Prices

Frank - I'm interested to know how much you charge for a complete detail? PM me your price if you don't want to make it public.
 
sorry to bring up an old thread but if I could say have the more services as my comptieror but charge the same thing is that necisarly a bad thing? even if i would be still making a nice lil peice of change?
 
It's interesting. A brand new car wash facility recently opened up in a nearby community. The first few months after they opened I noticed a sign out front that displayed their car wash price discounted down to $3.00. Of course, they also offer automobile detailing services too. And now they've got their price for a complete detailing discounted down to $49.95.



Why would a business owner invest so much money into establishing a new business and then be so quick to begin to market themselves as the discount leader in the area?
 
Frank - I doubt their doing "complete detailing" for only $49.95. It's probably a bait and switch tactic. Lots of shops try it and lots of consumers eat it up. BTW - As I also asked 2 other times before, I'm curious to know how much you(Frank) are charging for your services?
 
First off I would recommend getting some basic training, not only in detailing but also in business and accounting.



Second I would highly recommend having some back-up capital. The main reason a new detail business fails is that 1) Lack of drive (marketing) and 2) No money to carry you through the lean start up times. Many experts I've spoken with say 6 months of back-up capital is great to have.



Now about prices....face it, you'll HAVE to give away some work in order to get your foot in the door. When I started out I would drop flyers off at a business and the person you almost always spoke to was the receptionist. I asked them if they could hand these to the CEO/Manager/Owner and I then would offer to wash their car for FREE. If they accepted (and you'll get more NO's than "Yes, please do") I almost always got a few paying clients out of it.



As for under pricing....I don't believe in it because it makes you look desperate and cheap. When I first started I was doing full details at $125.00 while others were doing it for $75.00. I always stuck to my price.



Today people seek me out knowing I charge anywhere between $300 and up for detail work and for those few that want a "price break" or say...."Oh I can get it done for $75.00 at the Bath Tub Car Wash!" I kindly let them know the nearest location of that place or I wish them a nice day and good luck.



I love upgrading my computer and tinkering with it. There are several places in town I can go to to get my upgrades, afterall a stick of Kingston memory is the same at store "A" as it is at store "B" but store "A" might be $3.00 cheaper.....the logical choice would be to go to store "A" BUT store "A" is also 6 miles further out and their staff is rather dumb so I would rather pay the extra $3.00 for the same memory which is a closer location and the staff is helpful and knowledgable. The point here is that some things can and should be price shopped but these are items which are the same....like a microwave, TV, Mp3, etc. but when it comes to something like auto detailing it can't be shopped in the same manner. People willing to pay for these services don't really care about price as much as they do about quality and service. They look for experience and they want to trust that you, as the detailer, aren't there to ruin their car or steal from them.



So worry about your image and reputation first, set "fair" prices and stick to them. Worry less about what the competition is doing. Also check out your local water laws. The EPA is really starting to go after water wasters and one area they are hitting is detailers. You can get a water containment mat and that alone will set you apart from your competition and make sure you have any permits required by your city to operate a business.



Lastly, under-commit but over-deliver.....a motto I am trying to not only live by but also run my business. I used to over-commit and under-deliver and that only lead to trouble, headache and heartache.



Anthony
 
David Fermani said:
During a business start up phase, you need to capture as many custumers as possible. There's always room to upsell at the end if needed for minor things like fabric protection, glass treatments and/or engine cleaning. The low price brings them in and your great salses ability captures them. How is a $145 Interior/Exterior detail hurting the detail industry?
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I entirely disagree with this. During the business start up phase, you need to do more than capture as many customers as possible. That's what the competition's doing and thats why their prices are low and that's why their quality is crap. The best thing to do at the start is build up a reputation as the best in town. Detailing is a luxury service and there are always people willing to pay more money if they know they're getting a quality job with good customer service. There is a shop in my town charging as low as 60 bucks for an "interior/exterior detail." Why even try to compete with bs service like that? Of course if you're going to be charging for quality work, you have to make sure you're providing quality work :2thumbs:
 
