98% of clients
Nearly all of our clients will receive a price increase.
There were a handful of clients that became part of the CCGC family in 2021 when our quoting software was updated. Those new clients were already (and the only ones) with the proper and competitive pricing structure and have been omitted from the increase.
20 - 23.5 % increase
When using the current data and having analyzed against updated pricing we found many clients that required 50% increases. Many of those clients were part of our original company forming and have been grandfathered with minimum increases throughout the years. We appreciated them, and still do, for having been with us for nearly a decade and being a part of our “ups and downs” on this journey.
Our intent is not to scare our clients away, but rather get them into a profitable area, strengthen the company, and increase our ability to properly manage our taxes, overhead, and supplies.
We reviewed each client’s history, average job times, and established a baseline of how far away from the correct price each client was. Clients who were closer to our fee standards received a 20% and others 23%.
Some clients were 10-15$ dollars away from the target - to not price gouge, we decreased the increase to 10%, simply to compensate for inflation - this only occurred for 2 or 3 clients.
Why an increase?
How was each price calculated?
When is this effective?
We desperately needed it.
At the onset of the COVID Pandemic, we promised everyone would keep their hours and positions. In March 2020, PPE (masks, gloves, shoe covers, etc) and supply prices soared upwards of 100%. The community and our clients were in panic mode, and many paused their service. We did not increase prices for anyone during this time. Instead, we offered disinfecting service and pushed our home watch. The disinfecting service made it possible to stay afloat and meet the new supply costs.
Since then we have seen a minimum wage law pass, taxes increased, cost of living soared, our area home market values (along with rental costs) increased, as well as increases with all of our supplies, insurances, processing fees, tech solutions, gas, etc. We are not able to remain a top business this year, on prices and fees set three to four years ago.
That is why we justified the increase - to keep doors open, help our teams, help our clients, grow, and be there for the community.
We analyzed each account, referenced the average time it took to clean, checked travel time, and re-quoted homes.
We then identified our rate, when taking note of costs, and margins, processed different scenarios, times, teams, and reached an average rate.
Each client’s account was compared to different tiers of the new average rate, grading them essentially to how close to the “target rate” they are.
Taking into account their current standing, occurrence level, and where their current prices were, we assessed the proper increase formula.
Prices were based solely on what it costs to provide (supplies, costs, investments) and with a margin - a standard profitability formula.
No consideration was in play of how long someone was with us! While we thank and appreciate our long-time clients - we need to make certain we are here for years to come - we simply needed to get them (and us) on track.
The Price increase goes into effect on March 1st, 2022.
Each client account will have their March and subsequent cleaning prices updated in HCP.
Current rates are good through the 28th of February, 2022.