So, kind of a 2 part question here.
I have a family friend who received an HOA letter wanting their home cleaned. It’s a 2 story house, with an odd shape. I asked a local company what they’d charge for it and the amount he told me is double what i’d charge, before any kind of discounting. How do I know if the other guy is charging too much, i’m charging too little or… I know it’s a loaded question with so many factors (i.e. location, time, skill, competitor rates) but could anyone help me?
If someone has a couple free minutes to help me with this id greatly appreciate it. I’d even venmo or something someone for some texts/phone call time.
I’m not saying this is the case, but…a lot of times your competition will try to exaggerate what they’re making on something to influence your thinking and your bidding. You should price it by what you feel you need to make after all expenses are covered. For some people that is far less than others.
I did some searching on pricing/quoting and see that response often…and I go back to “what if i’m leaving too much on the table” and a lot of people say if you’re covering your time/supplies and getting what you think you should be paid, you’re not leaving anything on the table… but let’s be honest. i’m not doing this as a hobbie lol. i would definitely love to be getting the most I can for my work.
I believe in providing satisfaction for the customer and them feeling like they got what they paid for… but am i missing out on $400 or is he exaggerating to make me overbid? I have no idea
Who cares what they are charging. You need to figure out what you need to make in the time it takes you to do the job. The rest will come with experience
There’s some pretty heavy oxidation on the hardi. I told the customer my honest opinion that I think they ultimately need to paint it, but I could get it cleaner than what it was. I feel confident that my quote is what is most fair for their situation and the results I could produce.
Another bit of good advice I’ve read in here is to look at your acceptance rate on bids. If you are getting every single bid you put out on legitimate qualified customers… well then you may be pricing to low. My father was a contractor and always said his aim was to price fairly, but he wanted the customer to have to stop and think for a minute when he heard the price lol. He’s done very well for himself so it may be good advice.
Here’s what I did when I started Christmas lights. I called four companies to quote my dad’s house which is a decent sized house. I looked over the quotes, details, determined my own price.
Another bit of advice: if everyone is telling you YES, your prices are too low. If 10 to 15% of people you send bids to are telling you NO you’re probably right where you need to be.
I have about a 90% acceptance rate on vinyl. I flat rate all vinyl sided homes. A lot of folks know what they are going to pay before they even call. So I may only have a 30% rate because 70% never call.
Concrete work I have about a 50% rate and I’m fine with that! I’d rather go wash 3 houses than do a driveway.
When you say you have a flat vinyl rate how did you come up with it? Are you talking a flat rate per sq ft, or more, your house is vinyl that will be X irregardless if it be 1000sqft or 2500sqft.
No sir. I flat rate any single story and any 2 story. I know how long it takes me on average to do a unit. Sometimes it may take 10-20 minutes longer. But most of the time I beat my goal for hourly income by 20-30%… my hourly for one man (me) and a truck is $200 an hour.
Wow, 90%. Mine is closer to 30%. Customers here either “do it themselves” or some dude comes out with a wand and charges $120 for a whole house and driveway…and they are perfectly happy with the service despite the tiger stripes on the concrete.
Gotcha! Thanks for the info. Sounds like a great way to cut down on time. Even if you do have the occasional larger home everything still averages out.
