I saw an interview recently with a business owner who is making the same mistake that so many carpet cleaners are.
This owner was running a small restaurant, and her costs were increasing rapidly BUT she wasn’t putting her prices up. Sounds familiar?
Some of her costs had doubled (cost of eggs) although she had managed to source them cheaper elsewhere.
And she said that she had run the business for two years but had not yet taken a wage out of the business.
But here’s the thing…
She was asked why she hadn’t put her prices up and this is what she said in reply…
She was afraid that she would lose all her customers that she had worked so hard to get… even though she is earning no money.
Now that’s business suicide because if you don’t have margins and profit you don’t have a business.
And that of course is exactly the same as so many carpet cleaners… frightened to put prices up in case they lose all their customers even though they may not be earning much money. I saw a post on Facebook recently where a carpet cleaner said he hadn’t put his prices up for over five years! This is not uncommon. What that really means is that he’s earning less now than he was five years ago because of inflation.
But did you know that a typical carpet cleaner can raise prices by 20% and lose 25% of their customers and still have the same profit?
Now if you want to find out more about pricing go to success4carpetcleaners.com/gethigherprices