Ok guys how do you all handle competition within your own towns. Especially when it comes to the weekend detailer and the full time detailer. Do you converse with each other on what to charge so that you are all the same or do you try and lowball the other guy to take away some of his business. Interesting Question.
Competition
- Thread starter dionnfr
- Start date
I'm persoanlly not going to undercharge to get business, unless I'm not working at all due to their price's. When you undercut to get business you get the customers who just want something cheap, basically the pain in the *** customers. I'd rather have 20 good paying customers than 50 low-ballers, due to the fact the low-ballers are just going to complain to try to get an even better deal. Let them do all the hard work for low pay, when the word gets out you do the best job people will pay to have your service, rather than save a few bucks on the other guy. Would you rather do 10 cars for $200ea or 20 cars for $100ea? I'd rather make the extra money and do less work, but that's just me.
Also if you start out by undercutting, once you get popular and the appt book fills up your overflow will be going somewhere else.
Also if you start out by undercutting, once you get popular and the appt book fills up your overflow will be going somewhere else.
rollman
Professional Detailer
Here's an idea , let the work speak for your prices .
:buffing:
:buffing:
bobross213
New member
as would undercuting below your marginal cost...although in the case of detailing i dont think this could even happen concidering the cost is mostly just time....
psl car wash
New member
Scottwax said:
compitition?!? whats that?!? lmao.......naw i dont even have that word in my vocabulary....... i started my business in the heart of florida...(fort lauderdale ) where every 3rd car is a mobile detailer......if you want the right detailer than you will hear of "him" and you will than get the work.
NEVER lowball the "other" detailer, just do what you gotta do.
:xyxthumbs :closed:
SpoiledMan
New member
Competition? All I have to do is actually show up when I say I will and I'll get called back. Guys come and go, make promises and don't deliver etcetera. People don't care about my prices too much as long as I keep my end of the deal. Referrals come from that and it snowballs from there.
C. Charles Hahn
CCH Auto Appearance, LLC
Scottwax said:
:clap:
My thoughts exactly. I'd have ulcers if I worried about the competition; they aren't my problem!
Anthony O.
New member
Heck, I've trained some of my competition 
safetyman2010
New member
dionnfr said:
Not to get all "legal" here but all detailing busnesses conversing and then setting their prices together at the same price is collusion and is illegal. I highly doubt this happens but has become a major topic of interest lately. I recently attended a meeting with some of the major players in the car wash industry in Chicago and "price fixing" was a major concern as car wash owners are waging a battle against low cost operators. Anyway, to your question of "lowballing". I have never seen the percentage in lowballing or undercutting others prices. Isn't the point of business to actually make money? Let me ask you this question: why is it possible to charge $50000 for a Cadillac when you can get a Chevrolet Cobalt for $10000? They both serve the same basic purpose of transportion right? So why can one be sold for drastically more money then the other? Perceived value? Absolutely. Status? Sure. Increased quality? Definitely. You have to get past your fear of price and learn to sell what you have to offer and sell it to THE RIGHT CUSTOMER. This is a business that caters to people with the disposable income to get their car cleaned. There are people that get their cars cleaned that do not have the disposable income but they are few and far between. Most of your ideal customers will more than likely be a two income family or upper class depending on your locale and they are the people that are willing to pay for the convenience of detailing services. There are lot's of people that want to get detailing services done but not all are willing to pay a "reasonable" price. What's reasonable? The generally accepted rule of thumb for pricing of services is at least $40 per hour. This number could be higher or slightly lower depending on your market. The most important question you want to ask yourself is what do you want to accomplish with your business? Are you just looking for enough money to buy this week's beer? Are you looking to become a millionaire? Do you just want to earn enough to be comfortable? These are really important questions. If you look at the average detail business operator they really aren't making any more money than they would be if they worked a simple 9-5 job in a low paying position. I have even come to know a few that are getting into decent money ($50000+ a year) but are working double the normal work week to do that (not the point of owning my own business in my opinion). The point of my post is that you need to figure out what you need to charge to make the kind of money you want (and need) to earn, factoring in all your costs and a reasonable profit.
I have picked up some good work because of my competition. They did a poor job on one truck. They guy wanted someone else for his next one. From word of mouth he found us. We did his truck, which he loved. He drove off and told another guy that booked that day (Friday). He (the second guy) told his cousin how booked on Monday and has had hid car back 2 more times in a month in a half. Then the truck owner told another friend with a truck like his and he came to us because he seen the job the other shop did on the other guys first truck. This guy said he might have another friend that will come in and he will be back in the spring. :bigups Some of my best custmers come from the competition. :cooleek:
James
James
safetyman2010
New member
Flexin said:
No doubt. We have a shop that opened around the corner from us and we have literally had people leave their shop and drive straight to us after having their car done and ask us to re-do it. The one van was so bad I didn't believe the customer that anyone had even touched it until he pulled out the bill. Sometimes having a really bad "competitor" can be your best advertising. They give a customer a "measuring stick" if you will that cqan be used to compare the quality of your work.
That is so true I had a customer cancel his appointment with a detailer after seeing my work on a his neighbors Blk Prius and booked with me the same day. I asked him why did he cancel with the other local detailer he said that they left streaks in his windows and didn't clean out his empty cupholders, after I was finished his his wife booked her car with me to do and the husband asked for plenty of cards to pass on, so yeah your fellow detailers in your area can be your means of added business for sure.
imported_mirrorfinishman
New member
Scottwax said:
Now here's very smart advice from a very smart business owner!!!