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

[Predict]

I'm looking for the tmf price guide. The link provided no longer works. I subscribed to the magazine today and didn't see anything around here about price guide

 

[Marsh92]

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/

Is this guide still available? The link doesn't seem to be working.

Thanks!

 

[Jet Vac]

Is this guide still available? The link doesn't seem to be working.

Thanks!

Is this guide still available? The link doesn't seem to be working.

Thanks!

 

[MikeGaure]

What one man can do....another can do.

Except maybe grow a mullet

 

[Whole House Carpet Cleaning]

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).

I like your thinking!! There's a place for both in the market.... that's why we have Kia dealerships and Mercedes Dealerships... then there's the Lamborghini customers that prefer to pay higher prices for everything they purchase!

 

[longkenn]

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).

Yep, I convinced myself of being one of the highest in the area when I drove down the street and saw cars at every gas station along the way. They were priced from low to high and they all had cars pumping gas.

 

[Johna]

I also tried to visit the guide but something is broken?

 

[Whole House Carpet Cleaning]

I like your thinking!! There's a place for both in the market.... that's why we have Kia dealerships and Mercedes Dealerships... then there's the Lamborghini customers that prefer to pay higher prices for everything they purchase!

Just curious, what do you charge per room for residential? (That's if you're comfortable sharing publicly)

 

[Anderson]

Just remember when you pice you ar working by the hour.....
As an owner operator These tools can make carpet cleaning easier faster and dryer....
Zipper, bonzer, Larger truckmount blower, better heat......

I can still clean hotels although they are a pain...and still make profit...60-70$ an hour

Also went back a rebid an old theater acct....
Dropped the price from 1400 to 1000$.......to get the acct back.......
But with the new tools i dropped the man hours from 12-14 hours
To 9-10 hours ........
All has to do with efficiency and eqiuipment......

 

[Sean M Collins]

I agree 100%. I asked Jeff a couple weeks ago how to make the change from where I am to where he is. The hard thing is my customer base I have built up....well you see what Jeff said above. If I went into one of my customers and charged what Jeff does I would be shown the door. To be like Jeff I basically need to walk away from all my current customers and start over.

Todd I have read a lot of your posts the last year and I feel like you are one I really am similar to yada yada but I sorta disagree with you on the pricing conundrum ... I just in the last 3 years or so have converted my company to a premium quality level of service and I made sure to show my clients what that would look like BEFORE raising my prices and then as I've raised my prices most customers have stayed with me cause they know I'm worth it .... anyone interested can call me 937-434-0902 I can elaborate much better I am all for sharing or helping

 

[Todd the Cleaner]

Todd I have read a lot of your posts the last year and I feel like you are one I really am similar to yada yada but I sorta disagree with you on the pricing conundrum ... I just in the last 3 years or so have converted my company to a premium quality level of service and I made sure to show my clients what that would look like BEFORE raising my prices and then as I've raised my prices most customers have stayed with me cause they know I'm worth it .... anyone interested can call me 937-434-0902 I can elaborate much better I am all for sharing or helping

I've actually been surprised over the last few years since making that post. Since then I have raised my prices 35% and kept most of my customers. The customers I've lost have been no loss at all really. Last year I even went through my mailing list and eliminated the bottom 10% of my customers. I've continued to grow to the point I just hired my first employee.

I may take you up on your offer and call you later in the week.

 

[Sean M Collins]

I've actually been surprised over the last few years since making that post. Since then I have raised my prices 35% and kept most of my customers. The customers I've lost have been no loss at all really. Last year I even went through my mailing list and eliminated the bottom 10% of my customers. I've continued to grow to the point I just hired my first employee.

I may take you up on your offer and call you later in the week.

I'm guessing you knew I meant that with respect I'm guessing we're in similar places business wise probably could learn a few things from each other both ways

 

[floorclean]

All I'd offer is when half your calls think your price is outrageous your right in the price range you should be. (Tong in cheek but not far from the truth)

 

[adalin]

I like what your says about the "DO"list. It is very important to picture and plan everything before doing anythings.

