[ian harper]

Guys

A Large And Increasing Sales Volume Creates The Appearance Of Prosperity While Really Overheads Are Eating Up The Profit

Are you spending more than you really need to provide the level of carpet cleaning that you want? Are you working so hard that you can see that if you controlled your expenses you could work less and make more profit?

http://www.cleanonomics.cleaning-carpet.co.uk/how-you-can-make-more-profit-from-carpet-cleaning-part-1/

respects

Ian Harper

[neil 47]

   Ian Ever heard the saying



 "Dont poop where you eat

[COLIN BRIGHT]

Work less .... More profit.... Everyone knows there is no money in carpet cleaning  .. Don't they?

[derek west]

just double your prices. simples.

i know what your thinking? its hard to double your prices. no it isn't, just get a calculater, type in your price and then times it by 2. 

[SteveAllan]

Eh! Then sit around more Derek, surely.

[Carpet Dawg]

Ian over complicates things as usual. I would hate to see his monthly spending...

Doubling your prices sounds simple but then you'll have to spend more time and money to find more qualified customers. i.e. you'll need the phone to ring a lot more.

[derek west]

why would you need the phone to ring more?

example
at the mo you spend x to make the phone ring 100 times

you turn 80% of your calls into jobs. each job is worth £50

therefore x = 80 x £50 so spend x to make £4k

double your prices

now you spend the same x to get the phone to ring 100 times yes???
you turn 40% of your calls into jobs, each job is worth £100

therefore x = 40 x£100 so spend x to make ? yep you guessed it. £4k and guess what?

your equipment is working at 50% capacity from last time so lasts longer, bonus.
you work at 50% capacity so you last longer. Bonus
you get home in time to watch countdown so you get to see rachael riley, double bonus

hey!!! thats what i did but i was pressured into it by these know it alls so don't blame me when it works, blame them idiots, you know who you are. 

[SteveAllan]

Sounds great Derek, so you reckon if i double my price from £5 per sq metre im going to get 40% hit rate. I reckon it would be much lower. Is anyone charging £10 per metre on here.
I'm liking the Rachel Riley bit though 

[Deep Cleaning Solutions]

Why doesn't someone try to double their prices for a month and see what the difference is and let us know!

[Mike Halliday]

Derek you are spot on with the example you give and anyone who has an average job price of £50 would do well to follow your example.

But do you think the same formula would work if your average job price was £250?

Double your prices to £500 and you will lose 80% of your conversion rate with a result of an 80% reduction of customers returning and 80% reduction in recommended.

Your formula also relies on the fact that the marketing you use to attract the customers who are able and willing to spend £50 can afford to spend double that amount.

Also the marketing that works to bring in budget customers who have £50 does not work so well on attracting the higher spending customer, so your response is lower

[*Hector*]

3 years ago I doubled my prices and then 2 years ago doubled them again. I earn more in a year than I did before, and have lots of loafing time..  

To be fair I was working the very low end of the market 3 years ago, and now charge a premium for the benefit of quick drying and not flooding the carpets..  

[Deep Cleaning Solutions]

Hector, do you quote over the phone or go out to the job and quote?

[Mike Halliday]

Hector can you put a ££ figure to you comment

If you charge £10  a room and doubled it to£20 then to £40 it's not so impressive but if you started at £50 then hats of to you!!

[Carpet Dawg]

Derek you are spot on with the example you give and anyone who has an average job price of £50 would do well to follow your example.

But do you think the same formula would work if your average job price was £250?

Double your prices to £500 and you will lose 80% of your conversion rate with a result of an 80% reduction of customers returning and 80% reduction in recommended.

Your formula also relies on the fact that the marketing you use to attract the customers who are able and willing to spend £50 can afford to spend double that amount.

Also the marketing that works to bring in budget customers who have £50 does not work so well on attracting the higher spending customer, so your response is lower.

Mike has saved me typing! If your really cheap £20 a carpet for example then doubling is a no brainer. Can the same be said for £60 lounge clean? doubling it to £120, or even £100 is going to make you less competitive. Then you'll be able to watch This Morning, super market sweep, deal or no deal and all the other crap day time tv you want    personally I miss carol vorderman!

[*Hector*]

Hector can you put a ££ figure to you comment

If you charge £10  a room and doubled it to£20 then to £40 it's not so impressive but if you started at £50 then hats of to you!!

Yes Mike

3 years ago £20 per lounge. Now charge £80 

[derek west]

my example was for people trying to compete on price
 

[garry22]

A Large And Increasing Sales Volume Creates The Appearance Of Prosperity While Really Overheads Are Eating Up The Profit

This guy says exactly the same thing...

http://www.bizmove.com/finance/m3k.htm

[Shaun_Ashmore]

If I remember hector used groupon and it nearly sent him nuttier and thought about throughing the keys in.

Hector is it £80 per carpet at any size?

Shaun

[Craigp]

my example was for people trying to compete on price
 

Right on Derek, most people can only double their price once.


Hector, you're not expensive, that where you should be. I did try telling you years ago you was dumbass cheap  

[mark_roberts]

That hardest part of everything said is getting the phone to ring 100 times. The rest is simple enough.

Mark