[StepN2Mpress]

Hello, I have a cleaning service and is very successful right now. I have over 15 clients that I have gained within 6 months. They love my cleaning because I offer quality cleaning and affordable rates. I am running into some concerns now that I am becoming well known for my cleaning in my area. I have been in business now for 1 year and 7 months.

The first is I have quite a few customers that I have given a low rate to because I was cleaning on my own. I have gotten to the point now where I have to hire employees and I have more overhead. If I keep certain ones at the rate I have them at, I will be losing money and time. At the same time she has referred me to quite a few clients. Quite a few of my clients has referred me to their friends. Should I increase my rate on them? If so, how much should I increase. (Example: I have a job that takes me 4 hours to clean, average rate within my area is $30/hr.) If I do that, then it will be a big jump to the rate I have given to quite a few of my clients. What should I do?

Secondly, with my business expanding I have to get more help. My clients love my work so much they are not at the time comfortable with me having my trained employee come clean for them. What should I do? Should I hold off from expanding right now or inform my clients that I must get help? Any and all advice are appreciated?

I am thinking about writing up a letter to the clients that I need to increase my rates and informing them about the rate increase. I am also thinking about if I should call or meet with my clients to talk with them about my employees? Please help! Thanks in advance!:)

[Stringer]

Hi StepN2Mpress,

First I assume that you are in the residential cleaning business and presently not in the commercial cleaning business. With that assumption;

I have been in the commercial cleaning business for well over 25 years in the Chicago area. However I helped my wife start a very successful residential cleaning business, which grew to 150 homes. She sold the business after 4 1/2 years and made a very, very nice profit.

She also had this very same problem in the beginning, and she was successful in turning around the problem. At first she personally kept those homes where she felt that she would have a problem turning over to 'employees' and raising their pricing.

During this time she would talk to them a lot and tell them how happy she was that they helped her so much and how grateful she was to them for being such great clients and giving her references. After a few visits to clean, she starting suggestioning that her growth has presented some problems and she listened to them to see how big a problem changing would be. There were about 10 to 12 homes/people like this. She found that all but 4 of them understood but ask that she visit them occasionally to keep in touch about the business and for a personal visit. Also she called these people once ever week or so to show that personal touch. Eventually all the homes were turned over to her best employees who gave a damn about their work.

Also when she got large enough, she hired a driver/supervisor who came back to pick up the workers and personally checked each house cleaning and if she found something, she had the workers fix it right away. When the people were home she spoke with them to see if they were happy.

So, when you make this change you need to beef up the customer service end and the personal contact via visits or phone calls.

Also when she converted them over to 'workers' she gave these customers a finder's fee check as a thank you for the references that turned into business.

Now... pricing; I do not know what part of the country you are in but $30.00 per hour is especially nice to get for house cleaning... possibly you are in New York City or possibly a large city in California.

In the Chicago suburbs hourly rates range from $16.00 to $18.50, seriously. If you are in the Chicago area and are getting $30.00 per hour you are indeed very fortunate.

After you have spent some time with these people where you want to raise the hourly rate, you should have had an opportunity to tell them that your costs have risen a lot for supplies and mainly in labor. You need to have good employees and they cost a bit more in this market. Have this conversation only in person (period) the phone is not the way to handle this at all. Remind them that you want to continue to provide excellent service as always and that you will check up on them, but you are between a rock and a hard place and you really hope that they understand. AT THE SAME TIME GIVE THEM THE FINDER'S FEE CHECK. They will appreciate that. Possibly offer them one free cleaning in lieu of the check, but I like the check better.

Now, will you lose some of them... probably, but if you handle this with concern, consideration, timing and a full explanation it should work.

Remember, first start to talk with them as you clean to start to prepare them about costs raising... then come back maybe after the second or third time and tell them... with the check for them to show your appreciation for them.

Continue to prospect for new customers, if you are not growing you are stagnate/dying (business wise) and you will eventually lose your present customers for whatever reason (this is a truth), so always be out getting more...now. Find the time it is your lifeline.

I hope I helped you a little, please let me know,

Stringer

[StepN2Mpress]

Great Information, I will keep this and work with it, any other advice you have please feel free to share. Thank you so much.

[Stringer]

You are welcome StepN2Mpress, glad that I was able to help some.

Come back and ask any additional questions that you may have.

Stringer