On the fence regarding pricing...

E

Envious Eric

New member
after talking to a quite few people, I am debating on the pricing structure for the new express business launching soon...



my plan is to have someone else (possibly two people) doing the work, while I just administrate and send them to a few stops daily or at least 4 days a week (in due time as it builds...)



some people are saying no more than $20 is what they would spend for someone to come to them, some are saying 25+, some are saying $15 max...



I have seen a local guy charging $10 bucks for a wash and vacuum...I've also seen the work results, and its not good, but you get what you pay for.



My wash routine is about 50-60min for myself on a sedan (i.e. m3 wheels take longer to wash with all the spokes). With two people, its about 2.5 cars per hour for the following:

ONR wash

vacuum

windows

jambs

wheels cleaned

tires dressed

wheel wells hit with CG barebones



so, what would you start out with? 20 or 25? I was thinking about 20 for the first 6 months, then 25 for the new clients once things are in motion and word spreads..thoughts?



here is the new site, home page is getting developed with an intro

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Dunno Eric, I'm torn. I charge a little more than double that and I'm in a country where the average salary is still less than $600... too cheap IMO buddy. Adda few more "advantages" like a spray wax, using a wash n' wax, etc. and bump the price up a bit.
 
yeah I would love to, but I have told people I know of some charging 50+ for a washing, and their response was "that car better not get dirty for a month at those prices for just a wash!" Thats coming from people with M3's, Lambo's, and BMWs alike



I do have a package with a spray wax for $50 under that business model...ONR wash and OCW = +5 min to the wash time and $25 more bucks!



trust me, I would love to charge $100 for the wash and spray wax, but its just not available around here with a hundred "car wash and detailers" driving around! I have seen so many more "mobile car washers" in the last 6 months than I have in the last 2 years!!
 
Eric: If you can pay all the business expenses (including wages) at the $20 per wash, then do it. You can always raise prices a little in the future when you have a client-base that knows your work and has been using you for several months or longer. People also don't like changing things once they have them in place, especially if they're working out just fine.



My example will be what the telco does with high speed internet. Generally, your first 3 months as a new customer are dirt cheap, and they advertise it like that: Only $29.95 per month!* (*for the first 3 months). Get the customer connected and signed up, then add $20 to the price, and you won't see very many customers leave, because terminating a service in a PITA, and for most folks, if they're happy with the service, they will pay a few bucks more to keep it going.



Again, if you can pay all your expenses, do $20 to start with, then go to $25, and if your market will allow, end up around $30 a year or so down the road. I think you'll do just fine.
 
its just not available around here with a hundred "car wash and detailers" driving around! I have seen so many more "mobile car washers" in the last 6 months than I have in the last 2 years!!
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I hear you there is alot of mobile detailers going around here in the oc and for dirt cheap. Have you check craigslist in oc? there's people doing buy one get one and $60 full details.
 
This plan will fail. Your employees will steal your customers if your not right in there with them working. On top of that, the prices you are charging will probally keep you at poverty level



Back to the drawing board
 
Flash Gordon said:
This plan will fail. Your employees will steal your customers if your not right in there with them working. On top of that, the prices you are charging will probally keep you at poverty level



Back to the drawing board
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:think: OK, I really do try to stay away from this as it isn't my business plan, it's the OPs.... But with that said, how do you know this plan will fail ? Just because the OP isn't going to be with the employee's 100% of the time, the employees will steal his customers ? Why then, can automobile dealerships exist, or Pep Boys, or Auto Zone, or any NAPA auto center ? Wouldn't all those mechanics just "steal all the customers" too ?



It's very simple, there's much more to running and owning a business than simply being able to do the work. If it were that simple, then everyone would be running their own business and being their own boss. The fact is, running a business is not easy, and you have to have the aptitude for it, not to mention the drive and determination. Most peope aren't that type of person, they'd rather just work for someone else, get their hourly pay and go home at night, rather than worry constantly about things like bringing in enough business, growing the business, dealing with employees, unsatisfied customers, etc.



Also, I do think the OP (who is an excellent, proven detailer I might add) has done enough research to ensure that his numbers are keeping him "above poverty level".
 
Flash Gordon said:
This plan will fail. Your employees will steal your customers if your not right in there with them working. On top of that, the prices you are charging will probally keep you at poverty level



Back to the drawing board
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yeah I dont really see why you would say that off the bat, please explain. I am open to both sides. I have talked to another detailer and kinda go the business model from him...my 5 year plan doesnt entail just one or two employees...and this isnt my only source of income
 
Your cars are obviously clean to begin with, being in Cali. Or they are directed to Envious detailing service first.



But $40 is the price point I would aim for. Yes more expensive that others, but use your name in the marketing.



"Envious Extreme Express" detailing.



Include OCW or Opti-seal for that price and if they return within a month charge them $30 for the next, without wax. Then $40 for the next wax.



Just a few thoughts.
 
different business model with a completely different business name...



I am going to refer the express clients to Envious Detailing, not the other way around!



keep the thoughts coming, I like them
 
eric, i dont think that is enough to charge with using ONR. unless your employees are really good at washing with ONR i think it will end up costing you too much in supplies.
 
toyotaguy said:
different business model with a completely different business name...



I am going to refer the express clients to Envious Detailing, not the other way around!



keep the thoughts coming, I like them
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Yes completely opposite, but your name is still on the title. You could use that to your advantage. You personally do awesome work. You have posted many excellent done jobs. Revisit those customers with your new business model. You have a built-in client base that have relatives and friends that might not appreciate a full detail, but still need some up keep.



