Who pays for low prices?

We all do.

It hit me the other day while thinking about some ideas in the Greed thread:

I have a friend who’s been cleaning windows for at least 15 years, but he’s incensed when he hears about the “high” prices some other guys charge. He’s been on foodstamps since I’ve known him and still is. He’s not charging enough to live on. So now, rather than the customer who got the service paying for him to put bread on the table, it’s tax payers who didn’t get their windows cleaned.

Undercharging doesnt just hurt you. It hurts everyone.

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It’s a successful business model. Look at Wal-Mart! :roll_eyes:

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that’s not the same business model at all. walmart brings in goods from china and under cuts others just enough to get sales but still make profit while destroying competitors and jobs.

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Prices that are unreasonably low always hurt a human being somewhere in the world. Our entire civilization is based on adding value through some sort of labor. There will always be those who under price their own labor and others who will take advantage of that.

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Its bad for the industry, BUT those low ballers actually HELP me get the price I want because 99% of the time they cannot sustain the low prices and then flake… fast forward a couple months, i walk in and yet the price is higher and customer complains, I just shrug my shoulders “u get what u pay for” kind of thing. They pay my price, and love the service. They can usually tell the difference right away.

My bad competition helps me.

With that said, the industry has a bad stigma BECAUSE of those low ballers that are usually gone in a couple months… I’d prefer everyone get their $^it together and be professional and charge “correctly”, then the industry as a whole will garner more respect.

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I dunno. As is obvious, I get tired of pricing rant threads. There are so many business models that have the same patterns. And the “correct” pricing stuff is a joke.

Consider who you use to fix your vehicles - the dealership can charge 100$ per hour shop time and require oem parts. And still mess it up or not get it right.
The local Goodyear? 75$ an hour and auto zone parts. Still might not get it right. Likely we all have that local guy that we really like that is 60$ an hour and might get it right. But we know he’s fair and honest, and we trust him. So who do we use? And what is the correct pricing?and who decides the correct pricing? The stealership? They are affected the most.

So in the end, who cares what others charge? We have no right to mandate anything. More people are living off of the government than ever before. If you are on Obamacare - govt subsidized. Count kids as a deduction? Govt subsidized tax break that those without kids don’t get. Any disabilities? I think you see my point.

So, move on and focus on your business model and make it work. At some point, we all suckle the govt teat.

I see what you’re getting at. However, the point of most businesses is to make a living. Sure, pricing is only one component, but if the business isn’t providing for you something is wrong. Maybe you’re too slow, or wasteful, or inefficient, or your marketing is deficient…but it could also be that you aren’t pricing jobs effectively. Since this is a common area of difficulty, threads like this can help newcomers realize they shouldn’t be afraid to charge what they need.

The government provides certain tax breaks to encourage the populace to behave in certain ways (get married, have kids, etc.) and of course for other reasons too. My point wasn’t to put down those who need assistance (i need government health insurance currently, in fact). But I’m sure their intention wasn’t to enable people to barely subsist just so the people they work for can save $50 on their window cleaning.

I get it and I know you’re not throwing rocks at people. I would wager there are very few window cleaners that are taking food stamps. I just don’t think here is a “correct” pricing. There is “what I charge” " less than what I charge" and “more than I charge”. And that’s it. And that runs through every commercial business. I would say that 20 years ago, we would never have thought to see a Dollar General on every third corner. And yet, here they are. And seemingly thriving. Yet Macy’s and the high end stores go out of business, it’s apples and oranges to a degree, I’m sure. But I can’t help and wonder if there is a lesson in there for us.

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I hate that saying, along with bucket bob and few others.

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I totally agree!

What works for me might not work for you and vise versa…

Just learn what your area and what price makes a solid business and run with it and when you get so busy and profitable then raise your price if wish then rinse and repeat.

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If have to agree. We try not to focus on other people’s prices. Imo some are just way too cheap…but if it works for em then more power to them. We focus on our buisness model and of course listen and learn from others that we feel have it right. I’m not saying we don’t pay attention to our competition but we don’t stress over their prices either.

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I put corect in quotations… i know there isn’t a “correct” pricing schematic industry wide, but if your pricing so low that you arent earning a profit then ur not only hurting yourself (still on food stamps), and the business, but your also advocating for a lower industry standard.

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i think the key to op is here:

it’s not that this guy is doing well, charging below market prices but still able to provide a good living for his family. he is doing poorly but bitter that others are able to charge more and live better. it sounds like he has very low self esteem and doesn’t believe he and his family are entitled to a good life.

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Lol…

All the other window cleaners I know locally that comment about me charging too much make significantly less than I do. They also won’t take my business advise. :thinking:

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I know one who charges up to 100/hr, one who charges 30-40, one who charges 50-60…all are happy being window cleaners. There is no “right or wrong” path here, as everyone is different therefore every business model is different. Some guys just want to get out of the house from the wife a few hours a day, others enjoy working 24/7-- and some just want to pay the bills.

I do not care what anybody charges. I’ve given squeegees to bums (I guess you guys call them Bucket Bobs…nice) just so they can get a sandwich-- if you are a window cleaner you are in the brotherhood, my friends. If you are happy doing this, nothing else matters-- a wise man once told me if you love what you do, you are never working.

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That’s because you’re just an employee right now.

Once you see the costs to run a business your mind will change.

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Exactly. Luckily the ones who charge low prices can only physically clean so much glass in a day. Had a lady text this to our office today:

“I have a guy who does my windows inside and out for $175. I have to wait a bit as he is very busy. Unless you can meet that price I’ll have to stay with him.”

This house has 40 Double Hung Windows… She can wait for this guy all year long if she likes!

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Had another guy the other day tell me about the last guy, who’s number he can’t seem to find, that did his whole house including screens in/out for $100. Cash, of course. Oh and supposedly he has a crew and they’d bust the whole thing out in 30 minutes. So he’s taking a crew, which implies him and at least two others I’d say, to make $100? Even cash only that sounds like a loss to me.

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I enjoy stories from customers and friends who have used Services it is truly amazing what people are out there doing, saying, working for cash many times.

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True business men are hard to find these days. At least in my neck of the woods. People just dont seem professional.

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