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hi this is dan again from clean guru and today promise you we talk about the
question
when is the best time to put through
a price increase that one of your job so one of the buildings that you clean
well first of all the logical answer
is when it's appropriate what it's called for sol you want to make sure
that you
have looked at the profitability of the job and you can see that consistently
it's not making what it should to be a fair
or reasonable profit
and you've looked at the cleaning to see if there's anything you can do
but at the end of the day
if it's very logical that you need to do something
but that's the first thing that should be there but it's a justified price
increase
but there's more to it than that and that's what i wanted to talk about today
let me give you an example years ago i remember when four unite
we did a study of our profitability of all of our different jobs
in order to jobs let's say jet our job one job a job d
and they both knew price increases put through
and they were justified price increases
well one we did it
the price increase on building a
sailed right through without a problem
but the price increase on building b
we had a problem there was some discontent and would not in brno short
time we got a letter from them they change cleaning companies and have
dropped us did not go well at all
well what was the difference here
from a logic standpoint we go while they were both justified increases
why did they not both go through the site
lot of course part of the answer something we've talked about a lot and
selling
and that is human nature
these are real people
real flesh-and-blood people that were in charge of charge of the buildings that
we clean so
the building manager the property manager
the office manager these are real people
and do they think logically all yes
but there's a large emotional component to it
so for example
their feelings about u_s_ of company have things been going well have you
been handling all of your extra work good good customer service of they've
had problems do you take care of it well have there been any glitches in the road
it are they kind of sour do u or you want to good standing with them that's
number one
number two
what about the actual cleaning people that you have placed in their building
let's say it's allison joe
are they happy with alston joe
you know in building a
where they liked allison joe a lot they've gotten to know and like and
trust their cleaned your cleaning people
that price increases might be easily sail through
it's not the only reason but it's part of the reason because this is human
nature
at building d
if you'll either have missteps on some customer service
or the or you've had a lot of turnover so they're not really even comfortable
with who you have in the building
let price increase may not go through as well
salaam i'm encouraging you to only put through justified price increases
but only to put those through
when you sing some sense of tightening some sense of common sense
because
if for example you're having problems you may want to correct of those things
and make sure that things are smoothed out before you put through a price
increase it's just common sense we push for without thinking about human nature
and it cost us
so you might want to think about this the next time
ural reviewing your profitability in your account
and consider human nature and timing
before you move forward with that that can create that can tell you when the
best time
to put through a price increases
now next time
will talk about a one issue with you if you were a
our personal story back when tony and i were running our cleaning company that
really hurt
and it really taught us a lesson about why you never want to stop marketing i'm
sure that with you next time until then remember that you can do this
you really can't