I am looking for some advice with regards to create pricing. For the past year I price work out at an hourly rate. However, I have become slightly frustrated with this method because some areas seem to be more costly than others. And also customers seem to be uneasy with not knowing how much it could end up costing. I am looking for some suggestions on set pricing and what you guys think is fair while still bringing in enough money for it to be worth while to own a business. I do not pay any rent for my work space. Just products and tools. Feed back from the guys who do the multiple day details would be much appreciated! :headbang:
A very experienced detailer taught me that menu pricing is the way to go. Hourly rates keep you from getting gipped on longer details. Charge what your worth, not what others charge or what you think would be fair. If you believe your correction work is worth $50 and hour than charge that, if you feel your good but still have a lot to learn than charge less. I always give customers estimates when I see their car...always over estimate a bit, dont think you maybe can get the job done in 8hrs if it "may" take 10hrs. After looking at a car say its about X hours worth of work and you charge X per hour so roughly XXX.xx is the price. Always cover you ass and say it could very well be more. Figure out your gross profit (what you make before paying taxes, overhead etc) than find out from there what your net profit is (what you make after all expenses are paid) and find a price that works well for you. Hope this makes sense:thumb:
DSMS is right. If you are doing this as a business, you need to sit down and make a list of all your expenses. Include everything you pay for that contributes to the day to day running of your business. Even though your building doesn't cost you anything, find out what rent for a building your size would cost and include it. One day you may have to rent space so you might as well build it into your costs now. After you add up all your costs for a month, figure it out on an hourly basis. Say its $2000 / month for expenses. $2000mo divided by 4.3 weeks a month divided by 5 days a week divided by 8 hours a day equals $11.62/ hr for overhead. Now add on what you think you should be paid. Say you want to make $25 hr. You need to charge around $37hr to make what you want. I would add on some for profit as well. That way after you pay yourself, there is something left in the bank. Lets say we make it $8hr. Now take your packages, and figure out how long each package would take to do and multiply that by your hourly rate. Say a basic wash, wax and interior clean up takes 3.5 hours. That package would cost $160. 3.5 hours times your hourly rate of $45 ($12 expenses, $25 salary and $8 for profit) equals $157.50. Do this for your packages and charge by the hour for polishing. You can do a sample panel on the clients car and base your price on that. If clients want a quote over the phone, give them an estimate based on previous experience, but tell them a final quote will be given once you see the car. Sorry for being long winded but it could be worse, I could have got you on the phone! LOL
Very helpful, thanks a lot. I think you and DSMS are right, by how you go about it, hourly rate seems to be the way to go. I especially like how you put it with the expenses , salary, and profit... never really thought to break it up like that, but it makes perfect sense. Thanks a lot, and no it was not to winded just very informative.
Very good information being posted here when I try to do this more seriously in the spring I will remember these good posts.:applause:
Good info dsms & 911Fanatic! :thumb: I guess an ole dog like me can learn new tricks. :graduation: Great question Berscht, detailing is hard work and deserves to be compensated accordingly. Dave
Thanks, I do not know what I would do without this forum sometimes... So many helpful people on hear, its assurance that the entire world is not bad, or maybe just not in the detailers world :giggle:
PERFECT advice. I can't say anything else to make this advice any better, LoL. You really just have to put all factors into consideration and perspective. In fact, this is the exact way I did my pricing, hehe. It's a smart way of doing things. :thumb:
Just to clarify, figure your package prices based on an hourly rate. Only charge by the hour for polishing, or give the client a firm quote after doing a test panel.:thumb:
Ahhh okay, gotcha. I think I know what I will be spending all my time on over the Christmas break. Thanks again 911
