Pricing question weve all ran into

The quote was close to $400 for this vacation home. The customer responded with this email. Whats you typical response?

"I didn’t really do any shopping around when we had you wash our windows in
August but your prices seem a quite high compared to what I pay to have my
windows cleaned in my residence home. We have a 5200 square foot home
here in ( their residence) and pay $275 to have windows cleaned inside and out. I
realize it wouldn’t be fair to ask you to change your prices for the
cleaning you just did but is this the best price you can quote for future
cleanings?

I would assure them that I gave them my best price. I’d also let them know that pricing varies from area to area as does the level of service. Go thru your cleaning process step by step and ask if they are sure that the cleaning they get on their other home gets the same level of service.

What can you tell us about your quote and the property?

$400 for a"large" home (I’m assuming it’s comparable to the 5200sf home) would be at minimum about $400 for me to clean as well.

Whatever you do, I would not budge on your price, because for one thing, that price seems appropriate. And for two, if you lower your price, you discredit yourself and your service, by making it seem as if you were trying to “stick” the customer with a price that even you admit, is too high for the level of service you gave.

Every time I give a bid and a customers says something like that to me, I encourage them to get other bids and choose a vendor they are comfortable with.

Here is a thought to ponder, did they buy their 5200 sqft home and their vacation home by cutting their prices/salary for every job they did in their careers?

Stick with your price. They’re just repeating the same line they get from everyone who rents their vacation home.

The quote is actually a good price. The house is challenging and big. Its s vacation home so it may be cleaned 1-2 times a year. Its next to a river too so the buge love it. Too many times have I underbid and regret it. I feel this is where it should be. I have alot of things that come to mind of what Id like to say but and thinking over how to best respond to her email.

Thanks for responses. Generally whats your guys typical response to the customer? Do you even try and explain the reasons your service is more.

In my area we have the typical bucket Bobs and guys that pay help under the table. Some guys dont climb ladders, others drive old run down vehicles. I dont want to judge others its just if a business is ran that way the pricing is substantially different.

We’ve invested in the company, pay all necessary taxes nothing is paid under the table so on and so forth.

Does the customer even care about all that? Is it best to just say “well thats my price!”? or explain yourself away?

I’ll likely encourage her to shop around. But I can understand her point of view. “Why is it if supposedly
The homes are the same size the pricing is so different?” I think its a valid question and theres a lot of reasons that could be. Im just pondering how best to response to win her over so to speak. If Im gonna pay more for something Id like to know why to…

Yeah I aint changing my price even if I could. It makes you look weak.

Your service isn’t for everyone, bit those who hire you value the benefits and value you provide throughout the entire experience.

Don’t let one price complaint shake your belief in your price structure. Some customers will question everything. Just be prepared to explain
(not defend) your prices. Like bumblebee said they didn’t have the money for to large homes by giving their work away.

I would always rather people say he’s a little expensive but worth it.

When I first started working for myself I let a guy talk me down price wise. Did the job and he was very happy. Guess what he has never had his windows done since. I still curse him under my breath when i drive by his house but I should probably stop and thank him. Why? Because of that experience I have never backed off my price again.

Eric Russelll

I would say exactly that. I would also add different markets, different style windows = different price.

People call every day asking for a better price than what is on our postcard. They want us to do the work, just for less money.
You get used to it after a while.

Be confident in your pricing, if they aren’t happy with your price they will find someone who will do it for less.

The only way to grow your business is to be profitable. If you aren’t profitable and compete on price with every Bucket Tom, Dick and Harry company you will be swimming with the fishes before you can say…

I would respond with something along the lines of the following:

[B]Hello (customer),

Thank you for your honestly in your recent email regarding our prices. First, let me assure you that ($xxx.xx) is our best price. This price is standard both for our company and for many other established high-quality companies in this industry. We provide a top-notch level of service and professionalism that cannot be beat.

However, there are many different companies, who’s services and standards may not equal ours, or those who do not carry the same level of insurance, customer service and safety that we do.

I understand your desire to get the best possible service for the best possible price. I encourage you to shop around and compare all aspects of the different companies such as their quality guarantee, insurance coverage, experience, levels of service, etc.

We value every customer, and take the steps necessary to protect our customers and their property, as well as provide an excellent level of service and a first-rate window cleaning experience. Our prices reflect our values and our service.

Sincerely,

(you)[/B]

This way you show that your prices are well thought out and not just pulled out of thin-air. Also you will sound confident in your prices as well as being able to point out possible reasons why other companies may have lower prices.

Customers really don’t care if you pay your taxes because that doesn’t really effect them, however, pointing out things such as your insurance and service guarantees do have an effect on them.

If they are happy with your service and were simply enquiring about the price, then they should understand what your company is offering and why it cost what it does. But if they are just trying to go for the lowest price, then nothing you say short of offering to lower your price is going to matter to them.

Tell they you got 11 kids and their hungry!

Remember what we talked about in Beverly Hills, too, Adrian.

This is why you need to find an “only” and then attach all the value to it. It removes the apples-to-apples comparisons.

If its a vacation home they should expect to pay for the luxury.

When I got my start on Nantucket Island in '99 we would charge $1000+ for the same home I’d highball at $400 in NJ today.

That doesn’t make sense to me on the surface.

A vacation home is usually in an area where the cost of living and cost of doing business for those providing the service is sharply higher. Therefore, the cost of goods and services provided to the vacation home owners in said area is normally higher as well.

I don’t believe that assumption is accurate.