I have a management company that I work with cleaning the windows at 2 apartment buildings for the make-readys for new move ins. The prices are very low. A 1 bedroom that has 5 windows is 35.00, a 3 bedroom that has 14 windows is 65.00. These windows are usually very bad.
Today, one of the ladies in the office that I am on good terms with called me and said that they were cutting some vendors loose because of budget concerns and my name came up. That they want to talk to me about cutting prices. This job helps keep me busy durring the winter, and the income is about 3 to 400.00 per month. I have had this customer for a year and a half, and have not raised my prices at all, when I shouldve raised by at least 1%. They have asked me to lower my prices 3 months ago but let them know that I cant do that, they are already too low.
My question is; should I give in and lower the prices? If so, should it be like 50 cents? What do you guys think, and what have you done in this situation?
Take a look at your hourly rate. Is it minimum wage or OK money? You run a business, you have overheads. Take into account how much work this company provide for you & if they are useful in the off season.
I agree with AINTJemama. I think that they may be testing you. The sucky thing is, they might not be, and when you don’t budge, they might let you go. Have you considered talking with them about lowering your service levels to what they can afford. I mean like you only do the outsides and they can have the other CCU/Make-ready crews clean the inside. Be sure that you are using a waiver.
I have a slow paying corption. Like two mon. +. I’m not bank !! Mgr advised it will get worse !! I haven’t been back. They losted a reg customer at about 200 a month in food !! Go figer !! Stan
My quick study on Wikipedia informs me that the average low for San Diego in the winter months is around 50°F. So why is window cleaning slow enough during this time that you’re this concerned about losing $400 a month? Surely you can make this up and then some with a little sales effort. I wished I had your kind of weather in the winter. In this kind of weather (San Diego’s) there’s no reason why you can’t be cleaning windows everyday, or am I missing something?
BTW, I’m not trying to be smug. I know the current state of the economy plays a factor.
I was hanging on to storefront work to help me get through the winter but in reality I was being held hostage by these low paying accounts. One by one I’ve been drooping these accounts and shooting for better paying gigs.
In the end I say stick to your price, repeat to them that you’ve never raised their prices and remind them that although the economy has slowed, the cost of doing business still goes up year to year.
Didnt take it as smug…you are right…the weather here is GREAT!
I have only been in business 3 years, and 2 rainy seasons ago (late DEC, jan, feb) my residential cust.'s ALL wanted to “hold off”. So last year, I concentrated on commercial and that is what kept my bills payed. So how I look at it is I only count the commercial stuff to see how much I will be getting and should I get residential then thats great. But for me the sure thing is commercial.
400.00 may not seem like much, but let me assure you, we made it BECAUSE of that…I only made under 2000.00 in January of that year, and Dec, I only made 1200.00 ( 3 years ago).
I am growing VERY much, last year I made 65k and this year I should be over 100k all thanks to commercial work. BUT, I will never forget that time. I try NEVER to lose customers, I almost panick…altho I do let them go if it is not worth my time…I dont work for free. I keep thinking that something crazy may happen and I lose my big commercial stuff and if I cut this small one loose, then I will have nothing.
Chris, thanks for the call man. And by the way everybody, thank you all for the advice, I already spoke with the manager and let her know that there is no way I can go lower, but if thats the bottom line we can work something out like I just do the outsides (which I would really prefer anyway) but even if this is the case, it would only go down by 5 bucks because we are going to be using a ladder on every window, when before we do all of it from the inside (for the most part).
I have a slow paying customer !! Like 2 months. I’ll go 30 days but 60 days is a little much !! I eat there just about every day. So 200-250 a month !! So why can’t i get a 40 doller bill payed ?? Am i a bank or what ?? I’ve changed my place to eat and not going to wait !! Is this clear ?? Stan
Why do you eat there??? Pack a lunch and save money. As for waiting 60 days for a 40 “doller” ( dollar by the way ) check, just call the accounts payable dept. and see whats going on. I had the same problem with 2 accounts of mine last month…they both said it was because it was the end of their fiscal year…and I got the check last week.
I know the current state of the economy plays a factor.
