Ya after working in auto manufacturing 10 years, I like the sound of that. we make 1500 cars a day
Comparing Walmart and power washing is apples and oranges. Yes Walmart has low prices and high volume but that’s because they sell products not services. They get products cheaper than mom and pop stores because they buy in huge volume and can sell the products cheaper and still make a profit. I guess you can sell your service cheaper and do more house to get more business. We all know everyone’s market is different. In my area I can charge more than the cheap guy and take his business and I often do. I just need to show potential customers I am more professional, better at cleaning houses, driveways, ext… than the cheaper guy.
Perception is reality.
Consumers perception is what all of this is catering to. Offering a low price is not directly the issue here. You are offering a basic service for a basic price. This is no different than say cars - you can get a base model vehicle far cheaper than if you opt for the back-up camera, heated seats, upgraded interior leather, etc. Same with food - Subway did very well with their $5 footlong price. Many in the industry thought they lost their minds and how could they stay in business. Here is how - The $5 footlong was on certain sandwiches not all. Then almost no one just buys a sandwich - they get chips, drink and maybe a cookie. But guess what? The PERCEPTION was that they where cheap for a $5 sandwich even though people usually paid $8.50-$9.00 when they cashed out.
Their is room in every market for every type of model. You can be the high-end model who sells less units and make profit or you can be the inexpensive model and sell more units and be profitable. The key component that needs to be focused on is not price, but value. Value is an equation that is determined by what do I get for the price I pay? For many, they equate value only to price. These folks would only pay $2 for a burger on the Value Menu and think it nuts to pay $10 for a burger. Well, those are two very different burgers. I personally would pay $10 all day long just for a burger as I understand the value of what it is - high quality meat, fresh baked bread, better toppings, etc all make for a better product that is a value at $10.
I just did a 2000 sq ft vinyl house yesterday and it took all of about 1 hour. Can I make a profit at $99? Sure - I only had about $5 in bleach, $6 max in gas for machine and $5 in gas to get to the job. If I did 8 of those a day at a gross profit of $83 per house that would produce $664 gross profit after job cost per day. If I worked 50 weeks a year at 5 days a week doing this I would generate $166,000 a year in gross profit. Now if I spend $50K a year in business cost (insurance, repairs and maintenance, marketing, etc) it is possible to make $100K a year in salary in this model.
I am not the $99 guy, but as you see, it can be very profitable being that guy, IF you are able to fill the schedule. It is not deceptive to be this model at all just like it is not deceptive to sell a base model car. You are selling a specific product for a specific price. If your customer wants add-ons or better service then naturally price will go up.
You can equally be the high-end guy who only does $350+ houses and make the same income. Albeit, you will deal with fewer clients. You will specialize in the higher end neighborhoods with more affluent customer base whose decisions while still have a basis in price are including other factors into the value equation.
I think at the end of the day, you have to make a personal decision of what model do you want to be and then execute that model with a vengeance.
Kinda not apples to oranges. There are a ton of guys on here with small 4 gpm and 5.5 gpm machines that take 1.5 or more hours to wash a house. Take that same house and put two 8 gpm machines on it and it can be done in 25 minutes, at a cheaper cost to the customer at the same or better quality work. All about what market you want to pursue. Bottom line, Jamie tried to slam another contractor again. The contactor he went after could swallow him up. Everything else is just doing what works for your system. Trying to badmouth another contractor or sleight him on the internet is petty, childish and has no place on this forum
That’s the real point. I learned long ago that people think the cheapest guy is the lowest quality. Will some still choose it? Yes. Will more choose a higher priced option because they perceive it as better quality? Yes! Combine that with better skills, customer service, etc. you have a home run hit! Numerous examples right here.
Never trashed talked about any contractor.
I posted cause, i came across FB with this.
I did not post the reviews he has from clients, cause that would be too long, and bashing.
The $99 guy around my area has no insurance nor is registered.
First time i see some big investment, truck and all.
Been an interesting thread, never thought it would be this popular.
Been very interested on how people responded.it seems to me everyone complains about the $99 guy, but once adding the volume factor, all changes.
I am with @Racer on this.
I set my prices, if you want it good, if not I walk.
But then again, I am lucky and blessed to be able to do so, after so many years.
I was never the $99 guy, when i started i always charged above $250, cause i could afford in turning clients down.
Like i tell clients, if you want a box of kellogs you can get them at walmart for a dollar less or go to HT/Publix and pay a dollar more for the same product.
Now if you want to buy a steak you decide weather you want a walmart cut or a HT/Publix piece
I sell a service not a product, and spend time with clients explaing the process and setting expectations.
The $99 guy gets on a ladder, wants screens removed, if yiu want them removed and installed is extra, no insurance, machine, and chemicals.
I dont charge extra for screens, no need to remove, etc.
Most, not all clients, want reasurance and piece of mind
Exactly…no comparison. Product VS Services. It’s an entirely different ball game with pricing strategy. Personally I’m a fan of less work and more $$ that’s just me lol. These super cheap guys are just hurting the industry.
That’s an opinion. It’s not correct, but that’s my opinion:)
The ones around my area do.
I was talking about them
To each his own. Your business,your pricing. I’m new to the industry and might have to tweak my pricing a bit as I figure out my market. I will say that a few homeowners have stated that I was right on with my pricing compared to previous power washers. I had a lady who said I was $100 higher than another estimate and I still got the job because I took the time to walk the house and ask questions and explain things. I told her if she wanted to go with the cheapest price, I understood but I don’t want to be the cheapest guy out there. She didn’t get a good feeling about the lower priced guy so I think my professionalism won out. I’d rather do two $400 homes per day than eight $100 homes.
Yes, a lot of people are like that, a lot of times one questions a low price.
A lot of people in expensive homes are pretty sophisticated buyers. They didn’t get where they are by being stupid. One of my largest regular customers actually thanked me when I gave her a quote for $650 to wash her home. She said the first two people people who gave her a quote were $200 and $250 and she knew it couldn’t be done like she wanted for that price. And she was right, I don’t care what kind of equipment they had.
Exactly. Price alone will tell the customer the cheapest guy is probably not a good value.
I just bought the domain name to
99dollarhousewash.com and two others like it
Ahhhhhh ahhhhhh lol.
Excuse my simple mind… but how do u go about buying domain names?
Google godaddy . Then type in what domain you want and it will tell you if it’s available.