Set Pricing vs Hourly Rate

RaskyR1 said:
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
Click to expand...

:iagree: All my prices are based off what I want to make hourly. This is why my prices say starting so i can determine the price after I see the car.
 
Same make. Same model. Different beltway zip code. Different pricing.
Whatever works, works.
 
My Detailing Guys said:
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
Click to expand...


Personally I would never pay someone an hourly rate to detail my car, mow my yard etc. From the customers standpoint how do they know your not sandbagging to run up the bill? That would be my first thought. Just food for thought.
 
My Detailing Guys said:
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
Click to expand...

This is exactly what I do. I list all my services in approximate time not dollars. I get a lot more calls and email inquiries this way. This way, the potential client can also see how long you will be working on his car.

My custom details are my most expensive details and will not be performed without first seeing the vehicle and tailoring a detail specifically to that vehicle. I, like you are planning to do, tell the client I will need to work on the vehicle x amount of hours at x amount of dollars per hour.
 
custmsprty said:
Personally I would never pay someone an hourly rate to detail my car, mow my yard etc. From the customers standpoint how do they know your not sandbagging to run up the bill? That would be my first thought. Just food for thought.
Click to expand...

Didn't he make that clear? He will tell the customer upon inspection that the vehicle will need 6 hours, for example. If it goes into 7 because he was being lazy, haha, he won't charge for that last hour.

I've had absolutely no problem with this system by the way. It's a good sales tactic as well. I explain to them that I, unlike other shops, do not have cookie cutter pricing.
 
statusdetailing said:
Didn't he make that clear? He will tell the customer upon inspection that the vehicle will need 6 hours, for example. If it goes into 7 because he was being lazy, haha, he won't charge for that last hour.

I've had absolutely no problem with this system by the way. It's a good sales tactic as well. I explain to them that I, unlike other shops, do not have cookie cutter pricing.
Click to expand...


A person could also say 5 hours and only take 3 and bill me for 5, right.
 
I guess man...but most reputable businesses don't get that way by cutting corners, doing crappy work and still charging high prices. I think you'll find that most of the best detailers charge per hour. I'd even go as far to say that most of the best service based businesses charge per hour.

So you are ok with a shop that charges $200 for a 4 door car, no matter what the condition? When you have cookie cutter pricing, you'll also be putting out cookie cutter work...or you'll be going out of business real soon.

If I tell somebody I'm gonna work on their car for 8 hours. They are going to get 8 hours. If I finish 30 minutes to an hour early (which almost never happens), I'll do something a little extra for them, like upgrade them to a better lsp or spend a little extra time polishing the exhaust tips for example.

If I finish way ahead of schedule, I'll lower the price. I think thats what any honest person would do. I very rarely finish ahead of schedule, because after detailing hundreds of cars, you start to get a feel for how long certain cars and certain procedures take.
 
Okay, here's my dumb-newbie customer perspective.

1) I think a lot of people get way too complicated with their packages and stuff. Like listing every detail or even differentiating with products. Like on one package you use Meguiars and on another Menzerna. When is the last time you went to the mechanic and they said "Okay and we will use a snap-on socket wrench and a craftsman overhead light, but I'll be wearing hanes underwear". Someone who knows the difference between menzerna and meguiars probably isn't paying a detailer. The packages should just tell the customer what they accomplish, and how much they cost. If you want to impress that potential (and I think imaginary) customer who is a detailing expert, just include the logos for the products you use on your website.

2) I think it's far easier for the customer to charge for the service. Tell me what I'm going to get and how much it's going to cost. Maybe advertise 'free estimates'. Do your hourly thing, but do it in the background. You said you wouldn't charge if time went over, so why not just do it that way; but not actually tell the customer?

So here's what I'm saying, to make the math simple let's say you charge $10 an hour (yes, I know it'll be more than that). You look at a car, do your magic, and determine it will take 6 hours. Instead of quoting the client 6 hours and bombarding them with tons of technical jargon that'll make their head spin; just keep it simple, "Okay, I can remove nearly all of the swirls and scratches, clean the interior, and protect your paint for about $60". It's still the 6 hours x $10 an hour you would've quoted them, but eliminate a lot of confusion and complication for the customer.

If you still feel like you want to refund customers whose vehicles get completed in less time than expected, then do so. Part of that 'underpromise and overdeliver' aspect of a successful business. "So here's your keys, and it turns out I overestimated you on the cost. Here's $10 back." If they ask why, explain simply that you figure in an hourly cost and that it took a solid hour less than expected. If they don't ask why, then they probably don't care and might even be confused by the answer!

As a detailer I'm sure it's easy for you to understand all of the jargon. But before autogeek, if I looked at some of these website they'd make my headspin. Waaayyyy too much info and ZERO info that helps me. You'll compound with product X, polish with product Y, seal with Z. That means nothing to a guy who doesn't know anything about detailing. "Removing fine swirls and scratches" (Include a picture) "Like these! Protect your paint and leave it shining like new!". Or something similar. Just tell me what you're gonna do; not HOW you are gonna do it!

My $0.02.
 
Romans5.8 said:
Okay, here's my dumb-newbie customer perspective.

1) I think a lot of people get way too complicated with their packages and stuff. Like listing every detail or even differentiating with products. Like on one package you use Meguiars and on another Menzerna. When is the last time you went to the mechanic and they said "Okay and we will use a snap-on socket wrench and a craftsman overhead light, but I'll be wearing hanes underwear". Someone who knows the difference between menzerna and meguiars probably isn't paying a detailer. The packages should just tell the customer what they accomplish, and how much they cost. If you want to impress that potential (and I think imaginary) customer who is a detailing expert, just include the logos for the products you use on your website.

