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Thread: Adjusting your prices for 09??

  1. #11

    Default Re: Adjusting your prices for 09??

    I truly think you have to determine if we are talking residential or commercial.

    Different parts of the country are also based on the economy local.

    I think commericial is remaining the same and has not been hit by the economy as hard yet but could be the bottom of this when it happens.

    Ibelieve all smart business have tighten up alot over the last few months and will remain to run lean and without extra or increased spending. This means that often they will do without some services if increases happen.

    Residential will be by demographics more than any of this commercial world. This will all be based on your target and type of customer you service.

    If your a high priced guy in the wrong economic areas or low priced its not going to matter. The same will apply if your area is stronger. People are beginging to spend there way out and I feel it in my area.

    I cant speak for John IN NY, he has a area that is being possibly hit harder than PHX. DJ lives in smaller community and doesnt warrant making load to keep small over head going.

    I guess we are all dfferent shapes sizes and demograpics, so evaluate your own sistuation and make a choice.

    We are electing to hold current pricing. We have customer over 25 years, we are working together to get thru this time.

  • #12

    Default Re: Adjusting your prices for 09??

    Quote Originally Posted by Ron Musgraves View Post
    I truly think you have to determine if we are talking residential or commercial.

    Different parts of the country are also based on the economy local.

    I think commericial is remaining the same and has not been hit by the economy as hard yet but could be the bottom of this when it happens.

    Ibelieve all smart business have tighten up alot over the last few months and will remain to run lean and without extra or increased spending. This means that often they will do without some services if increases happen.

    Residential will be by demographics more than any of this commercial world. This will all be based on your target and type of customer you service.

    If your a high priced guy in the wrong economic areas or low priced its not going to matter. The same will apply if your area is stronger. People are beginging to spend there way out and I feel it in my area.

    I cant speak for John IN NY, he has a area that is being possibly hit harder than PHX. DJ lives in smaller community and doesnt warrant making load to keep small over head going.

    I guess we are all dfferent shapes sizes and demograpics, so evaluate your own sistuation and make a choice.

    We are electing to hold current pricing. We have customer over 25 years, we are working together to get thru this time.
    Good point Ron,

    I can say that living in a smaller rural community, it almost feels as if we are isolated. I billed out just over $2500 this past week in snow removal. I think 2009 will be fine i think it is just going to take working thru a few more no's or adding a little extra value that is already in your service but that you didn't have to market before. Something as simple as like i do with hot water, low pressure, and the wet waxes. I feel that product differentiation is going to be key this year
    DJ Carroll
    President of [COLOR=Blue]EasyPro[/COLOR] [COLOR=SeaGreen]Property Services[/COLOR], LLC.
    502-525-EASY
    Carrollton, KY 41008
    [URL="http://www.easypropropertyservices.com"]Pressure Washing in Louisville, KY[/URL]
    [FONT=monospace]
    [/FONT]

  • #13

    Default Re: Adjusting your prices for 09??

    Some of my prices are going up and some are staying the same.
    Jonathan S. Ellis
    Kleen Crete, Inc.
    www.kleencrete.com
    jonathan@kleencrete.com
    770-681-0881 (o)

  • #14

    Default Re: Adjusting your prices for 09??

    I will be working harder to target higher and higher end customers. I will use last years pricing as base for this years' pricing - and increase pricing until the point I can only close at 35%. If I am not making my mark - then I will further research if I am adding enough 'value' in my sales and/or targeting the right clientale. If volume is low I will back down pricing until I close at 50%. OF course this all falls apart if I am not getting a good amount of qualified leads.
    Daniel Tambasco
    Just Plain Painting
    Gutter Cleaning MA
    Deck Restoration Contractor
    978-749-9808

  • #15

    Default Re: Adjusting your prices for 09??

    Quote Originally Posted by plainpainter View Post
    I will be working harder to target higher and higher end customers. I will use last years pricing as base for this years' pricing - and increase pricing until the point I can only close at 35%. If I am not making my mark - then I will further research if I am adding enough 'value' in my sales and/or targeting the right clientale. If volume is low I will back down pricing until I close at 50%. OF course this all falls apart if I am not getting a good amount of qualified leads.

    Dan, if you can close 35% of your sales you should come on out here and work with me

    If I closed 35% I'd be increasing my annual revenue (rebillable annually) by over 700k every year.

    I'm happy if I close 5% in new sales each month.

