Hourly vs. Packages for details

MCWD · 07-15-08, 07:00

How does everyone feel about billing customers on an hourly rate vs. a fixed package rate based upon size of the vehicle? Has anyone started out charging through packages and now made the switch to hourly? I have been considering the pros and cons, but I'm reluctant to go for hourly because I feel that I may chase customers away, or I may give estimates on time and the people will be hesitant to book me and the time I have spent along with gas giving an estimate is wasted. My company has a great reputation in this area, however we are already the premier service in the area that is at the top of the price chart... I am finding it tough to justify charging hourly without peoples opinions. Are people charging an hourly rate that includes the costs of supplies, or are the cost for supplies being added ontop of the hourly costs? Lastly, during the summer months, I tend to work in pairs and I am wondering how rates should change with an additional assistant. I appreciate any ones opinion on this...

Holden_C04 · 07-15-08, 07:20

Just made the switch from packages to hourly about two weeks ago and won't look back.

pt91 · 07-15-08, 07:23

that is all i do now. fair for both parties. i give a range and set a max amount of hours and find out what is most important to the client.

tdekany · 07-15-08, 07:34

Only by the hour.

PS: I always let them know right away that once I see the car I can tell them how long the detail will take.

MCWD · 07-15-08, 07:35

Ok, so you set a max, but what do you typically see yourself maxing out at time wise? Also, what are you guys charging? Any feeling on a fair rate to charge when it is myself and another assistant?

tdekany · 07-15-08, 07:46

If you are new at this, then it will be difficult but I have a very good idea once I see the vehicle. I give the customer 2 numbers usually. 3 to 5 hours, 6 to 8 hours 10 to 14 hours etc...

This way you can actually make them feel good about spending what ever it will be because usually I will finish ahead of time. So they feel that they got a deal.

Makes sense?

You sound like you don't value yourself too much. If you do autopian type of work they will come. (I don't mean that all your details are full paint corrections)

MCWD · 07-15-08, 07:58

I def feel that we do great work, but its the shell shock from the customers that worries me. I have been detailing for years and I am constantly learning more and improving my services, plus trying to learn what else I can do better than what I am doing. Most of my details average around 4-6 hours when I work alone, yet I have had some go to 8 hours. When I work with an additional hand I have done them from 2.5 to 5 hours. I seriously appreciate the .02

.

jayjacque · 07-15-08, 09:06

I hesitate to answer because I'm not a pro detailer. But I'm in a related field. I do windshield, leather, fabric, & vinyl repair & restoration as well as some other related services such as pinstriping & stain removal. I do more work for dealers than retail, but I've also done a fair amount of retail work in 26 yrs.

The downside of charging these kinds of services by the hour is that a lot of people do not understand all that's involved in owning and operating a business. If you were to charge $60 per hr. for instance, some people still think "Well shoot I don't make anywhere near $60 an hr. Am I being price gouged?"

But we know there's all kinds of overhead and things that come out of the $60 per hour, things like gasoline, vehicle and vehicle expense, product and equipment, telephone, computer, building, advertising, etc. So what do you really make? Less than half that. Then there are the times in between you're not making anything. And then you have to pay self-employment social security tax up the kazoo, etc.

But on the other hand, when you charge package pricing, the customer doesn't know the breakdown of your expenses in having one service cost $125 and another $250, full package $600, etc. He just basically accepts that that's what those particular services cost. For the occasional customer who says it sounds like too much and wants to know the breakdown, you can either explain your product quality and skill which will be proven in the results, or blow them off as being too cheap to pay you what you're worth.

Like I said, I don't do detail for pay, so hopefully I'm not saying something that doesn't fit the detailing trade. But in these other trades, I would never let a customer pin me down to an hourly (and they have tried). For me it just wouldn't pay.

tdekany · 07-15-08, 09:34

Quote:

I would never let a customer pin me down to an hourly (and they have tried). For me it just wouldn't pay.

Almost all details are referrals for me so the client understands what they are getting.

Hourly rate works for me just fine.

toyotaguy · 07-15-08, 10:33

i have both...full correction work is hourly, and package deals are set (although they are close to the same houlry rate, but slightly under in some cases, and over in others..)

White_07_G6_GT · 07-16-08, 04:39

Wash packages for me but any correction work is done hourly. It's just to easy for me to get stuck on a car that is taking longer than expected. That being said I always give people an estimate on the time it will take and let them set a maximum that I will work around if needed.

bwalker25 · 07-16-08, 05:54

Quote:

Originally Posted by toyotaguy

i have both...full correction work is hourly, and package deals are set (although they are close to the same houlry rate, but slightly under in some cases, and over in others..)

Agreed, I have 3 packages but for full corrections or really intense jobs I bill by the hour.