Set Pricing vs Hourly Rate

[My Detailing Guys]

We are thinking about changing our Service Menu from Set Pricing Packages/ Ala Carte to Hourly Rates (maybe keep a couple of basic packages). We want to be fair to our customers as well as to ourselves. If we do make the change over, we would quote the customer by how much time we think it will take. For example, we quote 5 hours to complete the job, but it only takes 4 1/2 hours, we charge the customer for 4 1/2 hours. On the flip side, if we quote 5 hours, and it takes us 6 hours, they are only charged the 5 hours quoted.

Your thoughts please.

Thanks, Greg

[Spicy McHaggis]

Personally I only charge hourly for corrections. I give an estimate up front but let the customer know it could go up or down drastically since there is no way to tell up front how long it will take to get the paint perfect. I have never had a customer complain or not want to pay. I've been off by as much as 10 hours, so we aren't talking a ton of money, but it's nothing to sneeze at either.

I think it all depends on how much your customers think they can trust your work. My customers know that I will do my best to get their car perfect, and they are willing to pay for it.

[Kristopher1129]

I personally wouldn't go that route. I guess it depends on how accurate you are when you give these quotes. It would really stink to have to work 8 hours on something you quoted 5, or 4 hours on.

But, if you have set rates...you could always call and say that it's more work than you thought. I find that usually customers are pretty understanding when that does happen.

I vote for set rates. That way you can just set up your rates so that you are always satisfied with what you're getting paid. With the hourly quote...it just seems like it may become a headache. Only because you'll kinda be guessing how long it's going to take you. But, that's just me! :dblthumb2:

[Flash Gordon]

We are thinking about changing our Service Menu from Set Pricing Packages/ Ala Carte to Hourly Rates (maybe keep a couple of basic packages). We want to be fair to our customers as well as to ourselves. If we do make the change over, we would quote the customer by how much time we think it will take. For example, we quote 5 hours to complete the job, but it only takes 4 1/2 hours, we charge the customer for 4 1/2 hours. On the flip side, if we quote 5 hours, and it takes us 6 hours, they are only charged the 5 hours quoted.

Your thoughts please.

Thanks, Greg

Horly rates are the only way to go. Those multiple choice menus I see on alot of ppl's websites confuse me. I can't imagine what an unnecesary burden it must be for someone who is not up to par on detail lingo

Set rates also will get you in a ton of trouble as no 2 cars are ever the same


I personally wouldn't go that route. I guess it depends on how accurate you are when you give these quotes. It would really stink to have to work 8 hours on something you quoted 5, or 4 hours on.

But, if you have set rates...you could always call and say that it's more work than you thought. I find that usually customers are pretty understanding when that does happen.

I vote for set rates. That way you can just set up your rates so that you are always satisfied with what you're getting paid. With the hourly quote...it just seems like it may become a headache. Only because you'll kinda be guessing how long it's going to take you. But, that's just me! :dblthumb2:

Hey Kris. I noticed a couple of flaws on your site. I will be happy to point them out to you if you promise you won't call me stupid like you did in that last thread

[DLB]

Horly rates are the only way to go. Those multiple choice menus I see on alot of ppl's websites confuse me. I can't imagine what an unnecesary burden it must be for someone who is not up to par on detail lingoThere's an inherent problem with hourly rates too though. How many AVERAGE customers realize that it takes more than an hour to make your car shiny?

Sure, the discriminating customer understands that there is time involved in paint correction, but when I tell people that aren't D.O. that I spent more than 6 hours on a vehicle, they don't understand that's possible. If you have no such customers in your customer base or target base, then no big deal - just go hourly.

So, it depends really on who your customers are I think.

As for me, I do a lot of customers that just want a good wash, interior cleaning, and 1-stepper, so hourly doesn't work real well for them on the options list. HOWEVER...

Set rates also will get you in a ton of trouble as no 2 cars are ever the sameThis is precisely why my price list says for example:

Passenger Cars - $20+
Large Truck's and SUV's - $25+
etc.

AND I have a note on my price list that says excessively dirty vehicles will have a higher charge. Along with a note saying for a completely accurate price, a vehicle inspection is required.

All that said to say -
Leave yourself wiggle room - but also try to communicate all your concerns, services, and prices where the customer gets a sense of your business practices being transparent.

