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Originally Posted by Apollo_Auto

I mean other than putting an absurd price tag on it they must have something other than a swanky box to justify the price, no?

With all due respect, don't you think you should know the answer to that question before shelling out $2,100? I don't see how you can justify an additional charge unless you know the answer to that question. I'm trying to put myself in the shoes of a ferrari owner who is being asked to pay more for a premium wax. And I keep thinking that my first question is going to be "What else besides the swanky box justifies the price?" If you can't answer that question, then I really don't see your upcharge campaign going very well.

Now, with that said. Let's look at the economics of the situation. Your 22oz jar cost you $2100, and you estimate that you can do 130 cars with it. So right there, you need to be charging a minimum $16.15. And that doesn't include any of your time, transportation costs, overhead, or supplies.

Also, I don't agree with the other posters who say that you shouldn't be able to charge more because you get free refills. If you do use that logic, then theoritically speaking, you shouldn't charge anything for the wax. As you spread your $2100 investment over more and more cars, the individual cost becomes immeasurably small.

You should calculate your price assuming that EVERY tub of wax costs $2100. Any discounts, or free refills that you get from the manufacturer should be YOUR cost savings. YOU are the one putting up the initial investment. YOU are taking the risk. YOU are doing all the work. YOU should reap the benefits, not your customers.

Also, you can keep the cost savings in your back pocket in case you encounter a particularly stingy customer, or are faced with a competitive bid from another detailer. That way, you'll know that you can safely offer a discount without comprimising too much of your profit.

Here is what I would do.

First, figure out how long you're willing to wait before you make back your initial investment. Then figure out how many cars you'll wax during that time (are ALL your customers going to spring for the premium wax?). After that, it's simple division.

For example, let's say you want to make your money back within a year, and you expect that you'll get one customer per week who wants the Zymol treatment. $2100/52 = $40.38. Start with that number and add costs for your time, supplies, overhead, and some profit. Voila, there's your price.