Hi guys. Long time lurker first time poster here. I’ve been in the window game for the past 10 years but have only been self employed for a year and a half. Things are going well but I have a large house I drastically under quoted in the beginning ($500 should be around $700). At the time I was stoked to just have the work. I’m wondering how you guys would go about telling the customer you have to up the price by such a large amount.
Honor the price you gave until the job is done and paid for. Any time after that, but before you have both consented to schedule another service is a good time. Say, “Ok I’m happy to schedule this job again, but I have to increase the price to $X. Was there a day/date in particular that works best for you?”
You don’t have to give them any more explanation than that. Plenty of times they will go for it without much of a fuss if your work was good the first time around.
Only if they prod you for an explanation should you bother telling them why you need more money.
Before you go through with the increase, ask yourself: Am I ok with losing this account completely?
Because that too-low price may be the very reason you have this account in the first place. Rocking the boat with a price hike may sink it. But there’s only one way to find out.
If your clients try to squirm and wheedle their way out a price increase when you have already stated the new rate, then my personal belief is that you do not back down. If they don’t agree to your new price then you let them go.
If you state an increase, and get bullied out of it, then they own you and that’s not how a business runs.
Was this under bid job from a year or more ago? As you stated you are new in the self-employed part of the business. We all grow and learn. Prices change all of the time in everything we purchase from grocery bill to electric bill, to clothes and gas. You are running a business now, and if you made a mistake it is up to you to rectify it. Even if you raise it $100 this time and $100 next time to bring them current for your pricing needs, or just the full amount now. I have one who calls me every year or two - Big, tough 2 story job. It went up $150. The customer said “That is more than I paid last time, but I like the job you did, and the other cleaner I hired last time didn’t do a good job”. She booked, I did the job and got my price.
If your customer asks what gives, just pony up and say that your were new to being a business owner and the new price reflects your needs to stay in business. If they don’t mention it, neither should you.
That’s it just like that. Perfect !!! No need to explain unless they dig for explanation, then just be honest you under bid it happens this is my price moving forward hopefully we can still work together if not no hard feelings