Local prices...sad

[mirrorfinishman]

Here are a few thoughts about how to determine your hourly detailing rate.

Your hourly detailing rate should be based on your actual operating expenses. That is the true rate that you will `need` to make in order to remain in business and make a profit. Among other costs, your actual operating expenses should include the following:

1- Salaries, Wages, Commissions, Payroll Taxes
2- Marketing, Advertising and Promotion
3- Office Administration, Legal and Accounting
4- Operating Supplies, Equipment, Vehicle Expenses, Rent, Repairs and Maintenance
5- Utilities, Insurance, Taxes and Licenses, Depreciation, Interest

The price you charge should not be based solely on what the competition charges. It is good to know what they charge, but not a good idea to base your price on that fact alone. In order to cover expenses and stay in business you should consider pricing your detailing services somewhere between what you `want` to make and what you actually `need` to make.

How much do you `want` to make on an hourly basis? $60 per hr

How much do you `need` to make on an hourly basis? $40 per hr

On average it takes about 4 hours to do a complete mid-size car detail.

To make $60 per hr you would `want` to charge $240 per mid-size car.
4 hrs x $60 = $240

To make $40 per hr you would `need` to charge $160 per mid-size car.
4 hrs x $40 = $160

In summary, it is always a good idea to fully identify your actual operating expenses. That is the only clear way to determine your hourly detailing rate.
_________________

[bigron62]

i think you have a great opportunity here. i would take what you can get and learn while you earn . take your skills to a new level and when you have mastered this trade on filthy nasty cars then go across town and sock it to them . find out which products you like and how to get max results from them. people with high end cars expect top notch work and will pay for it .you will end up getting all of there work because you can deliver the goods .. as a consumer when you want things done right you have to go to the best shop and you expect a big bill ..you also expect perfection .. if you treat every customer like they are your most valuable client you will go far ...dont mean to preach ..this is what i remind myself of every time i do a car and greet a customer..its working for me

[Coastal Eddie]

Originally posted by Jngrbrdman
The term `full detail` is very subjective too. They could consider using a one step surface product, tire foam on the wheels, armor all the dash, and vacuum the interior their version of a `full detail`. If they can bust that out in an hour (which is possible to do) then they are raking it in.

Its actually not a such bad concept.... bait them with a low price for a job and then upsell them on everything they really want. Maybe its a little unethical, but if you do it right then its not so bad. I don`t mean advertise something that is too good to be true and then switch them when they get there. I just mean maybe offer a service for way below what it really costs you and then upsell them on other things. Offer a wax for $10 off but tell them they have to get the $35 wash before you can wax it. Something like that. Its just good advertising and marketing I think.

Good ideas and yes, I think it is all about marketing.

I`ve been thinking about this for awhile and almost have myself convinced that making a "menu" similar to what a couple of high end shops I`ve seen have. Breakdown the prices to specific services performed and embellish the hell out of it. When you really think about it, you`re doing the same thing (usually verbally) for a fixed price on a full detail.

I don`t think any of us like the feeling that we`re breaking our butts at times on jobs that we KNOW we could have gotten more for.

I`ve gotten to the point in this biz where I want to do less for more.

[BaDm0theR]

Originally posted by mirrorfinishman
Here are a few thoughts about how to determine your hourly detailing rate.

Your hourly detailing rate should be based on your actual operating expenses. That is the true rate that you will `need` to make in order to remain in business and make a profit. Among other costs, your actual operating expenses should include the following:

1- Salaries, Wages, Commissions, Payroll Taxes
2- Marketing, Advertising and Promotion
3- Office Administration, Legal and Accounting
4- Operating Supplies, Equipment, Vehicle Expenses, Rent, Repairs and Maintenance
5- Utilities, Insurance, Taxes and Licenses, Depreciation, Interest

The price you charge should not be based solely on what the competition charges. It is good to know what they charge, but not a good idea to base your price on that fact alone. In order to cover expenses and stay in business you should consider pricing your detailing services somewhere between what you `want` to make and what you actually `need` to make.

