Can you review our prices?

[North26]

I had deleted my post because I felt like I may be hijacking this thread. Here is the car (Exterior only)I did for $20 today. Changing professions or getting out of business is not an option for me. The detailing industry has too many good people and too many exciting new products to ever change professions. I will just have to keep easing up prices till I find the right price. I have given up many times but I have never given up the last time.

High jacking or not, this is an issue that needs to be addressed. Personally, and I'm not being arrogant, but I wouldn't look at their car for $20. That's insulting to you and your business.

Although, I don't know your day-to-day operations, here is what I do... I let everything go to voicemail. In my message I asked for name, what they would like done, etc..most importantly I said that I will return all calls after my day ends at 7 pm. Regardless if I am working, at school or spent the day at the beach, no calls returned before 7. I do this because it gives me time to screen the people who call me. Once you have their name and number, Google it. All professionals (doctors, lawyers, whatever) have their name online. If you can match their info on your phone to that online, you know they have money and won't be negotiating or want their cars washed for $20.

If their name does not pop up on Google, of course call back, but you'll have to figure out some info on them on your own.

Also don't be afraid to say no. Personally, I would rather sit home not working than wash a car for less than I have listed. Here's a hypothetical situation but what I base my business around. So I would prefer having some retail employee who dives a 2000 Saturn saying I wanted too much money to wash his car than him spreading around that I washed his car for $20. Because....people talk, and that guy with the 2000 Saturn may be a patient of the doctor and the doctor could have reccommended me. The last thing I want is that guy in the Saturn going to see his doctor and saying that I charged him $20 to wash his, but the doctor paid my listed price of like $50. Now you have the doctor pissed off, because he thinks that you jacked up your prices because he is a doctor. That doctor is now not going to call you again or spread your business to his colleagues, neighbors, etc... Personally I would rather have doctor money than retail money.

Of course this was a hypothetical, but it could happen. I treat my work and business with pride, and my prices are as listed unless I state otherwise.

[JayClark79]

Real Riders have you figured out what profit is in each $20 job? Factor in your mileage, insurance, use of products, subtract that from the $20 and divide by how long it's taking to get the job done.... You might be profiting $10 or less an hour!.. and that's before taxes are even taken out!... I don't think people are trying to put you down just help bring you up.... plus also having someone do $20 details is potentially hurting the industry by driving down prices...

[onsite]

I agree with you. Driving will eat up profit fast. One way I keep costs down is I currently do not clean any cars farther away than 3 miles from my house

Ill travel decently but the package has to reflect that. Plus for me my town is poverish and not very populated. Before i even go and book i figure the distance and my cost to get there and minus that off the bat to ensure im making profit. Now if i lived in the town i typically travel to.... i wouldnt leave lol

[ShaunD]

Forget what the competition charges. What do you need to make to cover your cost(s) and actually run a business and be profitable?...

[VP Mark]

Forget what the competition charges. What do you need to make to cover your cost(s) and actually run a business and be profitable?...

This is the bee's knees advice here. I live in a very rural area, and making $25 - $40 an hour profit makes me a good comfortable living. If I lived in a more expensive metropolitan area however, forget it! In certain areas making $25 an hour is like making $10 in relation to how far it goes.

If you ever get to the point to where you can't make a living operating your business, it is time to make drastic business changes or simply get out.

Detailing is a fun and rewarding business, but if you have bills and a family to support it needs to be financially rewarding as well.

[onsite]

This is the bee's knees advice here. I live in a very rural area, and making $25 - $40 an hour profit makes me a good comfortable living. If I lived in a more expensive metropolitan area however, forget it! In certain areas making $25 an hour is like making $10 in relation to how far it goes.

If you ever get to the point to where you can't make a living operating your business, it is time to make drastic business changes or simply get out.

Detailing is a fun and rewarding business, but if you have bills and a family to support it needs to be financially rewarding as well.

This is the bee's knees advice here. I live in a very rural area, and making $25 - $40 an hour profit makes me a good comfortable living. If I lived in a more expensive metropolitan area however, forget it! In certain areas making $25 an hour is like making $10 in relation to how far it goes.

If you ever get to the point to where you can't make a living operating your business, it is time to make drastic business changes or simply get out.

Detailing is a fun and rewarding business, but if you have bills and a family to support it needs to be financially rewarding as well.

I agree and disagree. Of course you have to base it off what people can afford abd will spend. Maybe it's me but i cant see turning a profit off $20 after driving and all expenses.

Op, only you truly know how much your making. I urge you to look at the picture from a different perspective however.

Average your costs for 3 months

Include gas, product, insurance, upkeep etc. Now if you have a website, business license or truly anything figure out those costs for 3 months of operation and add that.

Once you figure it out you can calculate your hourly operating costs.

As a loosly written example:
Say 3 months you operate at a cost of

So $1200 / 3 = 400 a month

Now if you work say 40 hrs a week so now 400/ 4 weeks / 40

So you get $2.5 an hour

So if your cost which wouldnt be that low you will know if your making anything. If you are wonderful get off here and collect that money and make your living!

[BitterGreg]

I would not look at 3 months but rather an entire year. Also I would break it down in Cost OF Goods and Expenses. Cost of goods is the items that are directly related to the jobs you do, mainly your supplies. This will obviously change with the number of jobs you do as you will have to order more supplies. The expenses are the hard items that are not directly related to a job say insurance, rent, new equipment. You will be able to see the profit of your jobs, as well as the overall company.

Also I'm sure it has worked for some, but I would advise against screening calls and waiting until late to call back, especially if you have a competitive area. New customers will likely have a list of a few companies and work their way down it.

[onsite]

I would not look at 3 months but rather an entire year. Also I would break it down in Cost OF Goods and Expenses. Cost of goods is the items that are directly related to the jobs you do, mainly your supplies. This will obviously change with the number of jobs you do as you will have to order more supplies. The expenses are the hard items that are not directly related to a job say insurance, rent, new equipment. You will be able to see the profit of your jobs, as well as the overall company.

Also I'm sure it has worked for some, but I would advise against screening calls and waiting until late to call back, especially if you have a competitive area. New customers will likely have a list of a few companies and work their way down it.

Products fall under goods.
Even if you take and use a year you still have to break it down into an hourly rate. So either way your going to end up with a similar number. Your talking pennies to maybe a dollar difference if at all.

[onsite]

I do see what your saying. Overall point is overhead generates to overhead. Any expense to run and operate has to be figured in... i.e. why i said loosly written as well.

[BitterGreg]

I do see what your saying. Overall point is overhead generates to overhead. Any expense to run and operate has to be figured in... i.e. why i said loosly written as well.

Not exactly. You need to know your net profit on each job from a cost of goods standpoint, and then know your expenses, and forecast how many jobs you need to complete to cover your expenses. If you put it all together you run the risk of not covering your expenses or making the money you need to make to live.

I am not on my computer so I can't show examples, but mixing hard expenses you have to pay regardless if you get paid, and the expenses that you only incur if you complete a job, and looking at them as one number can cause issues.