Monday's Ask the Experts: Pay rasies
November 8, 2010
Monday''s Ask the Experts question from a cleaning professional on the International Custodial Advisors Network (ICAN) "Ask the Experts" page: I have some accounts that I been cleaning for over three years. The price on some of these was based on me paying my employees $8.00 per hour. Now, with me giving the employees a yearly raise, I have to pass this down to my customers. And other accounts are bid too low. How do I go about raising my prices. I have a big fear that they will look elsewhere if I do.
First of all, I’m sure you know the timing is not advantageous to raise prices, especially when business owners are looking for ways to reduce operating costs (including janitorial services). With that said, understand that you also risk opening up the contract for competitive bids.
If you feel some of your contracts are not turning a required profit, there are some strategies you could pursue. Make sure the quality and service you provide is superior and the customer is pleased with your overall service. Then, you could explain that your starting employee wage is now ... — Gary Clipperton, president, National Pro Clean Corp.