Are You Afraid To Raise Your Prices?

Sat, Apr 30, 2011

Dry Cleaning Marketing

I was.

So were a bunch of my members until I explained it this way:

Just click the button in your brain and raise your prices 10%. It really is that easy!

First of all, let’s see what raising your prices (in this down economy) would mean to your pocket. Remember, there is no expense to this. All of the price increase ends up immediately in your pocket.

If you raise your prices 10%, what does that mean in extra spendable cash to you? If you’re doing $500,000/yr, that’s an extra $50,000 cashola.  And all you gotta do is have the BALZ (and the computer skills and spending 30 minutes of hard labor in your dry cleaning software program) to raise your prices.

What if you’re like my member Bill? Bill is doing over $3,000,000 per year. Bill just raised his prices 10% across the board. He just added a whopping $300,000 in moola to his coffers this year. Bill had to be talked into raising his prices just like I’m going to talk you into it.

What’s your net? 15%? 25% 30% or whatever?

Let’s say it’s 25%.

If you lost 25% of your business because you raised your prices, you’d still make the same amount as you do now. Do you think you’re going to loose 25% of your business? I don’t think so.

Last time I raised my prices, which was 3 months ago, I lost 1 customer. That’s right, I lost one customer from my route of over 1,000 customers. That’s not even 1%–that’s 1/10th of one percent.

Raise your prices!!  It’s time. Price is not what your customers love about you. As long as you’re in the ballpark for the level of service you provide, your prices are not the first factor your customers consider.

They look at your reliability first, your quality second and then finally they might get to your price.

That’s all I got. If I was talking to your directly right now, I would challenge you to change your prices today. I’d make a bet with you to see if you’ve got what it takes to make it happen.

You’re a business owner. Get a set! Raise your prices.  And if you’re gonna raise them, don’t go one or two percent…go the whole 10%!

Promise me in the comments below that you will follow through and raise your prices. Or if you just raised them, what happened?  Are you still in business? I wanna know.

13 Responses to “Are You Afraid To Raise Your Prices?”

  1. Andrew Says:

    Three weeks ago, we raised dry cleaning prices by 6% and flatwork 11% (we do about 10,000 pcs. of flatwork per year). We have not lost one customer that I am aware of. This should bring more than $100K to my bottom line annually. I am also considering a fuel surcharge for my routes.

  2. Greg Says:

    Andrew–good on you. No one ever leaves with you raise your prices as you’ve found out. Give’s you the permission to raise them again when your prices go up. On the surcharge: I’d just raise your prices for the route. If you raise them 2-3%, you’ll cover ALL your gas, not just the increase. And that assumes that you’ve got a tight route and you’re not driving all over the place. Thanks for your comment.

  3. Bob Says:

    I raised my prices 5% across the board one month ago today. Since I’m a “route only” company I was slightly higher than most retailers already. I have not heard a negative remark from one customer. One customer stated ” I see your prices went up”. I replied, “whose hasn’t?”. Their bag was full @ the next pick-up.

  4. Greg Says:


    This is the response I’m getting from all dry cleaners. Not one customer complains. Raise them another 5% in a few months–I dare you!! Good work!

  5. Mikhail,H Says:

    Hi, I have drop station, my location between two ( 2.50 ) cleaners .I afraid to raise my prices, my price is 4.00 for each garment. I lost many good customer through the last 12 months. What you think I should do increase or lower my prices? Thanks

  6. Greg Says:

    Mikhail–you should NEVER lower your prices. Why did you lose a bunch of customers? Is it the economy? Or is it something else? Do you know? If it was the economy, this is an easy fix. If it’s something else, that will harder to get your reputation back. Anyway, I’d raise your prices in 25 cent increments until you get it up there. And increase your quality. You might want to consider changing your format to variable pricing. Most people think that one price dry cleaners don’t have good quality. And no matter how good you get your quality, you’ll always have that perception. I hope this helps.

  7. Staci Says:

    Greg – we are a “one price” cleaners! Our current price is $2.25 (and it’s in our name – meaning changing the price is changing our signage – an expense) Our laundry price is variable (we clean that in house) – suggestion?

  8. Greg Says:


    Change your signage. It’s more expensive if you don’t. $2.25 is way too cheap!! I’d raise it at least $1. If you lose 50% of your business, you’ll still make more profit. Do you want more profit? And raise your laundry prices by at least 10%. One of my members has a $4,000,000 (that’s 4 million) dollar business and he raised his prices by 10% and didn’t lose a customer, but he added $400,000 profit to his bottom line. Go raise your prices. And do it quick.

  9. aamir Says:

    I already charge roughly $6-8 per piece and more for dresses and coats. Would going up 10% be a ridiculous price per piece of dry cleaning?

  10. Greg Says:


    Raise your prices 5% first and then another 5% six months from now. Most of your customers won’t even know you raised the prices because they don’t even know what you charge now. You’re the only one that thinks about your pricing, your customers don’t. Happy New Year!


  11. Shiraj Says:

    Dear Greg

    I am from the UK. I have found all your blogs fascinating to read. I am about to enter the world of Dry Cleaning business very soon (no experience but have an MBA). Hoping to take over a well established dry cleaners. However, the current owner has had the business for over 30 years but done very little marketing. Stil does well though.

    Anyway, I am currently in research mode and contemplating on purchasing the ‘Allan Katz Ultimate Dry Cleaninig Marketing System’ to help me market the business and increase turnover by at least 30% (this is my target in year one/two of trading). Would your system be helpful in the UK? Appreciate a quick response to allow me to place an order in good time. Many Thanks

  12. Greg Says:


    Congratulations for getting into the dry cleaning business. My system works all over the world, including Australia, Africa, Mexico, Canada and of course, the USA. Marketing is marketing. The only things you’ll have to change is the spellings of certain words and some local sayings. Other than that, the system is good to go. I look forward to working with you. If you order by the end of the year, I’ll throw in a signed copy of my book.

    Happy New Year,

  13. Shiraj Says:

    That’s excellent Greg. I shall do that. Are you able to advise on shipping arrangements to the United Kingdom?

    Also, I’m a complete novice to Dry Cleaning and would be grateful for any advice when I take over. I have done my research and the potential to increase turnover is great in an affluent area.

    Also, any ideas about sprucing up the current website would be great. Will forward you the link once I take over.

    Best Regards


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