Price

[Deck Guy]

The bottom line is to know what you need to make, be competitive, don't leave any money on the table, and perfect your methods so you can make more per hour.

Even the sq. ft. pricing can leave two different competitors making vastly different amounts on the same deck. If I can finish the example deck in a total of five hours, and it takes someone else eight hours, I can make more money even if we charge the same amount.

[MMI Enterprises]

The sq. ft. result of Russels method would be out of range of other bidders if the rate was towards a higher avg. of around $1.
In such case of using that method it might not be wise to leave the figures on the table but rather to just leave the end quote amount for the customer.
Get too much into distractive talk about sq. ft. with customer and then someone's integrity at measuring will come to question and they confused.
It really in the end is all about customer deciding on the end amount and having a good understanding or expectation of what your doing to their surfaces.

[jeffex11]

I'm drinking my coffee getting ready to do a big job today and reading all the posts. I'm charging my laptop so I can check the radar before I make the decision to go ahead and stain today. Its clear that pricing is regional. I've found over 16 yrs. that using a sq. ftg. measurement to price services is the way to go. Another benchmark for me has been the realization that in my market the price you can get for washing a house is a simple formula. For a $300,000 house [value from zillow.com] you can get $300 to wash. It allows me to give ballpark prices on the phone to qualify a customer. If they are still interested then I do a site inspection and give a final price. I price decks per sq. ft. and add for height, ease of access, city or well water, and other time adding issues. I measure the deck floor sq. stg. to make my price. 10X20 deck =200 sq. ft. X $x.xx per sq. ft. Many times I do a drive by price if I'm busy and try and push the threshold of what I can charge. I like to get 3 of 5 bids. Throughout the season I adjust my pricing to keep bookings 2 to 4 weeks out. Right now I'm booked out 6 weeks so I gave a drive by price for a deck and ranch house at about $100 over normal rates . I can always call her back later in the season if she balks and drop her price $100 [back to normal] and reel her in if I get caught up. Pricing is an art if your busy and a science if your competing for work.

[Beth n Rod]

Pssst! Hey Jeff, please add a signature when you get a minute...

Beth

[Deck Guy]

Originally Posted by jeffex11

Throughout the season I adjust my pricing to keep bookings 2 to 4 weeks out. Right now I'm booked out 6 weeks so I gave a drive by price for a deck and ranch house at about $100 over normal rates . I can always call her back later in the season if she balks and drop her price $100 [back to normal] and reel her in if I get caught up. Pricing is an art if your busy and a science if your competing for work.

Sorry, but I will not lower a bid after presenting it. When I bump them because I'm busy, I'll go 25%, but that is the price...period. If you start negotiating price, where does it end? Why can't you go down $200? At least that's what I would ask you.

For example, I had a bid from Terminex for termite control at my house. He was nearly twice the price of local non-franchise operations. As I was considering my options a few days later, he called and offered to lower his price by $500.00 if I committed to him that day. That just made me realize what a scam it was in the first place. And here's the kicker...I was actually considering using them anyway, based on their reputation! In other words, they had a BETTER chance at my business when they were higher priced! Who could imagine that?? Negotiating his price cost him the sale!

Ken can give you some help on understanding his theories and methods, but he has the right idea. I am closing fewer jobs, but making more this year after increasing my pricing by a good bit.

I also am making a genuine effort at upselling, and it has reaped big rewards for me. Plus I got to dust off the surface cleaner that had been leaning against some shelving in the garage. It paid for itself the first time I used it. I started on some deck maintenence for a return customer, noticed some green stuff growing on his house (got the housewash), then offered to clean the patio below the deck (used the surface cleaner), then booked him for his driveway and three car garage at a later date after he saw it in action. Can you say CHA-CHING! That's how I make money in this biz.

[KandC]

Originally Posted by Don M.

Russell,

I live over in the past Eureka and I have read that the normal price around here was $1.35 a sq ft. but have been unable to get that.

Hey don,
I am ken I own K and C Power Washing in conway, AR. I say you where just a couple hours from me. When we both get a little time i would like to talk to you and compare some stratiges for cleaning. My number is 501-328-3988 and my e-mail is kandcpowerwash@sbcglobal.net. Hey dose having a web site help you get more buissness?

Nice to meet someone in arkansas.
Ken

[jeffex11]

OK HOW DO I ADD A SIGNATURE . Dropping an inflated price is part of the ART of pricing and marketing. I've been blessed with too much work at this time and have even given some leads forward to others. Networking works both ways. My stratedgy is to let price slow the work down and when things settle down go back to normal , pricing will follow. the context of lowering a price back down $100 would be on a $6-$800 deck not a $2-300 deck. It is call an oppertunity cost or fee for putting yourself in line for service. If they go somewhere else so be it I can't get to them anyway. Nothing ventured , nothing gained! supply and demand Economics 101.You got your way and I've got mine. I never pretend to tell anyone how to price or practice thier business. This is a discussion board and I simply am sharing a pricing stratedgy that works for me. I heve gained new info on this site and hope I've offered some.