Reflections said:
I entirely disagree with this. During the business start up phase, you need to do more than capture as many customers as possible. That's what the competition's doing and thats why their prices are low and that's why their quality is crap. The best thing to do at the start is build up a reputation as the best in town. Detailing is a luxury service and there are always people willing to pay more money if they know they're getting a quality job with good customer service. There is a shop in my town charging as low as 60 bucks for an "interior/exterior detail." Why even try to compete with bs service like that? Of course if you're going to be charging for quality work, you have to make sure you're providing quality work :2thumbs:
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Your entitled to your opinion. My sales stradegy worked very well for me in my market. Nobody can say their way is the best, it's what works for you. My tactics for maintaining a sucessfull/profitable operation were to bring in as much revenue as possible AND maintain as much clientel as possible AND do very quality work. I did all these things consistantly and became the market leader in my area. I believe it's better to get the sale for a lower than posted price than to loose the sale all together. I see it as the more revenue, the more profit. And before everyone starts assuming that by doing this your work quality is bad, I also disagree. I had very well trained detailers working for me and the work was excellent.
 
the best customers you will get are word of mouth by satisfied customers-quality over quantity and consider starting part-time and having another part time job until you get it off the ground.
 
Frank and Anthony have covered this subject quite well.



Briefly, a NEW Mercedes Dealership would not position themselves based upon the "competition" from a Chevy dealer down the road.



No, they offer different products, and the public knows that through brand recognition.



You should 'assume' your brand recognition.



Hold yourself (and your pricing) to a higher standard.



This bold concept has worked quite well for me. After just three years, "we're as busy as we wanna be!"



Jim
 
What I would do it check around your area to see what others are pricing their services at and what that includes. I would then set a price position in the upper range of your area. It is much easier to slightly adjust your prices down than have to raise them if you price your services too low.



Compete on quality, not price. Let the local car wash detail the filthy minivans for $99 while you take care of the BMWs, Mercedes, Lexus, etc with better service and a higher price. Believe me, the average Mercedes owner is willing to pay more for a detail if the quality is there.
 
Anthony Orosco said:
Today people seek me out knowing I charge anywhere between $300 and up for detail work and for those few that want a "price break" or say...."Oh I can get it done for $75.00 at the Bath Tub Car Wash!" I kindly let them know the nearest location of that place or I wish them a nice day and good luck.
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Agreed. :2thumbs:



I had one customer come over while I was cleaning her neighbor's Escalade. She asked how much I'd charge to detail her Tahoe and I said it depends on the condition but it would start at $225 provided it didn't need any heavy interior cleaning or deep polishing. She said that Paisley's does it for $125 and said if I matched it, I could have her business. I told her I do a lot better job than Paisley's and I don't cut corners when doing details. I didn't get her business (and they live in a $1.5 million dollar home and her husband has a brown-yes brown, Diablo) but I also didn't screw myself out of a fair price. I am booked up 7-10 days in advance and why would I fill a valuable slot with a cut rate job when I can easily fill it with a full priced job? I wash their neighbor's Escalade, H2 and SC430 every week and charge $110, why would I, for only $15 more invest another 3 hours of of work and more product?



One of my customers early on in my detailing career told me to charge what I felt my services were worth and be confident about it. He was absolutely right and 12 years later, I still clean his cars regularly.
 
I agree with most people here. Let your quality sell your services, not your prices. Though I don't charge *quite* as much as some on here, my prices aren't lowball by any means. Sure, I've had potential jobs lost due to "sticker shock," but I have found that those who are willing to pay my price are more sincere, pleasurable customers to work with who appreciate my results and give me repeat business. As a result, all my customers are great.



Now, to get started, you need to find a good amount of friends/neighbors who want their cars detailed. Throw in a free coat of wax or something for them. If you do a great job, the flood gates will open. Word of mouth is the most effective method of advertisement in this business. You'll see what I mean.



Good luck!
 
Scottwax said:
Agreed. :2thumbs:



I had one customer come over while I was cleaning her neighbor's Escalade. She asked how much I'd charge to detail her Tahoe and I said it depends on the condition but it would start at $225 provided it didn't need any heavy interior cleaning or deep polishing. She said that Paisley's does it for $125 and said if I matched it, I could have her business. I told her I do a lot better job than Paisley's and I don't cut corners when doing details. I didn't get her business (and they live in a $1.5 million dollar home and her husband has a brown-yes brown, Diablo) but I also didn't screw myself out of a fair price. I am booked up 7-10 days in advance and why would I fill a valuable slot with a cut rate job when I can easily fill it with a full priced job? I wash their neighbor's Escalade, H2 and SC430 every week and charge $110, why would I, for only $15 more invest another 3 hours of of work and more product?