    That's why I've been debating lowering prices. My prices are already in line with the lowest prices of my competitors, but I have some room to work in the pricing because our MoO is almost twice as efficient as the competition.
    Sonitx
    702-358-7477





    Free FREE Events www.uamccevents.com

  • #16

    Default Re: Adjusting your prices for 09??

    Quote Originally Posted by tonyshelton View Post
    Dan, if you can close 35% of your sales you should come on out here and work with me

    If I closed 35% I'd be increasing my annual revenue (rebillable annually) by over 700k every year.

    I'm happy if I close 5% in new sales each month.

    That's why I've been debating lowering prices. My prices are already in line with the lowest prices of my competitors, but I have some room to work in the pricing because our MoO is almost twice as efficient as the competition.

    Tony, what your doing is so good I will fly out again.

  • #17

    Default Re: Adjusting your prices for 09??

    Quote Originally Posted by tonyshelton View Post
    Dan, if you can close 35% of your sales you should come on out here and work with me

    If I closed 35% I'd be increasing my annual revenue (rebillable annually) by over 700k every year.

    I'm happy if I close 5% in new sales each month.

    .
    Are you saying out of twenty estimates you do, you only get one job? Is this like a commerical 'world' scenerio? I am talking about marketing to higher end residential customers. I've heard marketing to commercial world is totally different. Perhaps you mean you close 5% from a mailing - that would be out this world statistics. But if I went to estimate folks and only got 1 job in 20 - that would be very bad. That would be so bad - I wouldn't even consider my price was too high - you'd have to priced at quadruple the 'going' rate in order for that to happen.
    Daniel Tambasco
    Just Plain Painting
    Gutter Cleaning MA
    Deck Restoration Contractor
    978-749-9808

  • #18

    Default Re: Adjusting your prices for 09??

    Quote Originally Posted by plainpainter View Post
    Are you saying out of twenty estimates you do, you only get one job? Is this like a commerical 'world' scenerio? I am talking about marketing to higher end residential customers. I've heard marketing to commercial world is totally different. Perhaps you mean you close 5% from a mailing - that would be out this world statistics. But if I went to estimate folks and only got 1 job in 20 - that would be very bad. That would be so bad - I wouldn't even consider my price was too high - you'd have to priced at quadruple the 'going' rate in order for that to happen.
    Or just not appeal to the customer
    DJ Carroll
    President of [COLOR=Blue]EasyPro[/COLOR] [COLOR=SeaGreen]Property Services[/COLOR], LLC.
    502-525-EASY
    Carrollton, KY 41008
    [URL="http://www.easypropropertyservices.com"]Pressure Washing in Louisville, KY[/URL]
    [FONT=monospace]
    [/FONT]

  • #19

    Default Re: Adjusting your prices for 09??

    Quote Originally Posted by plainpainter View Post
    Are you saying out of twenty estimates you do, you only get one job? Is this like a commerical 'world' scenerio? I am talking about marketing to higher end residential customers. I've heard marketing to commercial world is totally different. Perhaps you mean you close 5% from a mailing - that would be out this world statistics. But if I went to estimate folks and only got 1 job in 20 - that would be very bad. That would be so bad - I wouldn't even consider my price was too high - you'd have to priced at quadruple the 'going' rate in order for that to happen.

    My bad. I wasn't taking into account you were talking about residential. I just skimmed and posted like an idiot.

    Last week I put out about 30 bids. (email, or overnight mail packets) with pictures, evaluations and recommendations. Out of those I expect to get maybe one or two, for NOW.


    Almost all of them are in contract with a current filter service or HVAC co. The ones who aren't have to be educated on the need to change filters and clean coils. I will just keep hitting them over and over again.

    I've gotten calls as long as 4 years later to start up service. I just keep following up.

    35% in the commercial market is not realistic in my market.

    (Also, I'm not bidding people who have called my yellow page ad, or website etc, I'm doing blind bids or cold call bids. On the calls I have about a 50% closing rate)


    I would imagine cold calling house painting jobs would have a pretty low closing percentage also.
    Sonitx
    702-358-7477





    Free FREE Events www.uamccevents.com

  • #20

    Default Re: Adjusting your prices for 09??

    Quote Originally Posted by EasyPro View Post
    Or just not appeal to the customer

    Can you explain that?
    Sonitx
    702-358-7477





    Free FREE Events www.uamccevents.com

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