Pricing Strategies

M

mperozzo

Pays attention to detail.
Hey guys,

So far, this forum has been a great help! I'd like to ask you all about my
pricing. I'll post it here, then let you know what I off dealers. I'll also
let you know what some dealers have offered me.

- - - - - - - - - -

Basic Interior Performance Showroom Car Size

$40 $75 $125 $160 Compact*
$50 $85 $150 $185 Midsize*
$60 $95 $175 $225 Large*

Additional/Individual Services:
Tar & Road Oil Removal -$20
Odor Removal - $20
Engine Clean - $20
Windshield Waterspot Removal - $25
Exterior wash, buff and wax - $70-100
RV’s - $15 per foot
*An extra $20 may be charged for excessively damaged or dirty vehicles.

- - - - - - - -

The basic is just a hand wash and Rubber/Trim Dressing... exterior only.
The Interior is a vacuum, extraction, Rubber Dressing, leather conditioning, etc.
The Performance is a mix of the Basic and Interior plus an engine clean.
The Showroom is all of the above plus a Protection Package, Buff, Wax and odor removal.

DEALERS: I've offered this discount to several car dealers. Two have accepted it. 1st Car/Month = Reg. Price, 2-4 Car/Month = 10% off, 5+ Cars/month = 25% off.

The offers I've recieved from dealers and turned down are:
1) $75 complete detail on any car, $120 for any van/truck/suv
2) $50 Interior, $50 exterior on any car/truck/van/suv.

Again, I just bought the detail shop, it's client list and equipment.
I'm trying to be sure that I'm staying competitive with my pricing, yet
not get taken advantage of.

Thanks for your input!

michael
 
For your location I think your prices look good. I can't be 100% positive because I'm not from the area, but I know it and would expect to pay about what your charging for the work you're offering. My only question is on the showroom package, what level of buffing do you offer? The reason I ask is @ $185 for a midsized a heavily oxidized/swirled/scratched car could take you quite some time. Even with your extra $20 caveat you may still be talking under $30/hour for a really neglacted vehicle which requires say, 3 or 4 polishing passes.

Otherwise I think it looks very competitive.

Edit: I just realized that this is for dealers only (I think?) so the odds of you receiving a car in a highly neglected state is pretty low. In that case I think the prices are good.
 
The prices look alright but it really depends on how long you are going to be spending on each car. If you spend more time on one car then you may infact be losing money... that's why I don't like a set rate for all vehicles.

One other thing I noticed-- Maybe you should allow the customer choose what they want done. Like if someone wants an interior cleaned, and a waxed car without the buffing- how much would you charge for that? Or just a wash and wax for returning customers? One last question... if you can find out what other people are making for detailing that would help to see if your on the right track... good luck.
 
Picus said:
I just realized that this is for dealers only (I think?) so the odds of you receiving a car in a highly neglected state is pretty low. In that case I think the prices are good.
Click to expand...


No, the prices are regular prices. The discounts below that are what I've offered a few dealers.

Has anyone had success with Used Car Dealers?

Also, I do offer individual quotes aside from the packages. The packages just
make things simple for certain clients. I often quote someone something different based on the specific tasks they want done. It's on my invoice and advertising as a "Custom".
 
mperozzo said:
No, the prices are regular prices. The discounts below that are what I've offered a few dealers.

Has anyone had success with Used Car Dealers?

Also, I do offer individual quotes aside from the packages. The packages just
make things simple for certain clients. I often quote someone something different based on the specific tasks they want done. It's on my invoice and advertising as a "Custom".
Click to expand...

Oh, ok then. I still think they are good prices, but it might be a little low for some full details if you get a really bad car.
 
mperozzo said:
Has anyone had success with Used Car Dealers?
Click to expand...

There are 22 dealers in my city. I've gone to 11 of them and offered a demo (exterior only). In the last 5 weeks, 5 of them have taken me up on the demo offer. 3 said no flat out. 1 is going to talk to my dealer customers, and 1 will come later probably.

So, 5/11 on a single car.

Of the 5 demos, 1 I just returned today, so we'll see. 1 was pleased and said they'll use me, I would guess a 2-3 a month. 1 has given me a second car. 1 has given me 6 more cars. and 1 will probably send me about $1000/year worth of work max.

That's where I'm at so far.

As they come to trust me, I'll see what they think about other detailing options.
 
The trouble I've found with most dealers is that they try to low-ball you into giving them service for $50/car and such. I've just let them go, but is there a way to communicate to them what a "REAL" Detail is?
 
