It's important to raise cleaning prices as your costs increase. However, the fear of losing clients shouldn't keep you from adjusting prices.
While losing some clients is unavoidable, there are measures you can take to reduce the amount of lost clients.
In this article, you'll discover how to increase cleaning prices by taking measures, such as:
As your business costs naturally rise, it's important to adjust cleaning prices according to industry standards to adequately accommodate it.
In fact, several recent factors have spiked costs industry wide for cleaning businesses:
In addition, an increase in demand has pressured cleaning businesses into making a decision between either:
Now, more than ever, consistent re-evaluations of pricing are essential. In turn, you can pinpoint your current break-even point to meet your desired profit goals.
Although, due to individual business needs, it's important not to closely compare or copy the competition's cleaning prices. Remember, basing your prices on average local and state costs is more important.
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One of the best ways to decrease the chances of clients leaving during a price increase is by raising them at the right.
Keep in mind, one of the worst times to raise prices is during the busy selling season. Based on your local market, this is likely around spring selling season.
Remember, the competition is trying to poach your best clients during this time with flyers, business cards, targeted social media ads, Google Ads, and just about any other marketing tactic possible.
For this reason, you don't want to give clients a reason to leave you while the competition is already targeting them.
However, there are times when a price increase during selling season isn't avoidable.
For example, you'll have to raise prices on a client who's causing your business to leak profits. Although, it's usually best for these unprofitable clients to leave for the competition anyways.
Even though you should always avoid raising cleaning prices during the peak selling season, these are a few of the best times to increase them:
Remember, raising prices when the competition is likely too busy to poach clients is the most ideal time. In addition, clients often forget about the new increase when you time it at the end of the busy season.
Before raising cleaning prices on all clients, it's important to first increase it on your least profitable ones.
As a result, you can perfect the process using your least profitable clients. In turn, it won't hurt the business as much as if profitable clients left for the competition.
First, evaluate your profits on all current clients to determine profitability. Then, compare it with your profit goals to see if the profits match up.
Also, when you use Service Autopilot, the process for evaluating client profitability is quick and easy. Plus, you don't have to waste countless hours searching files and crunching numbers just to calculate it.
Every client who's impacted by the price increase should receive a letter explaining the change.
In addition, you can use this letter to reassure clients that their new prices ensure their continued high-quality cleaning services.
[insert cleaning business logo]
Dear [Client Name],
Due to rising economic factors, [Cleaning Business Name], will be adjusting our prices soon.
Our billing reflects the labor, equipment, materials, fuel, office/billing expenses, and various other costs making up the price of our services.
In order to continue providing you with the highest-quality cleaning services you deserve, our cleaning service price [insert cleaning clients' cleaning service agreement] will increase to $XXX.XX on Month Day, Year.
We will continue to invest in the best materials, equipment, and training available to us. This will allows us to send the best cleaners to your home.
We're continuing our commitment to a complete satisfaction guarantee. If you're not 100% satisfied with your cleaning services, then we will return, free of charge to resolve the issue.
As always, call our office at XXX-XXX-XXXX with any questions, comments, concerns, or updates to your scheduled services.
Sincerely,
[Cleaning Business Owner Name]
{Cleaning Business Owner Signature]
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After sending your price increase letter to your least profitable clients first, it's important to then test out the process profitable clients.
The easiest way to measure its success is by sending email and text surveys to these clients. Then, use this feedback to improve the process for your most profitable ones.
Plus, Service Autopilot Automations allows you to receive feedback by sending automated surveys via email or two-way texting.
By routinely re-evaluating your cleaning prices, you can ensure all weekly and monthly profit goals are met.
Remember, raising cleaning prices on unprofitable and minimally profitable client is never something to be fearful of.
After all, it's better to lose unprofitable clients than to lose valuable resources that could be used on profitable ones.
A price increase doesn't have to be a complicated or complex process. Begin using these measures today so you can raise cleaning prices without losing clients now!
Related: How Much to Charge for House Cleaning
Originally published Feb 8,
Tags: Business Operation
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