Is there a difference between $25/hour or $35/hour?

thebamboo23

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So the question is always asked:
"How do my prices look?"
"Are they to high?"
"To low?"
"What are you guys charging?"

And the responses are:
"What are local detailers charging?"
"Start off low and work yourself up"
"Those are low, you should raise em up a bit"
"That's kind of high, you should go a bit lower"
"If you're doing volume charge low"
"If you're high end, charge more"

What you need to know

The truth is one person can charge $20 an hour and the other detailer 15 miles down the street can charge $50 an hour.

No one on these forums can tell you what your prices should be.

There are far to many variables such as:
- target audience
- unique selling proposition
- positioning
- marketing
- sales pitch
- confidence
- and more

The "proper" thing to do is price test. That's the most effective method to figure out your prices.

It's a bit difficult because detailers don't have much volume of site traffic/customers to do a huge split test on pricing.

But there are still ways to see what your customers are willing to pay.

Example:

Let's say John and Carol both want a glass coating.

You tell John the price is $300 and you tell Carol the price is $400

Then you simply gauge their reaction:
- Did they both complain?
- Why did one agree faster than the other?
- etc..

Conclusion
Like stated above, many other variables come into play when you're trying to set your prices.

But at least you know you should price test to see what you're market would pay for your services.

PS. I have another full article in my blog on this topic. Click the link in my signature to read it. :xyxthumbs:
 
When will Women stop being treated so prejudicially!!

I don't know about anyone else...But:

If I were to find out that some detailer was trying to price-gouge my Wife ("Carol") for one of his services---especially in the sexist manner you have so described:

That I would begin such a lambasting-campaign of this detailer's marketing-practices, which, hopefully, would
stir enough negativism towards him in his chosen
marketing-arena...this "price-testing-arena" wherein the flow of any further Customers would henceforth, I'd pray:
Be reduced to a mere trickle!


Bob
 
When will Women stop being treated so prejudicially!!

I don't know about anyone else...But:

If I were to find out that some detailer was trying to price-gouge my Wife ("Carol") for one of his services---especially in the sexist manner you have so described:

That I would begin such a lambasting-campaign of this detailer's marketing-practices, which, hopefully, would
stir enough negativism towards him in his chosen
marketing-arena...this "price-testing-arena" wherein the flow of any further Customers would henceforth, I'd pray:
Be reduced to a mere trickle!


Bob

Carol is a guys name....... :poke:
 
I don't think it would be good if word got out your charging different prices for the same service.
 
I don't think he's talking about charging one person more - he's talking about trying to find that sweet spot in your area for what people will pay for your services.
 
The terminology is price resistance. You should have around 10-15% of people resist your prices because it is beyond their willingness to pay. More than that, you are probably higher than your market. Less, you are pricing too low.
 
I don't think he's talking about charging one person more - he's talking about trying to find that sweet spot in your area for what people will pay for your services.

Exactly.

What people will pay for your services.

Not the person down the street.

The terminology is price resistance. You should have around 10-15% of people resist your prices because it is beyond their willingness to pay. More than that, you are probably higher than your market. Less, you are pricing too low.

I like what you're saying but I think price resistance and price optimization (by price testing) are 2 different things

There are to many variables to get it out on this thread

The point is to test your prices to your ideal target audience

I don't think it would be good if word got out your charging different prices for the same service.

I agree, it's def not a good idea.

This is only done for:
1) when you're trying to figure out your prices
2) when you've built a name for yourself and want to raise your prices.
 
IMO one should be charging what YOU are worth, and not worry so much about the person down the road. You can buy a buffer and watch a 5 minute YouTube on how to polish paint, but that doesn't mean you should be charging the same $50/hr as the guy down the road who's been running a reputable and successful business for years. If your work is not up to par with your rate, people will find out rather quickly IMO. There is a lot more to pricing than this, but I feel this is one aspect people forget. Real experience and real knowledge have a lot of value.

Just my $.02
 
I went with the 'start low' method and after I got some clientele I came out with my professional price menu and haven't had many, if any comments one way or the other.

Ultimately, I'd like to get into production detailing and get more volume, but for now, the quality of work I do, i'm happy with where I sit.
 
I agree with VP Mark. You should ideally have around 10% balk at the price...otherwise you are charging too little. I would raise prices personally.
 
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