I'd like to know what is the proper way of handling price increases for existing customers. I have had a couple of customers for a while now and my buisness is beginning to grow and I'm realizing that some jobs are not worth doing because I am not making any money or I have another job that pays more. Don't get me wrong some money is better than no money but you can't work for free and I guess people don't understand the costs of my expenses. I'm really stuck between a rock and a hard place with a couple customers because it is good money but not enough money so any help from anyone I'd appreciate it.
Raising Prices
- Thread starter Jhignutt
- Start date
If you have a good relationship with them they will understand,and if you don't they would probably leave for a lower price in the future when approached by a competititor of yours anyway. Most people understand the costs of doing business, since they are in business themselves and realize those costs go up,it is most probably a bigger deal to you in your head(as most problems are) than it will be to them.Just bring it up in conversation,and tell them your price for _________ is now $******,if they badger you why,tell them fuel,insurance,labor costs etc.The agony of worrying about telling them is worse than telling them,and if you lose them as an account,like you said,you have better paying work waiting in the wings.I just upped one of our accounts,and am now 20% higher than the person he was using before us,he got a little distant at first,and mentioned that he always keeps a few contractors in the wings if the current one does not measure up.I told him to do what ever he thinks he has to do,and I really value him as a customer,and understand ,but my costs went up and I need to cover my costs also.That was over a month ago,and I still have him as a customer,and the slightly negative attitiude over the price increase has gone away,and we are on good terms again.If you do great work and over deliver customers will not want to lose you,and if they drop you for someone cheaper,they weren't worth investing yourself in as a long term business relationship.Tell them calmly and dont let them smell fear or nervousness,it will inspire them to try and rattle you to keep your price where it is, especially if they think you really need the money(as most of us do!)if you act like the price increase is something you cant avoid,and this is your new price they will most likely accept it,and if not see ya!
Good Luck
Jim
Good Luck
Jim
Henry Bockman
Maryland Pressure Washing
Most of us raise our prices by 5% or more a year to begin with to keep up with increased costs and the cost of living. You might want to consider doing this with all of your clients. Most of them don't even notice the increase unless you point it out to them. (yearly jobs)
I understand your concerns, I've had them myself a long time ago but you have to remember this. Are you and your service worth the price increase? If so, what's the problem? If not then you might want to think about getting a part time job and getting out of power washing. If you don't think your worth a yearly increase in price to keep in the green then your clients won't either!
I understand your concerns, I've had them myself a long time ago but you have to remember this. Are you and your service worth the price increase? If so, what's the problem? If not then you might want to think about getting a part time job and getting out of power washing. If you don't think your worth a yearly increase in price to keep in the green then your clients won't either!