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Adjusting your prices for 09??

John Tornabene

New member
I am leaning for the first time in years not to raise my prices for this upcoming season. Obviously the economy state being the way it is that is the top reason why I am considering not raising my prices for 09. The other huge reason will most likely be the cost of Fuel which as of right now is about half of what it was last summer.

My prices are never low to start out with because all these years I always had a full time job to fall back on. Of course I needed to be much more competitive in my prices the last few years so I can keep my guys busy and also make my bottom line productive enough to make it worth it to deal with all the headaches that go into running a business.

What are you guys thinking about doing with your prices for this year??
 

Jfife

New member
Are you losing jobs? Upon what basis are you lowing prices?

I raised my prices. Everything for me is more expensive---why shouldn't I charge more? Some stain prices going up 20%.

JohnnyT---a lot of the recession business is perception and attitude. Don't participate in it. Think about this: if 10% of people in nyc are losing their jobs, then let's assuming 10% of Pwashers are going under. 10% less business, but 10% less servers. Wash. Raise your prices, stick with business as usual. Improve your sales angle, make more $$, and be in phenomenal shape when the economy picks back up!
 

Tony Szabo

New member
We are not adjusting any prices just doing business as normal. Only adjusting prices as our good and services go up, and if they go down we will offer discounts to customers.
We did pre-advertising last fall and have customers left over from last year that we did not get to in time before bad weather conditions moved in on us. We are just sitting and waiting for spring type weather and then I will be hiring at least three new employees to start the season and maybe four. Guess we are lucky because our only head aches maybe hiring and training fresh blood. Already booked up to at least for the first month to two months.
 

John Tornabene

New member
Are you losing jobs? Upon what basis are you lowing prices?quote]

I am not going to lower any prices but alot of my prices will stay the same. Basically I was increasing my prices around 10%/yr for the last few years on average but I for the first time in my life am a bit pessimistic about something.....and that something is the economy. I am bracing myself for 09 to be a Hugely bad year here all around me. I am going to most likely put more money towards advertising but I am expecting to get a lower % of jobs out of my advertising.

On the flip side of that I am looking forward to the UAMCC opening there doors for membership and to keep networking for any potential jobs that may come my way.
 

LSPW01

New member
I'm not changing my prices either. But, I have added on an extra service here and there to get the business. Such as adding on a dumpster area or grease can cleaning, takes an extra 30 minutes. But the prices remain the same.
 

Terry Miller

New member
We have raised labor prices this year. We planned for a slow Winter and pretty much got it. Now we have adjusted our financial & business plan to account for the slow economy. All in all, it still should be a pretty good year.
 

Jim Chesmore

New member
If they are calling you, they have the money or they would not have called.

My prices are going up. When my phone stops ringing, then I will need to figure something else out :yes:
 

Scott Davis

New member
If they are calling you, they have the money or they would not have called.

My prices are going up. When my phone stops ringing, then I will need to figure something else out :yes:
That is a good point. When I sold cars our managers pounded that concept into our heads. ALmost every customer on the lot, has the want, need and means to buy a car. The "im just looking" crowd are the biggest new salesman killer, but a seasoned salesman will close them at least 40-50% of the time.

If customers are calling about getting teir roof or house washed, they have the desire and the cash to do it. Now the exceptions are the ones who have gotten it done in the past for 1/3 of what you charge, but even they can be brought around.

Good point Jim! :yes:
 

DJ Carroll

New member
-House wash price are staying the same
-Roof cleaning min. is going up a hundred dollars (i keep getting yes answers instead of no)
-Lawn Care min. is going to $40 a week
-Landscaping prices will stay about the same for installs, prices will adjust to plant price in creases
 

Ron Musgraves

Past President
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.
 

DJ Carroll

New member
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 :yes:
 

plainpainter

New member
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.
 

Tony Shelton

Environmental Consultant / Past Director
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 :clap:

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. :saai:

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.
 

Ron Musgraves

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

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. :saai:

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.
 

plainpainter

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

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. :saai:

.
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.
 

DJ Carroll

New member
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 :saai:
 

Tony Shelton

Environmental Consultant / Past Director
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.
 
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