Should I adjust my pricing more competitively?

Dan Tran

Dan Tran

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Good morning,

My question for the day is this:

Should I adjust my pricing?

Reasoning:

I recently ran into a familiar face from the old grocery store I used to work at and the subject of detailing came up. He mentioned he gets his Audi Q5 detailed from a local guy he has been going for years. I know of the guy and based on other peoples word and my own research he is two things: a) the people consider him the best in the area. b) he however, I think is the old school style detailer (seems like he has been doing this for more than 25 plus years or so) also he runs from a garage versus my mobility.

My research on him is he uses all Meguiar's products and has 3-5 people working for him. I've driven by before getting a quote for my old car before I got into the business. for my 2004 Honda Civic all beat up he wanted $250 everything and he wouldn't JUST do an interior.

Anyway going back to the customer I know, he mentioned for $250 he does EVERYTHING! Interior and exterior.

I am unclear of what the interior means, but based off of what I was told, this detailer compounds, polishes, and applies a sealant/wax
everytime. It sounds like this is a usual practice for him even on new(er) cars
He normally requires to have the car for two days.

But what I am confused is he has like 2-3 people per car working on it. It seems like 2 days is a long time for a few workers.

I am a single person working and I normally would start my complete packages at $250 for a small vehicle with light cleaning. In this case I consider the Audi Q5 a mid-size SUV
And for light cleaning I start at $300 and this includes exterior and wash, claying/decon and say HD SPEED. Of course I do dress the interior and especially the exterior.

Am I priced outrageous?
 
Competing is a losing proposition, it implies you are providing a very similiar service. Don't compete, dominate.
 
VP Mark said:
Competing is a losing proposition, it implies you are providing a very similiar service. Don't compete, dominate.
Click to expand...

Thank you VP Mark. You have always been helpful to me especially regarding the business side of things.

Personally, I don't think I am outrageous because my passion is DEFINITELY in this!! I recently had a customer pay $350 HAPPILY because he said he was BEYOND impressed! I only asked for $300. He insisted.

I think my problem is that because I am new, I doubt myself. I try not to get imitated compared to guys who have been in the game wayy longer.
 
Taking Mark's approach a little further, YOU, Dan, are a Geek! Knowing nothing about your competitor i am fairly confident you have a more progressive, educated and comprehensive approach to the finer aspects of detailing. Your frequent visits here matriculating at The University of Autogeek have equipped you with a higher education in process and theory offering your customer's a better service. Price yourself accordingly and the client base will see the difference. That, in turn, will yield the "domination" Mark alludes to!
 
Just to build on Puckman and VP Mark's comments, there are enough cars on the planet to go around for every detailer.

Packages will vary from detailer to detailer slightly, but what I try to do is align my pricing competitively with others in the area.
In my case there are really two detailers in my area (20 mile radius) that are of AG University grade, they offer 1 step, 2 step, 3 step and even wet-sanding show car grade quality. Pricing is commensurate for what they do, and by that, I mean it equates to the quality, time and results they achieve. One in particular does nothing but high-line cars... (Mclaren, Ferrari, Porsche, etc.. you get the picture). With These guys I've taken some time to set up a rapport and deeply respect what they do (i.e. networking.)

There are other car-wash types (under two hours or less, by some miracle the car will look like one I've spent 25 hours on... but it will only last until the first rain, then swirls and squirrels are back). Their pricing is very low.. If a customer asks for this kind of pricing from me, I graciously refer them to the local car-wash.

Competition is good, but if you undercut pricing, it looks bad for your business and it hurts the other guys. Remember, it was in Bill Gates best interest to never let Apple die (in the early 90's after the Apple II pooped out in market share). Competition is healthy for business.
 
You competitor may have the car in his shop for two days, but I assure you he has 3 people working on it for maybe 2 hours (6 man hours).

Keeping it for two days is trick to make the Customer think they are working on it longer, it gets the car in he door and locked in and it builds some flexibility into the detailers schedule.
 
AGOatemywallet said:
You competitor may have the car in his shop for two days, but I assure you he has 3 people working on it for maybe 2 hours (6 man hours).

Keeping it for two days is trick to make the Customer think they are working on it longer, it gets the car in he door and locked in and it builds some flexibility into the detailers schedule.
Click to expand...

I didn't even think about that.
 
Ago is right about the mentality of customers thinking the detailer is slaving on there car for 2 days.also on the light cleaning part as well.I know down here in south fla the majority of people won't spend 300 to 350 on a detail,or even 250. So i tend to stay with the stuff that pays like horse trailers planes and rv mixed in with classic cars.
 
AGOatemywallet said:
You competitor may have the car in his shop for two days, but I assure you he has 3 people working on it for maybe 2 hours (6 man hours).

Keeping it for two days is trick to make the Customer think they are working on it longer, it gets the car in he door and locked in and it builds some flexibility into the detailers schedule.
Click to expand...

:iagree::dblthumb2:

And I'd never let a "detailer" have my car for two days. Considering most auto service centers complete most repairs in one day why wouldn't I want to be w/o my vehicle for two days. That's a major inconvenience.
I guarantee he does that as a marketing scheme to make his clients think he's spending way more time on it than he actually is.

