Wayne Byers
New Member
- Dec 21, 2015
- 9
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- Real Name
- Wayne Byers
- Business Location
- United States
What Shane is showing is a margin and not a mark-up.One thing I don't understand is if the cost is $230, and the price is $575, that would be 150% markup, not 60%.
Cost - $230
Markup (Cost x 150%) - $345
Total - $575
Cost - $230
Markup (Cost x 60%) - $138
Total - $368
What part of FL did you move to from NY?Deron's Method of Determining Pricing;
Storm down to the local Chevrolet dealer and check prices on the newest supercharged Corvette and if single, calculate how much the best looking female is going to cost you to land in your bed (don't be a plunger head; it has nothing to do with love). Now, how much are you going to have to light up these cheap loafer customers in order to fulfill these needs of yours? This is what you charge.
Enough of the hocus pocus, Shane. Can't you see that these poor [email protected] need to get laid (except for Deron fans, of course). Have a heart, trooper.
I think because many new owners come on here looking to learn how to price their services. I have found that figuring out pricing is one of the most difficult aspects of running my business. I bet if you came up with a Pricing Spreadsheet exclusive for residential, there would be many on here that would buy it. I came up with my own, from your information, which I use daily. I can upload it, if it will help others.Dayuuum, never thought this thread would get this many views.
This is all cogs, no overhead ;Quit looking at overhead so much, COGS? sure. but never look at overhead when pricing goods. Take a good look at the market and try to hit top mark and push that until you get negative feedback. Also, run A/B testing have two different people give two different prices at the same time each day and see if the higher one gets push back. I think most business owners would be shocked at just how high they can push the price assuming they have a decent reputation and are knowledgeable on the phone.
Also, keep in mind that most of us are not our customer. Many of us do not have an extremely large amount of disposable income and to spend $3,400 on a rug cleaning (while it may be a kick in the pants) is not out of line.
Wow niceNO not based on what the idiot across the street charges...
Based on YOUR Cost Of Service and gross profit you want to achieve
Pay no attention to actual numbers, the formula is what is important
Cost Of Service- direct costs to physically clean a carpet
2000 sqr ft
Labor- moving at 350 sqr ft hour = 6 hours This includes everything
6 hours x $25 hour = $150
Labor- $150
Materials- 2/3 Gallon of prespray and misc spotters $30
Materials- $30
Equipment- truckmount costs $25k divided by 6000 hours= $4.20 hour
Maintenance $2k divided by 6000= .35
1.5 gallons gas per hour x 6000 hours= 9000 gallons x $3.50 gallon= $31500 / 6000 hours= $5.25
Round it up to $10 hour
Equipment- $10 hour x 4 hours running time = $40
Equipment= $40
Van- $20k divided by 100k miles = .20
$3k in maintenance / by 100k = .03
Gas- 100k miles / by 15 miles gallon = 6666 gallons x $3.50 gal= $23,333
$23333/ 100k miles = .23 mile
Total cost $.46 per mile
Total Cost= Labor $150 + detergents 30 + equipment 40 + 20 miles $9.2
$230 Cost
This is a 1x service, we really want a gross profit of 60% or more
$230 cost /divided by 40% {the cost % we want to be at} = $575
Price for 2000 sqr ft = $575
$575 divided by/ 2000 sqr ft = $.28 per sqr ft