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paul mather

  • Posts: 528
WFP THE BIG CHANGEOVER
« on: July 11, 2006, 08:41:16 pm »
I am currently knocking up a letter to explain to my customers about WFPs & how it will affect them. As many of my prices are desperate for a rise thought I may include in the letter somewhere to inform them of their new price. This price rise has nothing to do with the introduction of the WFP & more with the realisation that compared to many, my prices are too low & 5 years is too long to go without a price hike.
Problem is do you think customers will put 2 & 2 together & make 5 & assume the price rise is to cover  new investment.
Use the wand of power !!


Warrington, Cheshire

garry

  • Posts: 208
Re: WFP THE BIG CHANGEOVER
« Reply #1 on: July 11, 2006, 08:44:21 pm »
If it was me i would change them all over to wfp straight away, but would leave prices the same for time being maybe change them in couple of months when most have got used to wfp ;D

Chris Cottrell

  • Posts: 3162
Re: WFP THE BIG CHANGEOVER
« Reply #2 on: July 11, 2006, 08:45:48 pm »
A. yes but go with it anyway sounds like you are over due

Trevor Knight

  • Posts: 1825
Re: WFP THE BIG CHANGEOVER
« Reply #3 on: July 11, 2006, 09:42:49 pm »
You are opening yourself up for a double reason to cancel!!

I would increase prices first and then change the system over.

This way you can justify your price increase based on 5 years without one and later on justify the WFP system with WAH directive and increase in business.

The two together at the same time spells DANGER!!

Regards,

Trev
Covering Hampshire, Dorset, Surrey, Berkshire

matt

Re: WFP THE BIG CHANGEOVER
« Reply #4 on: July 11, 2006, 09:46:09 pm »
You are opening yourself up for a double reason to cancel!!

I would increase prices first and then change the system over.

This way you can justify your price increase based on 5 years without one and later on justify the WFP system with WAH directive and increase in business.

The two together at the same time spells DANGER!!

Regards,

Trev

i got to agree

1st the price increase, as its been 5 years

then

the WFP change

if you do it the other way around, people will complain as they will say they are paying for your new system

also, the longer you leave it to change over, the more it gets into winter ;)

paul mather

  • Posts: 528
Re: WFP THE BIG CHANGEOVER
« Reply #5 on: July 12, 2006, 08:13:31 am »
I can see your logic but I've got a grands worth of gear sat in my garage not being used & it seems like a waste
Use the wand of power !!


Warrington, Cheshire

Trevor Knight

  • Posts: 1825
Re: WFP THE BIG CHANGEOVER
« Reply #6 on: July 12, 2006, 08:30:52 am »
Hi Paul,

I totally understand what you are saying regarding the amount of money sat in your garage.

My only comment is if you go ahead and do a double change i.e. price and method i think you will be sat at home thinking what a waste of money that was due to so many people cancelling.

You will also not get a true indication as to the real reason why they cancel.

I hope no one does cancel on you but have to say I think it is unlikely with a double change.

Best of luck

Trev
Covering Hampshire, Dorset, Surrey, Berkshire

Morph

Re: WFP THE BIG CHANGEOVER
« Reply #7 on: July 12, 2006, 08:54:19 am »
Leave your prices alone for the moment.
Make the change over to wfp ASAP, get used to it, while you're at it clients will be saying stuff like, "I suppose the price will go up now!"  And you can reply, "No, there's no difference in price!  What would be the point, mind you, I will have to put prices up in the new year anyway.  I haven't had a price increase in 5 years!"
Keep saying it, they'll get used to it.
Don't worry about prices yet, think about it, you've been able to afford to spend out all the extra to buy wfp on what you are charging, and you're still alive!  Soon it will be helping you make your living more safely.

ian m

  • Posts: 136
Re: WFP THE BIG CHANGEOVER
« Reply #8 on: July 12, 2006, 09:10:01 am »
Paul,

I faced the same decision just over a year ago.

I went with wfp first, got the customers used to it, then one year later introduced the price rise.

Remember over all wfp will make you quicker so you will be able to bring home more earnings per day,
I know this will be offset by your investment but seeing that business expenses are tax deductable it shouldn't matter in the long run.


