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Nick_Thompson

  • Posts: 810
Price increase
« on: January 07, 2024, 02:39:06 pm »
Hi Guys,

After 15 years, I've decided that it might be an idea to increase the price on a commercial job I have.

I found out, a few years in, that I originally picked the job up as a result of inadvertently submitting the lowest price.  It’s one of the reasons I've kept the price static.

It still pays good money, but obviously it has slipped somewhat in comparison with 15 years ago.

So, what would you do? What kind of increase would you submit?

Nick
Do quantum mechanics fix old transits?

And let us not forget, voyeurism is an occupational hazard that we simply must endure.

Missing Link

  • Posts: 44724
Re: Price increase
« Reply #1 on: January 07, 2024, 03:13:06 pm »
10%.

Don't ask, don't warn them, just add 10% to your next invoice and submit.

You've been doing them for 15 years; they're not going to sack you for that.

They'll just pay.
Pronouns She/Her/Madam/Ma'am

Spruce

  • Posts: 8462
Re: Price increase
« Reply #2 on: January 07, 2024, 03:53:05 pm »
Hi Guys,

After 15 years, I've decided that it might be an idea to increase the price on a commercial job I have.

I found out, a few years in, that I originally picked the job up as a result of inadvertently submitting the lowest price.  It’s one of the reasons I've kept the price static.

It still pays good money, but obviously it has slipped somewhat in comparison with 15 years ago.

So, what would you do? What kind of increase would you submit?

Nick

There aren't many things that are paying better than they did 15 years ago. The way I see it is that the prices are rising, but the profits aren't.

Another big building contractor has gone bankrupt, which affected one of our customers. The building industry was always used as a gauge of the local economy.

Can you 'afford' to lose the job if you ask for an increase, and they reject it and cancel you? You are fortunate that you still have the commercial job after 15 years. Most only last a few of years in my experience.
Success is 1% inspiration, 98% perspiration and 2% attention to detail!

The older I get, the better I was ;)

Splash & dash

  • Posts: 4364
Re: Price increase
« Reply #3 on: January 07, 2024, 04:06:47 pm »
10%.

Don't ask, don't warn them, just add 10% to your next invoice and submit.

You've been doing them for 15 years; they're not going to sack you for that.

They'll just pay.



You can’t just increase the price without consulting them , plus that’s very unprofessional.

Splash & dash

  • Posts: 4364
Re: Price increase
« Reply #4 on: January 07, 2024, 04:12:58 pm »
All our commercial work gets a price rise annually by the current rate of inflation never had an issue or lost a single job but they do get a letter two months before informing them of the increase and it’s in our terms and conditions price rises are each year are expected by business as they also will do the same . If you have jobs that haven’t been put up in 15 years then I would speak to the manager and bat a few figures back and forth until you reach an agreement if you are still making good money on the job then any increase is going to help once you have done that I would suggest an annual review and price rise by rate of inflation see what they say , I think that’s fair to both parties .

Smudger

  • Posts: 13438
Re: Price increase
« Reply #5 on: January 07, 2024, 04:41:20 pm »
Some great advice from spruce - I will say I had similar the price was the same for 12 years - when I started it it took me 3 hrs but over the years with better poles and 2 guys on it we honed the time down to an hour and 15 so basically we increased the hourly rate by doing it quicker BUT there comes a time you need to tickle it and last year it went up 15%  - should I have lost it I may have had slight regrets but then I look at fuel and electric bills and happy to up the price

On a side note - I’ve have a dozen or more pressure washing quotes the last 3 days - more than normal for jan - interesting I’ve got every one - not just an ok but an enthusiastic great - what a good price! (What a p1sser - too cheap!) I’m wondering if the high price of everything else gives us an opportunity to charge a little more
Never argue with an idiot, they will only bring you down to their level, and beat you with experience

Missing Link

  • Posts: 44724
Re: Price increase
« Reply #6 on: January 09, 2024, 10:14:05 pm »
You can’t just increase the price without consulting them , plus that’s very unprofessional.

I can and do.

Never had a problem yet.

