The new year is a week away, are you raising your prices? | TruckMount Forums #1 Carpet Cleaning Forums

The new year is a week away, are you raising your prices?

Todd the Cleaner

Todd Cottino
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Sep 4, 2011
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Todd Cottino
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One of the best habits I got into a few years ago was raising my prices every January 1st.

It’s so easy to lose track of time and find any excuse not to raise prices. For years when I worked for Coit the prices hardly ever changed. From what I remember prices only went up when there was a major cost increase such as gas going to $1.50 to $4 in a couple months time.

As business owners we become comfortable with our prices and even fear raising prices thinking we will lose customers. If you raise your prices a little every year I can promise you that you won’t lose any customers and if you do lose one they weren’t worth your time anyway. Raising prices annually will actually condition your customers to expect a small increase each time they call you.

The first few years I had my own business I didn’t have a set policy for price increases, in fact I went several years without changing my prices at all. implementing an annual price increase policy has been one of the best things I’ve done for my business.

So how about you? What’s your policy on raising prices?
 
Mar 30, 2010
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jason fisher
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Todd I am raising my prices this year and I finally got my mind set right about it. My fear had always been of not getting enough jobs with raising my prices but 2019 they are going up and I will not feel bad about it one bit. All year in 2018 I kept a 10 year anniversary special of 4 rooms for $99 and did not see any increase (more of a decrease) in the amount of jobs we did. The past month I finally got tired of driving past all the restaurants and seeing their parking lots packed during the week for lunch and when I do go out to eat on Sundays with the family their is always a waiting list. The same goes with iPhones, everyone is carrying them around and are ok with spending $600+ for a phone so damn it they can afford our services at the prices they should be.

My prices will still be lower than many here on the forum but the 4 room special thar was $99 will now be $140 and this is going straight across the board. Repeat customers will get 10% off but the prices will be going up again in 2020.

My fear has always been that I live in a cheap area as far as what people will pay but I know they have the $ to spend. I have been going over the price change with my son that works with me and have explained that we will be giving the customers more than anyone else to justify the charges. I expect a great 2019 out of us.
 

Chris Henry

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Jul 20, 2017
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Bucky Rogers
Good conversation starter Todd!
When I decided to raise prices, it didn't coincide with the new year. That's a real good idea to go up to start the new year.
I have a fellow owner operator that I have to repeatedly stress that he raise his prices. He has an old setup that he really needs to upgrade. I have convinced him to make headway on some pricing, particularly his regular property management house cleanings. He still has a way to go in getting his pricing to match his quality.

I agree that business seems to pick up when you raise price. I think my work quality is on par with a lot of the best cleaners on this board. I wouldn't have the confidence to raise prices if I didn't feel my quality of work deserved it.
So, if you don't feel like you're ready to raise your prices, try raising your level of service and then you'll agree.
 

ACP

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Apr 9, 2014
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Bjorn Marshall
Bringing minimum charge up to $200 this year

Not necessarily charging more for services but I dont want any tickets under 200$
 

OldCarpetVet

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Nov 2, 2014
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Richard Santoro
People, please take it from an old pro. I would never steer any of you wrong. Raise your prices. Everyone else does. It's normal and required because the cost of living goes up so you have to adjust. Either raise your prices, or work yourself out of business. Your choice.

I always said....I Will Never Rip Anyone Off...Including Me.
 
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Luky

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Nov 29, 2013
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Marian Lukacisin
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One of the best habits I got into a few years ago was raising my prices every January 1st.

It’s so easy to lose track of time and find any excuse not to raise prices. For years when I worked for Coit the prices hardly ever changed. From what I remember prices only went up when there was a major cost increase such as gas going to $1.50 to $4 in a couple months time.

As business owners we become comfortable with our prices and even fear raising prices thinking we will lose customers. If you raise your prices a little every year I can promise you that you won’t lose any customers and if you do lose one they weren’t worth your time anyway. Raising prices annually will actually condition your customers to expect a small increase each time they call you.

The first few years I had my own business I didn’t have a set policy for price increases, in fact I went several years without changing my prices at all. implementing an annual price increase policy has been one of the best things I’ve done for my business.

So how about you? What’s your policy on raising prices?
I'm glad that you brought this matter back, even though we've talked about this topic a few times during the year. I have my way to deal with this issue leaning on historical data. Federal reserve has their party time with 4 lending rate hikes. When you read it, you might think twice raising your prices, at least no significantly or openly with a letters to the customer base. At this time I would go for add ons or just do it on the go and play it by ear. It's different talk for different folk. If my end result is $150 for 20 minutes task, I have to figure out how to get $170 for a 30 minutes. Make no mistake, even customer who values your work , have they opinion on raising of your prices. All that will transpire in retention, better yet, attrition rates. Don't expect letter from custy informing you that they'll release you of your duties, because your price hike. It's even more complicated to raise price for O/O who undervalued their services in the first place. If your minimum was $95 and you realize that cost to operate your business is just little less, you missing your cash flow and where is the profit? Now, you're facing dilema to raise prices in small increments during the year to the level that you feel more safe or make an one time hike, so you get there faster. Obviously, living cost, median income and median housing pricing in your area should be taken in consideration, because these are the factors contributing to your " sweet" spot.
Simply put, price hike is not in order, because you think so, there has to be circumstances that will satisfy inherent way. Period. Otherwise you'll be disappointed and that was already mentioned in recent threads.
Since I do zero advertising, I do allow myself to invest in customer with promotional items( quality pens, flash lights, specialty products- odor removers, uoholstery brushes) putting together care package for hardwood maintenance. In many cases I don't do their floors, but maybe one day I will. I make my customer remember me, one way or another.
And yes, I do get question about higher prices, I just refer to our business model, which requires those charges to be accrued for business to be operable. It wouldn't be helpful to blame economy, higher prices in general in order ro explain the changes.Consumer is oftentimes informed better than we expect. Lets don't insult their intelligence....
Did you know that 7 years in a row we're breaking records for number of airline passengers travelling all over the country?
Maybe we got more relatives to visit, or, perhaps, we feel that instead of using bus or car, we rather fly.
Let's fly together towards better prices.....