Flatwork Price

R

RICHARD A.

New member
ANYONE DOING FLATWORK CLEANING FOR NEW CONSTRUCTION IN NORTHREN CALIFORNIA. I WOULD LIKE TO KNOW IF ANYONE HAS RAISED THERE PRICES DO TO GAS PRICES, AND IF SO WHAT IS GOING PRICE FOR A THREE CAR GARAGE 24' SET BACK,1WALK TO FRONT DOOR, AND SIDE STOOPS ALONG GARAGE. I RAISE MY PRICES $5.00 PER HOUSE. ONE OF MY ACCOUNTS WOULD LIKE ME TO SIGN A CONTRACT FOR ANOTHER HOUSING PROJECT, BUT DO NOT WONT TO PAY THE PRICE. PLEASE REPLIE AND LET ME KNOW WHAT YOU THINK THANK'S! RICHARD
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As far as raising your prices due to rising gas prices. I do commercial flat work in Atlanta, and I have often wondered about this myself. If I was a property manager, and a contractor told me that he had to raise his prices due to rising gas prices, I would ask him "Well, when prices go back down, will you lower your prices?" Fair question I believe.
Here`s another situation. At the end of a contract term. You decide you must increase your prices. I`ve been told by several property managers that as soon as that happens, they must automatically re-bid the job. Has anyone run into this?
Here`s what scares me about raising my prices on long term contracts. I do a fairly large shopping center for about $3000, EVERY OTHER MONTH!! Cha-Ching. Should I risk losing this highly lucrative account to make a couple cents more per sq. ft.?
Any thoughts welcome.
 
I also agree with the concept that if we're going to raise prices to compensate for increased gas prices, we should also be willing to lower prices when gas prices come down.

Say gas prices go from $1.50 to $1.80. That is a 20% increase. If gas/fuel is 5% of your cost of doing business, then you have a 1% increase in your total cost of doing business. Is that 1% increase in your expenses worth risking an account over? Only you can answer that. However, what happens if gas drops to $1.20, as it did a year or so ago? That's a 1% decrease in your cost of doing business from the $1.50 price. Are you going to pocket that 1% or lower your prices by 1%?

Should our prices fluctuate with things that fluctuate regularly like gas prices? Maybe I can get one of those signs like gas stations have and mount it on my trailer! "House Washes, $229.99.9 today" :D
 
glabarta said:
As far as raising your prices due to rising gas prices. I do commercial flat work in Atlanta, and I have often wondered about this myself. If I was a property manager, and a contractor told me that he had to raise his prices due to rising gas prices, I would ask him "Well, when prices go back down, will you lower your prices?" Fair question I believe.

Fair indeed. I have a built in fixed price on gas, that I charge per hour. It is on the high side most of the time, and is now starting to be a little low, I will wait and see what happens before I change anything.



Here`s what scares me about raising my prices on long term contracts. I do a fairly large shopping center for about $3000, EVERY OTHER MONTH!! Cha-Ching. Should I risk losing this highly lucrative account to make a couple cents more per sq. ft.?
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How much money do you stand to lose by keeping your price the same? Seem's that people are freaking out over the gas prices, the same as California does when it rains. If you haven't already, figure out exactly how much your fuel costs are per hour and go from there.
 
I forgot to tell everyone that this company only gives me about six houses a month, at only $90.00 per house. the houses take about a hour and twenty to do. the project is a fifty mile around trip. thank's Richard
 
RICHARD A. said:
I forgot to tell everyone that this company only gives me about six houses a month, at only $90.00 per house. the houses take about a hour and twenty to do. the project is a fifty mile around trip. thank's Richard
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Richard sounds like your not happy with what they give you or your prices.

Ever thought of asking them for more work?

50 mile round trip is 25 miles one way, no biggie, I drive about 85 miles ONE WAY for some of my accounts.

Just remember your the one who bid those jobs at that price so you can always raise prices on future bids.

Jon
 
As gas prices rise many companies are chargeing a gas surcharge.

I would put a line in your contracts that states that if fuel prices exceed $x.xx per gallon that a fuel surcharge maybe added to your bill.

If you need to you can explain in more detail.

The biggest company that is doing this right now is UPS.
 
We wrote in the contracts last year that if Diesel goes to $4.00 or above at any two National Brand local gas stations within a 5 mile radius for that job site, then we will raise the price by X amount. On garages, thats as high as $700.00 per cleaning. At the time, Diesel was only 3.29 a gallon, however it is now $4.39 a gallon. Our new contracts now replaced the $4.00 say the $4.75 mark.

At the time, we based our pricing for the bids at $3.59, instead of the $3.29. When it went to 3.69,3.79,3.95 we lost a little bit as costs went up. However when it hit 4.09, ( .09 cents above the $4 mark) we charged the increase after informing them of the rise in Diesel prices. They did not have any issues.

Since all of our trucks , washers and motors are diesel, we set the price increase on the price of diesel. This way we are covered if the prices on Diesel goes up during the contract. The $700 covers us up to $4.83 a gallon price increase.
 
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