How much do you `want` to make on an hourly basis? $60 per hr

How much do you `need` to make on an hourly basis? $40 per hr

On average it takes about 4 hours to do a complete mid-size car detail.

To make $60 per hr you would `want` to charge $240 per mid-size car.
4 hrs x $60 = $240

To make $40 per hr you would `need` to charge $160 per mid-size car.
4 hrs x $40 = $160

In summary, it is always a good idea to fully identify your actual operating expenses. That is the only clear way to determine your hourly detailing rate.
_________________

Very well said.

[mirrorfinishman]

Originally posted by shotime

How can someone make any money charging that little as a business? I`ve looked into ad prices and the size of one was $500...that`s 7 details just to pay for the ad!!

Is it worth trying to compete with these people or should they just be left to choke on thier low income until they give up?

Many start-up detailing businesses can usually figure on spending as much as 10% of their monthly income on advertising. However, once a business becomes established, advertising costs should come down to less than 5%.

Think about it. In order to spend $500 for just one ad per month the business should be generating somewhere between $2,500 (5%) and $5,000 (10%) total monthly income. At $75 per car, they would need detail between 33 and 66 cars per month. That`s only about 8 to 16 cars per week. With enough market share, that`s very possible. However with only one ad, it is also very unlikely. Remember, higher market share leads to lower costs. Also, there are a lot more people out there who are willing to spend $75 than there are who are willing to spend $150. If they can continue to keep the activity level going they may be able to stay in business.

Just one last thought. As a detailing business owner, it is not a good idea to waste too much time focusing on the competition. It is much better to offer and deliver to your customers the kind of high quality service that they simply cannot get anywhere else. That is really all that matters.

[mirrorfinishman]

Originally posted by detaled by hans
Jersey Frank .... wonder how you came up with that `whopper` of a stat ?????

Just an example. Sort of like comparing $7.50 worth of fast food from the drive thru to a $15.00 sit down meal. Two completely different markets.

[EZ Boy]

Originally posted by Don
The problem is that 99% of the motoring public thinks a wash/cleaner wax/vacuum IS a complete detail. The idea of using different levels of polises and cleaners is beyond their comprehension. I try to simplify it by saying that the finish needed to be buffed X number of times to bring it back to like new condition...

Ditto.

[EZ Boy]

Originally posted by mirrorfinishman

Just one last thought. As a detailing business owner, it is not a good idea to waste too much time focusing on the competition. It is much better to offer and deliver to your customers the kind of high quality service that they simply cannot get anywhere else. That is really all that matters.

Definately, you`ll lose lots of sleep anticipating the opposition, I`ll be the death of you - just ask Hitler. The customers don`t always know what super deal the opposition it trying to flex, just do what you can to stay competitive and deliver, deliver, deliver! Never bag the opposition to a client, clients like happy thoughts not confrontation. Don`t even mention the opposition, just get the client cornered on what they want, get them saying yes a lot and get a commitment there and then.

[Bob]

Well, I store my car in the winter with a local detailer with a huge warehouse and I was talking to him and watching his detailers work, he does not know I own a detail business LOL, and he just pays these kids like $5 a car and all they do is wash it, smear some pink stuff all over with a cheap-o buffer from K-Mart and send them on their way. Oh, he charges $100 too so he is basically making $100 minus $15 to the kids whihc is $85 a car to build his hotrods all day in the back part. LOL Must be nice!

[denverdetail]

Though I am very warry of competition, I don`t worry about what they are charging. Yes, there are some detailers who do a cheapo crap detail for $75 in my area.

I always quote a job at what I think its worth. Then if a customer says they got a qoute for $75, I say "well I have a $75 detail package too, would you like for me to tell you the difference between the $75 detail and the $175 detail?" Immediately and without saying any more, my business is competetive. I then tell them about the detail packages and let them decide. Chances are the customer didn`t find out or doesn`t really know what is involved in the competitions $75 detail and you will look like a pro when you educate the customer. Either way, I try to book every deal that calls me. Never pass up an opportunity to get a new customer! Once you`re infront of them, Upsell, Upsell, Upsell!

