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Stephen Dwyer

  • Posts: 85
Advice on putting prices up
« on: July 03, 2007, 12:18:33 am »
Myself and my business partner have recently been considering putting up our prices for some of our customers.  However we have only been in business for about a year so have never attempted this before so I have come here for any advice/help.   We were thinking of upgrading the majority of them by about £1.  In some cases it may be slightly higher than this (possibly £2-£2.50)  I have a few questions that I would like to ask so any help would be very much appreciated. 

1) What is the best way to let the customers know that we are looking to upgrade the prices?  Should we see them in person or would it be better to leave a business card with a note on the back? 

2) If the customers are so unhappy that they want to discuss the increase with us, how should we handle it?  Should we just stick to our guns and risk losing the customer altogether or should we allow them to haggle with us? 

3) As I said before we were looking to push the prices up by about £1-£2 in most cases.  Is that too much to ask, or have we on average got it about right?

mark dew

  • Posts: 2901
Re: Advice on putting prices up
« Reply #1 on: July 03, 2007, 01:00:37 am »
hello stephen, i put my prices up the 1st time in february last year just before i introduced customers to wfp.
I prefer to talk face to face with the customers. I think this is the most sincere way because you can explain why the price needs to go up.
Can answer any queries on the spot. There is no misunderstanding and i believe people find it harder to refuse if politely presented.
For the ones who were never home i left them a note, asking them to call me if there was any problem.

I would try to avoid haggling at all costs (dependant on the size of the job), as it sets a bad precedent.
If the price is fair i just explain that i priced it up when starting out and stuck with it upto now. But the job is no longer viable below £XX.
I try and keep it as simple as possible.

It is hard to say if you have got your increase right because you have shown nothing to compare it to. Look for the topic called "nationwide price comparison" on page 2 now and that will help with what others are charging.
Several of my increases were on jobs i had rounded the figure down or had been worried that it sounded too high so almost all my work had room for some increase.
Prices should be increased by 10% every 2 years just to keep up with inflation.

Ian_Giles

  • Posts: 2986
Re: Advice on putting prices up
« Reply #2 on: July 03, 2007, 06:04:27 am »
Good advice from Mark, putting up prices is never easy, and choosing how much is another tough one.
I don't think there is a hard and fast rule, you certainly need to put up prices regularly, but if you've only been going a year then no doubt you have a fair few that you have badly under priced :-\

Sometimes you just have to face up to the customer and tell them, 'Sorry, but we have to put up your price by £xxx amount.' And admit to them you have priced it way too low.
You can also tell them that you have stuck with the price for 12 months (man of your word and so on) but that for you to continue cleaning the windows for them the price has to be viable.

But DON'T HAGGLE!!!! If they don't accept the price increase then let them go, if you feel prepared to haggle, then in your head you must believe the size of price increase is unreasonable.

Tell them to their face if they are in when you call, or leave a note on your invoice, I just say on them;
 Price increase as of next clean £xxxx

I don't invite them to call me if there is a problem, it's my business and that price increase is fixed in stone.
If they have a problem with it, they will let you know when the cheque arrives in the post. (I don't do collections)

Ian
Ian. ISM CLEANING SERVICES

Trevor Knight

  • Posts: 1825
Re: Advice on putting prices up
« Reply #3 on: July 03, 2007, 07:22:25 am »
Both Ian and Mark have made valuable comments and certainly ones to consider.

I personally get the lads to tell the customer if they are in and if not we leave a letter explaining this will be the new price as of ............... Unless told otherwise we will continue to provide our window cleaning service.

Don't have too many problems and as already said, Don't haggle, otherwise if they tell their neighbour etc.. etc...

Every year we increase everyone by 50p or 5% whichever is the greater.
Covering Hampshire, Dorset, Surrey, Berkshire

LSB

  • Posts: 411
Re: Advice on putting prices up
« Reply #4 on: July 03, 2007, 01:36:48 pm »
i have jusy increased my prices by between £1 - £3  for approx 1000 customers , and had very little hassle , a few cancelled , and a few went 8 weekly .
i did this by delivering a polite , but firm letter to each house approx 2 weeks before they were due again explaining that my new price was still competitive for the service i was provicing and that as from their next clean the new price would be £ ?? .
i only haggled with 2 customers . the others that did mention it , were happy to continue when they realised it wasnt open for negotiation !
all the best with your price increase !

lloyd .   

Re: Advice on putting prices up
« Reply #5 on: July 03, 2007, 04:38:52 pm »
I increase my rates January every year. Even the ones i'm happy with.



Don't have too many problems and as already said, Don't haggle, otherwise if they tell their neighbour etc.. etc...

Every year we increase everyone by 50p or 5% whichever is the greater.

50p is my min but alot will be £1. We get increases to run our buisness plus our own personal expenses go up.

Naver haggel, thats your price, you may loose the odd one but 99% accept it.

If they are in let them know to their face but if they are out leave a note. After you have done a few you wont worry anymore.

Macc

Stephen Dwyer

  • Posts: 85
Re: Advice on putting prices up
« Reply #6 on: July 03, 2007, 04:54:49 pm »
Thanks for all of the advice guys.  It is appreciated. 

LWC

  • Posts: 6824
Re: Advice on putting prices up
« Reply #7 on: July 03, 2007, 06:56:16 pm »
i havent done it alot but i am doing it now...i say, as of next month the price will be ...

i doubled someones the other day...slight shock...still cleaning em  ;)