Prices

**imported_mirrorfinishman** · 01-09-2006, 05:32 PM

Originally Posted by machboy

How can you charge one set price if the level of detail is different for each car? Like for example you charge $175 which includes everything but you get a car that is allready in good condition...why would he pay that extra money for things he doesn`t need? And say he does need paint correction or whatever would you charge him that same price every time he brings it to you?

Your questions are easily answered.

You can charge one set price by simply offering one level of detailing, such as a complete package. Think about it. Most detailing customers really don`t know what they need. They usually figure that you are the professional and you`re the person that they should be able to trust to know what`s best for their vehicle.

Your last question is the best of all. Imagine getting a customer used to paying a high price for a complete package and then having the same customer begin getting their vehicle detailed at more and more frequent intervals. Yes, the job gets easier and easier for you while the customer is still paying the high price.

In summary, by offering one complete package, you allow yourself the time necessary to do whatever is necessary to get the job done right. Hey, there is nothing worse than under estimating a detailing job and then realizing that it`s taking much longer than you expected. By charging a higher price and including everything in that price, you`ve basically elimated that possibility.

**David Fermani** · 01-09-2006, 05:36 PM

Frank - How much do you charge for your services?

**imported_mirrorfinishman** · 01-10-2006, 04:29 AM

Originally Posted by David Fermani

Frank - How much do you charge for your services?

We are talking about a pricing strategy. Some people believe in undercutting the guy down the street by $5 to attract potential customers and I don`t. It`s not about what I charge for my service. It`s about creating a successful pricing strategy.

It`s all about positioning. Positioning refers to the way a consumer perceives a service or company. When you`re first starting out itÃ¢â‚¬â„¢s important to understand where your detailing business fits into the marketplace. Are you going to focus only on high priced automobiles? Do wholesale work? Be mobile or open a shop? Are you going to provide a service thatÃ¢â‚¬â„¢s unique and in some way different? These are all question you must ask yourself in order to successfully position your business. You have to know where you want to go before you can get there.

By undercutting the guy down the street you are basically telling your potential customers that your work is not good enough to charge a higher price. You are focused on positioning your business as the low price leader. If that`s what you want your business to become, then it`s perfectly fine. Hey, it works for lot`s of businesses. However, if you see your business as a leader in offering un-matched high quality services, then it`s not going to be easy changing your position in the marketplace once you`ve become a low price leader.

Let`s face it, you can`t have it both ways.

**imported_mirrorfinishman** · 01-10-2006, 05:01 AM

Originally Posted by David Fermani

Frank - How much do you charge for your services?

What we are talking about is creating a successful pricing strategy. Some people believe in undercutting the guy down the street by $5 to attract potential customers and some people don`t.

What you charge for your services help to determine how your detailing business becomes positioned in the marketplace. Positioning refers to the way a consumer perceives a service or company. When you`re first starting out itÃ¢â‚¬â„¢s important to understand where your detailing business fits into the marketplace. Are you going to focus only on high priced automobiles? Do wholesale work? Be mobile or open a shop? Are you going to provide a service thatÃ¢â‚¬â„¢s unique and in some way different? These are all question you must ask yourself in order to successfully position your business. You have to know where you want to go before you can get there.

By undercutting the guy down the street you are basically telling your potential customers that your work is not good enough to charge a higher price. You are focused on positioning your business as the low price leader. If that`s what you want your business to become, then it`s perfectly fine. Hey, it works for a lot of businesses. However, if you see your business as a leader in offering un-matched high quality services, then it`s not going to be easy changing your position in the marketplace once you`ve become a low price leader.

Let`s face it, you can`t have it both ways.

**derek37** · 01-10-2006, 05:22 AM

Originally Posted by mirrorfinishman

What we are talking about is creating a successful pricing strategy. Some people believe in undercutting the guy down the street by $5 to attract potential customers and some people don`t.

What you charge for your services help to determine how your detailing business becomes positioned in the marketplace. Positioning refers to the way a consumer perceives a service or company. When you`re first starting out itÃ¢â‚¬â„¢s important to understand where your detailing business fits into the marketplace. Are you going to focus only on high priced automobiles? Do wholesale work? Be mobile or open a shop? Are you going to provide a service thatÃ¢â‚¬â„¢s unique and in some way different? These are all question you must ask yourself in order to successfully position your business. You have to know where you want to go before you can get there.

By undercutting the guy down the street you are basically telling your potential customers that your work is not good enough to charge a higher price. You are focused on positioning your business as the low price leader. If that`s what you want your business to become, then it`s perfectly fine. Hey, it works for a lot of businesses. However, if you see your business as a leader in offering un-matched high quality services, then it`s not going to be easy changing your position in the marketplace once you`ve become a low price leader.

Let`s face it, you can`t have it both ways.

Nicely said, I agree :2thumbs:

**machboy** · 01-10-2006, 07:35 AM

Very nice reply Frank. Thank you. I know i`ll use what you said in my own business.

**David Fermani** · 01-10-2006, 01:58 PM

Frank - I`m interested to know how much you charge for a complete detail? PM me your price if you don`t want to make it public.

**jahazii** · 01-19-2006, 02:25 PM

sorry to bring up an old thread but if I could say have the more services as my comptieror but charge the same thing is that necisarly a bad thing? even if i would be still making a nice lil peice of change?

**imported_mirrorfinishman** · 02-04-2006, 06:52 AM

It`s interesting. A brand new car wash facility recently opened up in a nearby community. The first few months after they opened I noticed a sign out front that displayed their car wash price discounted down to $3.00. Of course, they also offer automobile detailing services too. And now they`ve got their price for a complete detailing discounted down to $49.95.

