Afraid your price is missing the mark?

Take The Fear Out Of Pricing Home Cleaning Services

Does pricing your home cleaning service feel like target practice? If so, you're not alone. Many cleaning business owners give a price quote and then hope they've hit the bulls-eye with their price.

The problem is, the price they quoted is based on a number of things that may not have anything to do with whether or not the job will be profitable. Some people use their gut feeling as to how long it will take; some use an hourly price that is too low to make a profit just so they can compete with low-ball cleaners. Others read in the online discussion forums that they should be pricing at $25 per hour because you simply can't get any clients if you charge any more than that.

Fears about Pricing Home Cleaning Services

In a discussion among members of MyHouseCleaningBiz.com, we asked what fears they had about pricing their cleaning services. Here are some of the most common fears:

1. “I get discouraged when the prospect asks about price right away. It seems as if every time this happens, they're looking for a low, low price.”
2. “I hate that I have to compete against ‘trunk slammers' because they low-ball their price and I can't compete with that.”
3. “I'm not doing a very good job of selling the value of my service. I seem to get stuck on price right from the get-go.”
4. “I can't figure out how the franchises and larger cleaning companies can charge top dollar, yet they don't do as good a job as I do.”
5. “The economy has really taken a toll on what I can charge. People want me to lower my price.”

Let's address each of these pricing fears individually.

1. “I get discouraged when the prospect asks about price right away. It seems as if every time this happens, they're looking for a low, low price.”
   
   What is happening is you're anticipating the fact that the prospect is going to question your price. When you're expecting it, it's going to show on your face and in your body language. The prospect will pick up on this and continue to press you for a lower price.
   
   
2. “I hate that I have to compete against ‘trunk slammers' because they low-ball their price and I can't compete with that.”
   
   Why do you feel “trunk slammers” are your competition? The reality is – they are NOT your competition because the people that are interested in using their services are NOT your ideal clients!
   
   What usually happens when you take on clients that are just looking for the cheapest price is, they don't last very long because they're not loyal, long-term clients, which is what you're looking for. And many of these clients end up being some of the biggest “pains in the you-know-what” because they're expecting the world without having to pay for it. Go after prospects that are a better fit for your business.
   
   
3. “I'm not doing a very good job of selling the value of my service. I seem to get stuck on price right from the get-go.”
   
   You're getting into the price discussion too soon. Read on to learn techniques for deflecting the price question until you're ready to discuss price.
   
   
4. “I can't figure out how the franchises and larger cleaning companies can charge top dollar, yet they don't do as good a job as I do.”
   
   The franchises and larger companies are confident that the price they charge is worth the value of the service they provide. If you don't have that same confidence, you'll continually have a problem charging what you're worth. After all, if YOU don't believe you're worth $35 an hour (or whatever rate you'd like to charge), then why should your CLIENT believe you're worth that price?
   
   
5. “The economy has really taken a toll on what I can charge. People want me to lower my price.”
   
   Using the economy as a reason for not being able to get the price you want is simply an excuse. There are lots and lots of residential cleaning companies across the country that are thriving. If you have a problem, it's time to figure out what the “real” problem is and stop blaming the economy.

Why is Price Such a Big Deal?

If you are struggling with price, then you're making price a big deal. And if it's a big deal for you, it will be a big deal for your prospects.

You're not alone if price is a problem for you. In most industries, price is almost always more significant in the mind of the seller than it is in the mind of the buyer. So if you're anticipating that the prospect is going to challenge your price, you've made price a big issue in your own mind.

The problem is, your concern about price is not just in your mind. It also shows up in the expression on your face and in your body language.

Confidence Closes Sales

Here are some of the tell-tale signs you're lacking confidence in the price you're quoting:

• You don't look the prospect in the eye when giving them the price.
• Your voice gets soft.
• You sound almost apologetic when giving your price.
• You look down after giving the price.
• You hold your breath after giving the price.

These signs are not usually a conscious thing so you may not even realize you're doing it. What you're doing is preparing yourself to be challenged on your price quote. Unfortunately, the prospect picks up on your unconscious signs and sees the opportunity to dicker on price.

Pricing takes practice so the more you do it the more confident you'll become. Here are some tips for gaining confidence in pricing residential cleaning.

• Remember that you'll never win every job - some prospects just aren't going to be a good fit for your company. So don't let the fact that you didn't get the job shake your confidence.
• Don't let the prospect intimidate you just because she challenged your price. She may just be trying to understand what she's getting for the price.
• Don't worry about competing against low-priced "trunk slammers". Their ideal clients are not YOUR ideal clients. And if they're operating illegally, it will eventually catch up to them.
• Try this if they say your price is too high. Ask what they feel is a fair price. If they give you a super low price, you know they're not a good fit for your business.
• Be confident when quoting prices for referrals. They came to you from someone who believes in your service so they're almost completely sold on you already!

Important to Note:
When you resign yourself to charging a lower rate, you severely limit your ability to grow your business. That's because every penny is going to paying your employees and keeping up with the bills. If you want to grow your business, you need to charge top dollar so that profits can grow within the business to fund expansion and growth.

Would You Like to Learn How to Price Your Home Cleaning Services Profitably? This article was just the first part of our Ebook called, Insider's Guide to Profitable Pricing for Residential Cleaning Companies. The rest of this Ebook is available to Members of MyHouseCleaningBiz.com, in the Download Library.  In this Guide you'll learn: Fears about Pricing Why is Price Such a Big Deal? Talking About Price Too Soon When is Price Truly an Issue? The Customer Just Isn't Getting It: How Do I Justify My Price? Tip on Quoting Your Price Offer Options The Difference Between Price and Cost Production Rates and Measuring Time Production Rates Measure the time for each area Is Your Price Profitable? Understanding Expenses Loaded Payroll Overhead Pricing Example If you're not yet a member, we have the resources to make your cleaning company profitable, so Join Us Today!