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Confident Roof Cleaning Houston TX wrote:

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Tom I don't wanna bust your balls, but your post is a little disturbing. It sounds like you basically let the customer dictate what they will pay vs. Having a set pricing structure and sticking to it? I'm the last person you will ever hear saying don't negotiate. I price jobs with the assumption that a negotiation will take place and I also know how low I'm willing to go. But to see what they're willing to pay then pricing based on that is a sure way to go bust quick. I saw a quote somewhere that said "we price our jobs to do the job right, not just to get the job."

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  Scott , no problem.  I've had my painting business for 10 years.  I know about what the other painting contractors are charging in the different areas and I charge accordingly.  I have cleaned 20-30 roofs so far.  I kinda know what one guy charges.  He does the pitch witch and he's not much competition.  Doesn't like heights or non-walkable roofs.  But I don't have the experience yet to know how high to charge. If I'm swamped with work I chage more, if work's slow I charge less.  I have even done a job for free.  He was on his way to Iraq and I felt like helping him out.  You're going to tell me you wouldn't give an ederly person a break?  Bottom line is I'm going to make at least $100.00 an hour.  I personally don't negotiate much.  Why should I give a break to someone who wants to beat my price down?  And charge someone more who is a great person and doesn't beat me down in price.

 

Good points. Yes, I've even waived all charges for old folks and vets for the right circumstances. Also was one of the first for cleaning for heroes.

The actual amount you charge isn't what I'm talking about though. If your model supports $100 per hour and you can make that with no problem, awesome. My model works on around $200 an hour. As for negotiating, I refuse to lose a job over $25 or $50. I'd rather have the job for $160 an hour than $0 cause I know I'm still making money, just not as much as I'd like.

If you price at the bottom of your market and what your model will sustain and then your competition matches your prices to comepete with you, now you have nowhere to go and they can plan they're model around $75 an hour and you lose.

The good thing about your market is there isn't much competition which means you can set the standards.

Roof Cleaning Little Rock Arkansas wrote:

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Hell didnt I open up a can of worms....


Good posts Bill.

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Chris,
I got it on Talkshoe last week about this topic. I understand what the price fixing issue is but under the law, I only think a federal lawer or judge can answer this. The scope of RCIA members is limited and to outline laws and apply them to this would be in a sense acting as a legal consultant. So the best thing to do would be to actually consult one , but the problem is it would cause chaos because we are all in different states. Some laws are not recognized between states.
Kim R

Cited;http://business-law.freeadvice.com/trade_regulation/price_fixing.htm

Most state statutes provide that fixing the price of a product or service in agreement with another individual or business is illegal. The general rule provides that a vendor may not in combination with another vendor agree to set a certain price thereby creating a fixed price within a certain market. A business acting on its own and not in concert with another may use legitimate efforts to obtain the best price they can, including their ability to raise prices to the detriment of the general public. Also, conformity of prices within a given product is not illegal unless such conformity was created by a combination of vendors agreeing on a set price. For example, where competitors agree to sell their goods or services at a specified price, minimum price or maximum price and they receive profits from such an agreement, they are in violation of price fixing. Additionally, setting a price to be charged only within a certain area in order to get rid of competition or to create a monopoly is generally illegal under most state laws. A majority of states have also enacted a "Below-Sales-Cost" law wherein businesses may not sell goods below cost if they do so with anti-competitive intent or effect.

This information is only a brief summary of the extensive price fixing laws and regulations. For specific application of price fixing regulations, please consult with an attorney.

 

Marcus, this last week? NONE!! Lol. I've got quite a few lined up but with the rain and freezing weather and wind I've rescheduled everything till next week.things picked up for you?

We did our best january as well, but only by about a grand or so. This month is starting very nice with what we have booked, just gotta move this damn weather out. I have. Afeeling that once it warms, none of us will be able to keep up.

Best January ever here too..... Of course I sat on a couple of checks until the first of the year.


Its snowing again here. Im hoping this weather will break at the first of March with sunny 70 degree days.

Our website goes over pricing. There are some ballparks, and I hope that it sorta helps the customer. There is also a blurp on how we established the price structure.
http://ateampowerwashing.com/pricing/

AC Lockyer wrote:

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Back in the 90's Mallard Systems set a $400.00 min. It was the best thing we ever did! By 1998 we had a 65% closing ratio on average and a $470.00 average sale. In 1998 we did about 2 million in sales. By 2001 we did just short of 5 million.

When we relaunched Mallard, after getting it back from a company we sold the central florida market to, within 3 months we had a 80% closing ratio at an over $900.00 average sale. This was the fall of 2009.

We built our business model on being the most expensive company in our market. Florida the most competitive cleaning market in the world!!!!!!!!

Sometimes what seems right isnt right????

AC

-- Edited by AC Lockyer on Saturday 19th of February 2011 12:18:47 PM

 

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I LOVE that new Avatar!!!!! Here is what he looked like before, and there is also a picture of all the Mallard TRUCKS ! Actually AC, the picture of YOU blows up quite nicely, and we used to throw darts at it here at Apple Roof Cleaning, when you were our competitor, and before we made friends.