How much to charge..

C

Cosmom3

New member
I have searched, and read through pretty much all of the threads reguarding the issue. Alot of good info on buisness facts, however I need help figuring out what I should charge.



For most customers (what they ask for) is...





Complete interior detailing and conditioning of seats and plastic

Wash

Clay

Polish

seal

Pinacle Sov wax

Dressing of the tires

Polishing/sealing wheels

Gunk Engine degreaser with CD2



All this takes me about 6-7 hours...



Im not a PRO per say...like most of you. I still have lots to learn. But I do my best for flawless results and a customer thats all smiles.



I have been charging anywhere from $150-$180...It feels like Im undercharging but I could easily be wrong. Btw this price does not include swirl removal, thats extra obviously.





Im really good with my customers in finding out what they most desire, and anything else I can do for them. But some good tips and pricing pointers would be fantastic.



Thanks a bunch



-Andrew
 
I charge 160.00 for all meguires and 200.00 for all Zaino. That is for private details. I work for a local dealership that deals in porsche and mercedes, but we get a few ferraris and lambos in every month. For them its between 400-800 a detail, all dependant on time and effort(aka how much i want to charge them) for it. If you are doing a hell of a good job, then your most likely undercharging yourself.
 
Bluetune said:
I charge 160.00 for all meguires and 200.00 for all Zaino. That is for private details. I work for a local dealership that deals in porsche and mercedes, but we get a few ferraris and lambos in every month. For them its between 400-800 a detail, all dependant on time and effort(aka how much i want to charge them) for it. If you are doing a hell of a good job, then your most likely undercharging yourself.
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Cool, more info please :bestwish
 
Andrew,



It sounds like you are trying to base your prices on what the customer asks for and what they desire most from you. The problem with that approach is that no two customers are alike.



Think of it this way. A person walks into an expensive restaurant and chooses something from the menu. That is the way it usually works. Now picture someone else going into the same restaurant asking for something that would be found in a fast food chain, expecting to pay fast food prices. Not many successful high priced restaurants are willing to do that.



The key to pricing your services is to understand exactly what it is you want to include in your basic detailing package. In other words, you need to decide what you want to offer your customers. It should not be about what the customer asks for and what they desire most. It is about going out there and marketing what you can do for your customers. Going after the people who need and want your services.



Once you decide what it is your are offering, then you will need to figure out how much you need to make per hour in order to make a profit and stay in business. That will become your hourly rate. Once you have established how much you need to make per hour, then you will be able to simply multiply that amount times hour many hours you estimate the job will take to complete.



For example, you mentioned that most of your jobs take 6-7 hours and you are charging anywhere from $150-$180. That works out to an hourly rate of about $23-27 per hour. Depending on your situation that may be all you need to make. The idea is to look at it from a business standpoint. What are your business related expenses? How much profit do you want to make? Answering these questions will go a long way to help you decide on an accurate hourly rate for your business and insure that you have priced your work correctly.
 
mirrorfinishman said:
Andrew,



It sounds like you are trying to base your prices on what the customer asks for and what they desire most from you. The problem with that approach is that no two customers are alike.



Think of it this way. A person walks into an expensive restaurant and chooses something from the menu. That is the way it usually works. Now picture someone else going into the same restaurant asking for something that would be found in a fast food chain, expecting to pay fast food prices. Not many successful high priced restaurants are willing to do that.



The key to pricing your services is to understand exactly what it is you want to include in your basic detailing package. In other words, you need to decide what you want to offer your customers. It should not be about what the customer asks for and what they desire most. It is about going out there and marketing what you can do for your customers. Going after the people who need and want your services.



Once you decide what it is your are offering, then you will need to figure out how much you need to make per hour in order to make a profit and stay in business. That will become your hourly rate. Once you have established how much you need to make per hour, then you will be able to simply multiply that amount times hour many hours you estimate the job will take to complete.



For example, you mentioned that most of your jobs take 6-7 hours and you are charging anywhere from $150-$180. That works out to an hourly rate of about $23-27 per hour. Depending on your situation that may be all you need to make. The idea is to look at it from a business standpoint. What are your business related expenses? How much profit do you want to make? Answering these questions will go a long way to help you decide on an accurate hourly rate for your business and insure that you have priced your work correctly.
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Thankyou very much for the write-up. Deciding on a certain package is somthing I have been working on.I put alot of care into my work so I think its very valueable. On the other hand, im 18...and most people who want their nice cars detailed want a 50 year old or somthing. I mean I still get calls, but people are set back at the price for my age, but when they see their car I dont think they care. I act profesionally and work that is ussually the best they have ever seen (noob's to autopians). But the % of lost customers b/c of my age and price mixed together is pathetic.



