| keshy |
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| Joined: 05 Oct 2007 |
| Posts: 425 |
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Having your own cleaning business should mean that you are earning a decent profit for your daily living. Most cleaning business starts out with the owner doing everything – he does the marketing, buying of supplies and the workbook. You have settled and established your business, you start to expand, get more clients and more employees. This time your expenses also grow, and since you lowered your price when you’ve started out, it may not cover all expenses anymore.
You have to understand that price increases are necessary in any kind of business. Everything you buy and any service you obtain are bound to increase prices anytime.
Once you decide to raise your rates, review your original contract with your customers and check whether it states that the original price is good for a only a certain length of time. It is, you won’t be able to have increase in your service charges until that period expires. You may also check the duration of your contract with the clients. Despite having under priced services, you may not want to raise prices with a client you’ve just acquired for a short time. Most cleaning business raises their prices after turning a year old in the industry. If you don’t have any clause regarding price increases, you must add it on with your next clients. You may guarantee a certain price for a year then add a statement like, “we serve the right to increase prices after one year”.
Before you figure out a new rate, check back on your original bid and make sure that you have everything covered and that you are making a profit. Dramatic increases in supply costs and added expenses should be considered in computing and covering the extra expenses.
Another aspect for your consideration is your current customer satisfaction level. Are your customers happy with your services? Many would understand price increases and will stick with your company as long as they are happy and contented with your job. They may not be able to look for a new cleaning company with a better price or quality.
Don’t hesitate to raise prices with a customer who is a constant complainer, especially if they keep on complaining about unjustifiable matters. You need higher prices to cover the extra time spend over their office or homes.
Soon as you have all the facts you need and settled on the new price you need to charge, inform your customers formally through a letter to let them know of your price increase, reasons for increase and remind them of the benefits of continuing partnership with your cleaning company. Make sure that you inform your customers at least 30 days before you increase your price.
Getting what you pay for is often true for cleaning companies. Very low prices may mean that the cleaning service is not doing a good job or the company has undervalued their services and will soon be out of business.
Pricing and rates of your services is for you to make a living. Your company and your employee’s survival depend on the appropriate charging you get from your customers so that you can stay in business. Your customers will surely understand the price increase and will be happily continue requesting your services. Your other customer who left will eventually realize that low priced services means that they get poor quality services and will surely come back to get your services again.
For more: How to start a cleaning business |
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