Being a business owner sucks.

[tjthorson]

So.... when does it get good? I have spent the last few weeks picking out the most underpriced customers and sending them letters about raising their rates. Mind you, these people have NEVER had a rate increase. Furthermore, they were WAYYY underpriced when they were signed up. The average rate increase was $5. Some customers that were $69 bi-weekly are now raised to $75. Would you believe that people are calling and cancelling service!!!!????? You have a company you are happy with, people that you trust coming into your home, and its worth trying someone new for $10 a month?????

I just don't understand. I ask these people what they do when their utilities, property taxes, and grocery bills go up? I also explain it doesn't do anyone good for me to lose money on the deal because then I won't be around to service them (which is why the previous owner isn't here, BTW)

Yet, I look here and certain vendors royally SCREW people over, and they keep on getting customers - and for big bucks.

Tell you what - instead of sending CAS that $1000 for a FM, send it to me. You'll get the same product in the end (nothing) and I'll at least give you call to thank you or answer the phone if you call.

I just don't get it sometimes.

 

[salvageV6]

If they come back after the next budget guy goes toes up, bang them for another $5 a month.

Make a list....

You just may get the last laugh.

 

[BlownZ]

Listen to your customers. If they are leaving...you will be right behind them.

If you raising your rates 5 dollars means the difference between you making it and missing it then you are already doing it wrong, I would leave the rates the same and try to add on optional value added services (I don't know what you do so its difficult to suggest some) that will bring the total bill up to a profitable level . It is human nature to shop on price first and quality second.

Again...right or wrong.....listen to your customers....without em....buh bye.

 

[Chad Oliver]

When does the 2004 calender go into production ? I don't mind a $5 increase.

 

[tjthorson]

Heh - the calendars...... Time to start soliciting pictures soon. I will probably get that going the 1st of October.

My business is residential house cleaning. There is really nothing to change - they have a set rate, we clean, etc. The previous owner underpriced these homes - sometimes severly. Thats why he is out of business and I am here. The $5 still puts them about $10 short of the market price.

What I am saying is the guy down the street is going to tell them higher - or give them less service. With something as personal as someone coming into your home (when you are not there!), if you have someone you trust and are happy with, is it worth the hassel for $5???? I chose $5 because that was the number that would at least bring these customers up to a break even point. Most of them (for the time we spend in the home) should be priced at $85.

I had 2 out of 11 people cancel. I have 80 other customers. I am not pricing myself out of the market - I was just wondering the rational of a $5 increase on a $69 bill after a year of service with someone you trust and willing to hire a new company (most likely for more anyway - and the cheap guys are EXTREMELY poor quality and reliability)

I figure they will eventually be back, or it wasn't my type of customer anyway. My business is geared toward families that like quality and good customer service. Not a half job and a cheap price.

Anyway - I just wanted to vent. SOmetimes I think it might have been easier to just sit in my old corporate life and go through the motions until I retire......

 

[KEVINS]

Hang in there Todd!
I think with the current economy people are much more sensitive to costs increase, at least I am. That's all you here in the news these days so when you throw it at them they take it personal. They will prolly be back and if not then that gives you room to find new customers that you can charge the appropriate amount up front..

Hang In There!!!
ks

 

[AsphaltAnihil8r]

Todd tell me what you are doing for the $69 Biweekly,,I may need some service of some sorts..
Dennis

 

[turbosam6]

I wouldn't worry about losing a couple customers. You can't please all the people all the time. My guess is that if they cancelled over $5, then they weren't very good customers anyway. I've been to lots of business seminars, and one thing I've learned is losing bad cutomers like that gives you more time to focus on your good customers. Use the time you would have been working for them and do something for your other customers. Like maybe a courtesy call, or a mailer, just to see if they are happy or if they have any suggestions, or maybe to notify them of a sale or special? Doing this will make them even more happy with you and your company, and when the time comes to raise the rates again, they won't mind so much. They will feel its worth it. Chances are the competition doesn't do this, and since it is such a personal business, they will be more confident with your company. If you sit and figure up the time wasted on "bad" customers, you are probably losing money on them anyway. I was. Your good customers are going to bring you more business anyway, whereas bad customers won't. Owning a business sucks at times, and I know what you mean. I often envy my buddies who just leave work at 5:00 and don't have to worry about anything until they get back to work the next day. All they have to worry about is their job, not money, employees, expenses, book keeping, etc. But one day you will have a business that, even if you work a lot, at least will be worth something, and can be sold or passed on, whereas they will just quit their jobs and have retirement, at best. Good luck!