I used this calculator to work out what my price rises should be.

http://eh.net/hmit/ppowerbp/


Ps I haven't lost one customer since my changeover to wfp

Cheers

Ian


I know you are out there....... I can hear you breathing

Archy136

Re: WFP THE BIG CHANGEOVER
« Reply #9 on: July 12, 2006, 09:15:52 am »
You're prices might be desparate for a rise doing it the trad way but you'll probably find they are fine using WFP.

I would change over straight away and then worry about price increase after about a year when they are well used to WFP and cant connect WFP with the price increase.

jinky230

Re: WFP THE BIG CHANGEOVER
« Reply #10 on: July 12, 2006, 10:35:27 pm »
why not keep doing what you are doing traditional and put the prices up as soon as possible

then introduce wfp a couple of months down the line once they are used to the price increases, you have done traditional this long a few more months wont make much of a difference.

what the lads are saying that wfp is not plain sailing to start with unless you have been taught  to start with

it  takes about 3-4 months to sort out, before it flows

hope this helps jinky

mark dew

  • Posts: 2901
Re: WFP THE BIG CHANGEOVER
« Reply #11 on: July 13, 2006, 02:57:13 pm »
Paul
I put prices up over the winter (after 18 months as wc) and started wfp in march.
You will be much quicker with wfp on many properties you do and the customer will probably notice that the time spent cleaning is much less while the price has increased.
Get a good increase in now while you are still traditional. Then go wfp.
Just don't take it personally if some cancel.
Some won't like wfp.

I did originally have a plan to price increase every 2 years but i worked out the potential lost income in waiting 2 years and increased all my round over 2 months. Went wfp 2 months after that.
Get your increase in as soon as possible. Then work out how much you could have earned for the same work if you had done that 3 years ago. With another increase last year.
I think you'd need to increase by 10% every 2 years just to keep ahead of inflation.

good luck

ps ian it is a credit to you that you haven't lost 1 customer due to wfp

jon adams

  • Posts: 124
Re: WFP THE BIG CHANGEOVER
« Reply #12 on: July 13, 2006, 10:32:40 pm »
i would put your prices up by £5 EACH at a  £1  for each year, if they dont like it tell them to find someone else or say i bet you didnt complain when you got a pay rise each year!
                         Jon

JM123

  • Posts: 2095
Re: WFP THE BIG CHANGEOVER
« Reply #13 on: July 13, 2006, 11:04:18 pm »
just change over to wfp now!!!!  You'll work twice as quick and be able to take on morfe work, we found that even our worst payers (given to us by a brother who didn't want them anymore) became minimum of £20 per hour.  Thats a lot better than putting prices up by a £
Live life in the fast lane.......if you break down you'll freewheel further

Ballymena N.I

AuRavelling79

  • Posts: 25401
Re: WFP THE BIG CHANGEOVER
« Reply #14 on: July 13, 2006, 11:09:38 pm »
5 years is way too long between price increases - even at 2.5% inflation you'e cut your wages by a compounded 12.5% already. Bear in mind that fuel's gone up by far more and you've lost out even more!

Here's what you do:-

1. Write them a letter. And this is how it goes.

Dear Customer,

As you know I have not increased my prices for five years - and to stay in business and provide you with a high quality window cleaning service I am implementing the following as of next clean.

To cover inflation, rising bank charges and the inexorable (good word eh?) rise in fuel charges I feel I have no choice but to increase my rates for your property from £XXXX to £XXXXX. (About 25% rounded up)

As I have absorbed costs for five years now I am sure you understand my reasons for doing this this and in future I will keep pace with rising costs on an annual basis.

I truly value your custom and hope the above is acceptable to you.

Kind regards,




Super-shiny window cleaners

Deliver it by hand when you leave their bill or as you leave after collecting their money if you still do that. If you're nervous just do it to a dozen customers in the same area to start with - when you realise that only about 1 in 10 cancel you'll feel confident to do the rest. In fact even if you lost 1 in 4 you'd be better off! 3/4 the work for the same money and you can canvass up some really good stuff.


My fee to you for this wonderful advice is a big fat zero! ;D
It's a game of three halves!