Any tips
 
Cosmom3 said:
I act profesionally and work that is usually the best they have ever seen (noob's to autopians). But the % of lost customers b/c of my age and price mixed together is pathetic. Any tips
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I would say that you would be wise to under-promise and over-deliver. What I mean is that you should consider keeping your process as simple as you can. Offer something that is easy for the customer to understand and not too complicated. That way your customers will always think that they are getting more than their money's worth for the prices you charge.



Something else you might want to think about is always trying to go after the target market who can afford your services. Good detailing customers are almost always more concerned with results. Show them the results, that is really all that matters.
 
mirrorfinishman said:
I would say that you would be wise to under-promise and over-deliver. What I mean is that you should consider keeping your process as simple as you can. Offer something that is easy for the customer to understand and not too complicated. That way your customers will always think that they are getting more than their money's worth for the prices you charge.



Something else you might want to think about is always trying to go after the target market who can afford your services. Good detailing customers are almost always more concerned with results. Show them the results, that is really all that matters.
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What do you mean, make my customer think expectations could vary? And when I offer my package I should not explain the details, aka not make it to complicated? Than they wont know why I charge so much :nixweiss
 
Cosmom3 said:
What do you mean, make my customer think expectations could vary? And when I offer my package I should not explain the details, aka not make it to complicated? Than they wont know why I charge so much :nixweiss
Click to expand...



If you do not promise your customer's the world ("the best detail they have ever seen", "your paint will be absolutely flawlses", "your interior will be 100% spot free", etc., etc.), and then you provide extraordinary results, customer satisfaction will be very high, not to mention, referrals. You have to keep your customer's expectations low because if you keep them high and you do not deliver on your "over promise", they may contribute that to your age and then some. Following that will be a bad reputation.
 
Mirrorfinishman,



For the hourly wage what number are you dividing by to get the correct amount, the number of hours the shop is open? What do you normally use to factor the profit margin? Is it the hourly wage plus a certain percentage? If my costs were say $1000 a month would I divide by the number of hours I operate in a month?
 
In order to figure out your hourly rate you will first need to fully understand your total operating expenses. That will be the true rate you will need to make for every hour worked in order to keep your business going. This is the easiest way to make certain you will be able to remain in business and make a reasonable profit. Along with all of your operating expenses, you will also need to make sure your profit margin is included in your hourly rate.



Among other costs, your actual operating expenses will include:



1. Salaries, wages, commissions and payroll taxes

2. Marketing, advertising and promotion

3. Office administration, legal and accounting fees

4. Supplies, products

5. Rent, utilities, insurance, taxes and licenses, depreciation, interest

6. Equipment repairs and maintenance

7. Repairs and depreciation of vehicle



Let's use the example that your total costs are $4000 a month. And that you and another employee were the only workers. Let's say you were open for business 40 hours per week. That's a total of 80 hours worked. (2 employees X 40 = 80 hours) To figure out your hourly rate you would simply divide $4000 by 80 hours. The result would be an hourly rate of $50 per hour. That's $50 per hour times 80 hour of work. ($50 X 80 = $4000)
 
mirrorfinishman said:
In order to figure out your hourly rate you will first need to fully understand your total operating expenses. That will be the true rate you will need to make for every hour worked in order to keep your business going. This is the easiest way to make certain you will be able to remain in business and make a reasonable profit. Along with all of your operating expenses, you will also need to make sure your profit margin is included in your hourly rate.



Among other costs, your actual operating expenses will include:



1. Salaries, wages, commissions and payroll taxes

2. Marketing, advertising and promotion

3. Office administration, legal and accounting fees

4. Supplies, products

5. Rent, utilities, insurance, taxes and licenses, depreciation, interest

6. Equipment repairs and maintenance

7. Repairs and depreciation of vehicle



Let's use the example that your total costs are $4000 a month. And that you and another employee were the only workers. Let's say you were open for business 40 hours per week. That's a total of 80 hours worked. (2 employees X 40 = 80 hours) To figure out your hourly rate you would simply divide $4000 by 80 hours. The result would be an hourly rate of $50 per hour. That's $50 per hour times 80 hour of work. ($50 X 80 = $4000)
Click to expand...



Very good information, I assume that the breakeven point would be $50/hr but I would need to double and triple that hourly rate to make money? Also i was just curious but have you ever priced the actual cost of a detail to better understand the profit margin?
 
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