To be honest, I don't think most dealers care what a "real" detail is. They are simply concerned with their bottom line and getting cars off the lot. That's why they use so many short cuts, cover ups, and such to essentially "disguise" the true condition of the cars. Then after the buyer has had the car a few weeks or months, the cover ups begin to wear off and WALLAH!!! Your stuck with it at that point. Dealer work just seems like a whole lot of headaches and very hard work for very little pay. Just my .02.

Matt
 
I have to agree with silverline on the "real detail" bit. The dealer I do work for doesn't care how long I've had to work on the car to get it right, or that I can improve the paintwork with clay, or that I wax it or don't wax it. He's soley concerned with the end product. Having said that though, he accepts that I will charge him $165 for every car he gives me and hasn't had a problem with paying it. It's bitten me in the butt a couple of times with the real BAD ones I've got, but more that made up for the really GREAT ones I've got.
The only real problem I had with him was blacking a chassis, he complained because I didn't paint the spare tyre! I can't and wont do that. After I explained to him that the tyre can look great with treatment instead of paint we were fine. lol
Donna
 
DeeTee said:
he accepts that I will charge him $165 for every car he gives me and hasn't had a problem with paying it.
Click to expand...

Wow! That's a pretty good flat rate from what I've been offered. One guy wanted ANY car $75.00 and ANY truck/suv for $125. Another wanted ANY car/truck/suv for $50 exterior and $50 interior. The only 3 dealers that I've signed on have accepted 10% off my regular price for first 4 cars and 25% off 5+ cars.

The demo idea I saw was great! How else do you get a dealer's business?
 
Mperozzo, with our exchange rate of 77 cents in your dollar the $165 would be comparable with your $125. I know that $165 is $165 where ever you live, my rates though, for the area, are probably the cheapest. I had a conversation with another detailer in my town who wants to make my prices match his to stop the competetion. All I can say is "not bl**dy likely!"

I had an SUV from the dealer last week that hadn't been done since new and took me three days to complete, for my $165. The next day I got another SUV that was done before getting onto the lot and took me 7 hours. It evens itself out.

Donna
 
DeeTee said:
Mperozzo, with our exchange rate of 77 cents in your dollar the $165 would be comparable with your $125. I know that $165 is $165 where ever you live, my rates though, for the area, are probably the cheapest. I had a conversation with another detailer in my town who wants to make my prices match his to stop the competetion. All I can say is "not bl**dy likely!"

I had an SUV from the dealer last week that hadn't been done since new and took me three days to complete, for my $165. The next day I got another SUV that was done before getting onto the lot and took me 7 hours. It evens itself out.

Donna
Click to expand...

Three days for $165.00!!!! No way, I would've told the dealer that one's going to be alot more due to the condition. But even 7 hours seems like a long time for $165. In the private or retail sector, 3 days would probably gross you about $1,200 or more, and 7 hours about $275 or more!! Like I mentioned before, dealer work just seems like a lot of work for such little pay.
 
I agree totally silverline. But for the moment it gets jobs in the door and my name in peoples' mouths. I don't have any overheads because my hubby has a mechanical business (which I work out of) and that pays all the big bills like rent, electricity and telephone. I have bought what I need to get going and just use his tools where I need to. I was lucky because he already had a big compressor and high pressure set up, so those were things I didn't need to spend money on. Basically any money that comes in the doors from detailing is mine. So I don't worry too much about how long a job takes me. As long as Im earning approx $20 an hour Im happy. Coming from cleaning hotel rooms for $12 an hour it's good money. lol
 
Deetee,

Sounds like you've got a pretty nice set-up with the ability to use your husband's shop for detailing. Do you have insurance that will allow you to pick-up and deliver customer vehicles? Are you marketing to the private sector as well? A couple of avenues that work very well for me are the networking and barter networking groups I'm in, marketing directly to Doctors, Dentists, and Chiropractors, Chamber of Commerce, my website, and being added to the detailing directory. Good luck to you and I hope your biz takes off.

Matt Williams
Silver Lining Detail
 
Hi Michael,

Have you considered less service packages and fewer prices. More like a medium-large approach rather than a small-medium-large pricing strategy?

Your dealer pricing is very similar to the way dealerships pay their sales staff. Very good idea to promote repeat business. Great work.

Rick
 
My only comment is to include (somehow) in the price things like cleaning pads, washing cars after compounding, windows on an exterior only when you compound or spray wax, filling bottles, driving time/shop time, etc.
 
scrub said:
Hi Matt,

Have you considered less service packages and fewer prices. More like a medium-large approach rather than a small-medium-large pricing strategy?

Your dealer pricing is very similar to the way dealerships pay their sales staff. Very good idea to promote repeat business. Great work.

Rick
Click to expand...

Did you mean Michael, the one who started this thread?
 
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