Need Advice on Dealing with PM's

Terry Campbell

Terry Campbell

Member
OK I run a sweeping and washing service, with the price of Diesel @ $4.05 to $4.10 here now it is really getting crazy. I called one of my good PM's that I have 6 shopping centers with today to get a monthly increase in our services, we are on a 30 contract with them for a set price mostly sweeping but I do flat work for them on all but one center. But the sweeping is where I really need an increase in prices, because we burn so much fuel. I have a meeting monday with 4 managers. But they don't really want to go up in prices but they know how much things are going up. Now whats the best way in this meeting to try and get prices up to cover my fuel costs. I don't want to loose these accounts and they pay fast within 6 to 10 days on a 30 day net. But I need some advice on going into this meeting to get a increase to cover the $1.18 that it has gone up on us in price. Any help would be appreciated......... I'm new to this kind of stuff and need all the advice I can get. The one thing going for us is we do some of the best work in town BAR NONE and they know this too....... We work very hard for them and we allways do what we say we are going to do and it's allways on schedule. I do pretty good on my washing prices with them only one shopping center I need to go up a little on but the rest I do real good on.

Thanks Terry.............
 
If you're making good money off all but one shopping center, then figure out how much you need to raise your rates to make good money on that one that you're not making much on. Then, see what percentage that is of the total cleaning and then average that across all centers. It may be that you only need to go up by 5% when it's averaged across all centers. Just thinking it'll be easier for them to swallow a 5% or 10% increase on all than it would be for them to swallow 25% or 50% increase on one.
 
terry, I would tell them up front what you have to do. Then as a second option offer to do the same work in an 11 month period for the same price. I have a new company but give them two options and don't say anything if they go for it they will if not you make the decision. --good luck
 
For future reference, leave a clause that states "XXX Powerwashing" reserves the right to implement a fuel surcharge not greater than "XX" per month, shall fuel prices go above "XX%" price that they are now.

Cover yourself for your fuel costs and they feel like they are covered by yourself capping the fuel surcharge. (Your advantage is YOU set the percentage)
 
Thanks Guys for all your advice, I was thinking in the 10% range but they don't want to give much at all but something has to give with record prices right now and going up everyday. They told me their budget starts again in oct and if I can't get more now, I will then because the way it is going, $5 dollars a gallon is very possible by then and in no way will I eat that big of an increase in fuel prices. Monday I will see how things go as I have a meeeting with 4 of the managers there and they know my work and I allways go out of my way to help them with stuff I see out there at night and this they know. OH and I got a fuel surcharge from a different company of 10% and he even gave me more work on top of it, so I know good managers will pay for Great work. If nothing happens much now I will redo my contract then with a surcharge in it and go from there.

I will just have to sell myself and my work even more I guess, I do 1000 times better work then they were getting and I allways show up and do it on time and right.

Wish me Luck...........


Terry.......
 
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