As most of you know I am a newbie here and this is just 1 of the 200 things I need to figure out before I can get started. I read a lot about this and looks like there isn't a simple answer to the question "How much should I charge". There are a variety of factors that play role. Bellow is a sample of something that I came up with last night. I think its pretty awesome but I will let the experts be the judges
Please let me know if this makes sense and any input you may have thanks
I swear it looks better on my Excel spread sheet and it does most of the math for me but here is the scenario:
Home roof size is 1217 square feet.
Base price for cleaning shingle roof is lets say 40 cents per square foot
From there I adjust the price as follows
-Color of roof is dark brown, I am assuming this makes it easier to clean so I choose to subtract 3 cents per square foot
-Condition - it is somewhat dirty but not too bad so I choose to add 2 cents
-Access - pretty easy access, 1 story building, not too steep roof, I choose -1 cent
-Landscaping - nothing crazy, just a couple of bushes and some grass, I won't make adjustments to the price
- Market/location - not a fancy neighborhood, not the ghetto either, I will do -2
- Other - this could include anything from the family does not have a lot of money and I want to give them a break to the bank who owns the property and wants to sell it is paying for the job. In this case the roof manufacturer is paying for the service so I will charge a little extra (+2)
So I have base price per square foot of 40 cents. So 40-3+2-1+0-2+2=38 cents per square foot
1217x0.38=462.46
SIZE:
1217
Base price per square foot in cents
40
Color: Darker<--------Medium-------->Brighter
-5-4-3-2-10+1+2+3+4+5
Condition:Clean<--------Medium----------->Dirty
-5-4-3-2-10+1+2+3+4+5
Access:Easy<------------Medium------------->Hard
-4-3-2 -10+1+2+3+4+5+6+7+8
Landscaping: Light<--------Medium-------->Heavy
-2-10 +1+2+3+4+5+6+7
Market: Lower<---------Middle--------->Upper
-4-3-2-10+1+2+3+4+5
Other:Low<-----------Medium------------>Up
-4-3-2-10+1+2 +3+4+5
Actual $ per square foot
38
Total:
$$$
462.46
-- Edited by vladimircvetkov on Tuesday 10th of September 2013 10:58:56 PM
-- Edited by vladimircvetkov on Tuesday 10th of September 2013 11:08:10 PM
If you can lay it out like that to the customer you'll be in good shape. Nothing stifles an overly-negotiative buyer like a good price list does. You can't argue with a price list because it's right there, in writing, and you can even claim you didn't write it, you're just "following the rules, doing your job!"
A dark roof doesnt exactly produce instant results, especially with moss. But I dont know if you get moss in your area because you didnt completely fill out your bio. With a name like that I'm assuming you live in Russia where a dirty roof is the least of you problems.
Vladimir, a good price list takes all the pressure off of you. You're just doing your job. Keep the price list prices a bit higher than your actual cost, this way you look like a hero when you negotiate 15% off the retail price.
My techs get 15% for upselling services. When a customer asks them to price something, they're instructed to put their phone to their ear and act like they're talking to management while seeming like they're negotiating the best deal for the customer. It takes all the heat off of them and puts it on management (who isn't even really on the phone). If customers think that you're the guy who makes the price or designed the price list, then you're the guy who gets a beat down from the cheap customers.
Plus, your price list algorithm hurts my eyes just enough to make me give up and buy your product.
The price algorithm would be for my personal use only. I don't think I want to tell the customer they live in a nicer neighborhood so they have to pay more. I want to use it for personal guidance. I want somewhat consistent pricing that gives me confidence and makes me feel good about it. We are in business to make money but I like to be able to sleep at night and not feel like a douche about it. If money is all I wanted I would keep my current job and be fine.
With that being said I understand that being profitable is the key to success, inflating the price and then offering them a discount is part of the game.
How do you figure out how much to charge?
We go by time. How long will it take and how much time does it leave me to reach my goal for the day. Time factors are landscape, accessibility, and overall novelty of the job. We have a high Asian demographic whom inherently seems to dig deeper than normal for price cuts. Feeling like you're getting a deal is all about your perception. Every company has their pricelist/retail price. To some, it's a fair price if you, the contractor, are losing money on the deal. It would be scandalous of you to turn a profit (in the eyes of a few).
Maybe I could make a price list that does not include the last two factors and up the base price per square foot and from there like you said, I can show it to The customer and tell them I'm just following the rules and then offer them 15% off and be the hero.
Also, if you like Russian girls you should come by Chicago, there is plenty of them and I have some phone numbers lol.
Andy, we have different minimums depending on location. Once in a while you get the little ole' lady with the 20 minute, $300 roof thats right around the corner. None the less, we also have a minimum cost for coming out.