2) I think it's far easier for the customer to charge for the service. Tell me what I'm going to get and how much it's going to cost. Maybe advertise 'free estimates'. Do your hourly thing, but do it in the background. You said you wouldn't charge if time went over, so why not just do it that way; but not actually tell the customer?

So here's what I'm saying, to make the math simple let's say you charge $10 an hour (yes, I know it'll be more than that). You look at a car, do your magic, and determine it will take 6 hours. Instead of quoting the client 6 hours and bombarding them with tons of technical jargon that'll make their head spin; just keep it simple, "Okay, I can remove nearly all of the swirls and scratches, clean the interior, and protect your paint for about $60". It's still the 6 hours x $10 an hour you would've quoted them, but eliminate a lot of confusion and complication for the customer.

If you still feel like you want to refund customers whose vehicles get completed in less time than expected, then do so. Part of that 'underpromise and overdeliver' aspect of a successful business. "So here's your keys, and it turns out I overestimated you on the cost. Here's $10 back." If they ask why, explain simply that you figure in an hourly cost and that it took a solid hour less than expected. If they don't ask why, then they probably don't care and might even be confused by the answer!

As a detailer I'm sure it's easy for you to understand all of the jargon. But before autogeek, if I looked at some of these website they'd make my headspin. Waaayyyy too much info and ZERO info that helps me. You'll compound with product X, polish with product Y, seal with Z. That means nothing to a guy who doesn't know anything about detailing. "Removing fine swirls and scratches" (Include a picture) "Like these! Protect your paint and leave it shining like new!". Or something similar. Just tell me what you're gonna do; not HOW you are gonna do it!

My $0.02.
Click to expand...


100000 % agreed.
 
It’s been a couple of years since I wrote this thread, and so much great information has been offered. My website has evolved over the years that offer both packages with “starting at” pricing and, additional services which offer “by estimate and starting pricing”. The changes to the website are a result of what I learned on AG, and experiences with customer requesting car detailing services.

Greg
 
Solid post by Romans. I like the idea of estimating how long it will take you and figure out what you want to make per hour, factor that in and give the customer a price for the entire job.
 
KillaCam said:
Solid post by Romans. I like the idea of estimating how long it will take you and figure out what you want to make per hour, factor that in and give the customer a price for the entire job.
Click to expand...

A lot of companies do this. My wife does some photography stuff on the side and that business is surprisingly similar in a lot of ways to the detailing side of things. (A few great, a lot of mediocre, and plenty of hacks. Expensive equipment and cheap equipment. People who take it seriously, and people who do cash-only deals because they are 'just starting out' and generally fade away into a cloud of IRS fees).

In many of the books and magazines they suggest you figure up an hourly cost for a service, but charge a flat rate. So if she thinks she needs to charge $50/hr, and it's a 2hr shoot, then she does a flat rate of $100. The times she goes over is evened out by the times she doesn't take as long as she expected, and it's way easier for the customer to just pay $100 than to be watching the clock. Getting your picture taken is supposed to be fun anyway!

Although what she does; that there probably isn't any detailing equivalent to, is kind of neat (and common in photography). She'll charge a flat fee, say, $200, but she'll also give you a $200 credit on prints. Fact is, the prints only cost pennies to produce but retail for a lot more (You are paying for the photographer, not the paper and the ink). But it feels like an awesome value to the customer because it makes them feel like the shoot was 'free'. At the same time, it's better than doing free shoots and charging for prints like some do, since some will be dishonest, buy one print, and get copies made (Which is illegal without a release signed by the photographer, but there are always photo labs and wal-marts that will do it! If they get caught, the fine is enourmous!). Usually, they will go well over that $200, and while they paid just the same as if they paid a $200 sitting fee and got $100 worth of cheap prints, they walk away feeling like they got $300 worth of prints for $100 and got a great deal. I'm not sure if any of that translates to detailing? But I've found that, when it comes to marketing, making people feel like they got a great deal is important. I'm definitely not saying be dishonest, but, you don't have to be the cheapest guy in town for customers to feel like they are getting a great deal. It's just like companies that do free shipping. It's not free, it's figured into the retail price; but it makes the customer feel like they are getting a better deal!

Another thing a lot of pro photogs do is make it a habit to throw stuff in 'for free' with nearly all clients. Maybe an extra print or two, with my wife she'll give them a $25 'print credit' or something so when they log on to her website they already have a credit of $25 to get prints with. Stuff like that. It's all figured in to the retail cost but the customers don't feel like they just spent a lot of money, they feel like they got a really good deal; so they spend more and come back often. Maybe you could do a headlight correction for free or throw in an extra free maintenance wash after a correction. Don't advertise it, just throw it in once the customer has paid and the deal is done. Makes them feel like you are the best deal in town because they got a 'special' deal.

Keep it simple, keep it easy, and make them feel like they got a fantastic deal on top-of-the-line service. Hint: Telling them you used high end products won't make them feel like it was top-of-the-line. Making their car look fantastic will though!

Again; not a pro detailer. But that's my 'from a customers perspective' advice anyway!
 
Romans5.8 said:
Maybe you could do a headlight correction for free or throw in an extra free maintenance wash after a correction. Don't advertise it, just throw it in once the customer has paid and the deal is done. Makes them feel like you are the best deal in town because they got a 'special' deal.

Keep it simple, keep it easy, and make them feel like they got a fantastic deal on top-of-the-line service. Hint: Telling them you used high end products won't make them feel like it was top-of-the-line. Making their car look fantastic will though!

Again; not a pro detailer. But that's my 'from a customers perspective' advice anyway!
Click to expand...

Like your "throw in an extra free maintenance wash after a correction. Don't advertise it", idea.

Also, hearing from a consumer's perspective on this forum is very helpful.

Thanks,
Greg
 
You must log in or register to reply here.
Back
Top