Pronouns She/Her/Madam/Ma'am

AuRavelling79

  • Posts: 25379
Re: Price increase
« Reply #7 on: January 09, 2024, 10:33:11 pm »
It depends upon the amount you are getting. As has been said, if you have honed the job significantly in reduced time then maybe a small 'tickle'.

I had a small commercial job that stayed at £50 from 2014 until COVID. They stopped for a year as it included  a bit of internal.

When they came back I doubled the price to £100.  They didn't bat an eyelid.

It takes an hour and a half. But it is monthly and I can go early at daybreak if I feel like it. At £50 it was still poor. At £100 it's where I am happy.
It's a game of three halves!

dazmond

  • Posts: 23966
Re: Price increase
« Reply #8 on: January 10, 2024, 07:28:10 am »
Commercial jobs I don't notify.i just put up the price and email the invoices like Tosh does.ive also never had a problem.

Domestic I will always notify with either a text or slip through their door(or both)

I never put up my prices every year.IMO it's too often.that means some jobs are going up every 7th clean!

Every 2 or 3 years for small domestics,5 years for larger jobs and commercial
price higher/work harder!

dazmond

  • Posts: 23966
Re: Price increase
« Reply #9 on: January 10, 2024, 07:30:52 am »
10%.

Don't ask, don't warn them, just add 10% to your next invoice and submit.

You've been doing them for 15 years; they're not going to sack you for that.

They'll just pay.



You can’t just increase the price without consulting them , plus that’s very unprofessional.

Course you can.i do it all the time on commercial jobs.i notify all domestic customers though.
price higher/work harder!

deeege

  • Posts: 5008
Re: Price increase
« Reply #10 on: January 10, 2024, 11:18:17 am »
The only ones where you can’t increase the price without notice are the ones that send a yearly PO detailing the price. Everything else goes up as and when I think it’s appropriate and without notice. Never had a problem yet.
"....and it's lend me ten pounds, I'll buy you a drink, and mother wake me early in the morning."

Stoots

  • Posts: 6211
Re: Price increase
« Reply #11 on: January 10, 2024, 12:06:22 pm »
You can increase the price without notice but they are not obliged to pay it for obvious reasons.

So why not just Inform them surely that's the right thing to do.

If someone stuck my price up without telling me I might take the hump it's just not polite or proper is it.

Missing Link

  • Posts: 44724
Re: Price increase
« Reply #12 on: January 10, 2024, 03:20:56 pm »
You can increase the price without notice but they are not obliged to pay it for obvious reasons.

So why not just Inform them surely that's the right thing to do.

Mostly because it feels a bit 'tedious' to explain to a domestic customer that their property is going up by a quid or two.

For commercial, it also feels tedious.  One owner of a medium sized business with around 40 employees (that I know socially from the local running club) once said to me that the window cleaning costs are a tiny fraction of their overall outgoings.

Do they really want to be bothered with a notification about a £5 yearly increase?

I just stick 'em up.
Pronouns She/Her/Madam/Ma'am

Splash & dash

  • Posts: 4364
Re: Price increase
« Reply #13 on: January 10, 2024, 03:23:38 pm »
You can increase the price without notice but they are not obliged to pay it for obvious reasons.

So why not just Inform them surely that's the right thing to do.

If someone stuck my price up without telling me I might take the hump it's just not polite or proper is it.



Exactly it’s just common courtesy to tell  them that due to xyz the price needs to go up by xx , if someone increased the price of a service ime paying for without asking first asking not informing me but asking they would find themselves minus a customer, we all have verbal contracts with out domestic customers that means they have agreed to a specific price from a legal point of view you can’t alter that verbal contract without asking them first .
As for commercial work yes the price on some jobs goes up every 9 th clean and most firms expect this but that’s included in contract paperwork , we do work for several large companies and each year they automatically put up the price themselves by the current rate of inflation ,if we want it to increase more due to building size altering then that happens immediately and the contract is altered before the next visit .

Splash & dash

  • Posts: 4364
Re: Price increase
« Reply #14 on: January 10, 2024, 03:27:21 pm »
You can increase the price without notice but they are not obliged to pay it for obvious reasons.

So why not just Inform them surely that's the right thing to do.

Mostly because it feels a bit 'tedious' to explain to a domestic customer that their property is going up by a quid or two.