For $75: wash and wax (no polish, no clay, no nothing), dress exterior
vac, spot clean carpets (no extraction), clean and dress surfaces
(yes this makes me like the other cheapo crappo detailers, the difference is that I tell the customer what is recommended, if they decide they want the cheapo detail, then the customer is the cheapskate and I end up making what I am worth, $75 for an 1.5 hour detail)

[shotime]

Originally posted by denverdetail
Though I am very warry of competition, I don`t worry about what they are charging. Yes, there are some detailers who do a cheapo crap detail for $75 in my area.

I always quote a job at what I think its worth. Then if a customer says they got a qoute for $75, I say "well I have a $75 detail package too, would you like for me to tell you the difference between the $75 detail and the $175 detail?" Immediately and without saying any more, my business is competetive. I then tell them about the detail packages and let them decide. Chances are the customer didn`t find out or doesn`t really know what is involved in the competitions $75 detail and you will look like a pro when you educate the customer. Either way, I try to book every deal that calls me. Never pass up an opportunity to get a new customer! Once you`re infront of them, Upsell, Upsell, Upsell!

For $75: wash and wax (no polish, no clay, no nothing), dress exterior
vac, spot clean carpets (no extraction), clean and dress surfaces
(yes this makes me like the other cheapo crappo detailers, the difference is that I tell the customer what is recommended, if they decide they want the cheapo detail, then the customer is the cheapskate and I end up making what I am worth, $75 for an 1.5 hour detail)

That`s exactly what I`ve been doing. I made up a price list and I have "starting at $x.xx". That way if they`re just looking for a cheap job, I`ll give them a cheapo and not lose some stiffs to the towel pushers. It will still be a better job, just they won`t be getting any more services. They`re good for fill in work to keep you busy and making money you otherwise wouldn`t make. It`s also good quoting prices so you`re not locked in if Bubba Scumbag shows up with his farm truck and you`re selling completes at a fixed price of $125. After I explain what`s involved, I then say for $xxx more, you can have this done or that done. I`m starting my base detail`s for $100 and going up, with a goal of selling the average of $125-$150.

[clean4u]

Originally posted by Jngrbrdman
The term `full detail` is very subjective too. They could consider using a one step surface product, tire foam on the wheels, armor all the dash, and vacuum the interior their version of a `full detail`. If they can bust that out in an hour (which is possible to do) then they are raking it in.

Its actually not a such bad concept.... bait them with a low price for a job and then upsell them on everything they really want. Maybe its a little unethical, but if you do it right then its not so bad. I don`t mean advertise something that is too good to be true and then switch them when they get there. I just mean maybe offer a service for way below what it really costs you and then upsell them on other things. Offer a wax for $10 off but tell them they have to get the $35 wash before you can wax it. Something like that. Its just good advertising and marketing I think.

Well said that gives me some ideas...... Thanks Jngrbrdman

[OI812]

I am not in the detailing business, but I am in the constrution business. It get to the point that we all become our own worst enemies. Hold to your prices. If your work is there it will sell it self. If you try to out price them to "stay competitive", who`s to say they won`t chop their prices. This starts to become a viscious cycle. The construction industry has done this for years. The end results are lower wages and lower profits. I think, that education (explain a cheap detail vs. a quality detail) and examples (pictures) are the way to go. When I was in business, I would explain to everyone that I was not the cheapest guy in town. I would invite the customer to one of my current jobs to show them the difference between a standard and a quality job. I never had much for advertising expenses. The reason was "a happy customer and tells everyone" (sorry if I took that from someone).

[mirrorfinishman]

Originally posted by OI812
Hold to your prices. If your work is there it will sell it self. If you try to out price them to "stay competitive", who`s to say they won`t chop their prices.

In most cases, a good customer is one that is interested in a high level of quality, not necessarily a low price. One that understands the value of your service. Maintain a high level of quality and you’ll be able to charge a profitable price for your services. Lower your prices and you’ll begin to lower your standards. It is always a good idea to provide your customers with a level of quality that they will not normally get from other detailing businesses.