Restoration logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Restoration logo
  • NEWS
  • PRODUCTS
    • New Products & Technologies
    • Submit Your Product
    • Interactive Product Spotlights
  • EDUCATION
    • KnowHow.
    • Podcasts
    • Trade Shows & Expos
    • Training & Certification
    • Webinars
    • Whitepapers
  • TOPICS
    • Water Damage
    • Fire & Smoke Damage
    • Mold
    • Contamination
    • Odor
    • Contents
    • Architecture
    • Catastrophe
    • Cleaning
  • BUSINESS
    • Managing Your Business
    • Insurance/Legal Matters
  • BUYER'S GUIDE
  • VIDEOS
    • Ask Annissa
    • Ask the Expert
    • Ironclad Marketing Minute
    • TradeTalks
    • Video Channel
  • INFOCENTER
    • Mold and Mycotoxins
  • THE EXPERIENCE
    • Conference & Exhibition
    • Convention & Trade Show
    • R&R Special Issue
  • EMAG
    • eMagazine
    • Archive Issues
    • Contact
    • Advertise
  • SIGN UP
ColumnsManaging Your Restoration BusinessGuest Columns

The Intentional Restorer

Pricing Yourself Right as an Entrepreneur

August 18, 2020

After hearing Mr. Downey on IAQ Radio Episode 545 and reading his article/speech titled, “The Life and Times of John Downey IV”, I knew that I wanted to reach out to him for a deeper dive into the history of the industry from his front row perspective to many of its most significant evolutions. What rose to the surface from our conversation on The DYOJO Podcast Episode 28 was a master class on understanding your value as an entrepreneur and a member of something larger than yourself.

Our goal for The DYOJO Podcast is to bring our viewers and listeners into contact with those who have been there and done that to help them shorten their DANG learning curve. In that spirit, John Downey shares a few key thoughts on pricing that will be critical for entrepreneurs, managers and growth minded professionals to understand if they want to avoid winning the race to the bottom of the pricing wars.

The pros and cons of innovative pricing structures

John’s grandfather, Downey II, took to the elite neighborhoods with a flatbed truck and a loudspeaker proclaiming, “The Downey’s are here. Bring out your rugs” In my mind this is reminiscent of the famous line from Monty Python and the Holy Grail, “Bring out your dead.” Only the Downey’s sought area rugs, which were common in that time as a covering for the predominant hard surface flooring. 

It’s hard to imagine, but carpet cleaning was a luxury primarily for the affluent prior to the 1960’s. Door-to-door estimators would price the service which created barriers for those of the middle-class. In an effort to take the guesswork out of carpet cleaning and expand operations to the masses, John’s father, Downey III, invented a flat rate pricing model, $19.95 for living room and hall, $29.95 for living room, dining room and hall, and advertised on radio. 

John notes that those were good prices by today’s standards where wall-to-wall pricing schemes have choked the profit out of carpet cleaning. When his dad introduced room pricing his local industry association revolted. The members called a pow-wow to confront Downey III, which also happened to be the last meeting of the now defunct group while wall-to-wall pricing for carpet is still a leading strategy in the industry. 

Innovation often has unintended consequences. Solving one problem often opens the doors to many other issues. Flat rate pricing made carpet cleaning much more accessible to consumers, but it also created new avenues for predatory practices such as the “bait-and-switch” where a low price gets a company in the door and then run the pricing up with add-on services. 

Pricing shouldn’t be a race to the bottom just to win the business but should be in relationship to your vision and values as a company. John shares, “Economic conditions do not determine our fate. Like my grandfather, I have found there is at least as much opportunity in bad economic times as there is in good economic times. In our business especially, FDR’s famous words apply, “All we have to fear is fear itself.”  As Rachel Stewart shared on Episode 20, “Crisis leads to opportunity.” 

Do we care about pricing more than our customers?

John Downey IV says, “I’ve been involved in family businesses for nearly 45 years and have the emotional scars to prove it.” From taking the helm of a thriving multi-site family business to running his current niche operation, John Downey has experienced all the highs and lows that the carpet cleaning industry has to offer. 

In 1988, John took what was a successful regional paper for his chapter of The United Carpet Cleaners Institute and grew that into a nationally distributed magazine, Cleanfax. The first issue mailed later than the targeted release date and almost broke Downey IV, but it made it off the presses and to the masses. Cleanfax grew in popularity as a magazine with “meaty” content, by carpet cleaners and for carpet cleaners. 

