How to raise prices.

joyriiide1113 · 09-28-07, 12:06

Ok, when I first began detailing, I would follow the trend of $150 Exterior (full size sedan) + $50 for interior. Well I haven't left that price range and I really need to start charging more. I have become pickier with the cars I detail and will only offer top notch work, but how should I begin approaching current clients with the price increase? I mean, I have some of the same steady clientelle from 3 years ago or more and some new ones, but now that I am trying to really dedicate more time to detailing, I feel my time is worth more and my work is second to none (at least in the local Miami area).

How did you elite members go by raising your prices?

Less · 09-28-07, 12:21

Please see my post in this forum, this would be an excellent research problem for my thesis. See if you can come up with two more problems in the areas that I've outlined and then PM me

YoMike · 09-28-07, 12:41

Make the customer think that a price increase is due to added value and is actually a better deal. Explain the higher cost of top shelf products and associated application process has cause this fluctuation in price. If cost is an issue to a customer give him a choice same old price or for a few bucks more get the better value deal. It might work on 50% of your current customers now you just have to figure out the other 50%. It's all marketing BS, ever hear of Paul Dalton? hehe

hooked · 09-28-07, 01:06

How much are you planning to raise your prices by? 10%? 50%?

If it's in the 10% range, maybe you can cite increase in gas, insurance, etc. and set a date in the future when the price will change and encourage your customers to get in one last detail before the price change.

JoshVette · 09-28-07, 01:23

Depends on how much you're planning to raise it.

You could just tell them what you told us, that you're spending more time detailing as a profession thus the increase.

When I raised my prices I only raised it on new customers and some of the longer customers got the same lower price and some got the raised priced based on good of a customer I consider them to be. (I make sure they know that as well) Some of my regulars tip me well over what I would have charged them under my new pricing.

If you really are a great detailer I would think your customers know that and would be willing to pay a little extra.....so long as it's not a huge increase. Even if it's a huge increase, they may still pay it, but not call you to do there cars as often as they did.

Josh

Danase · 09-28-07, 01:27

You can increase it quietly and not say a word until they ask and then tell them you had to raise prices for several reasons...insurance, product price increases, whatever. If they complain about the increase you don't want their business anyway. Let those type of customer's go and get the $99.95 special at the local car wash.

Picus · 09-28-07, 01:44

I did what Danase said; raised them and only explained when asked. Everyone who asked was very satisfied that it's a supply and demand market, and that's that.

Scottwax · 09-28-07, 04:00

I do like Josh and raise them immediately on new customers, plus I inform my old customers that the new prices will go into effect for them in 6 months.

imageautodetail · 09-28-07, 05:12

Just simply raise them on any new customers, slower increases on those that may walk from the fear of new price and like stated only tell them why they have been change when asked, 9 out of 10 people that are return customers have the brain to take care of there cars and will understand that prices sometimes go up.

ShineShop · 09-30-07, 08:52

Raising prices was always something that terrified me in the past but both times we have made any significant change or increase in our prices it has had no negative impact on our business whatsoever. If people are coming to you for the reason that you are cheaper than the next guy then they probably aren't people you want as customers anyway. Educate your customers as to what you are doing and let your work speak for itself. The biggest stumbling block to charging higher but still very reasonable prices is you having the confidence to charge it and know that you are worth nothing less. Let the hackers fight it out for the low end work!

mirrorfinishman · 09-30-07, 09:28

Actually, you can do things a bit differently than most detailing business owners. Rather than having to deal with surprise price increases, just let your new customers know that as long as they keep getting their vehicles detailed at least twice a year, their price will remain the same for the next three years.

The key to this kind of pricing is based on the fact that every new customer pays the current List Price the very first time they get their car detailed. The List Price at the time they get their car detailed for the first time then becomes the price that will not change for the next three years. Of course, they have to continue to get their car detailed on a regular basis in order to continue along without a price increase.

As far as your List Prices are concerned, they should be increased at least once a year right before your busy season. As a general rule, you should aim for a yearly List Price increase at least twice the rate of inflation. About ten to twenty dollars per vehicle.

And whatever you do; do not make your prices public. It's not a good idea to print out price lists. Always deal with customers one on one. No one needs to know what the other customer is paying.

z06meister · 09-30-07, 01:11

That is dirt cheap, my prices start at 200 and go up from there. If people do not want to pay they can go else where. Of course I do not depend on this as my primary source of income and every detail usually takes the entire day but the cars are always perfect when done. I rather not get the daily drivers with big macs behind the seats anyway.