Showing posts with label pricing. Show all posts
Showing posts with label pricing. Show all posts

Wednesday, February 15, 2012

Fly by Night


Yesterday I was cleaning windows at a customer of mine that I have had for some time. He said your competition has been around. He has been getting a lot of people asking him would he like his windows done.

I charge $20+tax to clean his windows. It's a pretty quick job with maybe 6 or 8 small windows that I clean. It might take me 5 minutes to clean his windows.

The "competition" was offering to do his windows for $5.

I asked him why do you stick with us to clean your windows? After thinking about it for a moment, he said. Well first, holding the invoice in his hand he said, you give me an invoice, all others would just do it for cash. At least this is tax deductible.

Secondly he said that after cleaning his windows they would not return for a long time. They would only return when they need money.

So there you go, I was able to retain my customer in the midst of heavy "competition". He was willing to pay me 4 times what others were offering, simply because I always provided invoices, and I was reliable offering scheduled servicing. I was not a fly by night window cleaner.

I take many things from this. First it's always enlightening to know why the customer keeps you. It is often far different than what we may think. So always ask. Secondly price is not everything, If this customer only cared about price I would be gone a long time ago. Thirdly it is beneficial to run your business professionally, people do care about getting an invoice.

By the way, Rush is one of my favourite bands.

Want more info? email me at mike@mmwindowcleaners.com
Visit my site: http://mmwindowcleaners.com
647-409-8144

Tuesday, January 31, 2012

Keep your competition close

There is a saying to keep your friends close and your enemies closer. Although a few of your competitors can be your enemy, not all of your competition is, in fact many are not.

My Toronto window cleaning competitors include some good friends and acquaintances, We respect each other, although we do get jealous of each others successes. Especially when they are ahead of us on Google.

Some we have got to know on window cleaning forums, and from there we built up a friendship and trust. And others I have known because many of my friends are window cleaners as well. Because they treasure the flexibility and good pay in the field.

It's good to keep in mind, especially in a service business that there is more than enough work out there for everyone. There is an infinite amount of windows to be cleaned. No one company can clean everyone store and house out there.

Not every business owner has the same focus of his business. In my industry, some prefer to clean stores and commercial, whereas others love cleaning residential and despise commercial. Some do add ons to their regular work, which I will not mention what they are in this post. They serve niche markets and at times make much more than window cleaning.



Keep Your Competition Close

Many times I have used my competition to pass on jobs, to have them do a job under my name. They have also been kind enough to pass on work to me often without expecting anything in return.

They have proven to give me honest and reliable advice when I needed some help with pricing, dealing with employees and subs and their compensation, and common issues in window cleaning.

Of course, you always keep some info to your self, and don't let them know every business strategy that you are planning to implement, but sharing business knowledge is far better than keeping things to yourself for fear that they may copy you. To learn and to grow you do need to share some of what you are doing now and learn what they are trying as well.

Why am I saying all this? Well today, three of my competitors, two - who I do business with who work for me on certain jobs - met up. We enjoyed a burger and fries with them. We shot the breeze, talked about window cleaning, the industry, our marketing, some of our goals and needs, and what we wanted to accomplish in 2012.

So go ahead, have a coffee with your competition. You do of course have to use common sense, take your time to get to know someone, and not give away your "secret" recipe, but sharing information and knowledge with a trustworthy and kind competitor may help you to grow and thrive in the window cleaning field, or whatever field you are in.

I'm not saying there are not unscrupulous or dishonest competitors in your field, so use your head. But there are likely many honest, decent people that are just trying to make a living for their family, that would love to sit down and have a coffee with you. You can learn a lot.

Do you want your windows cleaned? Call the Toronto Window Cleaner. Mike Polsky. At 647-409-8144.

Thanks for reading my blog.




Friday, May 1, 2009

Working as a subcontractor


Working As A Subcontractor
 
I haven't posted for quite a while. So I apologize.