 

[powerhouse_cc]

And it was a Sunday job?! It was a great deal lol

 

[Luky]

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/

Well, Rob, what do you propose is time line to get from point A to a point B and finally to a point C( I figured ABC from your outlines) And what's more important, not everyone has a Duracell battery up their keister like you. Even though I like your swag, not everyone is a mastermind. Many of us don't even know, how they became CC's.
And about 5 year plan ? For what I know, I can be dead tomorrow . I'm not disagreeing, the opposite is true, just saying that same medicine wouldn't work for all of the patients.
And now I'm going to read what you wrote 4 years ago.

 

[Luky]

And it was a Sunday job?! It was a great deal lol

What do you mean, you can't match it. With a charge of $5 per area, you should be around 50 bucks. You are very mean service provider. I'm not going to even consider you in the future. I'm calling Stinky.......S right away.

 

[NuClean]

I was just going to reply to some of the statements above. It is all about being in the right places, looking the right way and so on. Todd and I had this discussion many times but it came to light last week or so in the Jerry Springer house. Prior to that I had scheduled a tile & grout job along with a pretty simple carpet job. Gave my price of $650 which was a discount and he told me he was going to give me $800. He is a friend of mine and knew I was going to do a great job so he did not hesitate. Banged it out and all looked great. Todd asked how I find these people that pay like this? I said I hang out in the right neighborhoods since high dollar customers hang with high dollar neighbors and friends.

Fast forward a few days and I go do some jobs with Todd and we end up in the ghetto. I really thought the police were going to come!! I dont do apartments and I dont give away my services. I had a lady call me to do 2 rooms, told her $149. That was the end of that conversation. @ $.40ish cents per mile, forget it. I do PM work for realtors and Todd was with me in one that I was billing at $575. Carpet clean, 2 patches and some red stain. I price high, my PM's know it and they get awesome results. I am actually going to raise my room rates to around $55 per. It is all about working less, making more and finding the friends and family that want the same service.

I show up in a clean truck, I wear a uniform to every job. I actually wear my uniform almost everyday and always, absolutely always look nice when I am either in my truck or have my uniform on. I shave, take a shower and put on a little hint of cologne. I am a firm believer that the way one presents himself will dictate if a customer will pay what I ask for. Show up missing any of the above factors and the total bill is almost cut in half. Not trying to rip anyone off, I give them top quality work and demand top pay.

I did a travertine repair last week. Cleaned about 600 sqft of trav for around $700 and then filled in some bad voids for another $400. Took me a little longer than expected but the bill was $1100. The cleaning took about 1 ½ hours. While speaking with the homeowner, she wants 6 of her bathroom showers cleaned and all of her carpet. The showers alone will run her about $1500-$1800 plus carpet cleaning of $700ish?? I showed up clean, looked professional, had my binder for notes etc. But guess what, I am in the right neighborhood. My truck will sit out front of this home for a total of about 3-4 days amongst all the work spread out over 2 weeks. Like I said above, stay in the right demographic that will pay your prices. That is how I roll.. I do my share of minimum charges as well, dont get me wrong. Today I did 2 small bedrooms for my PM for $129. Told him $150 and he asked if I could do any better since it was only 2 rooms...Done in 25 minutes..

@Todd the Cleaner,,, get rid of that PM that is taking advantage of you!! Free up those time slots for other work.. I would have kicked her out of my network long ago... Crazy how low she pays you for the great work that you do for her.

I am still in the researching stage of planning my business. I do not know what the term “pm” means. Could you elaborate for me?

 

[Nick M.]

The absolutely best advice I have ever learned after starting my own biz cleaning floors... my friend Tim whom I’ve known over 15 years started a painting biz way back after HS. Very successful guy with a New York best time seller book on Entrepreneurship told me to never accept a job below my pricing. He said “stand your ground. Tell them that the services you include beat the other guys and the service is guaranteed. I have never looked back. I turn down jobs once in a while cuz I know it’s a urine job that can’t make the client happy or they are picking my price. Stand strong behind your work and do for a price that pays for the bills and makes a generous profit. It’s why you started a biz in the first place. To make money. Not be hassled by nonsense. Best of luck man

 

[daiphucka]

I should add. The pita customers you don't mind losing, go ahead and jack them up all at once.