How to Handle Pricing Increases for Your Window Cleaning ServiceBy My Service Depot on Wednesday, December 15, 2021
The market size of the window cleaning industry in the US is around $2 billion, making it one of the most popular businesses. The market is becoming competitive as more people join the industry every day. Although the growing business is a good thing, the average market prices in the window cleaning industry are increasing too.
It becomes a little difficult to maintain the prices of your services if the labor costs keep increasing. Companies have no other option but to increase the service prices and explaining this to customers can be bit of a problem. However, we can help you with this task.
We have a few tips that can help you handle pricing increases for your window cleaning services. This will make it easier for you to announce price increases without the danger of losing them.
How to Handle Pricing Increase for Your Window Cleaning Service
Following are some of the tips to handle pricing increases for your window cleaning service.
Be Upfront and Direct
The first thing to know is that hiding the prices of your services will not benefit you in the long run. Customers will most likely notice the price hike and that can land you in an unpleasant situation or even an argument in some cases. Customers prefer service providers stay upfront and transparent about their pricing and services.
You should inform the customers beforehand. This lets you iron out any issues that may arise as a result of negative feedback from customers. You can present your side of the story and explain why you must increase the prices, if necessary.
In addition, we suggest you take the proactive approach and ensure that all your customers know about the price increase before they come to you. The easiest way of doing this is to send an e-mail and notify them about the price increase.
It will help you run things smoothly and avoid unnecessary issues. The customers will understand your situation and would agree to the price increase.
Companies that tell the customers about price increase only after they hire services, often see disappointing results. Customers can even terminate your services if they find out that you misinformed them in any way, so it would be best to avoid hiding prices at all costs
Allow for a Grace Period for Existing Customers
Sudden increase in prices is a concern for customers and service providers and explaining these changes is even harder. You must give your customers time to adapt to the price change. This goes especially for the customers you already have.
You need to give your loyal customers a grace period and let them know they are important by telling them about the price increase with advanced notice. It will not only make it easier for you to break the news but will also make your customers feel special when they see that you inform them beforehand.
In addition, you should know that sometimes price increases need to happen immediately. However, that does not mean you cannot do it without informing your customers. You can tell them that the new price plan will be according to the new pricing model that you have informed them about.
It’s Ok to Explain Your Reasoning
We know that you have a lot to consider when it comes to increasing your service costs but that does not mean you have to make an apology for it. You should talk to your customers about the market conditions and explain the reasons behind the price hike.
This will help them understand that it is not just an individual decision, but a collective move. Focus on explaining the operating costs behind your services and your customers will most likely understand your side of the story.
We also suggest you take the time to focus on the quality of your services, the kind of client-customer relation you have had, and the benefits you are offering. A quick refresher on these things will help your customers know that you are still the right service for the task.
It would help if window cleaning services came up with a small discount to engage t customers. It will help them stay connected with you, even after you make the price increase.
One of the biggest reasons why service price is a big problem for customers is that most service providers charge a flat rate. Therefore, whenever companies increase the prices of their services, the minor details and factors in the pricing go unseen. Customers will not understand the nature and technicalities of your services unless you explain them.
The easiest way of restructuring packages is charging according to the number of panes. Once the customers know the flat rate for a pane, they can multiply it to their building design and make the final estimation.
Similarly, you can also charge by window type. There are a few windows that are a bit easier to clean such as casement windows. On the other hand, hinged windows are perhaps the most difficult to clean. So, you should assess the kind of window the client’s property has and make the pricing structure accordingly.
You can also offer a flat rate according to the size of the building or the total number of windows in the design. Restructuring your pricing like this will make it easier for you to negotiate and explain service charges with your customers.
So, in short:
- Instead of charging a flat rate, charge by pane.
- Charge by window type.
- Charge a flat rate based on building size or the total number of windows.
The easiest way of keeping your customers engaged despite increasing prices is to offer them bundle services. You can offer your clients more services in a bundled package as an add-on. This can be anything from gutter cleaning to general maintenance, depending on what you can do.
You can also offer cleaning their buildings at a discounted price to attract them. Bundling services could ensure your customers don’t run to other service providers.
In most cases, customers will prefer assigning you the additional tasks under your bundled services, instead of making the effort of going to individual service provides. You can also offer a lump sum amount for the additional services.
However, ensure staying cautious while offering these bundled service rates. Consider every factor carefully, so that it does not cost you or the customer too much. We will mention some of the cost factors ahead.
Customers Will Be Unhappy, but Most Will Not
Pleasing everybody isn’t possible as there will always be clients who will not like you for increasing your service prices. You should remind these customers what makes you the right person for the task and how paying a bit extra for your services can help them in the long run. You do not have to fully convince your clients, but instead, just make them realize that the competitive market prices are usually higher than yours.
You can also focus on explaining the various cost factors that most customers overlook while paying for your services.
- Supply Costs
Most people paying for window cleaning services only consider the labor that comes with the services. However, window cleaning services often need to pay for supplies too. Everything from pressure washers to small buckets is your supply cost, so consider them before setting a price.
If your customer lives somewhere with too much dirt and debris, you will need to provide your services more frequently. It would be best to consider adjusting the prices for frequent customers a bit.
Similarly, the design of the building and the windows will determine how difficult/easy your task will be. So, if your client’s building and windows are difficult to clean, make sure you mention them.
- Rent Charges
Renting a vehicle or an office out of your home also contributes to your costs. Try explaining the hike in your rental cost, to justify your price increase to your customer.
- Employee, Maintenance, and Insurance Costs
Window cleaning services need to ensure that all their equipment and employees stay on top of their game. Therefore, they sign up for insurance costs too, which impact the overall price of their services.
As you see, discussing pricing increase for your window cleaning service isn’t something that most customers will like. However, you can make your point on logical and factual grounds to explain your end of the story. This will not only help you seem fair to the customers but will also make them feel important.
All you need to do is keep in mind that you should be upfront and honest about the price changes. Avoid dodging or masking the price hikes because it will affect your company’s reputation. Try having a one on one or an e-mail conversation with the customer and explain why you need to make the price changes. Give your customers time to adapt to the new pricing and restructure your service packages correctly.
You need to focus on discussing the factors that make window cleaning a complex task. It will help you justify the price hike that you wish to make. However, note that some customers will still not understand your point but most of them will agree to the new prices.