Prices for long standing cust and little jobs

[Ian Woods]

Hi, I have been trading for over 10 years but am having trouble with the people who gave me the chance long ago. I always did the small jobs and charged very little but prices have gone up and my time is more valuable now and am still asked for the same jobs and rate expected.

Think I am too soft but don't know how or waht to do. Anyone else have same issue?

 

[Nigel]

Most reasonable people will understand a price increase in Jan or April.

I would right a generic letter and make it look like it is not aimed at anyone in particular and send it out. Hopefully then the client will not take it personally and accept that prices go up.

 

[Darkwood]

Basic inflation means you are making less and less each yr on their jobs but even loyalty needs to have a balance, I can't see anyone not understanding prices need to rise with inflation even those that gave you that foot up.
I am sure if you popped 10% on your labour and then had a chat with them that they have had the same rates for 10yrs and express it was down to there help in jump starting your business as the reason why you have cut them a very good deal for so long but inflation means you can no longer maintain the same rates, I am sure anyone would understand that.

Edit - I would also agree with essex approach of a generic letter, more professional and less personal but that depends on your customer relationship here, sometimes that personal touch is more appreciated but your call on that.

 

[The Ghost]

When they phone you for work to be done tell them then and there prices have gone up. That is all there is to it.

 

[MJPD29]

No need to be soft the price is the price if they don't like it there's plenty more work out there

 

[littlespark]

Do they expect diesel to cost the same as it did 10 years ago? Or the price of a pint?

However. IF all your other jobs pay you substantial wages, then doing the odd little job on mates rates to keep them happy, you might get the odd favour from them too

 

[ferg]

It's hard. I have the same dilemma sometimes.

I'm not sure there is a right answer tbh.

 

[Ian Woods]

The other concern is that the little jobs that don't make any money, how do you tell people no without losing them or do you just cut your ties, we looked into small jobs and anything less than 2 hours doesn't make any money as paying accountant, admin etc all takes its toll.

 

[bigspark17]

You may not be where you are today without the first few who showed faith in you!

 

[SJD]

While small jobs are less profitable, I find some do lead to much larger jobs. Sometimes for the same customer, sometimes they have then passed my details on to family or friends. So provided they are fairly local, I continue to do them.

What I'm wary of is people who have quite small jobs and seem to think mentioning other work that they might need will get them a cheaper price. Sometimes this other work doesn't exist.

 

[Ian Woods]

That's my worry, I have 2 customers who will only ever use me or ask my advice on things but then call me round every November to connect Rudolph and January to disconnect him, it takes less than 5 mins, but they are the biggest gossip and tell everyone i'm amazing, don't want to upset them for that but always unsure.

 

[123]

That's my worry, I have 2 customers who will only ever use me or ask my advice on things but then call me round every November to connect Rudolph and January to disconnect him, it takes less than 5 mins, but they are the biggest gossip and tell everyone i'm amazing, don't want to upset them for that but always unsure.

For those 2 customers - if they are local I'd let go as a loss leader. 5 minutes of your time, a bit of a chat with them and they will give everyone that asks your number.

For the others...how frequent are the jobs now? How often do they pass your number out? And when they do, does the other person know and expect a similar charge for something?

 

[richy3333]

Those sort get my 6 month waiting list quote 'I'd love to help you, you are a valuable customer but I'm snowed under and... - else I send the apprentice. I send out revised business terms each January. Allows me to alter prices and any T&C's.

Once had someone ask me to fix their cooker in return for half a dozen eggs. They were an hours drive away!

 

[PEG]

Hi,if you are still doing fine,after ten years,then you have already been making,mostly the right decisions

You should approach the question asked,from the other end...
if you are continuing to deal with these small customers - then you are happy,with the arrangement.

There has to be a reciprocal link. They could be good PR,friends,family...or just be in a good spot,for a sign-written van

Remember,we are dealing with that most peculiar,unpredictable entity - the human. Some of those long-term customers,may wonder why you have not increased prices,and not worry. Some will spit the dummy out. There are those that may have other "issues" going on,and resist change,by telling everyone,you upped things because your're struggling/drinking/gambling....

My point is,you can please some of the people,some of the time....

My personal aim,if any of these customers are in contact with each other,would be to keep things the same with some,and up the charges to the lesser minions .... they will be so involved,trying to work out the reasons,you will bypass the bulk of the flak

....Hang on,that sounds like the phone.....I'm wanted in Brussels....