Stop Competing on Price

Dan Flynn

PWN Founder
Laurie Grathen has written a great article in the Cleaner Times Magazine. It is in the March issue and I encourage everyone to read it.

Laurie,

Great article, very well written. I enjoyed reading it very much. I think that it was very informative. It gives me a good feeling to know that the quality of cleaners in our industry in really starting to peak.

When you stop competing on price,you prove that you are not just a contract cleaner, but an entrepreneur who has selected contract cleaning as their business vehicle.

I love that part. Keep up the good work and high standards you bring to this industry.

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Dan Flynn
Flynn Service Pro www.powerwash.net
708/715-4206
 

JR Wood

New Member
Hasn't anyone ever heard the term competitive prices.The only problem I have with that is,When I stop competing on price I STOP EATING,and paying bills and so on...The market I am in,doesn't afford me the luxury of riding out the weekend warrior no matter what any business GURU might come up,there are simply too many of them.I am sorry but no matter how confident I am with my skills,experience and abilities, waiting for superior craftsmanship and professionalism to prevail could end up sending me back to landscaping and being under someone else's thumb.I do consider myself pretty good at what I do which is mainly deck restoration and residential cleaning(house washes and the like).I have at this time over 350 decks under my belt which I have logged probably 6 complaints in 4 years.And that was my fault because I promised more than I knew I could deliver in the early stages of learning.I have done over 175 house washes,thousands of sq ft of concrete cleaning.Dozens and dozens of driveway sealcoating.I have around 275 gutter cleaning customers,which puts a lot of cash in my pocket for the winter. BUT I Know I could lose everything if I didn't adjust my prices to the craziness that seems to go on around me. I have earned a good reputation in my area and some people simply will not switch,but I know from experience,a lot of them would switch for $1.I have figured out the market I am in and have succsessfully outlasted a lot of threats to my business.You have to be shrewd and cunning and be willing to lose a few bucks to end up still on the roster the next year and so far this year I am holding my own.I sort of pity the people who have not had to endure the onslaught of potential threats that take away 75% of former customers because their overhead is zero and their prices are almost the same!!!I know many will say that's what business is all about but I would prefer to roll with the punches,adjust accordingly and stay busy than to let pride dictate my days(Like I said it would be nice but you can't eat it). I hope I haven't offended anyone but waiting for a select few customers to pay me what some of the big whigs around here claim they are getting,and staying busy earning my $450 a day I choose the latter.Feel free to riducule and chastise me all you want all I know is I will be providing for me and my family so I am makin'it and then some.

<FONT COLOR="#000080" SIZE="1" FACE="Verdana, Arial">[This message has been edited by JR Wood on March 14, 2000 ]</font>

<FONT COLOR="#000080" SIZE="1" FACE="Verdana, Arial">[This message has been edited by JR Wood on March 14, 2000 ]</font>
 

Dan S

New Member
well put JR i dont need to repete anything you just said but i feel the same ,if you dont adjust your prices " somewhat " you will be looking for the unemployment section.
too many times we read what everybody has to say and it may be sound in there area, however every area is different. and every body dont think the same ....therefore what is good for the goose is not really good for the gander
or something like that!!!!!!!!!!!!!!!!!
 

Express clean

New Member
I have been struggling with this same issue.You do have to be somewhat competitive but have you ever heard 1/2 the jobs for twice the price or twice the jobs for 1/2 the price.I would rather do the first.Last year I decided I was going to start treating the business more like a business and not like a job that I just happen to own.This is going to be my 15th year in this business and for most of those years I competed on price.It puts you in the position where you are just spinning your wheels.Returning phone calls,showing up on time and doing a good job of course will set you apart and are worth a premium.Hope I'm not preaching like you know who.Thanks
Adam Hummel
 

Jon

New Member
Hey Guys n Gals,

Both sides are right on the issue of competing, but price alone should not be the deciding factor, or at least how I see it. To me, quality and being prompt, providing what you promise mean a lot.

Now a question for all, has anyone ever figured what the ratio of legal vs illegal pressure washers are in your area.

Legal being licensed and insured, and that other group that I consider fly by nights, first screw up and their gone.

So what is the ratio in your area, 1 legal to 10 illegals? more, less? Just curious.

Jon

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Beep beep, the OPC Roadrunner coming through.

Jon Fleischer
Oasis Pressure Cleaning
(909) 792-2247
Fax (909) 792-5633
 

Dan S

New Member
im lost here so who is the PREACHER in this..
when you do have to compete ;;;
it is wise to offer something different or better than the competion. im not saying to keep going down on prices just to land your job .but if you do the best im mean your very best ,it should speak for it's self i had guy's come and go in my area and underbid me as high as 6.00$$ per unit but here i am still working .and the reason is most people rather manegment or owners donthave the time to "dicker" if you will. on prices, if you are there when you say you will be there and do the very best and then some it should speak for itself.

IM I THE PREACHER?....... in some terms i wish but when it comes to know everything about p/washing and being self employed i dont have room to preach . im still learning im only 6 years now in this business and im learning everyday...
what it comes down to is this EACH TO THERE OWN if you feel that you have to do something to keep working . then by all means go for it it's your belly that need's to eat.................
 

Dave Olson

New Member
While doing one of our small fleet accounts (5-6 trucks) we were fusing with getting the back door of one of the units to look better. The fellow that runs this location said, “Why do you bother!†I was kind of surprised at his comment and said, “That’s what we do!â€

Several months later this same fellow came to me and said that the corporate office told him that he was spending to much for vehicle cleaning. They (the corporate office location gets it done for half of what you are charging). “I have found another contractor that will do our trucks for 25% less! Will you lower your price? I like the quality of your work and would rather have you continue to clean our equipment.â€

I told him “I am not in business to be the cheapest, I’m in business to be the best!†He laughed and said that is what they tell their customers. We still have the account and no we did not lower our price!

Dave Olson


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Tidy Powerwash Service, Inc. P.O. Box 781, Catlin, Illinois 61817 Phone 217-427-5557, Fax 217-427-2632 We are a commercial cleaning contractor serving East-Central Illinois and West Central Indiana since 1984. http://www.tps-inc.com
 

Express clean

New Member
You are not the preacher I was just hoping I did not sound like that guy we all agreed to remove from board last week.Sorry if you misunderstood me.Like I said I am stuggling with this same issue
Adam Hummel
 

Don

New Member
It seems to me that there may be a difference between "being competitive" and "competing". I am competitive, meaning my prices would be in the vicinity of other contractors in the area. Certainly I could not charge 5 times the "going" rate and expect to stay busy (granted,at 5 times the rate, I wouldn't have to stay busy..LOL). However, I will not even try to "compete" with someone charging half of the going rate,in their $500 pickup and their $300 pressure washer. That's not "competing", it's insanity.
 

spraymasters

New Member
Most of you guys know me and know that I am also new. It is difficult for the "newbie" to break into a business and compete for prices and say you are professional and do a professional's job when experience gives you that. I read somewhere, and Gloria and I both agreed, that when a customer asks you to compete with someone else's price that is much lower than your estimate, you simple say that: When our company was formed we made a decision to not cut corners and give our customers the very best quality possible for a fair price. We stick to that decision so that the customer is completely satisfied and has no hassles or complaints. And, we are sure that customers like yourself appreciate that we made that decision. Usually the customer agrees and we get the contract. I know that you have to put food on the table....but you also have to gain a reputation for the future. Philosophies are just words out of a babes mouth....reality is when you are eyeball to eyeball with decision.
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Just my penny's worth.
Dennis

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Dennis A. Cormier and Gloria A. Wagner
North Georgia Spray Masters, Inc.
spraymasters@hotmail.com
 

Scott Stone

New Member
Price Vs. Quality is a really hard subject. Usually people will hit me for a lower price and I will tell them that if they name the price I get to name the quality. They usually get the point. I did give on price one time in the past ten years. It was a huge mistake. Even though the customer has turned out to be pretty loyal, i always wonder if he would dump me if someone came and gave him a lower price. Believe me it won't happen again.

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Is it true that cannibals don't eat clowns because they taste funny?

