I would like to get your guys input on a topic regarding price increases.
For example.
Mrs. Johnson- She used your service 5/6 years ago… she wants to go back out and re clean again 5/6 years later.
Obviously you prices have slightly increased since, Everything goes up after a while… ect…
Do you guys charge her the same as before? Or do you explain there has been a slight price increase since?
If so, is there a rule of thumb? 5%?
I usually keep my prices the same on yearly repeat Coustomer’s, but if I don’t see them for anything over 3 I apply the increase…
Some people really struggle with this it seems, They come back around years later expecting to pay the same…
I haven’t been at PW long enough to do a price increase, but we have to increase our window cleaning side every few years.
sometimes I reference an inflation calculator. Around 2.5-3% per year is adequate, though (unless you underpriced to begin with and have some catching up to do).
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Seem reasonable.
I do my best to keep my prices stable, specially with loyal repeat customers that at very least are having us do work for them yearly or more… but when the every 3-4-5 year returns come around, I have no problem telling them about the slight price increase.
Not a chance would I give them the same price. Not after 5-6 years, I wouldn’t even have a conversation about the invoice issued 5-6 years ago. Waste of hard drive space.
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Oddly enough our prices on many things have gone down over the years . Mainly because of market saturation
Yikes. This terrifies me. Let’s hope Florida stays as unique as the lore.
As for the original situation. I have not been in business long enough to know for sure. But I would think on a 1-3 year return customer price could stay the same.
On year 4, price go up no less than 10%. Likely more. A customer returning on their 4th consecutive year that balks at that is just out of it. A quick explanation how you haven’t raised prices on them in 3 years should really be the end of it. I mean prices do go up across the board and everyone knows that…or we assume.
I have come across many customers that say, “well I had a guy that’s been doing it for 15 yearsfor me and does great work but xxx… your price is much higher than I’m used to paying.”
Dont be that guy who doesn’t raise his prices over 15 years lol. Please.
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Everyone gets the new price every year unless they are on a maintenance contract. I don’t even reference the old price unless they themselves bring it up because it is not relevant at all. Do you think they would come back to you if your prices decreased and ask to pay your more because their bill was higher last time? Nope.
If they ask about it I just tell them that I evaluate our prices every year and this is our price right now. My prices are not negotiable in most cases, so they can take it or leave it. If they don’t wan’t to schedule someone else will fill that spot.
Those customers crack me up. “I’ve had a guy for 15 years…” blah, blah, blah. I simply tell them that if they’ve been happy with that guy for 15 years and his prices are that much lower they should continue to give him their business. That’s when they come back with “he wen’t out of business a couple of years ago” (wonder why), or “he hasn’t called me back in 3 months” (wonder why), or “he’s always done just an ok job but misses a lot of things” (wonder why).
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