Chemical Cost Charge?

I

imported_Automania1

New member
IMHO vehicles are getting worse, more stained, more malodorous from neglect...and require more chemical usage



Does anyone charge an additional fee for chemical usage... example stain removers where stain is excessive and could require an entire bottle of a stain remove to solve the problem .



Odor counter-actants example DrivePur where you might have to fog several times as well as treat directly fabrics
 
I will definitely charge more if it requires something outside my normal routine, especially for odor removal.



Thankfully I don't do that many interiors now days. :)
 
This seems like more of a "consumer psychology" question.... will customers respond better to a "chemical cost/usage" charge, or an "excessive stain" or "severe odor removal" up-charge?



With regard to a "chemical cost/usage" charge some consumers may respond negatively on the basis that "chemical usage is a cost of doing business for the operator and should be figured into their standard rate." On the other hand, it could be framed in a similar fashion to quick-lube and oil change businesses where the standard rate includes 5 quarts of oil, and those vehicles requiring 6 or more quarts are given a surcharge to account for the additional capacity.



An "excessive stain/severe odor" charge would alleviate the concerns of those who don't like a 'chemical' charge, by framing the situation as also including the fact that such issues are often more labor intensive to deal with than a standard service would be. On the other hand, some customers may not like the characterization of the issue in their vehicle as "excessive" or "severe" and may wish to argue the point with the operator that they do not deserve to be up-charged -- either because they are money conscious, or (more likely) they are embarrassed by the situation.



I'd say it's a crap shoot which way to go if you're setting a pricing structure that way, as you'll get positive and negative reactions in either case. Regardless, it is common sense to charge more when additional labor and/or product is required to do a particular job. Otherwise you risk losing money in the long run.
 
C. Charles Hahn said:
This seems like more of a "consumer psychology" question.... will customers respond better to a "chemical cost/usage" charge, or an "excessive stain" or "severe odor removal" up-charge?



With regard to a "chemical cost/usage" charge some consumers may respond negatively on the basis that "chemical usage is a cost of doing business for the operator and should be figured into their standard rate." On the other hand, it could be framed in a similar fashion to quick-lube and oil change businesses where the standard rate includes 5 quarts of oil, and those vehicles requiring 6 or more quarts are given a surcharge to account for the additional capacity.



An "excessive stain/severe odor" charge would alleviate the concerns of those who don't like a 'chemical' charge, by framing the situation as also including the fact that such issues are often more labor intensive to deal with than a standard service would be. On the other hand, some customers may not like the characterization of the issue in their vehicle as "excessive" or "severe" and may wish to argue the point with the operator that they do not deserve to be up-charged -- either because they are money conscious, or (more likely) they are embarrassed by the situation.



I'd say it's a crap shoot which way to go if you're setting a pricing structure that way, as you'll get positive and negative reactions in either case. Regardless, it is common sense to charge more when additional labor and/or product is required to do a particular job. Otherwise you risk losing money in the long run.
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It is really not a consumer psychology question... It is done in the autobody industry, and carpet cleaning industry who both have chemical charges, disposable charges, stain removal charge, In fact the carpet cleaning industry charges will depend of level of difficulty and type of carpet to be cleaned.
 
I should have been more clear in my post....I don't charge a chemical charge per say, but an extra charge for the added labor and to cover the cost of the chemicals. I agree with Charlie on not wanting to list an itemized cost of the supplies and list it as he mentioned "excessive stain" or "severe odor removal" up-charge.
 
No matter how you look at it the key is properly quoting the job up front. It is not always necessary to distinguish for the customer between a cost for materials or for time. The circumstance (stain, odor, scratch, oxidation) takes XYZ to resolve at a cost of $???. If a detailer fails to properly estimate the time and materials it is just a cost of doing business. We have all estimated #X hours for a job only to find it takes more in the end. We suck it up and learn from it and move on. If a customer wants a complete breakdown of the costs it is a red flag. They are going to try to cut things they don't understand the importance of. Simply bore them to tears with technical info and focus on the results they can expect and not the process.



Charging extra for top shelf products, on the other hand, is perfectly fine; again as long as you inform the customer up front.
 
