A disturbing trend I'm beginning to notice ...

[danpauselius]

We've always targeted higher end homes. Homes that are $400K and up and incomes of at least $100K. We almost NEVER met any price objections at 51 cents a foot.

In the past few weeks, these same targeted prospects are now raising price objections.

I'm worried that the economy is starting to tank in my area. Is anybody else having this experience or could this just be a fluke.

 

[Mikey P]

Have a PBR Chicken Little.

 

[danpauselius]

PBR ... why not just drink Drano?

I'm just trying to get a feel for what's going on. We usually close 80% of our calls. Over the past 2 weeks, we're closing about 40% and nothing has changed with the way the calls are being handled.

 

[The Preacher]

just get a hold of those variable expenses, small holes sink large ships!!!

 

[Jay D]

Dan,
Relax a little. Back to school shopping, end of summer vacations etc happen this time of year. My first 2 weeks were steady and now I can hear the quiet calm of crickets. The upper and upper middle are invested in the market and sure they are "aware" of whats going on and are looking at their expenses with a watchfull eye just like middle folks do. Heck, run a postcard or something offering a Special back to school, end of summer event. Those income levels do still buy things that are a good value and on sale. Hang in there and don't give up.

Mister Sir

 

[TimP]

For this month the first 2 weeks were solid. Now I'm doing squat. I have a couple carpet jobs to do this week cause it's been so slow. Luckily I only need to make like 1 grand for these 2 weeks to make a goal month. So I've got it covered. I can take a week off and be ok but I'd rather not. More money is more gooder luckily I have work to always go back on. Maybe I should schedule a day to ride with rex.

 

[Desk Jockey]

Man, they cry here about .34 cents! "You know I called 10-other cleaners and you guys we the highest. Why should I use you when I can have it done for $100.00 cheaper!"

 

[danpauselius]

Chavez ... You live in K A N S A S!

 

[Desk Jockey]

Ain't it cool!

It's beautiful here...100-degrees, high humidity, but winter is coming...freezing temps & sub zero wind chills!


.....time to move!

 

[kmdineen]

Dan, I am down I-84 from you in CT and have noticed money getting tighter. Not due to one change but several. The increase in gas has affected all service businesses. Those that use carpet cleaners also use landscapers, painters, pool company's, plumbers and electricians. The price for home heating oil and natural gas or propane has also skyrocketed. Our electric rates in CT have just gone up approximately a whooping 60%. Lets not forget the constant increase in property taxes.These increases affect everyone but hit those with a 5 to 6000FT2 home with a few manicured acres the hardest. Remember you don't have to be a millionaire to own a million dollar home.

 

[Tony Neville]

The weather in Kansas isn't bad, Snow and Black ice is cool. The problem is those dang gayhawks!!

Tony

GO MIZZOU!

 

[diamond brian]

It's back-to-school time; give it a week.

 

[Rex Tyus]

In the past few weeks, these same targeted prospects are now raising price objections.

I'm worried that the economy is starting to tank in my area. Is anybody else having this experience or could this just be a fluke.

My first question would be, are these repeats, referrals or newly acquired prospects?
If they are repeats or referrals (please don't take this the wrong way) it sounds like a quality comparison issue.

If they are newly acquired prospects and your quality is as much better than your competitors as your price is higher, sooner or later they will come back. Just be patient and play with your ads wording.

It takes a serious disruption in a local economy to create a major shift in monetary thinking. IE.. a mill or plant closing, hurricane wiping out major industry,...
Gas prices have been the same for awhile now.
The "credit crunch" is in the sub prime category. Not high end professionals.

Short answer is it is a fluke, or you have a new competitor doing good work cheaper than you. Been there done that. Just my opinion.

 

[danpauselius]

To tell you the truth, I hadn't even thought about the fact that the kids are about to go back to school. That's probably what it is. Even so, these are new prospects calling for the first time. I just find it odd that all of a sudden we are seeing this problem. Hopefully, it will disappear as quick as it happened.

 

[-JB-]

Dan, remember, life is the law of averages, everything will even out as long as you remain consistent.

Use the "down" time to catch-up, get ahead, or just plan ahead.

 

[steve frasier]

we are up 25% from last year at this time

haven't really done any more jobs but did raise prices a little

have also been doing the CRB scrub so the customer has seen the extra value and it hasn't added any extra time to the job with the 2 of us

 

[B&BGaryC]

PBR ... why not just drink Drano?

I'm just trying to get a feel for what's going on. We usually close 80% of our calls. Over the past 2 weeks, we're closing about 40% and nothing has changed with the way the calls are being handled.

Somebody is peeing in your pool. The water will be warm and funky for a while, but they will go away. You've got some jack-hole with good marketing who wants your piece of the pie.

 

[dallasdj]

those 100k/yr people are broke, just at a higher level.

target the really rich, they do well even better in econ. downturns

 

[danpauselius]

those 100k/yr people are broke, just at a higher level.

target the really rich, they do well even better in econ. downturns

Probably a whole lot of truth to that statement.