Do You Find Yourself Defending Your Cleaning Rates?

Our last post talked about competing against low-ballers. This week we have a similar topic. A member recently submitted the following:

"I have a customer that we clean weekly. I charge her $105.00 -- she has a 4500 sq ft house with 3 dogs that come and go as they please. We drive 45 minutes to get to her house. It takes us about 2 hours with two people to clean, sometimes more. She had a discussion with me last week before we left that she had received a couple of business cards from some cleaning services and that she called them to find out her rates. Turns out that they are not a legitimate cleaning service, just an individual that cleans, they have no insurance or bonding. I'm sure they don't pay taxes. One of the ladies told her $15 an hour and the other $18 an hour.

I explained to her the difference in hiring someone that doesn't carry insurance. Also explained to her that I had to pay employees for drive time and the increase costs in gas. I just recently increase on her $10 a week. When I originally priced her about a year ago I priced it at $125 and she talked me down to $95. When gas went up I was regreting giving her that deal. She says that she bases everything by the hour and she doesn't see paying someone that much an hour to clean her house. I believe she was telling me this so that I would go down on the price again. I stood my ground and tried to be professional about it. I was really proud of myself.

Today she calls me to tell me that she will be trying out one of the ladies on Thrusday and she doesn't see the point in me coming to clean on Wednesday! I told her that I understood and that I hope everything works out for her. Has this happened to anyone else? How did you handle the situation?

A wise business owner offered the following advice:

In the future, I would avoid the "defending the price" position and not get into a long explanation about how much it costs you to clean her house (the travel time, the employee taxes, the insurance, the bonding). All of that information is peripheral.

What is important is what she gets with your service: "I provide my clients with professionally trained and thoroughly screened workers, my clients want a service that is insured and bonded; they aren't looking for the cheapest deal--they want quality and security, so they are willing to pay a little extra for that benefit. We are probably just not a good fit for you as you really need a lower priced service".

Do you see the difference? Make it her fault, not yours, that she doesn't value quality and security over price. This is never done overtly, just quietly implied, of course. In your scenario you are on the defense explaining your costs and she is equating your problem ("high costs") with her rate. Instead, she needs to be reminded that SHE gets the benefit of using a service like yours and you're not that much more and you are so worth it. The firm but polite reminder will help those that really do value quality and security to rethink a change.

For those who are just looking for cheap deals--good riddance. Keep it professional and non emotional. She struck a nerve with you and it showed in your defense. Let them know that the perfect client fit for you is one that truly values quality and security. Also, when they pull that stunt, let them know you have actually had another rate increase and will honor her rate only as long as she continues with uninterrupted service for "x" amount of time (maybe through the end of the year or whatever). But, if she cancels you will fit her back into your already booked schedule at the “new rate”, not the old rate.

Also, depending on however much time lapses, let her know you will have to charge a new service “initiation fee” because you usually have to take up the slack for those “cheaper” services. I would go get your stuff on Wednesday and let her know you've already filled that spot (don't be cheeky, be professional). When she calls back, make sure that the “new rate” reflects that 45 min. travel time and make her wait for an opening! You're the boss.

Comments

[tonya]

I think she is betting on winning this round with you also,since she got her way the last time. She will be very disappointed this time around. Do not let her have the upper hand you will forever pay the price with this customer. It is so much more pleasant to clean a home when you are happy with the fee they pay.

[Kay Soyemi (Esq.)]

Once had a client who moved offices to smaller and newer premises and therefore indicated a desire to have the price lowered despite already paying a ridiculously low price achieved by splitting the peripheral costs among other clients. The alternative to our not lowering the price would be the loss of the business and they would do it in-house. I informed him that what he already pays does not cover the service he enjoys and that he also had the choice of indeed cleaning in-house if he thought this would be cost-effective for his business as I was sure he would not pay his staff the same hourly ratio he was paying for a professional clean. He was welcomed to try his alternative, but he declined and retained our services. In my experience, clients asking for reductions are simply looking for an excuse to move on and just trying it on, in case!

[Cory]

We've found out that in most instances the customer comes back to us.

[John T.Schwanger II]

To tell you the truth I beleive your customer is going to get a rude awakening and end up paying more for these other people. I agree you can't let them dictate how they pay. We are in business to charge in a way that provides the service we want to provide and profit. How you come up with your figures is really not for them to understand. When you pay for a service it is a convienience. I personally think your allready to low.

[Owner of 3 Cleaning companies]

Put it this way...if you said it takes you 2 hours or more with 2 people...and she wants to get a person to do it for her for $18/hr..it will take that person atleast 4 hours, which is $72, only about a $30 dollar difference...you tell her this..and then explain the difference between someone who provides insurance against someone who does not...and would u rather have your house cleaned in 2 hours or 4 hours? if she still refuses, give her your business card, and say well if you ever change your mind..we'll be more than happy to help you...thats all

[Gary Pollard]

Your customer does not benefit from your employee taxes and travel time. She does however benefit from your insurance, quality of work, reliability, professional ethics, experience. If the other service offers all this at a lower rate she is getting a very good deal. Wish her well and move on. If you ever feel that you need to be more competitive, don't just bargain with someone for their lower price. Offer them more service for your price. If you anticipate that you may have to cut a price rather than lose a job, consider being proactive and offering it yourself before your customer asks for it. By the way, I agree that your pricing seems very reasonable for the service you offer. That's an awfully large house to get clean for a hundred bucks. Good luck.

