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End of the year price increase

Jillian Shelton

Contributing Member
Hey Guys and Gals I have a question
At the end of the year sometimes we as business owners have to change our prices due to gas, chemicals, etc that go up in price.
Im curious as to how often is too often and do you even want to change your price if you dont have to?
Thank you for any reply's
 

Tony Shelton

Environmental Consultant / Past Director
I hate to say this but we have only raised Prices once in 9 years and that was during the high gas prices.

For the small dollars a price increase provides I find it more palatable to just get more customers.

That's just me.

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Ron Musgraves

Past President
Staff member
Jill I raise all prices on jobs that require it. If the specific customer has a property that's a looser I will consider the entire portfolio first.


Feb Event Houston free free text me for more details !!
 

Chris Apple

New member
I agree with Tony.

I hear what Ron is saying too. I've got a few jobs that aren't big winners. Someday I'll do something about that.
 

Jillian Shelton

Contributing Member
Ok, We have only raised the price on one customer and that was two years ago and still have them to this day. But I noticed that some companies send a form to their vendors asking if there are any price increases I just thought It was odd.
 

Steven Button

Contributing Member
My experience with price increase forms has been that if your price does rise, or rises above a certain percentage, they have to rebid.

A couple of our better PM customers expect a 1.5 - 3% raise (in good times).

I usually ask PM's that we are contracted with how leasing is going, do they have any large projects on property taking place in this budget cycle, expiring leases, etc to get a picture of where they might be at. Also, ask directly if there is scope for an increase.
 

Tony Shelton

Environmental Consultant / Past Director
I lowered some prices during the worst of times with some customers due to hardship one example being a car dealership that was about to go under. All of those who survived stuck with me and most of them are paying between 30 and 50% more now with added services I priced a little higher to make up the difference when they turned around..

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Andrew Snyder

Contributing Member
I try to raise my price every three years on existing companies. Just make sure you price your new work to your current price structure. Some times we go after work just to get it thinking it will be profitable to find out after, that we need to raise the price.
 

Ron Musgraves

Past President
Staff member
Again our are only done by the single job when the rate doesn't meet our goals, always keeping in mind there entire portfolio. Some have losers in the portfolio. It will depend on the entire portfolio on how we react.


Feb Event Houston free free text me for more details !!
 
In stead of raising prices I try and get more efficient or quicker. This year we went to a 30" surface cleaner and a 1/2" air pump with a 150psi air compressor for our soft wash system. That allows me to do a 3 story townhome complex that has 12' ceilings without a lift. When I do large jobs like a hotel or large office building or a 2 or 3 acre parking lot I keep track of how many sq feet we can do per hour and I keep trying to improve that number.
 
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