Why would a business owner invest so much money into establishing a new business and then be so quick to begin to market themselves as the discount leader in the area?

**David Fermani** · 02-04-2006, 12:05 PM

Frank - I doubt their doing "complete detailing" for only $49.95. It`s probably a bait and switch tactic. Lots of shops try it and lots of consumers eat it up. BTW - As I also asked 2 other times before, I`m curious to know how much you(Frank) are charging for your services?

**Anthony O.** · 02-04-2006, 12:07 PM

First off I would recommend getting some basic training, not only in detailing but also in business and accounting.

Second I would highly recommend having some back-up capital. The main reason a new detail business fails is that 1) Lack of drive (marketing) and 2) No money to carry you through the lean start up times. Many experts I`ve spoken with say 6 months of back-up capital is great to have.

Now about prices....face it, you`ll HAVE to give away some work in order to get your foot in the door. When I started out I would drop flyers off at a business and the person you almost always spoke to was the receptionist. I asked them if they could hand these to the CEO/Manager/Owner and I then would offer to wash their car for FREE. If they accepted (and you`ll get more NO`s than "Yes, please do") I almost always got a few paying clients out of it.

As for under pricing....I don`t believe in it because it makes you look desperate and cheap. When I first started I was doing full details at $125.00 while others were doing it for $75.00. I always stuck to my price.

Today people seek me out knowing I charge anywhere between $300 and up for detail work and for those few that want a "price break" or say...."Oh I can get it done for $75.00 at the Bath Tub Car Wash!" I kindly let them know the nearest location of that place or I wish them a nice day and good luck.

I love upgrading my computer and tinkering with it. There are several places in town I can go to to get my upgrades, afterall a stick of Kingston memory is the same at store "A" as it is at store "B" but store "A" might be $3.00 cheaper.....the logical choice would be to go to store "A" BUT store "A" is also 6 miles further out and their staff is rather dumb so I would rather pay the extra $3.00 for the same memory which is a closer location and the staff is helpful and knowledgable. The point here is that some things can and should be price shopped but these are items which are the same....like a microwave, TV, Mp3, etc. but when it comes to something like auto detailing it can`t be shopped in the same manner. People willing to pay for these services don`t really care about price as much as they do about quality and service. They look for experience and they want to trust that you, as the detailer, aren`t there to ruin their car or steal from them.

So worry about your image and reputation first, set "fair" prices and stick to them. Worry less about what the competition is doing. Also check out your local water laws. The EPA is really starting to go after water wasters and one area they are hitting is detailers. You can get a water containment mat and that alone will set you apart from your competition and make sure you have any permits required by your city to operate a business.

Lastly, under-commit but over-deliver.....a motto I am trying to not only live by but also run my business. I used to over-commit and under-deliver and that only lead to trouble, headache and heartache.

Anthony

**imported_Reflections** · 02-04-2006, 12:29 PM

Originally Posted by David Fermani

During a business start up phase, you need to capture as many custumers as possible. There`s always room to upsell at the end if needed for minor things like fabric protection, glass treatments and/or engine cleaning. The low price brings them in and your great salses ability captures them. How is a $145 Interior/Exterior detail hurting the detail industry?

I entirely disagree with this. During the business start up phase, you need to do more than capture as many customers as possible. That`s what the competition`s doing and thats why their prices are low and that`s why their quality is crap. The best thing to do at the start is build up a reputation as the best in town. Detailing is a luxury service and there are always people willing to pay more money if they know they`re getting a quality job with good customer service. There is a shop in my town charging as low as 60 bucks for an "interior/exterior detail." Why even try to compete with bs service like that? Of course if you`re going to be charging for quality work, you have to make sure you`re providing quality work :2thumbs:

**David Fermani** · 02-04-2006, 01:01 PM

Originally Posted by Reflections

I entirely disagree with this. During the business start up phase, you need to do more than capture as many customers as possible. That`s what the competition`s doing and thats why their prices are low and that`s why their quality is crap. The best thing to do at the start is build up a reputation as the best in town. Detailing is a luxury service and there are always people willing to pay more money if they know they`re getting a quality job with good customer service. There is a shop in my town charging as low as 60 bucks for an "interior/exterior detail." Why even try to compete with bs service like that? Of course if you`re going to be charging for quality work, you have to make sure you`re providing quality work :2thumbs:

Your entitled to your opinion. My sales stradegy worked very well for me in my market. Nobody can say their way is the best, it`s what works for you. My tactics for maintaining a sucessfull/profitable operation were to bring in as much revenue as possible AND maintain as much clientel as possible AND do very quality work. I did all these things consistantly and became the market leader in my area. I believe it`s better to get the sale for a lower than posted price than to loose the sale all together. I see it as the more revenue, the more profit. And before everyone starts assuming that by doing this your work quality is bad, I also disagree. I had very well trained detailers working for me and the work was excellent.

**wannafbody** · 02-04-2006, 01:15 PM

the best customers you will get are word of mouth by satisfied customers-quality over quantity and consider starting part-time and having another part time job until you get it off the ground.

**jimmybuffit** · 02-04-2006, 06:13 PM

Frank and Anthony have covered this subject quite well.

Briefly, a NEW Mercedes Dealership would not position themselves based upon the "competition" from a Chevy dealer down the road.

No, they offer different products, and the public knows that through brand recognition.

You should `assume` your brand recognition.

Hold yourself (and your pricing) to a higher standard.

This bold concept has worked quite well for me. After just three years, "we`re as busy as we wanna be!"

Jim