Good day all, I would appreciate some advice when your fairly long term customer takes out other "competitive " bids and they say we want to use you but XYZ cleaning will do it 2 cents a sq. ft. cheaper. This typically happens when I seea change in management and that is the case here, someone thinks they can get everything done cheaper. I know there really is no loyalty in this buisness, and that is the nature of the bus.I have mentioned my cleaning is different from the guys bidding on using portables and a wand, ( this is a 7 story building)not to mention its a HIGH security Fed. facility , and I have all appropriate clearances. I mentioned my guarantee, I haven't raised my prices in 3 years , quick drying ect.Any other pointers would be appreciated, I know I've read a few posts from Rick before on this subject.
Thanks Craig

What is the pay history?

Can get you paid quicker in exchange for the 2-cent discount? 5-days, 10-days instead of a month?

Can you cut something from your service, yet still give them a good product? What if they prevacuumed for you.

You could discount the open areas, but hold firm on the areas that take more time.

Good luck
Richard

Craig,

Unfortunately people are not always loyal to a brand, even when they are satisfied. You see it all the time; your wife gets a coupon for a new brand of dish soap so she tries it. You get the picture, customers switch products / services sometimes. In other words there is a natural level of attrition. And for that reason we should always be marketing.

Ways to deal with it.

1) Find a way to deal with the new pricing constraints, as Richard suggested above.
2) Try to keep them in a "COMFORT ZONE" with the service so they don't feel the urge to squirm when they get an itch. In other words keep them so satisfied with all of the aspects of your service that they can't resist using you.
3) Open it up and re-bid the job. Explore everything they need and price out the essential services that they would like to receive. You'd be surprised how everything can look different if you look at it fresh again.
4) Closely related to #3, look at working the proposal with a different type of contract. You might consider offering a "Perpetual Clean" contract. Giving them a new option with a different pricing structure may help get them over the hump.
5) They may be just yanking your chain trying to see how far they can push you. In which case you may just need to let them go.

Sorry to hear abouut your problem with this client. I hope you can get it resolved.








Rick Gelinas
rick@excellent-supply.com

It happened to me about 6 months ago. One of my big accounts. I did not drop my price and they went with the other guy.

They called me two weeks ago to see if I was still interested in the account. Don't let them squeeze ya.


Ralph

I have been a government employee for years and years. Yes, right now (and I stress right now) carpet cleaning is my secondary income.

When you deal with the procurement person re-explain the hassles they will save with the clearance issues, with the fact that they have not had issues with you performance, no interruptionn off services, and that you have not raised your prices.

You can also try this speech:

"I understand that you are trying to get the best deal you can for your employer, the Federal Government (or whoever), and I respect that completely. That is why I have not raised my prices- in 3 YEARS!!!, despite my cost going up (??)%."

"If I may ask you a question- Have you received a raise in the last 3 years? Maybe all 3?"

If they say yes, then point out that you are still doing spectacular work- WITHOUT A RAISE.

If they say no, then you can point out that neither are you, yet that person is asking you to do the same job, with the same quality, but accept less money. Explain that you are already "realizing" less money through increased expenses that you HAVE NOT passed on to them.

Let them think about it for a minute and tell them you are willing to continue your extraordinary service- with no interruption- at the same price, if they sign a new contract with you.

Tell them you understand completely that you understand that it is "just business" and that if they need to go with a lower priced provider then you will not take it personally.

HOWEVER, if they do that and then find out that it did not work out with the new provider that you will be happy to return at .02 per Sq. Ft. more (or whatever fee).

Do this very understandingly and professionally and with the utmost confidence. Either sign the contract or confidently and professionally leave your business card and the following statement-

"You are a valuable client for me, and I hope that we can continue our wonderful relationship. I am planning on being back on (whatever date) to clean as normal, unless you tell me not to. Have a spectacular day (use his/her name) and shake their hand.

Del Scrivner
Owner/Operator
Cowboy's Carpet Care

Don't give in.

There's no reason why you should have to drop your price to less than what it was 3+ years ago.

I will also add that many of these commercial gigs get orders from "higher up" to try to trim costs by finding cheaper people to do various tasks for them,...carpet cleaning being one of those tasks.

I have a restaurant I've cleaned for about 10 years now. About once every 3 years or so, the manager is required to try another carpet cleaner in an effort to save money. I have gone thru this with the manager several times. The manager tells me that we will have to skip our monthly cleaning for next month so he can let someone else do it one time just to satisfy his "Higher Ups". After that I'm back to my once a month gig.

Frankly, there are too many fish in the sea to let a customer beat you up on price,...especially when you're priced competitively in the first place.

Thats good stuff Del.

Thanks
Your Servant Alex

Thank you all, there several "keepers " here , and I plan on trying a few.
Thanks again, Craig