For commercial, it also feels tedious.  One owner of a medium sized business with around 40 employees (that I know socially from the local running club) once said to me that the window cleaning costs are a tiny fraction of their overall outgoings.

Do they really want to be bothered with a notification about a £5 yearly increase?

I just stick 'em up.


It’s just polite to ask before doing it , and I can assure you any commercial company worth their salt will need and want to know for the contract details .

deeege

  • Posts: 5008
Re: Price increase
« Reply #15 on: January 10, 2024, 04:20:59 pm »
You can increase the price without notice but they are not obliged to pay it for obvious reasons.

So why not just Inform them surely that's the right thing to do.

Mostly because it feels a bit 'tedious' to explain to a domestic customer that their property is going up by a quid or two.

For commercial, it also feels tedious.  One owner of a medium sized business with around 40 employees (that I know socially from the local running club) once said to me that the window cleaning costs are a tiny fraction of their overall outgoings.

Do they really want to be bothered with a notification about a £5 yearly increase?

I just stick 'em up.


It’s just polite to ask before doing it , and I can assure you any commercial company worth their salt will need and want to know for the contract details .

Any commercial company worth their salt ffs  ;D.
What do you mean by Ask?  Do BT/Sky etc ‘Ask’ you before increasing their price?
"....and it's lend me ten pounds, I'll buy you a drink, and mother wake me early in the morning."

Smudger

  • Posts: 13438
Re: Price increase
« Reply #16 on: January 10, 2024, 04:24:19 pm »
We’re just window lickers on here with customers

Splash isa blue chip vision technician where all his work is done via multi million pound contracts that even increase the price for him 🤣🤣
Never argue with an idiot, they will only bring you down to their level, and beat you with experience

Splash & dash

  • Posts: 4364
Re: Price increase
« Reply #17 on: January 10, 2024, 04:26:51 pm »
You can increase the price without notice but they are not obliged to pay it for obvious reasons.

So why not just Inform them surely that's the right thing to do.

Mostly because it feels a bit 'tedious' to explain to a domestic customer that their property is going up by a quid or two.

For commercial, it also feels tedious.  One owner of a medium sized business with around 40 employees (that I know socially from the local running club) once said to me that the window cleaning costs are a tiny fraction of their overall outgoings.

Do they really want to be bothered with a notification about a £5 yearly increase?

I just stick 'em up.


It’s just polite to ask before doing it , and I can assure you any commercial company worth their salt will need and want to know for the contract details .

Any commercial company worth their salt ffs  ;D.
What do you mean by Ask?  Do BT/Sky etc ‘Ask’ you before increasing their price?


No they don’t but you and I aren’t huge firms so it’s polite to ask good customer relations

Splash & dash

  • Posts: 4364
Re: Price increase
« Reply #18 on: January 10, 2024, 04:27:45 pm »
We’re just window lickers on here with customers

Splash isa blue chip vision technician where all his work is done via multi million pound contracts that even increase the price for him 🤣🤣



Grow up Darren you are starting to get a bit tedious, just ignore of block me so you don’t have to see what I put

deeege

  • Posts: 5008
Re: Price increase
« Reply #19 on: January 10, 2024, 04:34:04 pm »
You can increase the price without notice but they are not obliged to pay it for obvious reasons.

So why not just Inform them surely that's the right thing to do.

Mostly because it feels a bit 'tedious' to explain to a domestic customer that their property is going up by a quid or two.

For commercial, it also feels tedious.  One owner of a medium sized business with around 40 employees (that I know socially from the local running club) once said to me that the window cleaning costs are a tiny fraction of their overall outgoings.

Do they really want to be bothered with a notification about a £5 yearly increase?

I just stick 'em up.


It’s just polite to ask before doing it , and I can assure you any commercial company worth their salt will need and want to know for the contract details .

Any commercial company worth their salt ffs  ;D.
What do you mean by Ask?  Do BT/Sky etc ‘Ask’ you before increasing their price?


No they don’t but you and I aren’t huge firms so it’s polite to ask good customer relations

So what’s the cut off point in size of business where it becomes acceptable to not ‘ask’ then?

"....and it's lend me ten pounds, I'll buy you a drink, and mother wake me early in the morning."