I wanted to speak about something that could really add a nice income stream to your business. Subcontracting. Many janitorial companies in particular, don't want or don't know how to properly clean windows. Many are very eager to work with a window cleaning company to clean windows for their clients. They may be happy because they may have turned down window cleaning jobs before, but now, they can have someone they trust clean the windows, and they can make a tidy profit on it.

I have worked with several janitorial companies over the past year. One janitorial company I have cleaned a restaurant for. Another has me clean some insurance office windows. Another had me clean payday loan centres, And this latest one has me clean condo sales offices. Generally there are two kinds of companies, serious business owners who charge good prices, and are reaping the benefits, and ones who charge very little and are working like dogs. I have worked with both.

The important things to deal with when you work with companies is this. Provide a pay period that they must pay you by. For example due on receipt or due in two weeks. You deserve your money, and don't stand for not getting paid til the customer gets paid. Let the contractor manage the risk, that will be a large weight off your back.

Try to put things in writing, even if it's just an email. For each new job you bid on send an email outlining what work you will do, and how much you will charge. Often terms are forgotten and arguments or misunderstandings may arise.

Don't feel that you need to cut your prices. I have charged decent prices, and the contractor was still able to put a decent cut on top of it.

Good communication is key. A janitor doesn't think like a window cleaner, and he might not understand your pricing, what work is involved, or other issues.

An advantage of working as a subcontractor is that you may get jobs that you may not get through your marketing efforts, or you may not be allowed to bid on.

Of course, janitors are not the only people you can work with. You can subcontract for property maintenance companies, national service companies, even other window cleaners.

So, in summary. Set payment terms, communicate, put things in writing, and don't cut your prices if you don't have to.

Thanks for reading my blog. If you are in the Toronto area, and want your windows cleaned. Call me. I am the Toronto Window Cleaner. 647-409-8144

Wednesday, February 18, 2009

Paul's great marketing blog



Paul McQuillan, a lively,passionate, and great contributing forum member, of Window Cleaning Resource and National Window Cleaning Directory, has turned his passion and ability in marketing into a book:

Onslaught Marketing "How You Can Survive the Economic Crisis and Emerge 10x Stronger Than Your Competition"

His website address is: http://onslaughtmarketing.com

And he authours a very interesting and informative marketing blog - http://jointheonslaught.blogspot.com

He has brought up an important missed opportunity. Forced Continuity, or putting customers on a schedule. It has inspired me, and led me to share and agree with his point about forced continuity. Here is the blog posting:

http://jointheonslaught.blogspot.com/2009/02/window-cleaners-take-heed.html

Forced continuity is regularly scheduled window cleaning on a indefinte frequency. Whether that is every two weeks, four weeks, eight weeks, or twice a year.

As Paul goes on to say, many residential window cleaners fail to offer regularly scheduled cleans for their residential customers.

This has inspired me to think of offering this service to residential customers I will attain this spring. The only issue would be to make sure that one can make enough money to drive there, stop, get equipment off truck and clean windows. So an important factor is setting the price at a reasonable level. His suggestion of $80 sounds reasonable.

If you could get many customers to go for this service, a route could be made, causing certain efficiencies to develop and lowering your costs (gas, marketing, etc) per customer.

As an example, Mr Squeegee, aka Tony Evans, anewviewia.com has a winter route, where he cleans some of the windows on certain houses once a month, and has a regular route, which enables him to make some money during a hard time for many residential window cleaners - winter.

Having forced continuity, or putting residential customers on a regular schedule would enable you to make more money per customer. would enable you to get through slow seasons better, and enable you to have a little more of a predictable income.

This is why I enjoy cleaning commercial glass. Everything I do is on a schedule. I can predict how much my company will gross per year, I can schedule my customers for the most efficient way of cleaning them to minimize wasted driving time. I'm cleaning relatively clean glass, and I'm not always forced to market like crazy, since one customer will gross me thousands of dollars a year, for an indefinite period of time, perhaps years. Instead of just making a few hundred bucks, and then trying to get another customer.

Putting customers on a schedule makes a lot of sense. So think about ways you can implement that for your business.