[jeffex11]

lets see if it worked ?? sorry for the non-post

[Beth n Rod]

Hooray! You got it!
Beth

[MMI Enterprises]

Apparently this thread was brung ttt via poll voting.
Just wanted to note to viewers that this thing should be thought of as dated. Is kind of a shame that as time goes on the original figures of the year it was presented will be tainted. The $1 rate is surely old due to cost increases.

[FGDave]

Originally Posted by Deck Guy

Sorry, but I will not lower a bid after presenting it. When I bump them because I'm busy, I'll go 25%, but that is the price...period. If you start negotiating price, where does it end? Why can't you go down $200? At least that's what I would ask you.

I can answer this. I would tell you, I gave you 100$ off, I can't pay you to do your work now can I? I can take off the 100, all I ask is you tell your friends about us.( Now he tells his friends your a great guy and he tells them the discounted price, which is the normal full price) So it snowballs.

A common sales practice in any sales is to high/low a potential customer.

Coming down off a price simply shows a willingness to work with people, and appear to "cut a deal". Which is done in all businesses of any kind.

Especially now. Times are hard for everyone and a money can be made from lower prices and higher volume, taking less time to do a job. People are more concerned with bottom line than anything. Quality will take a back seat to job cost and speed. Those who adapt will over come, others will fall to the waist side.
Now is not the time to get rich, but to just keep going until the economy picks back up.

[bigchaz]

Responses in red

Originally Posted by FGDave

I can answer this. I would tell you, I gave you 100$ off, I can't pay you to do your work now can I? I can take off the 100, all I ask is you tell your friends about us.( Now he tells his friends your a great guy and he tells them the discounted price, which is the normal full price) So it snowballs. Or the more likely scenario: He doesn't tell anyone and you lose 100 dollars

A common sales practice in any sales is to high/low a potential customer.
Depends on how you present your service or product.

Coming down off a price simply shows a willingness to work with people, and appear to "cut a deal". Which is done in all businesses of any kind.
No it shows you're a sleazy businessman and reinforces the customer's idea that you were ripping them off with the initial price. Grocery stores and gas stations don't cut me a deal, neither does my company

Especially now. Times are hard for everyone and a money can be made from lower prices and higher volume, taking less time to do a job.
Or money can be made by working less, and making more

People are more concerned with bottom line than anything. Quality will take a back seat to job cost and speed. Those who adapt will over come, others will fall to the waist side.
Correction: some people are more concerned with bottom line. My customers are concerned with a quality job that will last coming from a company with customer service that backs up our claims to professionalism

Now is not the time to get rich, but to just keep going until the economy picks back up.
Best year ever...can't imagine what happens when the economy "picks up"

[fireandrain]

ditto. everything Charles said.

[big mike]

FGDave,
Your's is a recipe for going out of business. Good luck. Also agree that this poll is hurting anyone who does wood refinishing. When will we all learn not to post pricing on a public forum?? Newbies use these as pricing guidelines and end up getting called lowballers. Do us all a favor and erase this thing Beth.

[FGDave]

Originally Posted by bigchaz

Responses in red

I can't quote your answers for response...

Best year ever? I do 90% new home construction. The USA is at a 17 year low in housing and value of the dollar vs other currencies. DUDE! Do I need to go into economics 101 for you? Have you gased up lately?

Sleezy? Keep thinking that. 18 years experience shows me different.
Every one wants to feel like there the only customer you have. And they want to feel like your giving them a special deal.
Lose 100$? did you read the first post? He said the price was 100$ over top of normal. So you get the normal price instead of jacking it up and being sleezy with a high price.

I wouldn't move to Charlotte if I were you guys. Price and speed rule around here. Its all about production. You have to be fast cheep and good.

Out of business? HAHAHA please tell me another. The south had the worst drought in decades last year. Most pressure washers in the area went under in a big way. NOT ME! I am still doing well even with 85% of business down. I usually have 10+ crews out working every day. But the 17 year low in new home sales cut that back. I have 20+ builder accounts. So I'd call that not even close to going under, and any of my customers will tell you we're very professional, reliable, on time, and the highest quality of work around. And on service repairs we also have a limited life time warranty(no body in my business can do that)
I do in 2 hours what most take 4 to do and produce better quality.

Want to attack me? Bring it! I am not your fly by night low balling drunkin redneck.