 

[tjthorson]

Dennis. That is precisely what I am talking about in this post. My minimum is supposed to be $75.

Unfrotunately, I cannot go to your town. If you want to move a little further north, let me know!

What do we do?

Look here:
http://northwest.maidbrigade.com

and

http://northwest.maidbrigade.com/difference/difference.asp

My average home (3br, 2 ba, 2000 sq feet, 2 kids, 1 dog, etc) runs around $90 bi-weekly.

The $75 is usually 1 or 2 br apartments and condos with 1 bath and no pets or kids.

 

[KEVINS]

sssoooo.....ummm...errrr Todd,,... ummm, do you wear the maid outfits too???

 

[tjthorson]

Well, before the war, we had french maid outfits - now we have "freedom" maid outfits.

J/K.

I wear black jeans and a blue polo. The ladies wear tan pants and blue polos with the company logo.

Sorry to disappoint you!

Now, I special order the outfits for my wife to wear.........

 

[KEVINS]

Originally posted by tjthorson
Now, I special order the outfits for my wife to wear.........

ROLMAO

 

[AsphaltAnihil8r]

Todd I am closer than you think,,Elmhurst Rd & Euclid...
We have maids come 1 time a month ,for $15hr for 1 Polish lady ,she usually takes 4hr,sometimes 2 polish ladies come for 2hrs each for the same price...

I would like to know what $75 gets me.Lets see if we can work somthing out,,would love to use your services...

Do you have a Photo page for the Women

 

[turbohawg]

Charge everybody the same and give everyone the same level of service. Some people wouldn't be happy no matter what you charged. If you don't, these same customers will always be behind $5, that you worked for. You gotta be fair to everyone. You don't want another customer to find out that there paying more for the same service. Some people think the cheapest $$ is best. Let them find out for themselves. Then you will have a customer for life.

 

[GNandGS]

My mother owns her own service also (smaller scale)... I think yer reading too much into this.

Consider for example that you might have had customers that were ready to "quit" anyway. You just gave them a way out... who says they plan to go to the competition?

In the same line of thinking, they might not have considered dropping the service until the raise but this planted the seed.

Sometimes this can even be a spouse issue... one wanted the service the other didnt... spouse1 sells the idea to spouse2 based on the really low price.



Anything that cant be explained away can just be chalked up as "thats the way it is". heh. My mother had to raise the price of customers also... some by $5 also! She agonized over it but in the end it was the right thing to do.

Shawn

 

[Buick From Hell]

Hell Todd, you probably need to go with human nature, and use the old "I Don' t Get It" approach!

--since your customers are leaving at the thought of paying an extra 5 bucks, then just skip the puny increase and head straight for the high-rollers!

Run an ad in your local paper: "Only $249.95 bi-weekly!!"

You'll probably have people crawling out of the woodwork to pay you an exorbitant amount of money simply because they THINK they'll be getting better service than the Jones's are! -but wait- of COURSE they are! And they'll be MORE than happy to TELL the Jones's how much they're paying!! (Which, if human nature doesn't fail, means you'll soon have the JONE'S added to your list!)


Like the girl who keeps dumping the "good guy" for the dude that beats the crap out of her (I Don't Get It!?), people will literally swarm in, BEGGING to pay you the big bucks to clean their houses!

--which will leave THEIR friends, and YOUR competition (and even YOU) scratching their heads and muttering to themselves: "I Don't Get It!?" (but you'll be smilin'!)

 

[WE4]

BOY!!! DO I KNOW IT !! And YES it does SUCK!!!!!!!

Bruce
WE4
TB.com

 

[Reaper]

Todd.

do you have any maids that look like this.... i have 150 bucks for their serices. you can raise the rates ever month for all i care if they look like this:

http://www.mydivascloset.com/frmaco.html

Dathan

 

[Little6pack]

Yeah Todd aren't customers great!
They are penny wise & dollar foolish.

They will go out and blow $$ on Butts, booze, eats
then try to cheap out on a service.

Maybe you should cut back on your cleaning time.

My son offered to mow the lawn for the lady next door at $15.
She didn't want him because he is a young teen. So she pays
some guy my age $25 DUH! You need customers like that

 

[The Radius Kid]

Originally posted by WE4
BOY!!! DO I KNOW IT !! And YES it does SUCK!!!!!!!

Bruce
WE4
TB.com

Awe kwitcherbitchin'.