Hello guys,
I've have had very helpful feeback from you guys in the past and as I have just gone through an almost identical process, I feel I should contribute...
* At the end of a hectic first year I had 26 Domestic cleaning clients in Surrey.
* It became clear that we were not charging enough (£10 p hr, we supply all equipment and supplies, insurance and pay staff quite well) and not actually making a half decent profit.
* We considered raising the price for new customers only, but took the view that each slot that remained at the old rate meant we couldn't take on new clients at the new rate !
* So like you, we drafted our letter, but was able to mention providing supplies and registering for VAT as some reasons for price increase.
* we sent letter and waited to see the impact, 2 weeks later we have lost half our customer base.
* We had many calls from clients saying how sad they were to lose our excellent service and how pleased they had been but can not afford the new rates. (which at least shows we were providing a good service)
* One thing I would definately recommend is actually following up all letters with a phone call - and give them the opportunity to adjust the frequency or duration of their cleans to fit within their budget. Also gives you the chance (if they are leaving) to make it clear you would love to have them back if they change their mind.
* Some customers have the odd idea that our cleaners are on minimum wage and we don't have any other costs !!! - so be prepared with answers to these questions when you call.
* Even though you may lose a proportion of customers, it is worth examining the actual impact on revenue, remember you have existing and new clients coming on at the new rates...
* We are currently in marketing mode as you might expect, but instead of taking on any business, we now are working harder to get the RIGHT customers on board - we are confident we can fill our schedules with custmers looking to pay the extra for a reliable, high quality service.
* Watch this space !!! - we'll tell you how it goes...
Please drop a PM if we can help further...
P.S if your potential purchase of this Domestic cleaning company falls through, and she stops operating or is no longer providing an decent service , a good targeted door drop in the area might soon pick up her unhappy/ex clients ?
Regards,
Julie and Daniel G