With everyone cutting back to save money since the economy went south, cleaning companies are feeling the pinch! Many of us have lost customers because they went out looking for a cleaning service that offers cheaper prices. So why shouldn't you give in and offer cheaper prices? Well actually, you CAN! In know that's not what you were expecting me to say, so read on...
What many cleaning business owners do is cut prices to help out the customer, but they stop there. What is wrong with this? The money has to come out of someone's pocket and of course that pocket belongs to the cleaning business owner - not the customer! They've just slashed their profit by cutting prices.
What can you do? When you offer to cut prices to help out your customer, you will also cut out or back off on the frequency of certain services. So when you negotiate with your customer, say "sure, I can work with you to reduce the price! Here's what I can do..." And then give them alternatives on services you provide.
For example, if you're a commercial cleaning company, you could cut back on trash removal frequency -- instead of 5 days a week, collect the trash 2 or 3 times a week. Or you could vacuum the entryways, public areas and main traffic lanes daily, but cut back on vacuuming employee areas that the public doesn't see, or other areas that don't receive much traffic.
If you're a residential cleaning company you could go from weekly cleaning to bi-monthly cleaning. Or you could alternate a regular maintenance cleaning with a light cleaning where you don't dust everything and cut out certain rooms in the home that aren't often used.
Just because customers want "cheap prices" doesn't mean you need to sacrifice your own profits to give them what they want. Think creatively with your specifications lists and work with your customer to make it a win-win situation for all!
What have YOU done to offer your customers "cheap" prices? Post you comments by clicking on the Comments link below.
Great post! I'm not keen on discounting - we can't be slashing prices as this keep everyone;s profits low. Later on, as prices go up for our supplies it will be difficult to raise our prices.
Posted by: Eve Sanders | June 23, 2009 at 07:23 PM
Good advice! However sometimes this works and sometimes they just start shopping your competitors for someone who will or (at least say they will) provide all the same services for a lower price.
I think it stinks but all business is like this.
Unfortunately like it or not, sometimes it's all you can do if you want to retain the client.
Yes I know it cuts into my profits but, the way I look at it, if there's a $500.00 profit in the account now and I cut it by $100.00 I've lost a little profit.
Would you rather lose it all? Not me. I will make it up somewhere.
Fortunately most clients appreciate your good service and good work and will not put you through this ringer.
I mean someone is not thinking very clearly if they are willing to throw away a company that is providing good service and has proven themselves to the customer in Hopes of going with a new company whom they know nothing about, in hopes of saving $50.00 - $100.00.
Posted by: Rick | June 24, 2009 at 04:59 AM
You're absolutely right. If people do want prices reduced and they're not willing to meet me part-way because of the value I've already provided to them, then they're not my ideal customer anyway. I'll move on...
Posted by: Jean Hanson | June 24, 2009 at 07:16 AM
I am starting a customer rewards program. Every 11th cleaning is free.
Posted by: Kandi | June 25, 2009 at 09:00 AM
Kandi- Are you offering the free 11th cleaning for all clients or just weekly and biweekly?
Posted by: Robin | June 25, 2009 at 10:43 PM
Just yesterday, when I gave a bid to general clean a 3200 sq. ft. home for $180.00 per visit, the potential customer told me that the "company" cleaning her home now only charges $80.00. We discussed how the other "company" probably did not pay insurance or taxes or they wouldn't be in business and that if she wants a lower price, we could cut out some rooms, but she said there was no way she could do that and then said that she could probably afford $180.00 for a once per month cleaning and would call me to start next month.
Posted by: Beverly Linton | June 27, 2009 at 08:48 AM
Beverly - that's great! It's nice when the customer finally understands the importance of hiring a company who plays by the rules...
Jean
Posted by: Jean Hanson | June 28, 2009 at 04:41 PM
Currently, our monthly clients get their 13th clean free. Most of our monthly cleans are elderly retired people, so we feel we need to do our part in helping out our senior citizens. They love it! Today, one of our monthly clients asked us to clean their carpets on their free month date so we wouldn't lose the income ... you've got to give to get!
Posted by: Dee, Minneola, FL | July 02, 2009 at 09:33 PM