[Roy Kennedy]

4500 sqft is a real large house to clean for that price . I think your client will be dissapointed with the new cleaners when she sees how long it takes them . I would wish her well and check back in a few weeks to see how its going . I clean with one helper and thats a lot of house to clean I wouldnt be suprised if she calls you back

[Yvonne]

I agree, your price is pretty low for the size of home. When I started out in my business, I came in at a low rate, just to build my business. I quickly learned I was way too low, and for every new client after that, I increased my price quite a bit and weeded out the lower paying clients. I usually dont get turned down, and I simply and professionaly say thank you and good bye to the people that want my service for dirt cheap. I also have learned not to be afraid to stick with my price, and I am still gaining new and quality clients. Stick with your gun's girls, we work hard for our money!

[Clean4Me Residential Cleaning]

Cleaning ladies are not your competition. You are a professional house cleaning service.

You can tell her with a smile, "I'm sorry, but we do not deal in black market labour. We pay our taxes as a responsible business and we screen our employees for your security and to protect you against liability."

This customer seems intent on setting up a Win/Lose arrangement. Don't take her bait.

Leave the invitation open for her to come back and be sure to call her in 2 - 3 months to check up on her (out of concern for her home and respect for the relationship).

[Moises (Plan "B" Enviroment Services)]

I really sorry for you...you are doing what we called in Arizona.." a Charity cleaning" I'm not going to clean a house for that price!! that's crazy...you don't need to deal with this kind a customer (she's lookin' for lower even more ur rate) if she wants to go to someone else...perfect let her try..I know is hard to find customers in these time but..BE PROUD OF YOUR QUALITY SERVICES... Hang ON!!!

[dex]

I;m new to the business. What's a good hourly rate to begin with? Thanks.

[Beverly]

I charge $30.00 an hour and a 4500 sq ft. house is approx. 7 man hour job for me.

If customers do not like my rates, I just tell them that they would probably be happier with another service and wish them well as I run as fast as I can from their house! If I have a customer who complains about the price, I really don't want to clean their house anymore.....ever. If they call me back later, I will always feel in the back of my mind that they are not happy and that makes me not happy to clean for them, so I usually decline. I would rather be happy without them, then have their money and be miserable.

[Janet]

I agree that a 4500 sq ft. home takes 1 person 7-8 hours to properly clean that many rooms and flooring and 2 people 4 hours at minimum.. It was mentioned that it takes 2 of you 2 hours? Not sure how anyone can clean that size home in 2 hours with only 2 people and completely clean it bathrooms, kitchen, dusting, floors etc. I use a sandia hipster for floors which cuts down on alot of floor time but I still cannot imagine how I and my partner could get through a house that size in 2 hours, please share your tips and tricks? Thanks!

[The SuperWoman]

Even though the economy is hard right now, for us - I agree with someone who mentioned I would not want to clean for that client if they call me back - they are already not happy to pay that price and their is no way you can up sale some of your extra services because they think your rate is high already. I am not advertising and I am going by my car-wrap and referrals only right now, so the referrals already know my rates and quality of work. When I do a walk-through I ask have you had your home serviced before and if they mention a trunk slammer, I right away mention I am a professional cleaning business who is licensed and insured and go into my presentation. I mention I offer QUALITY services. If they start to mention that your prices are too high, I do mention there are other cleaning services out their that might be a better fit for them. Because really I dont want a client who does not want and appreciate the QUALITY of service that we provide.

[Cathy]

As my business grew and the skills of my employees improved to the level of highly competent, my prices increased and now I am totally comfortable quoting and standing by my prices.

Not only are real cleaning companies required to have insurance (a major expense) but products and equipment. And to retain the best employees, we must pay a decent wage.

For a client with a 4,500 s.f. home, I would quote $210 biweekly rate without even blinking. They are welcome to go elsewhere if they have no interest in paying the fee.

[Cathy]

I wanted to say one other word about "weekly" clients. Some people believe that if a house is cleaned weekly, it will be well maintained.

Not always true. Some families are very active and leave a great deal of work for the cleaning techs. For a 2,500 s.f. home, I'd definitely charge $210 biweekly (minimum).

BUT...if it were a weekly account and they were a relatively tidy family, I would be willing to negotiate down to about $ 185 weekly because if every room and every floor are to be cleaned each time, that's a tremendous amount of back breaking labor on the employees. That a job.

A house that size is guaranteed to have a finished basement---huge basement and tons of bathrooms throughout the house. That's a job!

[Cathy]

Correction: In the above, I meant to say "4,500 s.f. home"...NOT 2,500

[Jean Hanson]

Cathy - glad you're confident in your pricing. Sounds like you've learned a lot through experience. Thanks for sharing!