Can you price to High?

[alvisishere 66]

I did a job today on a small box ranch near my home and I gave the quote of my basic minimum of 150.00 to clean his home, he was very pleased with the price and I was washing within minutes.

He stay outside and watched my technics and results, we started talking and he told me he had couple of estimates ..... one was 250.00 and one was well over 1,000.00, the guy that quoted well over 1,000. said that 2 facial boards needed to be replaced. After the house was cleaned he saw the boards was not rotted but just needed a fresh coat of paint.

His real estate agent told him don't pay over 175.00 and he said I was the only one under. His next statement was he was going to pay me 175.00 instead of the 150.00 I quoted, I often get customers that tip or pay more than I charge, it happens more when they are watching me work.

I realize that people may charge more and I am by no means a low baller but I don't like to over charge my customers either. I know what I have to charge to make money and in my area I know what is overcharging, Its hard to find a honest contractor in any field and I know whats it like to be overcharge and I like to treat my customers the way I would like to be treated

[douseahouse 21]

i like your style. you appear to be very concerned about your customers. i am thinking that the guy who bid 1k probably did not want to do the job anyway. the only time i bid extremely high is when i really am not too concerned whether i get the job or not. funny thing is that a few times i have been awarded the job that i knew i was too high on or at least i thought i was. the current gas prices have me thinking about raising my prices a little to compensate for the added expense to going to the jobs and running my equipment. i know the lawn care people have already raised their prices.

good luck,

rando

[plainpainter 217]

Al, your $150 minimum is way too low. That's the kind of price you give to a guy with a 850 sq.ft. ranch that's next door to a job you are already doing - and you do it right then and there. You can't run a professional pressure washing outfit with all the costs for only $150. Think of all the trips you make to give estimates that yielded no work - all that time and gas has to be averaged into your jobs - what about advertizing and insurance? If I didn't take on larger work, like decks, not that they are that profitable from an hourly point of view - but if I didn't take them - I am sure $150 would easily be the break even costs per customer. All my overhead and costs of running a business - each customer would be paying $150 before I even begin to see a dime. That $250 is more on the money - at least he made a $100 after expenses.

[CCPC 26]

I did a job today on a small box ranch near my home and I gave the quote of my basic minimum of 150.00 to clean his home, he was very pleased with the price and I was washing within minutes.

He stay outside and watched my technics and results, we started talking and he told me he had couple of estimates ..... one was 250.00 and one was well over 1,000.00, the guy that quoted well over 1,000. said that 2 facial boards needed to be replaced. After the house was cleaned he saw the boards was not rotted but just needed a fresh coat of paint.

His real estate agent told him don't pay over 175.00 and he said I was the only one under. His next statement was he was going to pay me 175.00 instead of the 150.00 I quoted, I often get customers that tip or pay more than I charge, it happens more when they are watching me work.

I realize that people may charge more and I am by no means a low baller but I don't like to over charge my customers either. I know what I have to charge to make money and in my area I know what is overcharging, Its hard to find a honest contractor in any field and I know whats it like to be overcharge and I like to treat my customers the way I would like to be treated

Charging too much will put you out of business just easy as low balling. My advise would be not to worry about how your price lines up with others, and just concentrate on what you need to make to keep your business moving along, while still earning the $$ you feel comfortable with.

I get kind of tired of hearing people say you can't make money charging X amount. Every business is different. An established, small business like mine for example, that has many repeat customers, will make much more profit than a guy still trying to develop a customer base because most of my work comes from either repeat customers, or referrals (easy sales).

besides the obvious, that being a decrease in advertising costs, I don't have to drive out for as many on site estimates because I've already serviced most of the houses I'm cleaning.

[jeffex11 121]

NO -SHORT ANSWER TO THREAD.One fact I've learned from these message boards is that prices are differen't everywhere. Another thing I've seen is that house washing prices for me run roughly like this .... $400,000 house I start pricing at $400 give or take onsite complications. Pricing too high is better than too low IMO its easier to adjust down than up. On a $150 job you have at least $10-15 in gas and soap. 35% goes to taxes and self employment. Add in a cost of replacing your equipment ( I use $5 an hour to save for new stuff). Factor in your time to estimate the job and sell it. factor in your load and unload time. This is how a business stays afloat rather than some side money. TIME is what I sell. If all these things were taken care of in your business model including your target $ per hour the price is right for YOU. By posting here we all ask for other opinions on how we're doing in the p-wash world . I started somewhere too and took any work I could get . My goal was to swim upstream to good , high paying jobs with PROFIT built into them. Good luck with your business!!!

