How to say the customers about rate increase? - Cleaning Talk - Professional Cleaning and Restoration Forum
 
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post #1 of Old 09-19-2008, 03:05 PM Thread Starter
 
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How to say the customers about rate increase?

I'm always scared to do it... It's very difficult to explain why...What do you usually tell customers when you increased the rates?

Thanks
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post #2 of Old 09-19-2008, 07:51 PM
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We sent out letters stating due to the increase in fuel prices we were experiencing increases as well. Not only in the fuel but the shipping expenses for our supplies. They were all very understanding and accepted the rate increase. You gotta do what you gotta do to keep your business up and running successfully.

Kendra
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post #3 of Old 12-07-2008, 12:06 PM
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I agree 100% with f-c-cleaning. If you do not raise your prices at least 3-4% per year, you are losing money from inflation. It has to be done. We all hate it, but we all accept it as a fact of life. So will your customers. Its better to raise 4% than it is to try and recoup it later at 20%.

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post #4 of Old 12-16-2008, 11:58 AM
 
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Raising prices seem to be one of the hardest things to do, however it is also one of the quickest ways to increase the bottom line. What I always try and do when increasing my prices with an existing client, is to add a small service with a higher perceived value. That way it is not leaving them feeling they are not getting anything more for your increase. Yes, everyone knows prices have to be raised, but is leaves us all feeling better if we also get more for the increase.

Good Luck
Eric
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post #5 of Old 12-16-2008, 02:17 PM
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Eric,

I know that you have only posted three times since joining and we haven't had the pleasure of an introduction...but I had to comment that your advice is wonderful and very much appreciated!

Torrey Shannon
Executive Director/Spokesperson
Cleaning for Heroes
The only 501c3 nonprofit in the cleaning industry that improves the lives of heroes, one household at a time!
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post #6 of Old 12-16-2008, 04:18 PM
 
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Torrey,
Hey, thanks for the kind words. I just found this forum, so will try and involve myself. I just checked out your website. I am impressed with the whole aromatherapy part of your business, That is exactly what I was talking about when I talked about a higher perceived value. You really have created a niche market, Good Job!

Eric
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post #7 of Old 04-06-2009, 01:18 AM
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Can you tell me about the price of cleaning services which is in my website. http://www.cleaninghouselondon.co.uk/cleaning-prices/.

Is it okay? Need suggestion
________
WET_AND_HAIRY

Last edited by mikerike; 09-15-2011 at 08:29 AM.
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post #8 of Old 05-01-2009, 11:57 AM Thread Starter
 
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Quote:
Originally Posted by mikerike View Post
Can you tell me about the price of cleaning services which is in my website. http://www.cleaninghouselondon.co.uk/cleaning-prices/.

Is it okay? Need suggestion

To be honest I don't know rates in London . just have a question regards your website. Is it a template or not?

Thanks
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post #9 of Old 06-23-2009, 08:39 PM
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Just make sure that you give them plenty of notice before the price increases - at least a couple of months if you can so that they won't feel pressured or rushed.

Don't increase prices too often and when you do only go up in small increments - if you do it like this most customers won't bother looking into other companies to compare (it is easier to keep going with the same service then spend time looking for a new one).

Have information ready to justify the increase if customers request reasons - (suppliers increasing prices, labor costs increasing, gas prices etc). Also tell them how you have tried to avoid price increases but have got to the point where it is no longer possible. Apologize for the inconvenience and let customers know that you are considering them and feel bad that you are no loner able to absorb the price increase that you have are subject to.

Mix the bad news with some good news if you can to balance it out.

Let customers know that a price increase is necessary to ensure that you are able to continue their cleaning service at the same high standard that they have been used to.

If you are increasing prices purely to make more money then consider it an experiment (although it is probably more like a hand of poker). Raise prices and then assess the effects - did the revenue gain more than make up for the lost clients? Are you likely to be able to pull another price increase off six months later or would that be pushing it too far?

For reviews of some of the top start a cleaning business guides visit -

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