Have you inspected your friends vehicle to see what kind of work the guy does? Are their any holograms on it?

Another thing to consider is just because someone says they do all those steps doesn't necessarily mean they actually do it. The customer isn't there monitoring them so how would they know it gets all those steps. All they know is it's cleaner and shinier than when they dropped it off.
 
custmsprty said:
:iagree::dblthumb2:

And I'd never let a "detailer" have my car for two days. Considering most auto service centers complete most repairs in one day why wouldn't I want to be w/o my vehicle for two days. That's a major inconvenience.
Click to expand...

Full paint correction including full interior with coatings takes me two days. I state it up front in my packages and when doing the ViF with quote.
I offer a loaner car to "established" customers as a courtesy. And no, not my Mustang GT Convertible. :-)
 
paul_g said:
Full paint correction including full interior with coatings takes me two days. I state it up front in my packages and when doing the ViF with quote.
I offer a loaner car to "established" customers as a courtesy. And no, not my Mustang GT Convertible. :-)
Click to expand...

Awe come on man I gotta have the Stang!
 
agoatemywallet said:
you competitor may have the car in his shop for two days, but i assure you he has 3 people working on it for maybe 2 hours (6 man hours).

Keeping it for two days is trick to make the customer think they are working on it longer, it gets the car in he door and locked in and it builds some flexibility into the detailers schedule.
Click to expand...


BOO YAAAA!!!!:iagree: with :whs:

Keeping the vehicle 2 days and WORKING on it for all day both days is a TOTALLY different matter!


What I'd tell this guy... "My prices reflect my work, and the quality of products I use that you simply don't find at XYZ (dealership, body shop, car wash, etc.). If you're uncomfortable with my pricing I totally understand, and you are under no obligation to use my services. However... I can unequivocally guarantee you that when you SEE my work, compared to THEIR work... you'll see (and likely feel) the difference. Then you might go on to say something like "so much so that you'll wonder why I am able to do it as cheaply as I do!"

One thing that'll instill 'value' with the client is thinking that a specific amount of time is being spent on their vehicle(s). If you're going to them, and working I their garage (which is a royal PITA) the upside to that is they can SEE you out there working all day, maybe 10~12 hours that first day, then coming back the second day and spending another 5~10 hours. THAT will get their attention. ;)
 
paul_g said:
Full paint correction including full interior with coatings takes me two days. I state it up front in my packages and when doing the ViF with quote.
I offer a loaner car to "established" customers as a courtesy. And no, not my Mustang GT Convertible. :-)
Click to expand...
Now that's a big plus.
 
what's the courtesy vehicle,rented or something safe and clean that you own outright ?
 
Who on earth is competition good for beside the consumer?? Competition costs you more money, and you have to fight against bad information to get your message across! That's why competing is such a losing proposition. Don't compete, make your competitors look at you and say "that guy is nuts!".
 
paul_g said:
Full paint correction including full interior with coatings takes me two days. I state it up front in my packages and when doing the ViF with quote.
I offer a loaner car to "established" customers as a courtesy. And no, not my Mustang GT Convertible. :-)
Click to expand...

Well I was going to say you're NUTS! :laughing: But I've loaned out my wife's Denali because I've done a coating and the client didn't have a place to part it inside that night. Given it to him to drive overnight so the coating would cure in my garage.

OTOH....
Hennessy collision gave me a new Acadia (238 miles) for almost FIVE WEEKS (they had my car almost 7 when I took it back after they didn't get it right the first 4.5 weeks) and TWO DAYS before we were supposed to take it back..... CarMomma backed into a friggin' brick mailbox with it!!!!!!! :eek: She went down the left side of the back bumper, behind the tire. Ripped the living snot out of both the top and bottom piece of the bumper cover (2-piece cover), plus creased the quarter panel (didn't scratch the paint on the panel, just creased it). When I took it back, and was prepared for Nationwide to step up and pay for the $2K worth of damage... the shop manager (which I've done business with for years) just blew it off and said he'd take care of it. "Don't worry about it "he said. He even told one of his bosses that it'd be OK, "He's a really good customer" he said. GO FIGURE!!!! :laughing:

That's enough to keep me from loaning anything out.

Or at least to my WIFE. Or if everyone will hide their brick mailboxes while she's driving! :laughing:
 
One thing I always heard is to neverrr talk down about competition to customers or in advertising. I in somewhat of the same boat as you my friend. Im just starting out doing details on the weekends and there are other local detailers but they provide what some would call a basic detail(they're exterior is just a caliber and wax). I struggle with customers understanding by my prices are the way they are because there is nothing locally to compare it too. Best of luck to you man!
 
BrianJM said:
One thing I always heard is to neverrr talk down about competition to customers or in advertising. I in somewhat of the same boat as you my friend. Im just starting out doing details on the weekends and there are other local detailers but they provide what some would call a basic detail(they're exterior is just a caliber and wax). I struggle with customers understanding by my prices are the way they are because there is nothing locally to compare it too. Best of luck to you man!
Click to expand...

Great advice.

Everyone is just trying to make a living. How they do it should be respected as much as you want people to respect you. I would never hire or purchase anything from a person who demeans their competition.

And I've lived off of 100% commissions since 1991. No salary, no draw, no expenses. Nothing but what I earn.
 
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