Episode 54: Are You Defending The Price Of Your Cleaning Service?
Do you find yourself defending the price of cleaning when a client says they're going to go with a lower priced service?
We recently had a member ask about this very problem. Her client has been paying very reasonable price, but when she got a couple quotes for $15 and $18 an hour, it was too hard for the client to resist the low price. The cleaning business owner proceeded to get on the defensive about her price.
A wise business owner gave her some great advice for taking a different approach when faced with this situation.
-------------------------------------------------------------------------
Episode #54 - Video Transcription
We have a lot of discussions every week in our member forums at TheJanitorialStore.com and MyHouseCleaningBiz.com. And sometimes a great piece of advice is given for a common problem many cleaning business owners face. One of the problems I see often is when cleaning business owners find themselves defending the price of their cleaning service.
We have a member that recently asked about this very problem. She has a client that had gotten price quotes from a couple cleaning services for a much lower price than what she's currently paying. Now our member is charging $25 an hour for this account, which in her market is a very competitive rate with very little wiggle room to lower the price and still make a profit. Well it turns out the quotes the client received were from "individuals" who are low-balling the legitimate cleaning companies.
In the residential cleaning industry they're commonly referred to as "trunk slammers". So the cleaning business owner proceded to explain to her client about all the pitfalls of hiring individuals who are not legally doing business, in an attempt to defend her very reasonable price for cleaning service. But the client still decided to go with the cheaper priced cleaning lady.
So what's a person to do? Well, a very wise business owner offered some great advice. She said that in the future, avoid getting into a long explanation about how much it costs you to clean (so for example, explaining the high cost of insurance, the cost of bonding, the cost of worker's comp and employee taxes, and on and on). Because even though the insurance piece can be a big headache for the client down the road; right now she really doesn't care about all that. She's just attracted by the lower price.
So instead of defending your price by explaining what all you're paying for, try taking a different approach. Say something like this -- "I provide my clients with professionally trained and thoroughly screened workers, and a service that is well-insured should anything happen on your property. You see, my clients aren't looking for the cheapest deal -- they want quality AND security, so they're willing to pay a little extra for that benefit. It sounds like we're probably not a good fit for you, as you really need a lower priced service."
Do you see the difference? You're actually making it HER fault, not yours, that she doesn't value quality and security over price. And notice that by saying it this way, you're not doing it overtly, you're just subtly implying it. If you take the first approach by getting defensive and explaining your costs; then she is equating YOUR problem of high costs with her RATE.
Instead, she needs to be reminded that SHE gets the benefit of using a service like yours. And your price is not that much more, so you're worth it. This is a firm but polite reminder that will get those that really DO value quality and security to rethink their position. And for those that are just looking for cheap deals--good riddance! And something else to keep in mind when dealing with these clients. Keep it professional and non emotional. If you let them strike a nerve with you, it'll show when you start getting defensive. Let them know that the perfect client fit for you is one that truly values quality and security.
Now I'd like to hear your thoughts on this topic. Have you ever tried this approach when your clients bring up the price issue? Or do you have OTHER ideas that have helped you retain your clients regardless of a lower priced competitor? Please share your comments by posting below.
