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.

Dress for Sucess!

Today I met with a mid size janitorial company based in the Greater Toronto area. I had spoke about subcontracting window cleaning jobs from him, since many of his customers need window cleaning done.

His client list included a who's-who of Toronto, an impressive client list which they showed me when I met with them.

Originally I was going to meet the marketing director in a coffee shop, at the last minute he decided to invite me to his office. Where I would also meet the CEO. This was turning into more of a job interview, and a situation where I want to make the best possible impression.

So I decided to dress well for it. I didn't want to overdress, and look out of place, wearing a complete suit. Instead I wore suit pants, and nice dress shirt top button unbuttoned, and nice polished, good quality dress shoes and socks.

It turns out I made more of an impression then a would have hoped for.

He was impressed because he found some window cleaners in the past have not taken care of their personal appearance when servicing his clients, appearing with dirty rags coming out of their pockets, cutoff jeans and unkempt appearance.

As he told me himself, the way I dressed, showed that I cared about my appearance, that I would dress with appropriate attire, or the people I send would dress appropriately when doing jobs.

He appreciated that because he is concerned with image, and he wants to project a good image with dress, and other matters.

The way I dressed today, practically got me a subcontracting agreement before I opened my mouth.

As you probably know, the way you dress speaks volumes, and dressing appropriately on occasions when you meet important contacts is very important.

Don't feel you need to overdress, but dress appropriately for the occasion, and you may find your business will flourish as you build important relationships with other companies.

Stop leaving so many voicemail messages

Stop Leaving So Many Voicemail Messages

One thing I have learned in the last few months is this. Stop leaving so many voicemail messages.

We hope by leaving them that a prospective customer will call us back when they get a chance, but they rarely do. There are some that have a personality that they return all calls and all messages. But so many, for one reason or another don't. This also applies to email messages too.

Sometimes you might leave one message initially to get the ball rolling. Perhaps you are calling the wrong person and they forward the message to the appropriate party.

But when trying to land a job, don't keep leaving messages. It is far more effective to keep calling, when you get the person on the phone (this requires some patience) they will usually feel like they need to make a decision, and often will make it on the phone. Or they might tell you to call back in a week (call back!). It might takes repeated efforts but some of your efforts will pay off. So be persistant. However, leaving messages will not lead to the same success.

Some other people are worse, and you need to see them in person. Be concious though to do this at a time that you are in the area, and are not needlessly wasting time or gas.

Thanks for reading my blog!

Are you in the Toronto area and want a quote for window cleaning. Call the reliable Toronto window cleaner at 647-409-8144. Or visit my website http://mmwindowcleaners.com

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

A shout out to Sean!

A Shout Out To Sean
 
Sean is the Salesman for Window Cleaning Resource - of which my blog is posted on the forum. Thanks Chris and Alex.

Sean is a very successful businessman, and has helped WCR to acquire much of their commercial work.

I watched Sean's video today about his new approach to pricing. I must say I'm impressed. He's not going to lowball his prices anymore to win accounts - and he will charge what is good for him - working on commision, and high enough for the guys who work at WCR and Chris and Alex.

I too don't believe in charging lower than I want for an account simply to match local competition or get a client.

My belief in pricing is too charge at a rate/hour that you want, and a rate that you know the majority of your desired clients will accept.

I would rather charge too high and not get a business, than charge too low, and kick myself later, and find myself over time with a lot of underpriced work.

My pricing philosophy is always changing, based on what I think I can charge, what high prices others have charged, and when I find out that I'm not charging what others do.

The most current change I have made to my pricing is to not treat all glass the same.

Before, even when cleaning a large piece of glass, I would charge what a small piece of glass would cost. Most customers understand that they will pay more if they have a store with big glass than if their store had small windows.

If I need to just clean windows with one method, cleaning with just a squeegee and applicator I will charge a basic rate per window. If I have to use a pole (I'm tall - 6 feet 2) than I will charge up to double that rate.

I would advise all of you to not treat all glass the same. Let's say you charge $1/per outside pane) for a regular pane that requires no polling. For one that requires polling, or is much larger charge $2/per pane.

Your pricing philosophy can change, be willing to accept new ideas and make adjustments where necesary.

Are you in the Toronto area and want a quote for window cleaning? Call the Toronto Window Cleaner at 647-409-8144 or visit my webiste at http://mmwindowcleaners.com

Damn! It's cold!

Damn It's Cold

Today, was a freezing day. The windows were whipping up, and the windchill was making it feel like -20.

For some reason, the windchill factor seems to have an effect on the water. Even though the windchill factor was designed to show how cold it feels for a human. Windy days tend to make the water freeze at the windchill temperature, not the actual temperature.