Totally valid discussion right here. In my opinion, it depends on a few factors: type of job / location of work / cost of work / structure of billing system.



Gina is right regarding body shops and mehanical garages capitolizing on these additional job related expenses. I see it every day where they charge for extras (that are valid) including Hazardous Waste Removal, bonding kits, shop supplies and many other things that are not included in the everyday cost of doing a job. You can either build these expenses into your price or charge them above and beyond the flat charges. Totally your choice, but again is all how you structure your business.



When doing insurance work, it is best to break down and list each service separately. You can include material costs as well as an hourly labor cost and specialty equipment rental charges as well as special sublets trips to other shops while in your control for additional repairs. You can also charge for a fair and reasonable mark up on these expenses too.
 
With the exception of a service like DrivePur or wetsanding where the chemical/product cost is significant we don't mark up the job based on chemical usage because quite frankly the cost per vehicle is insignificant in my opinion. What we DO mark up is the labour cost which is by far and large the greatest expense on any job.
 
See, it's all different and there reallty isn't a wrong way of doing it as long as it pacifies your bottom line and gets you the sale.



This is very similar to using/charging Opti-Coat/Guard or any other high end protectant. Yes, you charge for your time, but you also need to be able to absorb the additional cost of the product. Some might just mark up their 1 line cost, some might feel more comfortable adding an additional ala carte charge.



I see ala carte charges all the time when something isn't considered a cost of doing business. Amazing how many shops don't even ask/consider charging extra. For example, when replacing a door skin or doing a plastic bumper repair. These repairs require a "kit" to be used most of the time and should be charged extra accordingly. The same goes for when doing ozone treatments. It's use should be separated from the cost of cleaning the interior. Carpet dying and burn hole repair too. And touch up painting when you have to buy a special color paint.
 
I personally add chemical costs in when designing my detail packages. It just makes things much more simpler. If I have to use slightly more APC or compound it is really not a huge factor. I can see where if you are doing "production" detailing, this might be a big concern though.
 
I believe it is about consumer psychology. Mechanics charge $100/hr, can we for washing? Lawyers charge in 10 minute increments, and will include travel costs and lunches into their bills. Should we?



As I see it, in this industry, we dont do that unless its a special poduct like Opti-Coat. I actually started charging more for carpet extraction once I picked up my steamer. My packages are designed for normal usage. Bad cars are charged at an hourly rate and I give and estimate, then negotiate to stay within their budget. If they dont want to pay for a full cleaning, I dont do it. I add the cost of a simple odor neutralizer, but explain it may take more than one application, which is extra.



Unless everyone else or a majority of people are doing it in your area, I dont see the consumer going for it.



But, thats my opinion.
 
Being specific about upcharges is crucial to having an informed client, I definitely agree that the client should know ahead of time if the job is going to go over budget or estimate.



I also think situations like this are a great opportunity for up selling.



"Ma'am, your carpets are really bad and there is a slight musky odor. For an additional free I can not only do a complete carpet shampoo and extraction, but also an odor removal treatment that will solve your problem."



Always offer a solution, even if the client is not yet aware of the problem. If they don't bite, at least you have showed concern for their needs.
 
Nth Degree said:
No matter how you look at it the key is properly quoting the job up front. It is not always necessary to distinguish for the customer between a cost for materials or for time. The circumstance (stain, odor, scratch, oxidation) takes XYZ to resolve at a cost of $???. If a detailer fails to properly estimate the time and materials it is just a cost of doing business. We have all estimated #X hours for a job only to find it takes more in the end. We suck it up and learn from it and move on. If a customer wants a complete breakdown of the costs it is a red flag. They are going to try to cut things they don't understand the importance of. Simply bore them to tears with technical info and focus on the results they can expect and not the process.



Charging extra for top shelf products, on the other hand, is perfectly fine; again as long as you inform the customer up front.
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This is another situation where the use of a printed "inspection form", with conditions clearly filled out, comes into the picture.



The Inspection Form not only spells out such conditions, but requires the customer to sign off on the work, the cost for services and provides the detail operator with a document that may be of use for follow-up (since all customer contact info is on it) as well as signed document should legal issues arise at a later date.

Grumpy
 
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