And check out Paul's blog for other great marketing ideas.

Friday, January 30, 2009

The High Cost of a Low Price



I just got off the phone with my phone company feeling anxious, frazzled and like I wasted half an hour of my life.

You see, in November I was threatened to be cut off by my phone company, which was actually a cable, cell phone and media company: Rogers Cable. Now that's not because I wasn't paying, but they wanted me to switch to their way of offering telephone service, through the cable line. But that's not the point of the story, so I'm not going to go into that whole interesting story.

After getting scary letters that they would cut my service, and send men to break my legs...just kidding. After receiving those letters, I realized that I would need to find a new phone service or find myself out of a land line.

So in haste, I went with a cheap company that actually uses POTS (Plain old telephone service through the copper phone line). They offered great prices, 5 features including call display name and number, call forwarding, call answer, three way calling. For just $34.95 + TAX. In addition this price doesn't include any sneaky access fees that the others charge for such silly things like 911, Touch tone calling, system access fees, etc.

I wouldn't have to worry, like I would if I switch to cable, that the cable box that converts cable to telephone, would in a power failure run out, and I would have no phone service in an emergency, when cell service would not work (I didn't work in the great blackout). No, plain old copper wire telephone service would work come ice or blackout.

When I wanted to sign up for this service with YAK, I had to wait nearly an hour to reach a live operator, and I had to listen to the same commercial 100 times, that's almost as bad, as the torture the Americans administer to suspected terrorists! After waiting an eternity I got through and signed up.

I was told I would have to wait 5 to 7 business days to be connected. those few days past, and weeks too, when I wondered what the heck is going on?

I called again, and had to wait another hour, and endure the Chinese telephone torture. After finally getting through, I asked what the problem was, they were not sure, but assured me I would get phone service soon. More weeks past, with no phone service, and I just assumed I would never be hooked up.

Until as the new year came in I realized I was connected. I was happy. And knowing I would get many services at fire sale prices.

Shock came in a few days ago when I got my first bill, after just three weeks. 65! I called them, and fortunately got through right away. I guess they are serous about answering the phone when they know they may get their money faster.

Turns out that their prices went up this new year, although the receptionist was strangely unaware of it, what do they not know how much their prices are?

So although I signed up for 34.95 as soon as I was actually connected, I was billed at 38.95. Seems like a bait and switch too me. I was sold a bill of goods, and then they switched it on me. Because Yak made me wait, I fell under their new price.

I was furious, but of course, knowing how one gets what they want on the phone, I kept my voice, determined but calm and fairly low.

They seem to not know that their price was raised even though I been checking their website twice a week every week for months. And the other packages they offer are substantially different. I know what price I was quoted and I have it written down.

They claimed because they're system is computerized they can't give me the price I was quoted and signed up for. That they would have to credit me every month and they were only willing to give me one month and a half credit.

I of course, since they pulled a bait and switch wanted the price I was quoted and signed up for. The lady said she has to research what the price was at Nov 12 on Monday then call Tech Support to enter it manually if that price was 34.95, then call me back.

Otherwise, what did I get for cheaper phone service. Bad Tech Support, and unknowledgable staff, wasted time on the phone, anger, frustration, and feeling I'd been cheated and swindled. A sneaky price increase too.

What a high price to pay for a few bucks.

Thursday, January 22, 2009

Never Assume!



Never Assume

Often as window cleaners we are filled with much self-doubt.

We give proposals to prospective window cleaners thru email, or fax, and we wait and wait. We might have initially have thought we would get the job, but as time passes. We might wonder, was my price too low? Did another window cleaner get it? Were they not that interested to begin with? The most common thing we might think, is my prices are too high, I need to lower them, they would never go for my prices, they probably have someone who charges them much less.

Often these suppositions are false. Our price was not thought of as too high. Often the problem is this.

Our prospective customer was just too busy to call us, or he was to busy even to look at our quote. Or he had some family emergency to handle. Or he is short staffed and put us on the back burner. Or he's checking with head office to get autority to hire a window cleaner. Or he is still looking to see what is budget is for the year. Or he is waiting on his partner to give approval and she is sick.