Cleanfax sold in 1997 and John experienced personal and professional struggles, including losing his dad and making some overly ambitious investments. John is transparent in his article and on our episode of The DYOJO Podcast. He shares that in his current “pop and kids” carpet cleaning business he has worked hard to build his reputation, benefits from being in an affluent area and has the will to charge what is appropriate for his quality services. Downey IV points out, “Often we care more about pricing than our customers do.” Let that marinate in your mind for a moment.

Too often we are engaged in a race only to realize to late that it’s not one that we should want to win. The pricing wars that exist in many industries are mind-boggling. Low pricing is not a strategy for long term success for your personal ability to build wealth, the growth of your business or the health of your industry. This is one reason I point out in my latest book, Be Intentional: Estimating, that Xactimate, or similar programs with data-driven pricing models, can be a positive thing for those entrepreneurs who are just starting out.    

We are always learning

It’s important to remember that anything we know, as seasoned entrepreneurs, hasn’t come to us because we were smarter than anyone else, it’s because we learned by trial and error and somehow survived. Success can be fleeting, grasp at it too hard and it will kick you in the rear. John is currently serving as the Executive Director of the Cleaning Industry Research Institute (CIRI) which conducted their first remote conference this year with great success. John says he combats his workaholic tendencies daily, “I could end this talk by telling you that I am an entirely different man today. But I’m not. Although neither am I the same.” Give The DYOJO Podcast Episode 28 a listen on Apple or Spotify and you can’t watch our discussion on The DYOJO Youtube page. 

KEYWORDS: restoration business development restoration business growth restoration business leadership restoration business management restoration business owners restoration business strategy

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Recommended Content

JOIN TODAY
To unlock your recommendations.

Already have an account? Sign In

  • mold remediation

    Fighting Mold and Bacteria Damage

    Successful mold remediation can be multidisciplinary,...
    Mold Remediation
    By: Josh Woolen
  • certifications and licenses for restoration professionals

    Certifications and Licenses Every Restoration Company Needs

    Restoration companies need to make sure they have the...
    Restoration Training/Education
    By: Sharon Elzarat
  • a wall covered in moss and fungus

    Zero Tolerance for Toxic Molds: Essential Steps for Successful Remediation

    Understanding the importance of zero tolerance for toxic...
    Mold Remediation
    By: Michael A. Pinto CSP, SMS, CMP, RTPE, FLS, ERS and Kendra Seymour
You must login or register in order to post a comment.

Report Abusive Comment

Manage My Account
  • eNewsletter
  • Online Registration
  • Subscription Customer Service
  • Manage My Preferences

More Videos

Popular Stories

Pop Art Female Superhero Punches a Masked Villain

TPAs vs. Independence: The Restoration Industry’s Own Version of the Cola Wars

RIA Carrier Advocate Mark Springer

Turning the Page: A New Era of Trust and Collaboration in Restoration

Paul Davis Restoration Leadership Team

Justin Graham Expands Paul Davis Restoration’s Reach with Acquisition of Greater Seattle Franchise

Submit Your New Product/Technology to R&R!

Would you like to promote a new restoration, remediation or cleaning product/technology with Restoration & Remediation? Fill out the question below to start your submission:

Events

September 3, 2025

The Experience Convention and Trade Show

The Experience Convention & Trade Show logoJoin us in Las Vegas for The Experience Convention & Trade Show, the leading event for cleaning, restoration, and remediation pros, packed with hands-on demos, expert speakers, and high-impact networking. Happening September 3–5, 2025 at Caesars Forum—this is where the industry comes to learn, connect, and grow!

View All Submit An Event

Poll

Doffing PPE

When you are doffing your PPE, do you sanitize between every step?
View Results Poll Archive

Products

The Cleaning, Restoration, Inspection, and Safety Glossary

The Cleaning, Restoration, Inspection, and Safety Glossary

The Cleaning, Restoration, Inspection, and Safety Glossary.

See More Products
Prepare for CATASTROPHE with R&R!

Related Articles

  • mediation web ex

    Litigate or Mediate: Mediation as An Alternative to Lawsuits

    See More
  • fresh persp worth

    Want to Earn Your Worth? Stop Negotiating with Yourself | Fresh Perspective Vol. 6

    See More
  • IR ep 19

    Leading Yourself Before You Can Lead Others

    See More
×

Stay ahead of the curve with our eNewsletters.

Get the latest industry updates tailored your way.

JOIN TODAY!
  • RESOURCES
    • Advertise
    • Contact Us
    • Directories
    • Store
    • Want More
    • Submit a Press Release
  • SIGN UP TODAY
    • Create Account
    • eNewsletters
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Reprints
    • Marketing Services
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing