Price Increases

Bridget

New Member
Being in the Midwest we are experiencing record high gas prices. That, along with having the same wash prices for over 10 years I am wondering if any of you have a system for increasing your prices.
Do you increase then annually?
Do you increase your rates on just new customers?
Do you have a set percentage that you increase by?
Thanking you in advance for your helpful input.
Bridget
United Mobile Power Wash
Our Power Is In Our Performance
 

ameri-clean

New Member
We normally initiate price increases on new accounts unless circumstances change on existing accounts. For example we had an account that we did every 2 weeks. They wanted to go monthly, plus they had a reduction in the number of trucks to be cleaned. We did a price increase. So far we are eating fuel increase but may factor it in if prices don't come down soon!

<FONT COLOR="#000080" SIZE="1" FACE="Verdana, Arial">[This message has been edited by ameri-clean on June 17, 2000 ]</font>
 

Ron Musgraves

Administrator
Staff member
I hope you increase them
Being in the Midwest we are experiencing record high gas prices. That, along with having the same wash prices for over 10 years I am wondering if any of you have a system for increasing your prices.
Do you increase then annually?
Do you increase your rates on just new customers?
Do you have a set percentage that you increase by?
Thanking you in advance for your helpful input.
Bridget
United Mobile Power Wash
Our Power Is In Our Performance
 

Douglas Hicks

New Member
One of my suppliers tracks expenses. When their total cost goes up 3%, they raise prices by 5%. Their theory is a small increase is not as noticed as a 10% increase.

We charge a "service charge" on each customer. The service charge is determined by the distance we have to travel. Of course, a large account may not incur a service charge. We have been charging the service charge for 5 years. In that time, we have lost 6 customers because they did not like the service charge. The lost income is about $500, or $100.00 a year. The service charge has generated $60,000.00 in that time period. Not a bad return on investment.

The service charge is not to be confused with the "a**h*** tax". That is a fee charged to those who are never happy with the work, the price, or who put off the service or pay late. Or a customer you really don't care if you never see them again. Sometimes, a customer has had a complete change of attitude when you drop them. They will profess un-dying love and admiration for your services. I had one customer that got a 30% asshole tax.
 
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