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KarlJones

  • Posts: 394
Setting Prices vs Frequency
« on: January 02, 2007, 01:21:48 am »
I need a bit of a shove so I wrote this...

As some of you are aware I am just starting out.  Done a fair bit of research into the local market with the help of a local window cleaner.  You have heard this before many times but the prices round here really are pretty low (not far from cannock). I am starting to wonder if the "3 bed semi" is a tad smaller round these parts than the rest of the country.  However I can not see the point in under pricing myself.  My local friend has already told me that he did it, everyone does it and everyone has regretted it.  Personally, it might just be me, but I feel more confident about pricing monthly.

So,  I was wondering about frequency vs pricing. 

I know some window cleaners have one price, a top price, they have worked their way up to that price and stick to it like glue.  However, I am sure in reality we all have three prices.
The minimum
The one we want to ask for
The absolute maximum

Say my price for a small 3 bed semi in these parts is 5.00 which seems to fall in line with others, obviously every house is slightly different and takes a different amount of time. 

"Yes I have worked out your quotation, a clean every two weeks comes to 5.00, however if you would be willing to have them cleaned every 4 weeks I could do it for 7.50 which saves you 2.50 a month,  the cheapest option of all is for you to have them cleaned once every 8 weeks as this would be 12.50 however the savings between 4 weekly and 8 weekly are not that great compared to how dirty your windows can get in 8 weeks."

So, two weekly would be my minimum, four weekly would be the actual price I want, and 8 weekly would be the top rate I think I could get away with.

2 week = min                         
4 week = 2 week + 50%       
8 week = 2 week + 4 week

Does this sound anything like realistic?
You cannot plough a field by turning it over in your mind.

Paul Coleman

Re: Setting Prices vs Frequency
« Reply #1 on: January 02, 2007, 07:57:59 am »
I need a bit of a shove so I wrote this...

As some of you are aware I am just starting out.  Done a fair bit of research into the local market with the help of a local window cleaner.  You have heard this before many times but the prices round here really are pretty low (not far from cannock). I am starting to wonder if the "3 bed semi" is a tad smaller round these parts than the rest of the country.  However I can not see the point in under pricing myself.  My local friend has already told me that he did it, everyone does it and everyone has regretted it.  Personally, it might just be me, but I feel more confident about pricing monthly.

So,  I was wondering about frequency vs pricing. 

I know some window cleaners have one price, a top price, they have worked their way up to that price and stick to it like glue.  However, I am sure in reality we all have three prices.
The minimum
The one we want to ask for
The absolute maximum

Say my price for a small 3 bed semi in these parts is 5.00 which seems to fall in line with others, obviously every house is slightly different and takes a different amount of time. 

"Yes I have worked out your quotation, a clean every two weeks comes to 5.00, however if you would be willing to have them cleaned every 4 weeks I could do it for 7.50 which saves you 2.50 a month,  the cheapest option of all is for you to have them cleaned once every 8 weeks as this would be 12.50 however the savings between 4 weekly and 8 weekly are not that great compared to how dirty your windows can get in 8 weeks."

So, two weekly would be my minimum, four weekly would be the actual price I want, and 8 weekly would be the top rate I think I could get away with.

2 week = min                         
4 week = 2 week + 50%       
8 week = 2 week + 4 week

Does this sound anything like realistic?


It doesn't sound realistic to me because, as you say, the prices are low.  However, I live in the southeast so it could be a regional issue.  The other thing I question is the two weekly interval.  Down here, I have never heard of doing cleans so frequently (shop fronts excepted).
I think what has happened over the years is that prices further north are generally much lower because unemployment has generally been higher and the inevitable consequence is that more people work "on the side".  Because of those lower prices, there are people who have their window cleaned fortnightly.
Also, I found that offering too many choices about frequency (as I did at the beginning) just confused matters too much once my business had started growing.  Mind you, it has to be said that I kept records on paper only in those days as computer prices/technology were far more daunting then.
I know it's tempting to quote too low at firsdt to get the work rolling in but, if you can carry the cost of building the work more slowly, I think you should offer four or even six weekly cleans and quote much higher.  If this means travelling further to better off areas, then it will pay dividends inthe mid to long term.
Having said that, I started my business in 1991 due to unemployment and I went too low.  However, I didn't know any better because I didn't have the internet access that is available now.

KarlJones

  • Posts: 394
Re: Setting Prices vs Frequency
« Reply #2 on: January 02, 2007, 02:26:51 pm »
Thanks for the reply Shiner.

I kind of agree about the difference between north and south.   

I a glad to here you have never heard of fornightly cleans because to be honest I do not like them,  some folks give advice of trying to get as many customers as possible on to it.  However my gut feeling is that it restricts the price you can charge.  My cousin is very angry because her window cleaner is charging her 17 quid every four weeks because he is charging 8.50 per fortnight.   

I think it is this fortnightly attitude that keeps our prices low, not the other way around.  I think, putting my mind back in gear, that fornightly should not be an option in an area where prices are low as thinking about it all it does is drive prices lower.

Thanks for the input, I think I will scrap the idea of it.

So, my business plan should be to offer a high quality service, at a 4 weekly interval, for a decent rate.  With slow growth the business will take a long time to build and will cost me many days of failed attempts to build my business however in the long term it will be worth it.
You cannot plough a field by turning it over in your mind.

LSB

  • Posts: 411
Re: Setting Prices vs Frequency
« Reply #3 on: January 02, 2007, 04:43:30 pm »
I would just tell them its £ ?  4 weekly !  problem solved , in your favour !

dai

  • Posts: 3503
Re: Setting Prices vs Frequency
« Reply #4 on: January 02, 2007, 08:29:06 pm »
As I had far too much work, I put 3 estates on 8 weekly cleans for 50% extra.
This has worked very well. I plan to put more estates on 8 weekly cleans in the future. 
It's a hell of a job to get a substantial increase out of long term customers.
The 8 weekly for 50% extra is one way of achieving it. Dai