[big mike 14]

I find it funny that anyone can tell another company what to charge...

Al, your $150 minimum is way too low.

If that price bought him some good will, or referrals, its well worth the cost. I bid a house wash yesterday over the phone (the only thing I bid by phone). Gave the customer my cost per linear foot times height factor, and she was thrilled. Easy wash (vinyl sided, ranch style home).Came in at, or just above our $175 minimum. Also gave her the line about unseen problems, etc. may cost a bit more, but assured her I wouldn't fleece her either. She said that she just bought the house as an investment. She liked my honesty and told me that shes a property manager for a national company who manages over a hundred properties in my state. She wants to meet with me next week to look at two strip malls and three ramps that she manages, that need attention. Was it worth the low cost? I think so.

That's the kind of price you give to a guy with a 850 sq.ft. ranch that's next door to a job you are already doing - and you do it right then and there.

If you give a neighbor of a job you're doing that low of a cost, you're going to lose the original customer for sure. Never go under the price of the house you are hired to do for a quick buck from a neighbor. Don't you think they talk to each other? You're going to really anger the person who got you into that neighborhood in the first place. I usually give the original homeowner a small discount for the extra job we just got by being at their property, and price the neighbor the same.

[James 625]

Usually if I price too high the job is too difficult and not worth it! I also sometimes get those job ( 3 on the books) and do not want to do them. Be fair and build trust!

[Palmetto Home and Deck 167]

"His real estate agent told him don't pay over 175.00"

Something is bothering me about the real estate agent telling someone what to pay...or what not pay in this case. What makes them the expert in Pressure Washing?

What if a pressure washing company told the owner not to pay over 3% commission to the agent selling the house?

Just ranting...going to get another cup of coffee now......

[Jim in NJ 64]

"His real estate agent told him don't pay over 175.00"

Something is bothering me about the real estate agent telling someone what to pay...or what not pay in this case. What makes them the expert in Pressure Washing?

What if a pressure washing company told the owner not to pay over 3% commission to the agent selling the house?

Just ranting...going to get another cup of coffee now......

I agree!!

[deach 14]

ya the real estate agent thing is bothering me too. Good deal on getting the job and extra however. Might land you more before it's all over with. Need to educate the agent a bit however....

[jeffex11 121]

Amen on the neighbors talk thing!!! thats the way I handle it too. I use the same formula to figure pricing for everyone. If anything charge more to the neighbor if the original customer is a long standing one. Show them there is a benefit to their loyalty....

[alvisishere 66]

"His real estate agent told him don't pay over 175.00"

Something is bothering me about the real estate agent telling someone what to pay...or what not pay in this case. What makes them the expert in Pressure Washing?

What if a pressure washing company told the owner not to pay over 3% commission to the agent selling the house?

Just ranting...going to get another cup of coffee now......

Believe it or not the agent recommends (as in this case) and tells the homeowner to wash the house before they put the home on market, the customers are very uneducated at this point and will often ask the agent if they can refer someone to wash the home.

Most agents do this countless times and are very aware of what a fair price is.

It don't matter if you are on the selling end or receiving end, when someone is overpriced, if you are on the selling end you know you are high and if you are on the receiving end, you might not catch it when you pay but they will find out quickly when you tell the first person about their so called good deal.

This will tell you if you get a referral out of it.

[Jim in NJ 64]

Try targeting higher end neighborhoods and selling the HO on your quality work, not cheap price.

[douseahouse 21]

Believe it or not the agent recommends (as in this case) and tells the homeowner to wash the house before they put the home on market, the customers are very uneducated at this point and will often ask the agent if they can refer someone to wash the home.

Most agents do this countless times and are very aware of what a fair price is.

It don't matter if you are on the selling end or receiving end, when someone is overpriced, if you are on the selling end you know you are high and if you are on the receiving end, you might not catch it when you pay but they will find out quickly when you tell the first person about their so called good deal.

