Bumping up pricing schedule - Cleaning Talk - Professional Cleaning and Restoration Forum
 
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post #1 of Old 12-15-2007, 03:40 PM Thread Starter
 
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Bumping up pricing schedule

Do you ever feel guilty? I started with a $25/hr base and now that I'm pushing for $30 to $35 an hour (standard in this area) I am feeling so guilty about doing it!

I'm not changing the prices on current clients but just pricing the new clients higher. I can't believe people pay it! I feel bad invoicing some people!
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post #2 of Old 12-15-2007, 06:25 PM
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If you give your clients fair value for their money then you shouldn't feel guilty. You might anyway; but you shouldn't.
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post #3 of Old 12-15-2007, 11:35 PM
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When I started (almost 22 years ago now) the going rate was $12 hr, there is no way that we would of survived charging that amount even just a few years later. Rates have to increase in order to keep up with the cost of inflation for a business to remain healthy and profitable
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post #4 of Old 12-16-2007, 08:54 AM
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Originally Posted by Melikahiwa View Post
Do you ever feel guilty? I started with a $25/hr base and now that I'm pushing for $30 to $35 an hour (standard in this area) I am feeling so guilty about doing it!

I'm not changing the prices on current clients but just pricing the new clients higher. I can't believe people pay it! I feel bad invoicing some people!
You have a right to live in a good neighborhood and send kids to good schools. What's wrong with getting paid as much as the people we clean for? If I save a client an hour of thier time, and thier time is worth say $500/hr (Lawyer), then the client should view me as saving them $400/hr if I ONLY charge $100/hr.

This is why we approach sales with that in mind. We no longer sell the service but rather the benefit of using us to save them time and money.

Michael Kreisle, First Choice Power Washing LLC
Lexington, KY 859-983-5955
We own and operate a great Cleaning Service in Lexington KY as well as provide
awesome Pressure Washing and Roof Cleaning services.
You can follow us on Facebook here...Pressure Washing Lexington KY
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post #5 of Old 12-16-2007, 11:08 AM Thread Starter
 
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Originally Posted by FCPWLLC View Post
You have a right to live in a good neighborhood and send kids to good schools. What's wrong with getting paid as much as the people we clean for? If I save a client an hour of thier time, and thier time is worth say $500/hr (Lawyer), then the client should view me as saving them $400/hr if I ONLY charge $100/hr.

This is why we approach sales with that in mind. We no longer sell the service but rather the benefit of using us to save them time and money.
Thank you! That is a great perspective!!!
I do clean for lawyers, real estate developers (yeah its bad for them right now but they still have millions to spare) doctors and other such high-paid clients. So this does really make me feel less guilty about the sticker shock. I do try to market only to the upper crust anyway, which there are a lot of around this area good for me I guess.
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post #6 of Old 12-16-2007, 11:09 AM Thread Starter
 
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Originally Posted by t.peterson View Post
When I started (almost 22 years ago now) the going rate was $12 hr, there is no way that we would of survived charging that amount even just a few years later. Rates have to increase in order to keep up with the cost of inflation for a business to remain healthy and profitable
$12 an hour wouldn't even make it worth my time after daycare costs alone!!!!
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post #7 of Old 12-16-2007, 02:57 PM
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$12 an hour wouldn't even make it worth my time after daycare costs alone!!!!
exactly
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post #8 of Old 12-16-2007, 03:30 PM
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Publicly state your price gouging.
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post #9 of Old 12-16-2007, 03:48 PM
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May $35hr in frederick is ok.
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post #10 of Old 12-17-2007, 01:32 PM
 
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You will only loose your "D" customers by raising prices. Meaning you will loose the ones you never had or did not want to begin with. Any time I want to get rid of a customer I simply raise their price. However, I have 5 or so customers who live pretty far out and when I raised the price on them they were happy to accomodate.
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post #11 of Old 12-17-2007, 05:59 PM
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Originally Posted by Pressure Cleaning View Post
Publicly state your price gouging.
That's a term only used by folks that don't have good grasp on economics. Gouging is like extorting. Pricing services based on supply/demand and VALUE is NOT extortion.

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post #12 of Old 12-17-2007, 09:02 PM
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badbeef.

I agree.

Last edited by Pressure Cleaning; 12-17-2007 at 09:13 PM.
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post #13 of Old 12-17-2007, 09:10 PM
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Originally Posted by FCPWLLC View Post
That's a term only used by folks that don't have good grasp on economics. Gouging is like extorting. Pricing services based on supply/demand and VALUE is NOT extortion.
There is nothing in your statement which suggest to me, that you have conducted any social science studies of your local economy (“supply and demand”).
To base your price on your desire to be like “Mike” isn’t neoclassical economics.
Your Statement
You have a right to live in a good neighborhood and send kids to good schools. What's wrong with getting paid as much as the people we clean for? If I save a client an hour of thier time, and thier time is worth say $500/hr (Lawyer), then the client should view me as saving them $400/hr if I ONLY charge $100/hr.

This is why we approach sales with that in mind. We no longer sell the service but rather the benefit of using us to save them time and money.
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post #14 of Old 12-17-2007, 10:52 PM
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Guess he told you

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post #15 of Old 12-22-2007, 04:45 AM
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nice thread guys.

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post #16 of Old 12-22-2007, 09:38 AM
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Meli, do you think your clients will feel guilty when in a year you are broke or so disenchanted with making no profit you abandon your business? Raise your prices and sell your superior service with confidence. Those that sell on price are weak business people.

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post #17 of Old 12-26-2007, 01:15 PM Thread Starter
 
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Meli, do you think your clients will feel guilty when in a year you are broke or so disenchanted with making no profit you abandon your business? Raise your prices and sell your superior service with confidence. Those that sell on price are weak business people.

Good point. I do charge a good bit already though and love my profit margins Much better than being a broke SAHM (though I wish I could be still!)

I've called around and 35 is standard around here, and many companies charge more. I'm starting to add the word PREMIUM to everything now so people may realize I'm better than the rest. Hopefully that makes the nay-sayers realize I'm worth it.
The only people i really have cry about price are first timers dealing with cleaning companies. The majority of my clients are happy to have me because they have already experienced the franchise 'clean' and love that I actually do a good job.
My new years resolution is to fire a couple "D" clients to free up space for the ones who realize how valuable my services are.

Thanks for all the input!
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post #18 of Old 04-02-2008, 10:31 PM
 
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Charging too much?

Wow.

I live in Louisville Ky and the cost of living is pretty low.

The standard rate for a 2 bedroom 2 bath in this area is $85.00 for a bi-weekly client. Not even an hour of work. I do not charge by the hour, I charge by the # of bedrooms and baths.

The standard in this area is $95.00 an hour. First-time-in cleaning for this size house or apartment would be around $150.00 - $200.00 depending on how much time it would take to do the first time in. Specials (one time cleaning, which I do charge by the hour) goes for $105.00 an hour.

I worked for a large cleaning franchise for a year in order to prepare myself for opening my own cleaning business. You are selling your expertice. Never price too low to get clients. If a potential client does not want to pay for the service you provide, some one else will.

Good luck
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post #19 of Old 04-04-2008, 12:57 PM
 
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Originally Posted by badbeef View Post
You will only loose your "D" customers by raising prices. Meaning you will loose the ones you never had or did not want to begin with. Any time I want to get rid of a customer I simply raise their price. However, I have 5 or so customers who live pretty far out and when I raised the price on them they were happy to accomodate.
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