That’s right, price increases are always a daunting task for any business. From a small business perspective there’s always the concern as to client drop off as your service is being assessed on price. From a client perspective, does the new price increase fall within budget and what is the current state of the relationship with the company? There are a variety of other factors that come into play as well.
At The Organised Cleaning Company, we haven’t increased our prices for almost 5 years. During that time we’ve had to deal with inflation, rising labour costs and now Brexit all the while absorbing the increased costs without passing them on to our clients.
However, we have now reached a tipping point where is has become uneconomical as a business to continue bearing these costs so, from 1st October 2017, we will be adjusting our prices for all of our commercial and domestic clients!
Our overriding objective remains is to continue building stronger relationships with all of our existing and new clients. That means adding value and making sure that they continue receiving an exceptional service from The Organised Cleaning Company. We believe in value, value that makes both parties happy!
As a business we have taken this decision due to the following economic circumstances:
- Labour Cost – The National Minimum Wage has steadily increased over the last 5 years. It currently stands at £7.60 per hour and is due to increase to £8.05 on 1st April 2018. In addition, as we are a London based business more & more of our staff and recruitment candidates are requesting the London Living Wage. This currently stands at £9.75 per hour and is due to increase to £10.10 from 1st November 2018. To date we have absorbed these increased wage costs, and in order for us to retain good staff and maintain our consistent service, we are increasingly having to pay them the London Living Wage. Unfortunately it has become unsustainable for us to continue absorbing these costs so we are having share them with our clients, which means increasing our prices from the rates originally agreed at the outset of our service agreement.
- Auto-Enrolment Pensions – As a business, you will be aware that since 2012 larger employers have been required to offer a workplace pension to workers. This requirement will be applicable to all employers by 2018, and our deadline for setting up an auto-enrolment pension scheme is 1st October 2017. In order to provide staff with greater financial security for the future, we are encouraging them to sign up to our auto-enrolment pension scheme. As a result, we now have to factor these contributions into our costs.
- We have not increased our prices since your contract started! That’s right, we have been absorbing the steadily increasing labour costs, the cost of supplies and inflation costs since we started our service agreement. Unfortunately, due to points 1 and 2 above, as well as the additional costs we’re experiencing due to Brexit, we have reached a tipping point where we have to recover costs associated with our staff, whilst we continuing to absorb the costs for providing the cleaning products, materials and equipment associated with our cleaning service.
The impact of the above has meant that we are having to increase our prices by at least 25% across the board.
We want to keep offering our clients great value through our service, so in addition to our new monthly costs we are also making some service changes which will benefit them:
- Standing Order – To save you time and enable you to concentrate on matters concerning your business, we are asking all of of regular clients to set up a standing order to pay for our service. As we invoice monthly in arrears, we’re asking all clients to set up a standing order for 1st October for the new monthly rate which will be introduced from 1st October.
- Additional Services – We are expanding our soft service offering to all existing clients as we aim to become a more integral part of your business. Not only will they be able to use The Organised Cleaning Company for office cleaning, end of tenancy cleaning and domestic cleaning, we can also help with window cleaning, carpet cleaning, hard floor cleaning, property maintenance, waste management, janitorial supplies and sani-bin services to name a few! Our new website sets out a list of our services and soon clients will be able to arrange these additional services at the click of a few buttons, via a new platform that we will shortly be developing!
- Referring a friend! We are extremely grateful to clients have been loyal to us in recent years. With that in mind, we are encouraging them to become cheerleaders for The Organised Cleaning Company and refer our details to any other business that would benefit from our cleaning service in return for a cash reward!
There are many exciting times ahead for The Organised Cleaning Company and we want to say another big THANK YOU to all of our loyal clients, we are truly grateful to be your chosen cleaning contractor. We are all super excited to provide you with even more value going forward!
If you have any questions about our price increase or want to talk more about our additional services and benefits I’m happy to arrange a call to chat Just shoot me an email at email@example.com and we can arrange a call!