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Am I charging too much?

T

Tigerfan1980

New member
I am new in the industry and went around to about 20 service stations today doing bids for their parking lots. I have professional equipment, heat, and have a satisfaction gaurantee. I bid about $0.12 per sq. ft. and got NO commitment for jobs. It seems they all expect it to be done for about $.04 per sq. ft. I hope not to offend anyone by talking prices, but like I said, I am new to this and need help, PLEASE!!.

Thank you in advance for any and all replies.
Troy Schiell
Mobile Wash & Detail
Burleson, TX
 
Guy Blackmon

Guy Blackmon

New member
Hey Buddy!!!!

Troy sad fact is yes you're too high. From what I understand .05 to .08 per sq. is the Norm. I don't hunt flatwork but don't run from it either, my price is higher than .12.
 
Randy Borio

Randy Borio

New member
Troy, at those prices (.04) there isn't really any money to be made, especially if reclaim is involved. Your best bet is to EDUCATE the prospective customer. I fight the price issue all the time. Truth is sometimes it's cheaper to let the truck sit home for no money instead of going out and losing money. I also realize the truck sitting home is technically losing money also but you get the point.
 
T

Tigerfan1980

New member
Thank you guys fo the info, it's not the best neighborhood, so I'll try lowering a little bit to get some business, but not to the point of losing money. Thanks again
 
John Tornabene

John Tornabene

Member Guest
Tigerfan1980 said:
Thank you guys fo the info, it's not the best neighborhood, so I'll try lowering a little bit to get some business, but not to the point of losing money. Thanks again
Click to expand...

Hey Troy-- We chase flatwork and sometimes we do get more then 12 cents a sq' on very small commercial jobs and of course residential jobs. But generally we don't get even 6 cents a sq' and thats on flatwork jobs in the hundreds of thousands of sq'. BUT... on those jobs where there and not leaving so we can be very profitable for less then 6 cents a sq'.

As for Gas stations we don't do them mainly because of some serious reclaiming issues. But just guessing off the top of my head 4 cents a sq' seems way to low. This is where experience comes in. Yes I would say to try to educate your potential customer as to why you charge a higher price but most times we do that they say thank you.....and we DON"T get the work. So try this method. Look at these gas stations and figure how long they would take you and how much you need to be profitable and happy after you get paid. Factor in how much the job cost you to do such as paying any employees, Equipment expense such as gas, Income taxes at the end of the year etc. Also don't forget that your losing money traveling between jobs because all your doing there is paying for gas etc.

So take this example. Lets say you can do 5 gas stations a night for a gross profit of $1250. Now do all your deductions. So lets say your Net profit(Free and clear Money) is $700 a night.... Does that work for you?? Thats a different way at looking at some of these jobs but at times that is what I do and it has worked. Sitting home and making nothing is one thing because to go out for much of no "Net Money" by the end of the night is not worth it.... but what amount is it worth it?? Thats what you have to figure out so you can stay profitable and in business. Just a thought.

Good luck
 
Russ Spence

Russ Spence

Active member
John-Clean County PW said:
Hey Troy-- We chase flatwork and sometimes we do get more then 12 cents a sq' on very small commercial jobs and of course residential jobs. But generally we don't get even 6 cents a sq' and thats on flatwork jobs in the hundreds of thousands of sq'. BUT... on those jobs where there and not leaving so we can be very profitable for less then 6 cents a sq'.

As for Gas stations we don't do them mainly because of some serious reclaiming issues. But just guessing off the top of my head 4 cents a sq' seems way to low. This is where experience comes in. Yes I would say to try to educate your potential customer as to why you charge a higher price but most times we do that they say thank you.....and we DON"T get the work. So try this method. Look at these gas stations and figure how long they would take you and how much you need to be profitable and happy after you get paid. Factor in how much the job cost you to do such as paying any employees, Equipment expense such as gas, Income taxes at the end of the year etc. Also don't forget that your losing money traveling between jobs because all your doing there is paying for gas etc.

So take this example. Lets say you can do 5 gas stations a night for a gross profit of $1250. Now do all your deductions. So lets say your Net profit(Free and clear Money) is $700 a night.... Does that work for you?? Thats a different way at looking at some of these jobs but at times that is what I do and it has worked. Sitting home and making nothing is one thing because to go out for much of no "Net Money" by the end of the night is not worth it.... but what amount is it worth it?? Thats what you have to figure out so you can stay profitable and in business. Just a thought.

Good luck
Click to expand...

John T as they say on American Idol "Johnny is in it to win it!"

Thats is the BEST answer in months to a good question ......... I like it!!!!
 
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