One of my customers early on in my detailing career told me to charge what I felt my services were worth and be confident about it. He was absolutely right and 12 years later, I still clean his cars regularly.
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I love people like this and usually accept them as a challenge . Besides it sharpens sales skills. This lady is a pro at getting more for her money. :chuckle:

Questions to ask? Why aren’t you satisfied with xyz service or what does xyz do that’s causing you to look elsewhere? Why don’t you think I’m not worth the extra money or why do you think the price should be the same? Seems like you’re a price shopper and not value conscious. Interesting because most of my customers in this neighborhood are value conscious.
 
doged said:
I love people like this and usually accept them as a challenge . Besides it sharpens sales skills. This lady is a pro at getting more for her money. :chuckle:

Questions to ask? Why aren’t you satisfied with xyz service or what does xyz do that’s causing you to look elsewhere? Why don’t you think I’m not worth the extra money or why do you think the price should be the same? Seems like you’re a price shopper and not value conscious. Interesting because most of my customers in this neighborhood are value conscious.
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I was just stunned that someone in that neighborhood could be more concerned with price than quaility of work. They obviously understand the concept, purchasing a Lamborghini Diablo over a Viper or Ferrari 360. :nixweiss



That's fine though, let them continue getting substandard work if that is acceptable to them.
 
If my services or products are much better than others, I should charge higher / I am entitle to charge 2x3x more. :spot
 
I recently read a famous book on Economics. In that book, there was a chapter regarding profits. The author states that profits are not increased by raising prices, but rather by reducing the costs of production by employing economies and efficiencies. I was rather surprised when I read this. He also says that all firms who are offering the same service must charge the same price, and those that attempt to charge a higher price do not find buyers. In addition the companies who have the greatest profits are the ones who achieve the lowest costs of production. The firms with the lowest costs of production, expand at the expense of the less efficient firms with higher costs. Now I am not saying this is 100% true, just making others aware of what the book said. I also know it is not all about the money, however, us professionals must turn a profit to continue our ventures. In the past, because of the amount of time I put into my details, I was always trying to raise my prices. After reading this book, I have begun to concentrate on improving my efficiency and keeping my prices the same.
 
brwill2005 said:
I recently read a famous book on Economics. In that book, there was a chapter regarding profits. The author states that profits are not increased by raising prices, but rather by reducing the costs of production by employing economies and efficiencies. I was rather surprised when I read this. He also says that all firms who are offering the same service must charge the same price, and those that attempt to charge a higher price do not find buyers. In addition the companies who have the greatest profits are the ones who achieve the lowest costs of production. The firms with the lowest costs of production, expand at the expense of the less efficient firms with higher costs. Now I am not saying this is 100% true, just making others aware of what the book said. I also know it is not all about the money, however, us professionals must turn a profit to continue our ventures. In the past, because of the amount of time I put into my details, I was always trying to raise my prices. After reading this book, I have begun to concentrate on improving my efficiency and keeping my prices the same.
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Sounds like socialism to me.
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He is completely wrong in a lot of businesses in saying that the same service should cost the same. Actually, I think he is an idiot. I know as a consumer, I shop at Target instead of Walmart even though I pay a bit more there. The shopping experience is so much better at Target (clean wide, aisles, courteous employees, well lit, etc) it isn't worth saving money in the 3rd world bazaar experience that is Walmart.



A company that distiguishes itself with a quality product or customer service is going to be able to charge a high price.
 
1 Limo, 1 Mercedes S500, Brand New Escalade, 1 Lexus LX SUV, $2,000,000 home, a million dollar construction company.....and this particular customer of mine had a problem with paying $175 for a full detail. This was about a year ago, and ever since then every thing majority of you guys already mentioned I currently practice, live by, and preach.
 
I understand that it sounds a bit crazy. The guy is definitely not an "idiot". It makes sense from a business standpoint. He is definitely not a socialist either. You would have to read the whole book to understand his points on this and other matters. The book just made me realize the importance of improving efficiency. I have always sought to offer a very high quality product, and to price the product to reflect that quality. The book, however, just made me realize that it is possible to make more money with out raising prices too high.
 
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