Services and pricing question

[Carl]

You're right about the up front pricing; it has it's benefits.

I'm interested in your scheduling system, could you elaborate a little bit more (examples)? Do you contact the client ahead of time to let them know your coming or do you simply say I'll show up every Thursday at 5:00?

Thanks

[buda]

Detail Pricing

You are making the same mistake far too many detailers make when it comes to pricing your services.

First and foremost, whether you are a full time fixed location or mobile or you do the work on the weekend you are a business and you should run your "detail business" to pay you a reasonable wage and make a "profit." We are all in business to pay us a wage and to make a profit.

That said you first have to decide what is your time worth? $5.00 an hour; $10 an hour; $25 an hour? Not what the customer will pay, but what is your time worth to do this work?

Then, if you are a full time business what benefits do you want? Or should you have? Working for another company you would have Works Comp coverage in case of an accident; health insurance, retirement; sick leave and vacation time. Why should you business not pay you that? Right, it should, so calculate that into your business expenses.

Then figure your materials cost on every car, that is chemical and supplies.

Then your fixed monthly expenses and then you variable monthly expenses.

Next, figure out how many billable hours you have to sell per month and then figure out how many you actually sell per month. For example, if you work 8 hours a day 5 days a week that is about 217 hours you can sell per month. But, do you sell all of these hours? Say that you sell only 75% of them on average or 163 hours per month. So you divide your monthly expenses including your wage, and add in 10% profit and that gives you your hourly business rate So if your monthly expenses, total were $8,000 then your hourly rate would be $49.00.

All you do then is estimate the job. If it will take you 2.5 hours, no matter what the job is or the size of the vehicle your minimum charge MUST be $122.50. Under no circumstances can you charge less, but if the market will bear more than that then by all means charge more.

If you do not run your business, be it full time or part-time out of your garage or trunk of your car, you must operate as a business and you do that by charging properly.

Do not tell me that the customer will not pay. If they won't you are chasing the wrong customer. The customers who want detailing have the money, do not want to do it themselves and will pay a professional to do the service. If they tell you your prices are too high that is really saying you have not convinced me you are worth what you are charging.

If you would like a copy of the presentation I did at the Car Care World Expo this year on Calculating your Hourly rate contact me and I will send to you.

Regards
Bud Abraham
DETAIL PLUS SYSTEMS

[scrub]

Mr Abraham,

Thanks for taking time from your schedule for a great write up. I follow many of your articles on other web sites. Please allow me some time to digest and calculate what you posted. It's great to have your perspective on this forum. You have a great deal of experience we all can learn from.

Thanks again.

PS the Air Wand rocks!!!

Rick

[buda]

Thanks for your kind words. Always a pleasure to help detailers get better at their trade and business.

Regards
Bud Abraham

[Carl]

Thank you for posting such constructive criticsm. You make very valid points, points I will give much thought.

I would love a copy of the presentation. Please feel free to PM or e-Mail me with the document, if that's possible.

Thanks,
Carl Schlegel

[scrub]

Originally posted by Carl
Thank you for posting such constructive criticsm. You make very valid points, points I will give much thought.

I would love a copy of the presentation. Please feel free to PM or e-Mail me with the document, if that's possible.

Thanks,
Carl Schlegel

I too would like a copy. Is it posted on your site already??

[AutoNova]

I think the term "Keep it Simple" applies here.

I offer 3 packages for my customers and I really only sell the 2 Full Detail Packages. Customers need and want a choice in plans just as if you were shopping for a mobile phone.

The packages have to be priced accordingly to making the amount of money you want to make per hour. I want to make $35/ hr therefore my Full Detail costs $135 and takes me 4-5 hours, My Full Detail Plus costs $160 and takes 5-6 hours. Donald Trump says price point is everything.

Also have a chart with the cost for different size vehicles so you don't have to guess priced form medium to x-large.

As far as estimates, well I look at this way, I get some dirty cars that take longer but I also get some very clean cars that take less time. I will also let a customer know upfront before doing any work if the price will be more due to condition. They get what they pay for, if there car would look better with more work I tell them, their choice.