5 Reasons to Raise Prices in Your House Cleaning Business

Jean Hanson

"I know my prices are too low, but I can't raise them because I have too much competition and my prospects and clients will never go for it!"

How many of you have said this at some point in your business? I want to challenge you to change your thinking on raising prices. You see, most price resistance is really in the mind of the seller, not the buyer. I remember in my first business I felt the same way. After all, I was fairly new to the business and wondered how I could increase my prices without my clients complaining that I charge too much? But the first time I increased prices one of my clients said, "It's about time, you deserve it!"

Here are some tips I've learned over the years about increasing prices.

1. Most price resistance is in the mind of the seller, not the buyer. Yes, I just said that in the paragraph above but it's worth repeating because until you believe that you are worth the prices you charge, you'll never convince your customers of this. They will pick up on your nervousness and lack of confidence about your prices and will take that as a signal to start negotiating. Price increases are not a negotiation. Do you ever negotiate the price of a burger and fries when you go out to eat? No, you pay the prices you are charged by the restaurant. The same goes for your cleaning service prices - YOU set the price.


2. You are not your customer. Have you ever thought to yourself, "I wouldn't pay that price so why should I expect my customer to"? However YOU are probably NOT your ideal customer. People who pay premium prices have a different set of expectations, and as long as you meet and exceed those expectations, they'll pay your price all day long.


3. If your competitors have lower prices than yours, that's THEIR problem. If you have a hard time making a profit, then chances are your competitors do too. Charge the prices you need to be profitable and don't worry about the low-ballers. They will eventually follow your lead or go out of business.


4. The only thing worse than no sale at all is an unprofitable sale. It does you no good to have such low prices that you're struggling to make a profit. Stop taking any work that comes along and start searching for customers that will pay what you're worth.


5. Volume means more work, not necessarily more profit. Many business owners think they need to go for more sales volume in order to make more profit. But in most cases, you're just creating more work for yourself, not more profit. If you're struggling with low profits then either raise your rates or add new services that can add more profit to your bottom line. By adding more profitable services like carpet cleaning, carpet spotting or upholstery cleaning, you'll see your profit start to grow.

One last thought to share. We would all like to have premium customers who gladly pay premium prices. I mentioned that these customers have a different set of expectations, so they are looking for value for the price they pay. Make sure you have hiring and training programs in place for your employees and that you also have quality control systems in place to ensure you can exceed their expectations. People who pay a premium expect the "WOW" factor with their cleaning service, so be prepared to "WOW" them with your service!

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Jean Hanson helps owners of residential cleaning companies build a more profitable and successful cleaning business through her online community at MyHouseCleaningBiz.com. Read inspirational cleaning success stories at http://www.cleaning-success.com, and sign up for House Cleaning Profit Tips at http://www.MyHouseCleaningBiz.com.