It could be a variety of things, but usually it boils down to this they were too busy to call us, or too look into our quote.

So don't beat yourself up, keep a positive attitude. Don't make assumptions tell you hear it from the horses mouth.

I'm writing this because this is what happened to me, I emailed a proposal for window cleaning, and after initially speaking to the customer, I didn't hear back. I thought my prices is too high. But no the customer was waiting on a few people to see if they could go ahead with our window cleaner. Another customer who I emailed, also after several reminder emails had not even looked at the quote because he was busy.

So stop assuming, and stop beating yourself up. Don't change your pricing scheme until you know that it is turning away too many customers.

How do you solve this problem? My next post will shed some light.

Thanks for reading my blog! Are you in the Toronto area and want your windows cleaned? Call the Toronto window cleaner at 647-409-8144

Sunday, October 5, 2008

setting pricing

Pricing is one of the most important factors in your business. And in business, pricing is one of the 4 types of marketing. Pricing is vital if you wish to stay afloat, and thrive in business.

Of course in different parts of North America pricing the price of the cost of living varies. In big cities like Toronto, one needs to price higher, and window cleaning companies in general may price higher in big cities like this. In Toronto the cost of housing is high (although housing prices are expected to be flat or drop). An average house here costs $370,000. Rent goes for about $1000/mth for a two bedroom, and the price of gas is about $1.10/litre. Prices in general are a little higher here than in some small towns.

So when setting pricing, you may charge a little higher in a bigger town like here than in the boonies.

However, one thing that seems to be similar everywhere is competition. There are tons of window cleaners in Toronto.

When setting your prices it is better to go from a high point, and then gradually lower the price you are offering if you are not breaking through. When starting out you would want to target larger places if possible, so that your route can grow faster, and you may have customers that take the window cleaning more seriously.

Before starting out, you might want to consider not quitting your day job, or having your spouse work more, so that you are not under extreme financial pressure. It's good to be hungry for work, but if you start in a desperate look for work, you may be tempted to price very low at the beginning which causes problems down the road.

A reasonable price is very important. Consider this, you have ordinary expenses to pay to run a business, gas, insurance, equipment, depreciation, and taxes. You also have unpaid labour you do for your business, canvassing, bookkeeping, meeting with the accountant. In addition you start out in business as an investor, hoping to have a good return on your investment in money and time. So don't feel like you are pricing too high if you are targeting $60, $70, or $80/hr (averaged over the day's work). You are an investor, you work tireless unpaid for long hours, and you have bills to pay. You are not an employee, who merely works 8 hours, only does a minimum of unpaid lobour, and has benefits like workers comp, unemployment insurance, and an employer paying into your old age pension (in Canada at least). You are the owner of a company, an investor, and a tireless unpaid labourer.

If you start out pricing too low, you will find it hard to raise prices later on, you may struggle, as many have working many hours, but not seeing a lot of profit. You may be working hard, but find it hard to hire an employee, because you can't pay him a decent wage. Or you may find expenses so high, that you feel you must cut corners by doing shoddy work, skipping windows (that are dirty), skimping on equipment, having a beatup car, an not being able to take a decent vacation. The worst thing is to feel like a slave of your business.

As an example, I've been able to secure many contracts with big stores, charging about $1 or $1.25/per window/per side.

You may worry that pricing at a higher level will make you lose a lot of jobs, when someone cheaper comes along. Well, I've been window cleaning for six years, and that has rarely happened. When someone is happy, and you maintain a good relationship with them, and you do quality work, they won't look for someone else. Think about it, if they quit with you, who they trust, they have to risk having a bad window cleaner take over that they regret using. People aren't as attached to price as you may think.