Just a guy driving around trying to make a living washing trucks, Wouldn't know a deck if it bit me in the hind quarters,

Bus. Phone 480-834-3434
Cell Phone 602-509-9741
 

Dan S

New Member
prices****** competion*************
this is my 3rd post on this issue and forgive me if i bore you
COMPETION: it can do 2 things it can really hurt us or really help us
if a guy comes in and says he can do it better and cheeper.that hurts ,but if we are doing the job and doing it well it shouldnt matter ( sometimes it does though )if they want to get rid of you because of $$ chances are you will be back.
however; help us ,by help im saying when you know there is that competion waiting for the right moment to dive in . it makes us more aware and really concentrate on our job even more. sure we always do a great job but knowing that at any giving time it go away and someone else steps in we tend to do an even more better job ( to make them happy).im not afraid of competion it keeps me alert and i do over the limit in cleaning.
recently a newbie started and he tried to get my contracts .but failed ,then he called me because he had trouble with his machine.and i went to his house and reparied it . we had a good talk... but i didnt offer any info.if you know what i mean... so what it all comes down to is this :life is short clean well..........
hey ADAM i know what you meant .. i didnt misunderstand you .. i know who you are talkin about now..............
 
G

Glenn

Guest
Guys, Guys, Guys,
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I started this year out with a price sheet. I have commercial prices and I have residential prices. Commercial is year round so those prices are usually 30 -40% less than the seasonal residential prices. I don't dicker around on price. I measure the job, explain how I price the job, and give my quote. Everybody pays the same price for comparable jobs. If you dicker with one and not his brother-in-law down the street, when they talk the next time, one will feel he was screwed. Then word gets around. I price linear feet on homes, buildings, etc. and square footage on flat work. Most people want to dicker around with you to make them feel they "negotiated" a good price. However, I have found that if you are firm and fair about your prices, up front and honest with the customer, you will get the job anyway. If you do this, have nice professional looking equipment, and are knowledgable about your profession, price doesn't matter. People pay for quality. A KIA Sportage is good efficient transportation, yet people still buy the Expeditions and Suburbans. If you were having heart surgery, do you want the cheapest surgean?
Glenn
 

Russ in Chicago

New Member
The bottom line is - do what's best for your business (and the mouths you need to feed). My prices go up and down depending on how much work I have. The bills get paid either way. The quality, however, remains constant. Sometimes I win, sometimes I lose. We spend alot of time talking price, I'd rather talk happy customers. I don't need to be rich, the smile on my customers face is worth a million bucks.
 

Harold Brantley

New Member
I look at pricing this way. If I get all the jobs I quote, my prices are too low and if I get none of the jobs I quote, my prices are too high. Somewhere in between is just right. I usuall get about 60 % to 80 % of my quoted jobs. I tell customers I'm not the lowest cost power washer around, but I do explain what will be involved in the cleaning I will do for them. When they call to tell me I got the job, they usually say that I wasn't the cheapest, but they liked what I told them about the job I would do for them. I lose more jobe when I measure a job and leave a quote but don't see and talk to the customer. Unfortunately time doesn't permit me to see and talk to each potential customer.


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Laurie Grathen

<br><b>Premium Member<b><br>
Dan, thanks for the kind words about the article. I can't believe it's been on the board for 10 days and I first saw it yesterday. I must be busier than I thought!

JR Wood - after reading your post, I wondered whether you read the article? Sounded like you were disagreeing with it, but everything you said in your post are points I made in the article. It appears that you're growing your business in ways that ensure it's long term success which is what the bottom line of the article was. Good job and best wishes.

Don - Good observation. Successful businesses are ALWAYS competitive, but not just on price.

Dennis & Gloria - you two are going to be great at this business, I can tell that from all the posts on both boards we frequent. I'll watch your company with interest and pride.

To all -- everyone has good points in their posts. What's interesting to me is that probably no one who frequents this board is cleaning houses for $79.95. The fact that you're interested in researching, gaining and sharing information and keeping active in organizations and information entities (like this board) just reinforces my observation that we're all entrepreneurs who've chosen contract cleaning as our business vehicle. You've GOT to make enough money to STAY in business, and there's much more to getting and keeping that business than simply competing on price.

My best wishes to all...I hope you're business is as successful and profitable as you've planned it to be.

Laurie
 

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