How is your Pricing?

If pricing is an issue in your window cleaning business, then read below…

Hello Steve,

In preparation for launching my marketing machine, I did some pricing comparisons and spoke with a person who ran a window washing business in my city for several years and recently retired from the business.  His sons have carried on the business here and operate it today.
 
Any way, he recomended I charge around $1 per side of a window and $1 per screen.  So for an inside and out side window job, each window would be around $3.  Does this make sense?  That seems really, really low to me.

Based on that comparrison, what do you reccomend I charge?  There are people in this city with money, and I would like to think my services are worth more than that.  Still, I don't want to price my self out of business.
 
Any input would be helpful.  Thanks a lot.
 
Jared

My Response:

Hi Jared:

It's good to hear from you.  And it sounds like you are ready to crank it on up.  Excellent. 

First I'd like to say that what you charge depends on your business model.  Do you want to be "affordable"?  Or do you want charge a higher price, make more profits, and have ecstatic customers? 

These are 2 completely different business models.  As you may have noticed, right on the cover letter of my estimate package (you can access it on the webpage where the flyers are), I write to my prospects about me choosing between being "affordable/cheap" or being higher priced.  I wanted prospects to know exactly where I'm coming from and what my company is all about.     

Being affordable forces you to be fast and to finish jobs quickly.  You may not have overjoyed customers but you're not charging much, so they're happy in that respect.

Charging more will slightly limit the number of customers you secure, but on the other hand, the customers you get will be thrilled with the job because you've taken your time and did it the way it should be done. And your company will be more profitable, you won't have to do as many jobs, etc. etc.  There are a lot of advantages to you and your company by adopting the higher priced business model.

I personally believe in the "charge more" business model.  People will pay it.  As long as you can present yourself with a strong, high impact presentation, and wow the socks off the prospect with your presentation, then you'll turn 'em into customers.  That's proven every single day.

In my hometown, I knew a window cleaner who believed in the affordable business model.  And he was running all over the place trying to make a living.  I stopped and chatted with him one time and asked him what he was charging for the commercial job he was doing and he responded with "$5.00".  I mean it's not even worth putting the key in the ignition for a $5 job.

This guy mentioned in your email is at $2 a window (not counting screens)?  Wow.  That's nutty.  I wish him the best with that.

Here's what I would recommend you do…go with $5 per window to start (in/out).  Smaller bathroom type windows are $3.  But regular double hung windows are $5.00 each.  If I had to climb a ladder then I would put the price to $7.00 per window.  My screen pricing was generally $1 per screen, although if it was a larger screen, I'd go with $2.  

At the end of pricing/estimating a job for a prospect using the above numbers, many, many times I would do a slight bump-up.  So if a job was estimated at $141 for example, I'd present it to the prospect as $159.  A lot of this depends on whether it's a yellow page caller, postcard respondent, flyer respondent, etc.  Yellow page callers are more price shoppers and the postcard respondents are not, so you can generally do a little price bump-up for postcard/flyer respondents.   

With the above mentioned prices, if you're closing around 80% of the prospects you present estimates to, then your pricing is fine.  If you're closing less like 40% or 50%, then I would recommend dropping the window price by $1 (look at your image first to make sure it's strong), but still try and keep the bump-up at the end.  If you're closing close to 100% of the prospects you present estimates to, then you need to raise your pricing a tad. In this case, I would raise your per window price another $1.00. 

I want to leave you with an email I got the other day. I copied the portion that relates to pricing.  It proves that people will pay if your presentation is rock solid. I'm referring to your "look", how you present the estimate, etc. Here's the excerpt:

I am thrilled with the professional image that your material presents. I constantly get positive comments. I have had 26 jobs so far and I consider that to be good.  I have been increasing my price and I think I am near the threshold for my area. People have shown me previous bills from other companies that were $60 less and yet they were quick to recomend me to their friends. One customer paid me $120 for one hours work even though she had estimats for under $60.
 
I am doing this full time and so far have only had about three jobs per week. But the pay has been between $650 and $1000.

Let's look at what tim writes a little closer.  Ok, so 3 jobs per week.  Doesn't sound like much, right?  First off…he's relatively new, but let's look at the profits he's pulling in ($650 to $1000 weekly).  If he was an affordable/cheap window washer, he'd have to at least double the number of jobs completed in the week to 6 or even 7 jobs to make the same money. 

And the above is a great example of a profitable company without the constant pressure of looking for jobs.  And as tim mentions, the referrals will also come.  So it's a win-win all around. 

There are soooooo many advantages to charging more money (this needs to be backed up with a solid image though) that I'm surprised more window cleaners don't do it.  I think many window cleaners have an employee mentality.  So they end up being content going after $12, $15, $20 per hour.  But if window cleaners change their mindset from being a window cleaner/employee to the owner of a window cleaning business, then profits rise and their business jumps to the next level.  It's as simple as that.  It's not about price or being the cheapest.  Obviously not every prospect will jump into our business and agree to use our services regardless how we might impress 'em. But who cares?  Many of them will.

So…don't make the mistake of pricing yourself out of business as you mentioned.  The good news is that you'll never have to worry about it if you employ the correct pricing business model for your business.     

I hope the above helps and answers your question on pricing.  Take care for now.

Regards,

Steve   
256-546-2446