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Discussion Starter · #1 ·
I was wondering if anyone has any opinion on the pricing strategy that I am using for my website. Basically I am putting high prices on my website in the hopes of attracting customers with coupon advertisements. I figure most of the customers who visit my website will be from coupon ads which will offer a 20% discount so the prices on the site are around 20% higher.
 

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Where are the high prices at? I must have missed them. The prices I saw are pretty low. As a matter of fact, no joke, the prices you have on your site are the price I give if for some reason I have a schedule I need to fill to keep a worker busy so I lowball to get the job until I can QUICKLY fill that spot with a real paying customer and then dump the low paying customer.

Do what?????? 20% off those prices? And to give wax or carpet cleaning away with the regular cleaning? :laughing:

First thing you need to do.... throw away the calculator you used to figure up your profit because that thing is broken.

Step 2... go get new calculator from $1 store.

Step 3... refigure profit. No joke, if you don't know how to figure your profit ignore steps 1 & 2. Just ask and me or someone else can show you how.

Let's take the $70 job. Once you get to making any money at all you will be in the 25% tax bracket. So before you ever squirt 1 drop of window cleaner you're already down to $52.50 (in the 15% tax bracket you would be down to $59.50). Being like most others you probably use $4+ of supplies per house so now you are down to $48.50 or less. Gas to get to the house. Insurance. So now you're in the low $40's and by the time you figure every other thing in you are in the mid or upper $30's. Technically that CPA at the end of the year gets a cut of every job even if it's a few cents... they don't work for free. That website had to be paid for at some point... and it might have monthly fees. All the other things that will cost you money such as new bottles when the sprayer stops working. You're going to have to save a few pennies from each job so when your vacuum breaks you can get a new one. Now let's take that 20% off and you will be right about $20 or less. And that is if you clean alone. If you have employees you would actually be paying out of your pocket to have that job done. And you thought I was being a smart (*).

These are all things no one thinks about because most people don't have a detailed plan.

Not to mention that only crazy people give a price without seeing the house first. No way can you give a price without seeing it. Set a goal for yourself to make lots of money in this business and you can't do that without seeing the house first. Go look at the house... if you think it will take you 3 hours then bid it at $35 or $45 an hour. And you must have a minimum.... if they only want a bath and a bedroom cleaned and it will only take you 1.25 hours you must have a minimum of say $75 so you can't go below $75. You saw how low that gets before it goes in to your pocket. If they say no, thank them for their time and go get a real paying customer. You can make $15 an hour at McDonald's. :no: Ok, maybe not.... :whistling2: But you get what I'm saying.

Go after the small house you can clean in 2 hours and charge $95... those are the money makers. Especially if you get workers down the road.
 

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Discussion Starter · #3 ·
You may be right that the prices are low for the services being offered but we just started the website and have recently been making a push to get more quality jobs. Previously we were receiving even less for jobs so at least we are moving in the right direction. The low priced jobs such as $70 are for a basic service which includes only bathrooms, kitchen, and floors and doesn't include free carpet cleaning or hardwood floor polishing.

You're probably right about putting prices on the website but the prices are labeled as average prices and it's something that we decided to give a try. Do you think that all the prices are too low or just some? We have a couple of weekly clients with homes around 3000- 3500 sq. ft and with the prices on my website we would be charging them $150 minus 20% discount equals $120 a week. $480 seems like quite a lot to be paying monthly for cleaning. What type of prices would you recommend?
 

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How many man hours does it take to clean the 3000-3500 houses?

My prices would be totally different than yours.

Sorry, I just saw this post.
 

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We use a similar strategy but 20% seems to be a bit too much. Keep in mind that some leads may not have a coupon and decide not to use your service due to high pricing.
 
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