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Raising Prices
Posted by Dan
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Raising Prices April 28, 2005 12:26AM |
Registered: 17 years ago Posts: 894 |
<HTML>Ive had this lingering thought since some customers have been with me for 5 years now to raise my prices. I have about 7 customers that I service weekly and for some reason have not raised the price on them. They are almost like family to me and ( I know what your going to say, dont mix friends and business) raising the price feels like stabbing them in the back. I also would like to change the structure of the services which would make the quality go up and of course, the price go up. Have you guys had this problem? Im still making decent money with them, but the time sacrifice on a set time and day every week is wearing thin. I could be somewhere else enjoying life or making more money for my time.</HTML>
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Re: Raising Prices April 28, 2005 01:26AM |
Registered: 17 years ago Posts: 141 |
<HTML>I hear ya bro, I too had the same issue and I felt the conflict of being the nige guy and raising prices. But I kindly explained to customers that between insurance, gas prices and the cost of chemicals I was forced to raise my prices. Since my customers like me and I do deliver a quality result, they had no issue. Some even remarked that I should have raised them a long time ago. Also I only offer two packages (wash/wax and full detail) as opposed to the five I had last year. I do have a handful of weeklies but they are repeat customers and I will only do the weekly after a full detail. So my advice to you is research your competition, see what they are charging and then raise your prices accordingly.</HTML>
Keith
Details on Demand Inc.
Mobile Auto and Boat Detailing
Keith
Details on Demand Inc.
Mobile Auto and Boat Detailing
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Re: Raising Prices April 28, 2005 03:05PM |
Registered: 17 years ago Posts: 894 |
<HTML>Thanks Kieth, Im going to have to do this. I was going to do it in a letter, but thats a little chicken sh@% for me. Just have to find a time where they are not busy, thats a tough one, because I hardly ever see them, the only ones I see are the housekeeper and the car. Thanks for the advice
Dan Draper
DRAPERSAUTOIMAGERY.com</HTML>
Dan Draper
DRAPERSAUTOIMAGERY.com</HTML>
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Re: Raising Prices April 29, 2005 02:10PM |
Registered: 17 years ago Posts: 3,550 |
<HTML>Dan:
Have your costs of operation gone up? Normally you would not raise prices unless your costs of doing business have gone up.
Certainly, if the market will bear a price increase then there is no reason not to do it, but if you are just raising prices to be raising prices you can "knife yourself in the back" by going beyond what a customer's ceiling is for the service.
Don't make the mistake that you are "adding value." The key is value to whom? From your perspective or the customer's?
If they are happy with the service you are now giving them at the prices you are charging you might find some backlash.
Why not send out a "prospecting" letter with a return postage paid card telling them that costs are going up and that you are considering a price increase and what more service could you provide them to offset the price increase.
If you get back a great deal of negative feedback you will have something more to base your decision on.
Regards
Bud Abraham
DETAIL PLUS SYSTEMS</HTML>
buda
Have your costs of operation gone up? Normally you would not raise prices unless your costs of doing business have gone up.
Certainly, if the market will bear a price increase then there is no reason not to do it, but if you are just raising prices to be raising prices you can "knife yourself in the back" by going beyond what a customer's ceiling is for the service.
Don't make the mistake that you are "adding value." The key is value to whom? From your perspective or the customer's?
If they are happy with the service you are now giving them at the prices you are charging you might find some backlash.
Why not send out a "prospecting" letter with a return postage paid card telling them that costs are going up and that you are considering a price increase and what more service could you provide them to offset the price increase.
If you get back a great deal of negative feedback you will have something more to base your decision on.
Regards
Bud Abraham
DETAIL PLUS SYSTEMS</HTML>
buda
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Re: Raising Prices April 29, 2005 04:15PM |
Registered: 17 years ago Posts: 1,838 |
<HTML>Dan,
I was in your position not too long ago. You just have to be a businessman and tell your original customers that cost of doing business has gone up and that you need to raise the prices. Believe it or not, if they like your work and you customer service, they'll understand and stick with you. Just keep providing the quality service and you'll be fine.
I knew I was leaving money on the table when I remained with my original prices (8 years+ customers) and my new customers were paying $150-$225 for a complete detail.
Bud's idea is a good one. Try that or just make some phone calls on a rainy day and ask what you would've written in the letter.
Goodluck!</HTML>
Take care,
Brian
Precision Auto & Marine
Learn to detail boats! Visit www.detailtheboat.com
I was in your position not too long ago. You just have to be a businessman and tell your original customers that cost of doing business has gone up and that you need to raise the prices. Believe it or not, if they like your work and you customer service, they'll understand and stick with you. Just keep providing the quality service and you'll be fine.
I knew I was leaving money on the table when I remained with my original prices (8 years+ customers) and my new customers were paying $150-$225 for a complete detail.
Bud's idea is a good one. Try that or just make some phone calls on a rainy day and ask what you would've written in the letter.
Goodluck!</HTML>
Take care,
Brian
Precision Auto & Marine
Learn to detail boats! Visit www.detailtheboat.com
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Re: Raising Prices April 30, 2005 07:17PM |
Registered: 17 years ago Posts: 894 |
<HTML>Thanks guys for your help. My price to operate has gone up slightly, but I would like to be other places making more. Sometimes we have new customers that cant be serviced for 1-2 weeks and thats frustrating when you have these weekly customers already taking time up on your schedule, you know? So Ive decided to raise my prices and change the structure a little bit. Instead of maintaning a car for $150 per month. We are seperating the wash prices from the detaiing prices. So, 1 car 1 location is $45, 2 or more cars same location washes become $35 each. Detailing once every 4-6 weeks $95.
Dan Draper
DRAPERSAUTOIMAGERY.com</HTML>
Dan Draper
DRAPERSAUTOIMAGERY.com</HTML>
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Re: Raising Prices May 01, 2005 06:46AM |
Registered: 17 years ago Posts: 3,550 |
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