| Copyright (c) 2007 The Janitorial Store | | | | expenses. |
| You started your cleaning business to make a | | | | Another factor to consider before raising prices is |
| profit and earn a living. Most cleaning businesses, | | | | your customer's current satisfaction level. Are |
| whether they do residential or commercial | | | | they happy with the job your cleaning company is |
| cleaning, start out with the owner doing | | | | doing? Most people understand price increases and |
| everything - marketing, cleaning, buying supplies, | | | | will stick with your cleaning company as long as |
| and even the bookwork. As your company grows | | | | they are happy with the job you are doing. After |
| and you hire employees and add more clients, | | | | all, looking for a new cleaning company takes time |
| your expenses grow too. When you started out | | | | and your customer may not get a better price or |
| you may have under-priced your services either | | | | the quality of work they want from someone |
| to get new clients or because you lacked bidding | | | | new. |
| experience. So now that your expenses are | | | | But don't be afraid to raise the price on a |
| growing and you've discovered you under-priced | | | | customer who is constant complainer, especially if |
| your services, what do you do? | | | | their complaints are not justified. You may need |
| First off, understand that raising prices is | | | | to raise your price to cover the extra time you |
| necessary in any business. Just take a look at | | | | spend in their office (or home). |
| things you buy on a routine basis - gas, milk, | | | | Once you have all your facts and the new price |
| cleaning supplies, electricity - prices do increase | | | | you need to charge, send a letter to your |
| and sometimes take a big jump! | | | | customer. Let them know that you are raising |
| Before you raise your prices to your cleaning | | | | your prices, why you are raising your prices, and |
| customers go back and take a look at your | | | | the benefits to them to continue using your |
| original contract. Does your contact state the | | | | cleaning company. Make sure you inform your |
| original bid price will be good for a certain length of | | | | customer at least 30 days in advance that the |
| time? If it does you will not be able to raise your | | | | price will be going up. Keep in mind that large |
| price until that time frame has expired. If not, | | | | corporations and government agencies may need |
| how long have you been cleaning for that client? | | | | more time if they have to run the price increase |
| Even if you originally under-priced your services | | | | through a committee or get approval by a board. |
| you may not want to increase your price if you | | | | The phrase "you get what you pay for" is often |
| have only been cleaning for the client for a short | | | | true when it comes to cleaning companies. Too |
| time. Most cleaning companies wait at least a year | | | | low of a price may mean the company is not |
| before increasing prices. If you don't have | | | | doing satisfactory work or that the company has |
| anything written in your cleaning contract about | | | | undervalued its services and will soon be out of |
| price increases, you should start adding a clause | | | | business. |
| about it with your next client. Many companies | | | | Pricing your services so you make a profit is not |
| guarantee their price for a year and state that | | | | a bad thing! Your cleaning company's survival |
| they take cost of living increases each year (for | | | | depends on charging your customers |
| example, 4%). Or they may state something like, | | | | appropriately so you can stay in business and |
| "we reserve the right to increase prices after one | | | | make a profit. Good customers will understand a |
| year". | | | | price increase and be happy to continue using |
| Before figuring out a new price go back through | | | | your services. And don't be surprised if a |
| your original bid and make sure that you have | | | | customer that leaves because of a price increase |
| everything covered so you are making a profit. If | | | | soon comes back! Many people eventually realize |
| your supply costs have gone up dramatically or if | | | | that a lower priced bid from another cleaning |
| you have added expenses (workers comp or | | | | company means their building (or home) is not as |
| more insurance because of hiring employees), | | | | clean as when your company provided their |
| make sure the price increase will cover the extra | | | | cleaning services. |