Prices

Scottwax said:
Sounds like socialism to me.
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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.
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You are 100% right on the money. It's funny, my wife and I were just talking about that awhile ago about the differences between Walmart and Target and how shopping at Target is so much better for all the reasons you already mentioned.
 
What if you could offer a quality product or service, and at the same time be the most efficient at offering that product or service. The point is not to reduce the quality, but to increase your efficiency so that you do not have to raise prices. You as the business owner are happy because of increased profits, and the customer is happy because they are paying the same price.
 
brwill2005 said:
What if you could offer a quality product or service, and at the same time be the most efficient at offering that product or service. The point is not to reduce the quality, but to increase your efficiency so that you do not have to raise prices. You as the business owner are happy because of increased profits, and the customer is happy because they are paying the same price.
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True. I strive to be efficient every time I start a vehicle...not to fly through someone's car, but to get it done in a good time frame to increase profitability. In our industry, product has little to do with how much profit we take home, it's primarily about how efficient one is when providing this service.
 
The author that brwill cites is correct in that companies who watch their bottom line are the ones making profits.



A beginning detailer comes on a detailing forum and is saturated with all these different products and feels that he needs to have them all in order to be successful. Instead of one tire dressing he buys and carries 3 different ones. Instead of only 2 waxes and he has and carries 6 different paste waxes and 3 different cream waxes. Every time a new product comes out he must try it. He doesn't shop at a professional outlet but rather a boutique type place and is paying far too much for far too little.



This detailer will fail if he or she continues in this manner. I know I for one have saved alot of money this year because I was able to step back and look at some of the products I had and realized that the majority of them were redundant.



So watching your spending is surely key to profits.



Anthony
 
Let's take a closer look at what is being said in this book.



'The author states that profits are not increased by raising prices, but rather by reducing the costs of production by employing economies and efficiencies'. 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'.



This is very true. It's not a good idea to raise your prices just to make more profit. Most customers are way smarter than letting you get away with that. The key is to position your business from the start by what you charge for your services. That will help to determine how your detailing business becomes positioned in the marketplace.



Another factor to consider is how you are going to 'constantly improve the process'. The author is exactly right. By reducing your costs you will increase your profits. It's a bit text book, however there is truth in this statement. From a business standpoint, it makes good sense to always look for ways to constantly improve the process.



The author also makes a good point about the fact 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'. This statement is also very true. However, the key here is to think outside of the box and simply not offer the same services. Sure, to most, detailing is detailing. But we all know, that's not the case. A smart business person will always go out there and find ways to make their business somewhat different and unique when compared to the competition. The key here is to 'not do' what the competion does. In other words, figure out a way to make your business different and unique. That way the comsumer has nothing to compare your business and prices to since there is no other business doing exactly what you are doing.



And the part about, 'those that attempt to charge a higher price do not find buyers'. This only applies when you are offering the exact same service. Offer a different service and you'll be able to go after a different 'higher price' market.
 
mirrorfinishman said:
Let's take a closer look at what is being said in this book.

And the part about, 'those that attempt to charge a higher price do not find buyers'. This only applies when you are offering the exact same service. Offer a different service and you'll be able to go after a different 'higher price' market.
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YES, I haven’t read the book but have some simple observations. A lot depends on the demographics of the client. What market are you competing in, fine dinning or fast food?

If your setting on the fence and doing both, your going to have challenges. I have done business as a vendor with Wal-Mart on a manufacture level and it’s not about profit, it’s about brand awareness. We lost more money then we made and on the next go around we let our competitor win then lose more money.
 
doged said:
A lot depends on the demographics of the client. What market are you competing in, fine dinning or fast food?



If your setting on the fence and doing both, your going to have challenges.
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Very good observation.



I like to express it in terms of going after the 'wine and cheese' type of client rather than the 'beef and beer' people.



I will detail just about anyone's vehicle; as long as they are willing to pay the price. It's just that I would estimate that at least 80% of my clients are 'wine and cheese' people. And they are the people that I like to aim for.



From a marketing standpoint it is usually not a good idea to try to be all things to all people. It is much better to establish and position your business one way or the other and then go after that particular market.
 
mirrorfinishman said:
From a marketing standpoint it is usually not a good idea to try to be all things to all people. It is much better to establish and position your business one way or the other and then go after that particular market.
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That was one of my road blocks in the beginning of my business. After realizing it upfront, I decided afterwards to run my business one way and one way only and stop trying to please any and all types of customer's. This way I'll attract the type of clientele I want and begin to create brand awareness with my business. :2thumbs:
 
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