We switched to a varied approach in order to weed out problem clients. Either they go away and are no longer our problem. Or, they pay more for us to put up with their problems.
Either way we are happy with them or without them.
We also noticed after implementing this scheme that we earned more at the end of the year for less work. We even found that when we’d lose accounts they’d shop around for a year or two and fail to find another company that can offer the same quality of service. They’d call us back and they would have to pay for a new first clean in order to get onto our client list again (20%+ on top of the standard 7.5% increase). Some buildings have canceled and come back under a new property manager and we’ve almost doubled the price from one year to the next.
I implement Mike Michalowicz’s Pumpkin Plan philosophy when choosing clients. They don’t choose me. I choose them.
Also… The timeless perfect words… “Have you seen a man skillful at his work? He will stand before kings; He will not stand before common men.” - Proverbs 22:29
The wording I used is something along the lines of ‘ unfortunately due to the increase in cost of doing business we had to raise our prices’ the cost of cleaning your windows has increased by $XX your new total will be $XXX . Let me know if that works with you and we can get you on the schedule.
It’s low effort and pro quality to at least notify your customers of a price increase.
Even your coffee shop has the professionalism to do so.
Raise prices or don’t, that’s your business, but just raising prices without notice is poor form
For our contracts which are between $500 and $15k per job we don’t inform them through email. We just send them a new proposal for the year. If they accept then we get a signed contract and we book the service.
For storefront it’s different. We inform them via email about a month in advance just letting them know about the increase. If we don’t hear back from them we assume they roll over the contract to the next year and accept the increase.
Dunkin’ Donuts never tells me they charge more… I just get to the window and the price changes almost every day… sometimes is $2.55 sometimes it’s $2.77… this morning it was $2.73 AND don’t get me started if I end up at another DD location, different prices there!
We use to price similar to how you showed yours. Costs have gone up so much the past 2 years we just have everyone on a blanket increase. It’s has gotten to the point where there is no reason to start a truck and send a crew out if we cant make $XXX.XX an hour.
We did a 10% last spring, a 15% this spring, and I think we will be doing another 10% this summer.
If someone doesn’t know prices are up , I don’t know what rock they’re sleeping under. No need to say anything it’s common place these days.
I won’t get into who you can thank for that. That’s whole different subject. With I’m sure a lot of different opinions.
If they go that frequently there would be communication… most residential work is done once a year, a decent amount go twice a year. So people don’t really notice or care about $5 or $10.
I let people know that if they go 3 years consecutively there will be no increase. It has incentivized repeat business without much effort on my part.
I guess I’m not thinking of people that call in but people that are on a predetermined frequency schedule I’d definitely notify. Sounds like you mean the same thing