15. Prosteam-sonomacounty

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    Not for nothin' Sacto, but if yer charging $125 for that vacant, I'd think you don't even own a measuring tape. ;)
     
  16. Prosteam-sonomacounty

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    Bro , you charge by the room. That's not my clientele.
     
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  17. Mrs.SpeedySteamer

    Mrs.SpeedySteamer Moderator ~ And Most Awesome Member
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    Correction $125 - $145.

    No we don't own measuring tape. Who owns measuring tape in 2013?
     
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  18. Prosteam-sonomacounty

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    :D
     
  19. Prosteam-sonomacounty

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    Hey Nikki, your' prices are posted all over the net. I couldn't care less what you charge but it makes you look foolish to pretend that you're getting 375 for a sofa when you have a sofa /love special for $99. You preach about how to run your' business , which is cool but you're mostly full of shit. Nothing I hate worse in a human being than pretentiousness. I always tell the truth, even if it puts me in a bad light. Why try to act like someone you ain't. At the end of the day, you'll still have to look in the mirror. My 2 cents. :)
     
  20. Harry Mullett

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    Slow your roll and re-read the part saying, Ma am, if you add the sofa your new price will be $375. To me that sounds like an upsale in addition to the other work that was being completed.
     
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