Am I wrong on Price

[LDPaul]

I just got a contract to setup shop at a business with about 600 employees every Friday. I mentioned my prices for washing cars starts at $25.00. I mentioned that I do quality and not quantity. I was told to do less quality and more quantity to lower my price (they suggest $20 for all cars since usually I would get between 10 - 15 cars). I do not want to run my business that way. Their last detailer went out of business and I guess because of the quality. Any suggestions on how I should handle this situation. Thanks

[Jngrbrdman]

If all they expect is to get the cars washed then they are going to have to respect what you charge for that service. Tell them that the quality matches the price you charge. Nobody is going to go to a Porsche dealership and tell them that they want a Porsche but they don`t want to pay the price for it. Instead they would rather that Porsche lower the quality of their cars and produce an economy line. lol Its just not going to happen. You have your work ethic and your integrity. Don`t let them talk you down from what you know you are worth. They are just playing the game with you.

[lexite]

Can you setup different detail level packages starting at $20. Such as basic, gold, platinum. That way people who care and appreciate quality would go for what you want.

[dstn8r]

If $25 is your basic wash, then $25 is your basic wash. A quality car wash by Autopian standards is no easy task and it`s worth what you`re charging. I just can`t see lowering my standards to meet their price point or selling myself short and accepting less. It still may be worth evaluating your price and if $25 is what you feel you are worth, then stand by it.

[LDPaul]

I could offer a wash for $20, but I really hate shortcutting on quality. On my way back from that company, I stopped at a couple of insurance companies to drop off a business card. Both companies scheduled full details on vehicles when returned from bodyshop. They have been looking for a good detailer. We will see how the other company works out next Friday.

[Jngrbrdman]

They have not been looking for a good detailer. They are looking for a good car washer. Big difference. A detailer would cut them a deal and only charge them $50 bucks a car. They are hiring a detailer to be a car washer and that is why they have a probem with the price. I`m sure there are some `migrant workers` that they could hire for $20 bucks a car. The cars would look worse than when they started, but at least they would get the price they wanted.

[2wheelsx2]

I agree with what`s been said. If they are just looking for a cheap car wash, that`s who they should hire. Tell them to hire someone`s teenaged son with a broom and a sponge and some dishsoap, and they`ll get it for $10 a wash.

[LDPaul]

Yesterday I was dropping off some paperwork at a company. There was a detailing company washing cars, so I took a look. Their towels for wiping the vehicle were older than my daughters, which they kept dropping on the ground. The people who were doing the detailing must have just come from Mexico. They were charging $20. Now thats quality! I think I will keep my respect and professional quality with my $25.

[ntwrkguy1]

If you feel that the price should be $25, then stick to your guns. I agree that they are playing the old "pricing game" with you, which is the right of every customer I suppose. One of the really difficult things is figuring out the price points that will allow you to remain profitable while still attracting new customers. It`s a serious learning curve, but once you reach that point, life becomes much easier!

[Maxtorque02]

Originally posted by ntwrkguy1

If you feel that the price should be $25, then stick to your guns. I agree that they are playing the old "pricing game" with you, which is the right of every customer I suppose. One of the really difficult things is figuring out the price points that will allow you to remain profitable while still attracting new customers. It`s a serious learning curve, but once you reach that point, life becomes much easier!

I totally agree. It`s Economics 101. Supply and demand. If you have a product that you feel is worth $25.00 and you get enough business then you are ok, but if business suffers, then you may need to consider dropping to $20.00. In the scenario you have pointed out, quality seems to be secondary to quanity. If you need the business to survive and the quantity of vehicles will more than make up for the difference in quality, then you might need to consider doing it. Save the specialty details for those customers who appreciate it and are willing to pay for it. When you build enough of your quality detail business, then you can start weeding out the type of business you prefer not to do.

[JoshABI]

Originally posted by rlspringer

I could offer a wash for $20, but I really hate shortcutting on quality.

Let`s be honest....we all know that you won`t be satisfied altering your washing routine. There is a certain number of steps I take before a car can be deemed "clean" and you can`t change that to lower the price. I`d still end up doing the $25 dollar job for $20 dollars, just because I couldn`t stand not dressing the tires or skipping some other "vital" step.

[Mike_Phillips]

I find the way I am best able to get the price I charge for a detail is to educate my customer.



That`s my job. Differentiate my quality of work from that of others.



Some people want quality, some want a low price.



Those that want a low price can often be educated to pay more once they understand what they`re getting.



Educating involves,



The high quality products you use, versus the less costly products your competitor uses.



The human element of Care, that you put into your work.



Most of my customers know I`m not polishing their paint because I need the money, I`m doing it because I genuinely enjoy polishing paint. It`s the fact that they know I enjoy my work that translates to them that I care about the quality of my work.



Anyway, you need to do the same thing.



Educate your customers.



Differentiate the benefit of using your services from those of your competitors.



Also, educate your customers on their car`s finish. Most people have no understanding or knowledge about their paint. That is how thin it is, how susceptible it is to scratches, swirls, and dulling, and how hard it is to remove scratches, swirls once their instilled and restore clarity and that it takes experience and the right tools/products to restore gloss after the finish is dulled.



A lot of new car salespeople tell people that clear coats don`t need to be waxed. Educate your customer that this is wrong and that clear coats are simply clear paint, i.e., resin without pigment and they still require regular maintenance in order to maintain their good looks,



Show your customer that you are an expert on surface coatings, and they will trust you with their paint, especially if the car is more than a daily driver, (at least to them).



Again, this is where you relate your knowledge of paint, (and other components), back to the high quality products you use.



In other words, you don`t use detergent soap to wash your customers cars because while it may clean really well, it is to harsh on the paint, vinyl, rubber, etc.



Educate.



Your first day on the job, make sure you do a stellar, first rate job, do extra little things if you can, and create a flyer that details what you did, what you used, and other services you offer, or whatever…



Definitely put up a website if you don’t already have one.



FWIW

[Thomasfl]

if price becomes an issue why not try a promotion giving potential customers $5 off their first detail. When you finish if they care about quality they will come back and appreciate what you do and pass the word on to others who care. This promotion would also give you a chance to explain the quality of you work like Mike P. pointed out. I have talked to some people who really only want their car clean, these hacks are great at that and only that, they could care less if you even wax it.

[Redcar GUY]

Originally posted by Jngrbrdman

They have not been looking for a good detailer. They are looking for a good car washer. Big difference.

ups ups!

[imported_zenhog]

There`s more to this than the simple concept of supply and demand. If your business plan assumed you were going to get 10 washes in a day, and you wanted to make $250 for that day`s wash activity, then you set the price at $25. Of course this is a very simplistic example, the cost of supplies, etc are part of the equation, but the price would eventually be set based on some form of expected # wash jobs divided into some desired amount of revenue... but you get the idea.



If someone comes along and guarantees you 15 washes for the day, and says they`ll give you $20 a wash, I`d look long and hard at that business plan target of $250/day and consider their offer.





My two cents, anyway.