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I have read a good few posts asking about pricing and different services, and I have seen some pros say to simplify and some say to expand.
So, in am effort for those who want to start digging into the business for business and not just for the hobby, so we can learn more, would the pros post their price structure here?
Our price structure will have nothing to do with any elses price structure unless we are working in the same area..
Then, there is the experience levels in years and how good you really are to ask for those prices..
Then after that there is what the Market can bear in your areas...
Dan F
As an expert in my field thats an accumulation of 25 years and millions of bumps and bruises, you can pound sand. Nothing is appreciated that isnt earned.
Free as long as you help and youre friend or family.
I could never handle detailing professionally, and would want at least $80 an hour minimum (its back breaking work to detail)
- Enthusiast
Not denying that experience plays a role, or any denying your time, my question stems from threads of asking about this price vs that price. If youre saying that we should jump out with prices just from anywhere, then while I do understand completely, that helps zero.Quote:
Originally Posted by JBM
Agreed, earn it to appreciate it, and while I personally have not earned your experience, thats about as long as I have been alive, your experience is greatly appreciated as an expert in this field. I have not yet earned that experience, but just like you did ywars ago any new guy wanting to start up has to start somewhere and take it one day at a time.
Completely agree, but a baseline is a way to see what you are charging, as a way to see if I am too low in my thoughts. Obviously, taking out the years of experience as a variable. Costs of materials should be similar, assuming using the costs here again as a baseline.Quote:
Originally Posted by Stokdgs
Market adjustment can be accounted for within reason.
Honestly, I was more Interested in pricing on paint correction and wash wax clay vs wash wax.
Ive dabbled in paint correction and know its time consuming, and even a good wash wax (Including interior) takes time. Just curious what youre charging to be sure I can set mine to be sure my thoughts are in line, or others would be as well.
A job by job basis is perfectly fine and acceptable, just curious if that is what you do.
The only way to know what might be a good price starting point is to -
* Find all the Detailing Shops in your area where you want to work -
* Personally visit each one of them, talk to the boss, look over their office, their pricing, their Shop, the cleanliness, organization, and most importantly, how good is their work ?? How many years have they been there? What is the average experience level in years of all their people ?
When you accumulate a few shops brochures and compare and average all their prices, you will have an idea what the Market might be in that area..
When you look at your skillset in years, and take a guess at what this will be worth, then factor in a small increase of that number to pay for the Lease, Liability Insurance, Garage Keepers Insurance, the cost of equipment, supplies, the cost of the Business License, the time it takes to collect State Tax and send it quarterly to the State you live in, the number of hours it takes to do an average Detail from start to finish, then you will be close to figuring what you want to charge...
But for sure, no matter what it is, there will always be some guy or place with a pop up tent at the carwash that is going to beat your pricing because they do production work.. :)
Good Luck !
Dan F
Youll be a better business owner when you can estimate a job correctly, and that only comes from struggling.Quote:
Originally Posted by Cameronswmp9
Some areas people dont think about are found on Michael Stones website , its for contractors, but its just business to a degree.
Recover Overhead and Profit in your Labor RateQuote:
There are four basic ways to charge for your construction related services. These are fixed fee or lump sum pricing, Time & Material pricing, Cost Plus, and using an hourly rate.
Many contractors use a variation on one or more of these methods. Im going to look at charging by the hour and its impact on your business.
There are good and bad sides to using an hourly rate. If you are doing small jobs, it normally allows them to bill more hours per week. It is also an easy way to calculate a sales price if you are not good at estimating. Some who use this method claim it is more "fair" to the customer to bill by the hour rather than a lump sum contract. It also gives the guy in the field the ability to price out his work on the spot for small jobs or change work orders.
But there are also downsides. One is the perception by the customer that they will get all non-labor expenses at the contractors cost, similar to Cost Plus contracting. This can be a problem if the contractor doesnt do a good job of defining exactly what is included in the rate per hour and how materials, subs and other costs will be billed to the customer.
Another problem with this method is that it shifts the entire overhead burden of the company onto the labor rate. If you or one of your employees gets sick, or if incoming jobs slow down and you dont work the required number of hours, you will end up "cash poor" very quickly.
If you charge for your work or service by the hour, it is critical that you use the correct rate. The correct rate will provide enough to pay all job costs, overhead and make an 8% net profit. If you dont use the correct rate, you will not make a profit and often not be able to cover your overhead. It is just that simple.
The biggest mistake is basing your rate on the perceived "going rate" for the same work. If you dont take the time, or dont know how to calculate actual costs, your company can lose money quickly. The hourly rate should be based on your companys numbers and not be influenced by anything outside your company. This applies especially to your "competitors" pricing. Most contractors price jobs incorrectly. If you model your numbers after theirs, what does that make your numbers?