And no, I don't work in a dream, or pie in the sky market, Toronto is ultra competitive. In Toronto which is a large city of 5 million people. The window cleaners run the gambit, there are bums who clean windows for alcohol, drugs, who are very unreliable. There are window cleaners on bike, usually not very good, but there have been a few good bike cleaners, there are those who have been window cleaning for years and never raise their price, they skip windows, skip cleans just keep things going. They usually have a beat up car, work like a dog, and don't really see the fruits of their labour. And there are some window cleaners who price decently, do good work, and are picking up new jobs regularly, while holding onto their existing clients. A friend of mine did a search of all listed companies in the Toronto area and counted 350, and I'm sure there is many more than that.

Toronto is doing ok economically, there is no subprime market mess here, but the economy here is sorta lukewarm, unemployment here is higher than the rest of Canada, business in the core, find it hard with high business taxes, and there is high competition so there is no pie in the sky dream market.

Pricing at a higher level enables you to have a leverageable business, you can hire and keep good employees paying them well, you can enjoy vacations or whatever you do to refresh yourself, you can earn dividends on the good investment your window cleaning makes as you sell route, have employees or sell franchises. Plus all the hard work you did at the beginning of the business you get paid back for.

Of course pricing takes a certain amount of experimentation. You may start out a bit too high, or realize you are not charging enough. It is useful to learn more about your market, your cost of living and what others charge. But in the end, look at what you want to make.

But remember don't price like you are the employee because you are not.

Price at a high level, and work from there, target larger jobs, be persistent, and make changes where necessary.

Wednesday, September 24, 2008

The trap of being busy

Are you busy? How's business? These questions are like the how do you like the weather questions for business people.

They are good conversation starters, and are an enjoyable start to a discussion. However in those words lie a trap.

like alcohol for an alcoholic, being busy is like the alcohol for a business person. Being busy often makes us forget, or not realize that our business is floundering or not established properly.

It feels good to be busy, it makes us think that we are successful, because we have work, we have customers, we get paid, and it seems like we are building our business. But therin lies a trap. Often business people who work very hard, feel that they are successful, that they have built a good window cleaning route, or other business. However, they may be fooling themselves.

I know how good it feels to be busy. When establishing my business, it was scary. It was extremely worrying and frustrating to spend days canvassing, and not get any clients. I doubted myself, I wondered am I pricing to high? Am I targeting the wrong clientele? Is there too much competition? It was scary.

However, as I got some new clients, and as I cleaned windows, I felt good, I felt like business was rolling in, that my business principles were sound, and I was targeting the right people and pricing well. Being busy made me feel good. Because let's face it, men especially, need to work, and window cleaning for me fills that need for work.

However, when you look out in the world of small business and especially window cleaners. The busiest window cleaners are often slaving. They price too low, they wonder why they find it hard to make ends meet, they start cutting corners, feeling frustrated in not having good help they don't take vacations, they might leave their jobs for a few weeks to take the vacation. Being busy hides the flaws of their business, and lets face it, one of the biggest flaw is pricing. Often they have so much work because there prices are very low. But yet, pity them, they can't make ends meet, they cut corners, causing problems with their customers, they miss doing jobs because they are too busy, they work out of a beat up car that is always in the shop, they don't take vacations and get needed rest, and they might take chances with the equipment they use. But they don't know, they are so busy they think they are succesful. They might also fear raising prices, but their busy ness is the main problem, clouding their judgment, hiding the problems.

Most people equate busy ness with success. If you say that you only work a little bit each week, people think you are strange, and unsuccessful. They worry about you, even though your business is unfolding the way it should, and you are building a good well established business. You might look at a store, and if they are not busy assume they are going out of business. Most people equate busy ness with success. That is not true.

You can build a successful business through pricing with good margins, you wouldn't need to work as much, you don't need to cut corners, you don't need to skimp on equipment, you can take nice vacations, and hire help, and get away from being a technician, just working on running your business.

Stop looking at how much you are making, and look at how much you are charging. One of the biggest factors in your success is looking at your profit margin, making it as big as you can given market conditions and then marketing it to the appropriate parties.

Stop worrying about busyness, worry about profit margins instead.

Are you in the Toronto area and want your windows cleaned? Call Mike, the Toronto Window Cleaner at 647-409-8144