[Jan K]

Hey All!

I am taking the bull by the horns this week and am increasing my prices. I haven't done this since April last year and raised them to £9.00 per hour, although I still have 2 on £7.50 per hour and one on £8.25 per hour. New customers since 6 months ago are charged £10.00 per hour and I am now raising my customers prices (who aren't on the £10 rate) to £9.50 p/h. I guess I am likely to lose a few, but that is life and I am still getting plenty of calls to keep me going.

This is the letter I am sending to my customers, I would value your advice as I have put off increasing prices for months now for fear of them all cancelling, but it has to be done  :


I am writing to say a very big ‘thank you’ for your custom since Done ‘n’ Dusted started cleaning for you.

Currently, I am undertaking a review of our customer requirements, and would appreciate it if you could find time within the next couple of weeks to let me know if there is anything we can do to improve our service to you, or advise us if you have any further requirements.

I am also writing to advise you of changes to the Company’s pricing structure in the very near future. I have avoided this action so far this year, and although I appreciate that the official inflation rate has been consistently low for some time, the actual increase in the costs of running a small business have been higher. So in order to maintain a viable, professional service, with effect from 1st June 2006, your hourly rate will be set at £9.50.

I believe that this figure represents fair value and I understand that it compares reasonably with other professional domestic cleaners in our area.

Done ‘n’ Dusted is currently changing banks, and when you are next invoiced I will advise you of the new banking details. For both your, and the Company’s convenience, Done ‘n’ Dusted will be able to operate payments via Standing Order, and as a result I will enclose a Standing Order form for your completion if required.

The whole team at Done ‘n’ Dusted hope that we may continue to rely on your valued custom, and look forward to a continued successful working relationship.

In the meantime should you wish to discuss any changes, please do not hesitate to contact me.

[mxg]

Jan

I think that you have done an excellent job with the letter. You thank them for their custom and give them an opportunity to provide feedback before you mention price increase.

The only change I would possibly elaborate on is to include some of the key things that are driving up the cost beyond inflation e.g fuel, possibly insurances.

On a separate point though I think that your prices will still be too low but that is for a separate thread.

Once again well done on an excellent letter. I need to do something similar with a few of our customers and will be using your style as my starting point.

Mick

[Jan K]

You go for it Mick, I did have a little help with the punctuation and grammar from my mum (makes her feel useful lol), but essentially it was all from my own little head.

As far as the price is concerned, customers are loath to pay more than £10.00 per hour, as us peeps from down yer are a bit tight 

But I do make a half decent living out of it, and my overheads are as low as I can keep them (it's the insurances and advertising that are a killer), so I am happy, the stress levels are virtually non-existent, and I have plenty of time for myself and my family. It ain't all about the money, eh?

btw thank you for the constructive criticism, most appreciated 

[diamond-domestics]

Hi Jan,
your letter is brilliant, would you mind if we made a copy of it for our customers?
I agree with mick though about your prices.  We are in the North and get plenty of custom charging £10 per hour.  I always thought that you could get away with charging more down south???  Might be wrong.

Vicky

[Jan K]

Hi Vicky!

Not a problem, I am happy for anyone who thinks it can be useflu to use it, after all that what we all post here for 

As far as prices are concerned I am down South West and the prices here aren't comparable with those down South. Especially as here in Plymouth the cost of living is high, but the wages are low, so £10 per hour is still gasped at and I am charging customers at the middle towards high end of pricing, so I still anticipate losing a few customers.

I am not overly concerned as I am about to quote for a regular cleaning contract at a hotel conversion to apartments and big house let as holiday accommodation