You don't walk away from them either. You use them as a springboard that gives you momentum into your new clientele (inviting them of course along for the ride). If you've done enough to build your relationships, some of them will follow. Try pricing at 35 cents per foot so that it will ease them along. They might not be able to afford doing their whole house but can do less rooms in order to maintain you as their flooring professional.
I did a job for a customer the other day, I'm not going to get in details but I charge them $150 it took me 3.5 hours to complete, next day I had 2 jobs schedule and finished both in 3.5 hours and made $465, then I realized and call my self stuped and delete the $150 customer from my customer list, I am not cleaning for them anymore unless they pay me what I want.
perfect example. Todd and I worked together the first day I had the Dragon. My job was like $400 and took us about 1 ½ hours or so, cant really remember. Then we went to Todd's and he made $200 in twice the amount of time. We kind of laughed about it but it was true. We worked twice as long for half the pay.
You don't have to ditch you current customers all at once. When I do a relatively large price increase of say 20-40%, I only increase my past customers by 10% at a time until they are up to my new pricing. Sure you'll lose some in the way but Truth is most of them hardly even realize it was an increase. I increase my price to new customers by the full amount.
How did you get the knowledge and skills to deliver the quality and develop a clientele with that level of pricing?
wouldn't car wash soap be much more expensive than a gallon of powdered carpet prespray?
This stuff was 32 bucks for a 5 gallon pail that has a ph of 13.8 ,,,,,you can step on it a BUNCH and still wipe a carpet out. The stuff was so strong it would change the color of the carpet. Of course once dry it returned but more than one customer freaked on him cause their beige carpet turned purple. I dont know that I would use it as a booster for greasy restaurants......And there are a BUNCH of guys here in town , hell some on this forum that use it regularly.
Like the Price list Rob. People need to remember that there is a big difference between billable hours and hours worked. Even a busy cleaner only has 5-6 hours on site per day and 3-4 hours of driving, maintenance, office work and sales. so if you only charge $20hr for your time onsite (plus expenses) it turns into minimum wage really fast... especially after uncle sam catches up with you.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)
http://cleaningsupplies.mybigcommerce.com/complete-industry-price-list/
what about a laser beam. They always scoot to get out of the way when I point it. Been using a laser measure for most. Seems to mildly impress them for second or to, By the look on their face. WOW a laser pointer measure thingy. Hey ma'am don't chase it.
