ADN WINTER 2022_WEB

THE BUSINESS OF
DETAILING
Are your
prices right?
By Rob Schruefer
rob@onspotdetailing.com
How you price your service is always
a hot topic in the detailing world. There
are so many different detailing styles and
markets in the industry that there is a
place for everyone. I have seen this debate
play out in many forums and even in
person at industry events. There is always
someone who thinks they are a better detailer
or a better businessperson because
they have the highest prices.
The example I always use is to illustrate
this through the McDonalds and
Ruth’s Chris Steak House comparison.
They both obviously serve food to their
guests, but one does it at a significantly
higher price point. Even though McDonalds
sells food at a lower price, no one
would consider them unsuccessful or a
worse business than Ruth’s Chris, they
just cater to a different market.
Who are your customers?
The most important piece of pricing
your services is knowing your market. If
you live in a town with a lot of blue-collar,
working-class people, it will not make
sense to exclusively offer $5000 correction
and coating services on their super-fancy
car. Sure, there are some people that
could afford that, but would it be enough
to sustain your business year-round and
into the future? Instead, you have to create
services and prices that fit the market
and demographic in which you operate
your business.
Four important variables
I also hear a lot about what other people
in town are charging and worrying
about what others are doing. You should
not concern yourself with what others are
doing. What works is you creating your
prices based on the following four things”
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✔
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Product costs
Overhead (Rent, insurance,
utilities, etc.)
The amount of profit needed to
support yourself and your family
Labor costs (if you are going to
have employees)
If any one of these items is out of
alignment with your prices, your business
cannot and will not survive. Lowering
your price below the point of profitability
to compete with someone else does not
make financial sense.
The most important
variable of all
If it wasn’t difficult enough determining
your prices with the variables listed
above, we have not talked about the biggest
variable yet, and that is time. I am
talking the time is takes you to complete
the service as compared to the price that
you charge. I cannot even begin to tell you
how many times I have seen detailers talk
about the 24-hour correction they did on
a black vehicle. Yes, the vehicle looks absolutely
perfect, but if you were only paid
a few hundred dollars to complete it, you
probably made less than minimum wage.
If you are not charging enough for your
time, everything else is irrelevant.
Gauging how much your time is worth
is a tough question to answer. If you ask
a dozen people, you will probably get a
dozen different answers. No one can tell
you how much your time is worth, or
what your market can support. When I
try to calculate how much a job should
cost, I estimate how long it will take me
to complete it, and then put around $100
an hour on the service. This allows me
to cover all of the costs listed above and
gives a little bit of wiggle room if something
takes longer than anticipated. This
is by no means a definitive guide for all
detailers, only you can know your costs
and what you need to make per service,
but it is a helpful way for new detailers to
create a pricing plan.
Final piece of advice
The best advice I can give is to figure
out your numbers (costs) and work backwards
from there. Add all the costs up,
add your desired profit percent on top of
it, and there is your price for the service.
Also remember, the better service you
provide to your customers, the less the
price will even be a factor.
Rob Schruefer is the owner of On
The Spot Detailing out of Columbia,
Maryland. He proudly serves on the
board of the International Detailing Association
and works tirelessly to ensure
that detailing business owners receive
business development support to help
them achieve their goals.
18 | AUTO DETAILING NEWS | VOL. 7, NO. 4 • WINTER 2022