I have a question , How much was fuel, and chemical when that price list was made up ?
lol a lot less
I have a question , How much was fuel, and chemical when that price list was made up ?
When most people get into this field, they have absolutely no idea whatsoever as to how to price. A baseline list will give them atleast an idea. This isn't an exact list that tells you exactly how to price, it's gives them a number to adjust up or down.
All the list needs is a big message at the beginning that says "These numbers are a starting point, adjust your price according to market conditions, competition and cost of doing business in your area."
I have a question , How much was fuel, and chemical when that price list was made up ?
There really should be no list at all. It does not help anyone involved.
Thats not going to happen, so whats next best? Fix it
You keep saying this... But there is no fix for something that isn't beneficial to anyone. The fix is to replace it with the truth. The truth is that Business 101 dictates that your price can only be determined by your expenses and profit margin expectation for a given production rate. The truth is that the advice should be to take some Business related training from a school of some sort. The truth is that if a person can't figure out how to price thier work then, they probably need to step back and re-think being in business.
Giving a guideline to folks that don't undestand how to price, is only hurting them and the rest of us that do know how. I have said it before... That guide line has been producing low-ballers and fly-by-nights for years.
Pricing my work is the easiest thing I do. It is elementary math.
Note the areas in red. They will respond to misconceptions. This guide was designed for those who had no idea of what to charge. The wording tells those who might use it that it is only a guide. Nothing is etched in stone. Robert is still waiting for suggestions on pricing. He has spent a lot of money trying to help people get started right. For those who have responded with helpful posts "Thank You", For the rest if you are really interested email Robert with your suggestions. He will listen. I promise you.
Last Updated: June 05, 2007
Prices were a lot lower!
Pricing is more of an art than it is a science. Salesmanship plays a major role in the amount you can get for a particular job. Some Contract Cleaners can get 10% to 100% more for the same job than their competitors. Pricing becomes even more confusing because people are entering the business with consumer quality pressure washers without insurance, workmen's compensation, office, or overhead expenses because they are operating from their homes on a part time basis. They do not have normal business expenses. But the customer liability is greater because a lack of insurance and workmen's compensation. And often poorer quality work.
This price guide should be used as a reference point. It is not a recipe that will guarantee that you will get every bid. It will have to be modified to fit the economic conditions of competition in your area. You will have to decide if you are going to bid on quality or price, or somewhere in between. The economic realities are that you cannot deliver a Cadillac for a Volkswagen Price. Companies that do end up in bankruptcy.
Every time you lose a bid ask the customer who they went with, what was the price, and why they did not buy from you. This will give you the information to start modifying this price guide to fit your market area. Often the customer will not give you this information but most people will give you some information. This is the start of your market survey so that you can adjust this price guide for you in your market area. If you are getting 100% of your bids you are too low. You need to be rejected about 20% of the time to assure that you are getting for most for your time and effort (what your market will bear).After a competitor has completed a job go by and see what kind of work he did and if possible the price he charged for it. Try to determine if your competitor has insurance, or workmen's compensation. You should include insurance and workmen's compensation certificates with your bids and explain the liability that people have if they choose a contractor that does not have this coverage.
That list is a tool for newbies it helps them in the begining so with the proper knowledge so they will not drive prices down and go out of business. Just think to when you started did you know to charge xxx for a truck or XXX for a bus. I doubt it you most likely searched and found what others where charging and that was a starting point till you could do it on your own!
Actually, yes Kory. From day one I have known exactly what to price to be profitable and to cover my expenses. The only adjustments we have made were to keep raising those prices. Raising the prices won't cause me to lose money. Not knowing my costs upfront and pricing too low would have cost us dearly. How can a person not know his costs? If they know thier costs, then they can determine a price.
At some point you had to know what the going rate was or a ball park of what to charge other wise how or why would you have gotten into PWing.
The problem with the list is that if the prices shown are below the operators costs, then yes they are pricing too low and will go out of business while hurting the rest of us trying to get realistic prices that are based on true numbers and not what some list said was a "going rate"
What is wrong with "going rate"? 9 out of 10 businesses fail. Most fail due to under capitalization. They fail from lack of funds. ie.. they did not price enough. So my answer to the question- What is wrong with charging the "going rate"? is this..... Because it is highly likely that it is the "going out of business" rate!
I am not trying to be an ass to all the new guys. I am merely stating that this guideline won't truly help them. They need to go to night school or take online classes to learn the basics of business if there is that much difficulty in figuring a price.
At best... they could change it to a guideline that shows average production rates cleaning different surfaces with different methods. That would be the hardest variable for a new guy to figure if he hasn't ever done a "truck" or "bus" etc. This would help better than stating a price to charge if insured versus not insured. That shouldn't even be considered.
I agree it should only be a guideline! also there should be a regional price for cost of living type equasions.
Hey Jeff I agree with you. There's way too much on the www now about how to start a company, pricing, methods, marketing ect. Unfortuanetly it's too late to do anything about it. That's why a lot of guys don't share much on the BBS's. I still give out some info but not NEARLY as much as I used to. If someone wants to come out with one of my crews for a day I'll help them all I can. But, if they just sit back and expect me to feed them everything I learned in 20 years of power washing their going to have to pay for it!
Most of the hacks are guys that left thier $12 an hour job and are happy they just gave them selves a 100% raise not knowing that they really just took a pay cut. They dont calculate the labor,chems, Ins., marketing, repair, supplies and the long list of other things. It used to take me an hour and a half to do the work I can do in 20 min. now but I still charge the same or more. I guess my thoughts are If "DELCO" or any others like my local guy that says charge $50.00 an hour ar going to tell new guys this stuff it should at least point them in the right direction. If not for their sake for the industry's sake.