DLB

[Kristopher1129]

[\QUOTE]Hey Kris. I noticed a couple of flaws on your site. I will be happy to point them out to you if you promise you won't call me stupid like you did in that last thread[/QUOTE]

Called you stupid? I don't recall calling you stupid man. I just had to squash that whole conversation cause it was going nowhere. I may be wrong...but I don't think I called you names.

Anyways, yeah...please point them out. After making that whole website, my eyes were ready to roll into the back of my head, ha.

P.S. if I did call you stupid...I apologize. But, I don't think I actually did that. :confused:

[Kristopher1129]

There's an inherent problem with hourly rates too though. How many AVERAGE customers realize that it takes more than an hour to make your car shiny?

Sure, the discriminating customer understands that there is time involved in paint correction, but when I tell people that aren't D.O. that I spent more than 6 hours on a vehicle, they don't understand that's possible. If you have no such customers in your customer base or target base, then no big deal - just go hourly.

So, it depends really on who your customers are I think.

As for me, I do a lot of customers that just want a good wash, interior cleaning, and 1-stepper, so hourly doesn't work real well for them on the options list. HOWEVER...
This is precisely why my price list says for example:

Passenger Cars - $20+
Large Truck's and SUV's - $25+
etc.

AND I have a note on my price list that says excessively dirty vehicles will have a higher charge. Along with a note saying for a completely accurate price, a vehicle inspection is required.

All that said to say -
Leave yourself wiggle room - but also try to communicate all your concerns, services, and prices where the customer gets a sense of your business practices being transparent.

DLB

There's advantages to both ways. But from my experience...I've noticed that 90% of the time, a customer is usually looking for a price over the phone. If you give hourly rates, then how will you quote over the phone?

I just think customers are much more comfortable hearing a flat rate. Just make sure you stress that an additional fee could be added. I just tell them that I will always call before adding any surcharge.

I also agree with the quote above. A lot of times customers have no clue it even takes that long. Rather than explain why it takes that long...I'd rather just have flat rates for different types of vehicles...and if there's anything excessive about the job, I just call and explain why it has to be more. But hey, everyone is different. So whatever is comfortable for you I guess is fine. :dblthumb2:

[Jons6.7]

I have to agree with DLB, unless you do mostly show cars or the exotics then having a flat hourly fee can turn off those just wanting a known price for a specific outcome. Telling someone that a full detail is $300 vs saying 5 hours at $60 and hour is much easier to swallow. My .02bits

[AeroCleanse]

I have priced packages, anything else is per hour.

[Kristopher1129]

The more I think about it. I've never actually even considered the choice between hourly vs. set rates. I've always had set rates. BUT, there are things that simply don't apply to those set rates. For those jobs I do give estimates that are based on my opinion on how long it will take. So, maybe the answer here is to do both....

[DLB]

I have priced packages, anything else is per hour. :xyxthumbs: I should have just said that. Well said! And in much less typing.

Although I am mainly package oriented on my prices, I have hourly rates listed for paint correction and extensive interior work, not an all inclusive price.

DLB

[RaskyR1]

I also have set package pricing which is based off my hourly rate. I've been doing this long enough now that I have a pretty good idea how long it will take me to do the services in my basic packages. Most my customers don't like the idea of hourly rates and they want to see set pricing. I do however offer custom services catered to their needs at hourly rates, wet sanding being one of them.

Large trucks, vans, SUV's, and trashed interiors are always extra.

Working hourly always makes me feel rushed and I HATE being rushed on a car. By having a set price I can work at a comfortable pace and still make the amount of money I feel the job is worth.


Just my $.02

Rasky

[AeroCleanse]

I make sure to let the customer know that times are only estimates and that it could take longer. I did this after feeling rushed once to often. Now I feel its more, it takes as long as it takes. If you rush, the job isn't as good.

[Deep Gloss Auto Salon]

I do offer "packages" but they are based off how long I know the job will take and the quote is always a range. Another caveat to this is that I VERY RARELY book A job without seeing it first which affords me the opportunity to give an accurate quote.

Last year I did have quite a few customers that drove 2-3 hours to get work done and it was therefore, not convenient to meet for a pre-detail inspection. In this situation I explained to the customer that this is a big deviation from my normal process and as such my price range quote was rather large due to me not being able to evaluate the vehicle first. I also explained that once the vehicle was brought to me for service I could/would narrow the quote price band.


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[Crazy Amos]

For some reason my phone will not let me quote.

I agree with Rasky 110%.

Well said.