On cold days like this I dress warm. When it's below -10 (14 Fahrenheit) I wear snowboarding pants, or snowpants. I wear a thermal shirt, a solar fleece, a heavy goose down jacket, a touque, and for hand protection, I use snowboarding mitts (Kidd by Eskimo). I wear very warm boots.

I have been having problems with my boots. Although I spend a lot of money, on apparently good quality boots, I still tend to get a little bit of water in my boots. Which should never happen.

To keep the water from freezing, I use Methyl Hydrate (AKA, Methyl Alcohol). Using this product I can work at levels of lower windchills, then windshield washer fluid. I also don't like the soap in WWF, and I think I spend less money usning methyl hydrate than wwf.

I encounter a problem with working on these extremely cold days. It's hard to squeegee with a lot of methyl hydrate because the liquid is thinner, no matter how much soap is added, it can't soften the water so it's easier to squeegee. My water seemed when applied to the windows not to be even, heavy to squeegee too. Perhaps I'll have to add some softener or easy squeegee solution.

On days like this people wonder why you are cleaning the windows. But of course, on days like this, with snow on the ground, and sidewalks oversalted the windows are just filthy.

Word of advice - invest in boots. Make sure - that you get waterproof, warm boots if you live in a cold climate. Before I got these boots, I had very cheap boots, that made my feet freeze. As soon as your feet feel cold, you simply can't work, simple as that. Invest in boots.

I tend to go with very bulky warm clothes, instead of layering. However, I've reduced the amount of cotton I wear (T-Shirts, undershirts etc) I wear, since I found that I either feel overdressed, or it stiffles me.

What a winter it's been.

Accounts Payable

One of the most pressing problems in running a small business is getting paid promptly. In a business like Window Cleaning there are a number of customers that pay immediately. And when your focus is on cleaning houses, you might get paid right away nearly all the time.

However, my business while including residential, has its main focus on cleaning businesses. Many of these are billed and mail a cheque to my office.

How do you get your customers to pay in a reasonable amount of time? Many business suffer, while they are doing a lot of work, a lot of their money is tied up in accounts payable, and people taking weeks or months to pay. That really drains your business, and could stop you from running a profitable business.

Let me share a couple ways that I keep my accounts payable under control. Perhaps you can implement these suggestions for your business.

State Terms

It is important to state at the beginning what you expect in terms of payment. The time that you expect payment, for example, on receipt, or 30 days. Be clear, state upfront what you expect in regards to how and when you get paid.

For our company, I always say due on receipt. I expect payment promptly and I don't automatically give them 30 days to pay. I expect them to take my invoice, and on the day that they usually write cheques, within a few days they will write the cheque and mail it to my office.


Keep Good Records

There are many programs that permit you to keep your business organized and to create invoices and monitor accounts payable.

I use Quickbooks Easy Start for my small business. It keeps everything organized for me, my banking, invoicing, payment, and accounts receivable. With the click of a mouse I can see how much overdue an invoice is, I can easily email reminders, copies of the invoice and so forth. If you aren't organized you can't easily catch those who are taking too long to pay.

Remind them

After 14 days I remind the customer by email that we haven't received payment. I don't at that point say it's overdue, but I say in a nice, kindly written email that we haven't received payment and we are reminding them. I write down the invoice number and date too, and email them another copy of the invoice.

After 30 days, I email them, saying the invoice is overdue, that our terms are payment due upon receipt, and ask them to mail the cheque immediately.

If we still don't receive payment, I call them personally, in the rare instance that that doesn't work, I pay a personal visit.

Give Lattitude

You do however have to be reasonable. One of my customers is Burger King, and the cheque comes from Miami, which is far away from Toronto, ON. So I realize that it will take time for my invoice to go from the managers hands in the mail to Miami, thru Miami back to my office. I give that customer 30 days before I remind them.

Does this work?

My experience with this payment system that I implemented in the spring has been very positive. I have only three customers that take more than 14 days to pay, namely that Burger King, a dealership that has gone bankrupt, which I'm not even sure I'll get paid, and one other company.

All others pay within a week to 14 days. One customer actually pays us through electronic payment, which is incredibly fast.

Remember, it's your money. It's not rude to ask for your money to be paid to your business in a timely manner. By all means be reasonable and kind when reminding customers, but as the saying goes the squeaky wheel gets the grease, if you are not asking for your money, you may be the last business to get paid.


Thanks for reading my blog.

If you are in the Toronto area and want your windows cleaned, call me, The Toronto Window Cleaner at 647-409-8144