Price Increases

P

Przrat

New member
With all the price increases on everything how are the Hood Cleaners reacting? How are you saving, conserving? I am sure with the price increases the employees are wanting more money. With customers reeling from the cost of everything they must be pushing our work off. What are you doing about that? Losing jobs because restaurants are closing? Delayed payments. No payment? Half a payment? Are you going to court?

Any ideas, help out there? Lets hear it.
 
Blame it on the oil companies, blame it on the government , blame it on the rich AH's in Washington ... But don't blame me... And if you think its going to get better you better buy an extra large tub of vasaline... I 'll pay my taxes and I will keep my prices low but when it takes food off my table and before my daughter suffers one ounce of grief for not having her needs met .. I wil tell the oil company and our whole government where they can go.. SURVIVAL OF THE FITEST... I and my family eat and pay bills then we donate to the government .... for whatever cause they dream up..
 
John don't sugar coat it - tell it like it is - what about the guy who gets a loan on a up scale eating place and he opens next week with a high debt load - he has problems on one big scale - those are the ones to look out for. Even in good times we get stung - but now - look out-keep your head down and one in the chamber.
 
Well, AHHH, thanks? I think? What does that have to do with the original post? One in the chamber, what? Maid?
 
OK !!!! I am saving and Conserving by lining up jobs all in the same area at the same time .. If they are close to the cleaning due date... To save fuel in the truck..
As far as customers pushing the work off we have started requireing a 5% price increase on customers that go 1 month over the cleaning due date. This covers the extra diesel and fuel for the machine due to the fact it takes longer to clean the hood..

Yep restaurants are closing what can you do.. One thing we have started doing is to have back up cleaning plans. We clean concrete , we clean interior floors, we clean buildings.. I always take into account that if a restaurant starts putting off cleanings that they are going to close or go with another company.. so I go do sales calls..

Delayed payments and Late Payments we have had a few.. I get the check is in the mail excuse just like everyone else.. Of course on our contract policy we do state that if for any reason such as a returned check or a payment later than 60 days , after which ths occurs all jobs for said company will be COD...

Some people think that a hood cleaning company should just give the consumer 30 days off the bat..
So lets do a test pick up you phone and call a plumber ( he is a service guy just like us ) when he comes and does the work tell him you will pay him in 30 days .. you may get hit with a pipe wrench..

That said we have gone to COD on all our single restaraunt owned accounts..

We have also been saving on fuel by scheduling all in town fire inspections and recharges on WED of each week.. 1 day .. thats it .. When a customer calls about inspection or recharge , unless its an emergency we do all inspections and recharges on WED...
No more paying our help to drive all over Jackson , and the turn around and go back close to the same places the next day... Wouldn't it be funny if everyone in the United Statesstopped using and buying fuel for one day throught the whole USA..
the answer to the last question ( Are we going to Court ) the answer there is WHY? So you can waste 3 hours out of your life for 500 to 1000 or even 10000, that the courts will set up your customer on the easy payment plan..and you still want get paid.. I always work out something with my customers before the word court ever comes into play.. If they are a little late or need more time to pay and call me before hand I will work out a 2 or 3 pay plan, I do always tell them if I split the payment up the total balance will need to be paid before your next service date.. This usually works well.. You dont want to get the reputation of draging people to court..

Now all that being sad very nicely.. It ticks me off that a few people in this world take advantage of certian situations just to raise prices. I always tell my customer how gas and diesel effect my expense .. As well as plastic being a petro product and the rising cost of it.. I let them know that I could easily justify raising my price but that since they have been such good a loyal customers I will refrain from this as long as humanily possible... And guess what .. ( They Understand) They are getting screwed by the oil company and the government just like we are .. By the way on a really neat not I just finished paying my taxes for 2007 .. I owed a balance of 900.00 and I got my stimulus check it was 900.00 isnt that nice how it worked out .. Guess I will have to wait till next year to buy those new blue jeans I wanted.. Thanks Uncle Sam.. I also had really planned on filling my truck up 6 times with that 900.00 ...
 
Ed - It's just a old military saying - nothing more nothing less. My point was with regards to people investing in new restaurant locations last year and having the building opening in 08.
 
JohnB said:
Blame it on the oil companies, blame it on the government , blame it on the rich AH's in Washington ... But don't blame me... And if you think its going to get better you better buy an extra large tub of vasaline... I 'll pay my taxes and I will keep my prices low but when it takes food off my table and before my daughter suffers one ounce of grief for not having her needs met .. I wil tell the oil company and our whole government where they can go.. SURVIVAL OF THE FITEST... I and my family eat and pay bills then we donate to the government .... for whatever cause they dream up..
Click to expand...



Good Answer....I gonna be watching you...:D
 
So lets do a test pick up you phone and call a plumber ( he is a service guy just like us ) when he comes and does the work tell him you will pay him in 30 days .. you may get hit with a pipe wrench..
Click to expand...
Call that same plumber to service your commercial location I guarantee he wont have a problem with net 30. I only have 2 types of customers who are not net 30. The first time customer because we have not built a professional biz relationship yet, the other, the one that has proven they can not pay net 30.

As far as raising prices, dont just raise them, give them something extra for it.
 
Most of our customers are are some kind of terms. We have about $50k out in accounts receivable right now and it hurts, but like Dave said, you gotta keep your head down and one in the chamber in times like these.

As far as price increases go, the restaurants are expecting it, so now would be a better time to raise your prices than if all the operating costs are low. If gas was at $1 a gallon and you raise your prices, it wouldn't make sense.

Keep your quality high, and offer the best service possible and you will breeze through times like these. One of our instructors in the Navy always used to say "Performance, and performance alone, dictates the predator in any food chain."
 
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