Hey everyone. How has everyone been handling price increases? Do most of you go up every year? I go up about 3% every year. I think everyone understands the small increases each year. Especially since everything has gone up so much!
3% ? Is that all? Doesn’t seem like that would be sustainable for long. I would go more like 15%
This 3% increase would be per service for that year. So if it is a $500 job that would be $15 more each time I clean their windows that year. Most jobs are twice a year. So that would be an extra $30 total going twice a year on a $500 house. I think that is fair.
Do you go up 15% each year? Thanks for the advice!
I think I increased about 18% for new tickets just due to the increase in cost of living and property tax increases. Food and hydration cost about double what it did 2 yrs ago in my area, so prices have to go up. I’d say atleast 8% a yr is reasonable unless you want to be stuck at what a normal 9-5 wage increase would be (which is typically 3% if you are lucky)
You are right. Everything has gone up so much in the last 2 years. That sounds good. Thanks for the feedback!
gotta use this and not let the years slip by, some big numbers the last 2-3 years, gotta keep up, gas is $6 gallon here now. this link has been a great equalizer
while you might run it since your last increase, try running a customer lifetime result - punch in the price you started off with on a first service a long time ago and see what it comes out to now compared to what you are currently charging
I went up roughly 20% last year, plan to raise again in January.
Thanks for sharing. I will try that and see what numbers come up. I appreciate it! Hope you are doing great!
@Bruce Hey Bruce. If you don’t mind me asking, how much do you normally go up each year? I go up 3% each year on my twice a year customers. My quarterly customers pay a little less since I clean their windows more often. I do not have any once a year customers. 98% are twice a year. Thanks for the advice!
Clients I want to keep I increase with inflation plus around 10%.
Clients I don’t mind losing I increase at least by 15%.
Clients that don’t deserve me I increase by at least 20%.
Pain to money ratio dudes. There’s a balance.
Know your worth. Value is subjective. They don’t choose you. You choose them.
Thanks for the advice! Are the majority of your customers once or twice a year?
My clients are all once or twice per year. I have a small amount that do 3 services inside of a year.
I found starting with the inflation calculator helps get a feel for what needs to happen at a minimum, then ill see what the job has been taking time wise, if it matches that’s good, if it needs to come up higher than that ill add more to get it where i want the hourly minimum to be at, ill round up or just add an amount thats a nice number i wont go from 100 to 103 for example (try 100 to 125 type stuff) . people get it and go with the flow 99% of the time, others may ask a question and you give a response and then they’re fine.
i have found price increases aren’t the dealbreaker one might think, depending on customer base of course, but the regulars stick around and the increases dont have to be so razor sharp on the percent.
hope that helps Chad!
Ok. Thanks for sharing.
Thanks Bruce! I appreciate the feedback. I agree that most people definitely understand the price increases. Everything has gone up so much! Price increases have to happen each year.
I increased my price on regulars during 2021 and 2022, not so much this year on regulars .
On new clients , yes we’re charging a higher rate this year over last year
I have had a few that I haven’t raised in a long time. With this crappy economy everybody gets run through the “Inflation Calculator” posted earlier in this thread. For some large jobs it ends up being $100 or more difference. One past customer just came up today from 2017, it figures through the calculator to be $70 more than then.
I was getting lunch yesterday and a storefront owner who I know saw my van and said oh you do window cleaning? Yup.
Then he goes on to say if I’d be interested in cleaning his store cause fish is too expensive, charging him $50 per clean. They used to charge $30 but now it’s $50 and they don’t do a good job he says.
If fish is raising prices, so should you!
especially if theyre raising 65%!
I agree 100%! Those price increases help a lot.