Pricing Jobs?

[rj242]

I was wondering if anyone has raised their rates since gas prices have gone up? I have been using the $1.00 linear foot ($2 on two stories)method fairly consistantly over the last two years, and it seems to work well for me. I was wondering what everybody else is doing now that gas has gone up so much?

[plainpainter]

I've been losing estimates left and right using that very same pricing. I won't be lowering my price - I can't say I will be raising them either. In the whole grand scheme of things - America still has a great economy - we don't suffer from 20%+ unemployment and other problems that plague many countries around the world. Yet when the price of gas goes - folks go all banannas. It's still not as expensive as paying a monthly car payment on a lexus, or other luxuries people have been indulging themselves these last few years. Quitting your membership to an all exclusive tennis/racquetball club will more than make up for the price of gas, imo.

[Tegrey]

RJ,
I believe that many company's are jumping on the band wagon. They will take advantage of any situation to increase prices. I do believe we have a problem with rising gas prices. We again are taken advantage of by someone? What our business is doing is finding ways to offset the rise in fuel. We are actually spending money to save money. We will buy bulk as possible, bought a Saturn Ion (estimating), for fuel savings, and a new building, smaller yet much more effecient. We changed our advertising, added a website, have vendors that want to meet us on our terms. This all adds up. I believe we have or will save possibly as much as $50,000 in the next couple years. This is a lot of fuel surcharge. Maybe I'm wrong, but when I see afule surcharge, I see a business that is either ineffecient or making more money from the situation? Does anyone see the same, or am I missing something? Thank You.

[rj242]

It is fairly common to hear that the $1.00 lnft or $.10sqft is the going rate for a lot of contractors. I wasn't asking about a fuel surcharge, but an increase in these rates. As gas prices goes up, so does everything else (bread, milk, toothpaste, etc..), and I would assume the pressure washing industry will also have to increase their prices to sustain their standard of living.

[PressurePros]

Its been said the "going rate" is often the "going out of business rate". You charge as much as you need to support your lifestyle and stay in business. Its best not to worry about what anyone else is charging, especially on an internet bulletin board. I don't care if my neighbor starts a PW'ing company at $.25 per l/f, I will start charge what I charge. I owe it to my customers to charge a certain price so that I don't have to cut corners and they don't have to worry about finding a new cleaning contractor next year or the year after that.

[jeffex11]

there is a difference in buying your self a job and building a business that generates a profit. Whatever your business model or market for pricing there are always better customers out there. Adapting to tough economic times in an area may simply targeting another area if possible . Pricing is as much an art as it is a science with prices per sq. ft and linear ft. sometimes you have to push the envelope. I try and not think like a customer but rather what is the added value I bring to a customer and I sell that. Just like posted before I will be here the next time they need work done rather than constantly shopping for the next cheap guy you hope doesn't ruin or damage your house or deck. I'm NOT competing for that customer

[MudDuck]

Had a customer this morning call requesting a house wash and stated for me to do it at my convienance when I was on that side of town because she understood with the cost of fuel going up and all.....I had not even brought it up....They know...
On another note my new yellow ad hit Monday and I've got two calls for service by 11 am this morning ( Tues ) from it!!! I haven't recieved my new phone book to even see the ad myself yet.

[John Orr]

I haven't raised my prices - yet. I charge .10 sq ft, but increase the rate as the distance increases. (Up to .15, or about 50 miles.) I have never increased prices for regular customers.

By my calculations, during an average house wash, I will use about 2 gallons of gas and maybe a gallon of diesel - or about $4 more per wash. On a $250 job, why raise prices? (Of course, giving mostly phone estimates helps a lot.)