This will tell you if you get a referral out of it.

hope i'm not getting too far off the subject but does anyone ever wash a house for a real estate company and then wait for the closing before you get your money? i can see good and bad on this one as you may be able to land more jobs this way and also get top dollar for your work since the homeowner is working with his equity and not his pocket money. but of course on the bad side what is the home never closes? will you get paid for your work? i suppose that in your contract you could work out the fine print on this but i was just curious if anyone has tried this and how it turned out.

thanks gang,

rando

[alvisishere 66]

Try targeting higher end neighborhoods and selling the HO on your quality work, not cheap price.

Quality is always #1 on my list....its a given.

When I pull up in their business or driveway and they see my equipment and reclaim set up, I usually don't have to convince them on the quality of work, usually all we need to do negotiate a price that will work for both of us. I close most of my jobs when I meet the homeowner, the ones I don't get are the ones quoted over the phone for obvious reasons

I don't consider it a cheap price or low work quality, 175.00 for 45 min job not bad in my books.

[Jim in NJ 64]

hope i'm not getting too far off the subject but does anyone ever wash a house for a real estate company and then wait for the closing before you get your money? i can see good and bad on this one as you may be able to land more jobs this way and also get top dollar for your work since the homeowner is working with his equity and not his pocket money. but of course on the bad side what is the home never closes? will you get paid for your work? i suppose that in your contract you could work out the fine print on this but i was just curious if anyone has tried this and how it turned out.

thanks gang,

rando

I would not do that if I were you... Get the money when you get done with the job.

[rickmoore45 14]

I agree that only you know what you have to charge your customers to make a profit and keep your business going. I take alot of simple jobs that no one else will take. For example someone gets a notice from the homeowners association, dirty siding [1] side. Most places will only do the whole house. I'll do the one side all day long literally. schedule 3 or 4 in one day at a set price and you have a good day. I am a one man operation and don't have to bid high to stay afloat. I still get outbid by the lowballer now and then but thats life.

[Gutter Squad 14]

Al & Rick-

I agree with you... I have fairly low set prices (1 st. $149/ 2 st. $199) on house washes - covers a ground floor area of up to about 1916 sq. ft. (175 linear feet). It covers about 90% of all homes within 45 miles of me. I close people all day long on the phone. Other guys set an appointment, go look at the house for an estimate, then set an appointment for the wash... next thing you know - it is two, three, four, or more weeks before your house gets washed! When they call, I look them up on Zillow.com and see if they fit my price - if so... when would you like me to come out?

We have a couple crazies up here (Western Ohio) doing the $75 wash and we have people charging twice what I do. The LONGEST I have ever spent on a house in my flat rate brackets was 2 hours. Most of the time, washes are running 45 min. to 1.5 hrs. About half my people up sell on an offer to clean out their gutters as well ($40-80 add on).

[Mike Williamson 198]

It all comes down to one thing...A free market. If a person can make their business work and make the profit they need charging what they charge, that's business. I've heard this garbage "You can't make it in this business charging $X" since I started in this business.

If you can't make it, then you'll either raise your prices or go out of business. And again, that's business.

$150.00 for a typical ranch housewash is about right for this area. Do 3 or 4 of those in a day and you've had a good day!

[alvisishere 66]

WELL HERE WE GO AGAIN!!

I got a call today on another local small ranch, took the time to drive and look at it, Gave her a price of 175.00, she told me she had 2 other est. I ask who and how much...one was 150.00 and the other was 160.00.

One of them was from my competitor that lives in my area that a lot of you know (Hi, if you read this this is how it went down). Both was quoted over the phone.

I informed her mine included movie tickets and if she wanted to waive the tickets, I would do it for 150.00 since I was out there, but If I had to come back, it would be 175.00.

She then asked about using her water and I informed her that we legally could but she could not (drought), but she was worried about in increase in her bill, I asked her if others quotes supplied water, she did not know so she called and they said only if requested at a fee of 75.00 extra.

I explained the higher cost was not for cost of water but 4.75 gal fuel bill.

Bottom line is she had 3 est. from 3 reputable companies that had biggest display ads in yellowpages and only few dollars separating them

Like I said earlier, once I am in front of a customer, usually its only a price issue that works for both of us.

At the end she said she would refer me to anyone that needed any PW.

By the way I did not talk negative about my competition, I assured her that He could do just as good job as me!!