Your workers could be droids, but keep to your standards. It is easier to down sell them, then up sell them.



Word of mouth brings in quality customers, but a NAME brings in quantity.



Sorry for the rambling, but I have only had 3 hours sleep in the last week, it seems.
 
Don't chase cheap. It isn't easy to raise prices and keep customers. Those who come to you because you're cheap will leave you when they find someone cheaper, or when you raise your prices. It will also be difficult to pay a team of two people well enough to motivate them to do quality work and still remain profitable in a low cost model. You'll need volume to sustain a low cost model, which can get hectic. Look at it this way, when you charge twice as much money you only need half as many customers.
 
WAS said:
:think: OK, I really do try to stay away from this as it isn't my business plan, it's the OPs.... But with that said, how do you know this plan will fail ? Just because the OP isn't going to be with the employee's 100% of the time, the employees will steal his customers ? Why then, can automobile dealerships exist, or Pep Boys, or Auto Zone, or any NAPA auto center ? Wouldn't all those mechanics just "steal all the customers" too ?



Big difference. Dealerships for the most part do not allow contact between customer and technican for this very reason. As for Autozone employees...Well, where are they going to get the parts to sell to the customer?



It's very simple, there's much more to running and owning a business than simply being able to do the work. If it were that simple, then everyone would be running their own business and being their own boss. The fact is, running a business is not easy, and you have to have the aptitude for it, not to mention the drive and determination. Most peope aren't that type of person, they'd rather just work for someone else, get their hourly pay and go home at night, rather than worry constantly about things like bringing in enough business, growing the business, dealing with employees, unsatisfied customers, etc.



Can't argue with any of that ^



Also, I do think the OP (who is an excellent, proven detailer I might add) has done enough research to ensure that his numbers are keeping him "above poverty level".
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I'm sure the OP is a excellent detailer, but the numbers just don't add up



toyotaguy said:
yeah I dont really see why you would say that off the bat, please explain. I am open to both sides. I have talked to another detailer and kinda go the business model from him...my 5 year plan doesnt entail just one or two employees...and this isnt my only source of income
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If you plan on working alone then you could proally eek out a decent living. There are to many varibles, what about the days it is raining? Do you plan on having 16 cars a day lined up at the same location?
 
MichaelM said:
Don't chase cheap. It isn't easy to raise prices and keep customers. Those who come to you because you're cheap will leave you when they find someone cheaper, or when you raise your prices. It will also be difficult to pay a team of two people well enough to motivate them to do quality work and still remain profitable in a low cost model. You'll need volume to sustain a low cost model, which can get hectic. Look at it this way, when you charge twice as much money you only need half as many customers.
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Yeah, but "chasing cheap" and going after a market segment that isn't looking for 100% full corrections is two different things. Bottom line is, Eric's market allows forthe price to be $20 or $25 or whatever the number is, per wash. You have to be within the scope of your market, wherever you are. If you're out to lunch on your pricing, you will not get any customers, end of story. It'd be like saying you're going to open a quick lube shop where a basic oil change is going to cost $349. When Mr. Lube is selling the same service for $39. You have to be somewhere within your market scope.



It won't be that hard to find some employees that you aren't paying $20 an hour, but still do good work. IMO, go after younger employees, like teenagers, high school students, college students. It gives them work experience, and they / you don't expect a high salary.



I think this business model is very do-able.
 
first off, I know I don't really belong here not owning my own business and all(Future reference, if my presence is more of a nuisance, a mention is all I need and I'll stay out lol)--but I have worked for a detailer--WAS has a point about the employees (though you will have to make sure you keep them on their toes--cause that's also the age where they tend to be a bit more irresponsible)



What my guy did was have a price and then charge a travel fee(gas/tolls and that sorta stuff) BUUUUT he made allowances for his detail/ and definitely regular detail customers. Like waiving the travel fee or making the next wash or two (depending on customer--does he/she tip the workers well, are they loyal good customers, are they close by etc) on the house. which normally, he'd have these ways of mentioning something about the car to kind of get the owners to want to put more care into the car, but not enough to have them want to do it themselves.



His method of breaking into new areas as far as private car owners go (not counting dealerships car shows and the like) after the usual flyers or maybe referral visit, what he did sometimes was to kind of give the client a largely discounted detail, or a simple wash, vacuum, spray wax for the price of a wash just to kind of add value to his services--got a bunch of cynics to turn into believers. With this, more times than not the neighbors would get curious and as word spreads he'd leap frog--btw--I lived in Staten Island NY then and he charged I $50 for wash and vacuum...maybe a quick once around with a QD but not 100% on that.



It appears to me, that maybe you want to kind of be a little clearer on the type of clientele you want, because, though the m3 owner would be floored that a car wash and vacuum is more than OMG 20 bux?! maybe its may be just a matter of--he's not the type of clientele you want?



I am curious to see how you go about it and your rationale though. All the best wishes to you and the success of your business sir.
 
What exactly are you, the business going to be paying for? Business vehicle, gas, insurance (auto and business) etc? If so, at $25 per detail you're going to be losing money. Simply commuting from job to job takes time and you're paying people hourly, will that include travel time to jobs? If not, how will you track that? Just a few questions. When you're the one doing the work it's completely different because you're taking into account the travel expenses, etc. When you're paying others ($8-$10/hr) you're adding in additional factors.



Just my .02
 
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