Delco price list hurting the industry,

gks72 said:
I think the thing most people aren't understanding with the purpose of "having a price list" is than ALL major industries have a book that standardizes pricing jobs.

Go into a bookstore and you can see the National Construction Estimator book and in the back it has Plumbing, Electrical, HVAC and Painting books available. I know there is even one for people with sign businesses.

How you adjust your prices from there is your business. Yeah, those prices on the Delco list are 'out of touch' with today's business model.
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I agree 100%. I just need help adjusting to to today's business model.
 
Ron Musgraves said:
its been there and its staying, so why not make it right.
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I do not even agree with it being in existence, because there are too many variables involved. Numbers that work in one area wont necessarily work in another area. Numbers that work for smaller jobs wont necessarily work for larger jobs. That is why I don't see how a GOOD list could be compiled, without it being a multi-page document outlining all the different scenarios.
 
BUNN said:
I do not even agree with it being in existence, because there are too many variables involved. Numbers that work in one area wont necessarily work in another area. Numbers that work for smaller jobs wont necessarily work for larger jobs. That is why I don't see how a GOOD list could be compiled, without it being a multi-page document outlining all the different scenarios.
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We are not arguing right or wrong. Just trying to make this list better.
 
Robert Hinderliter said:
I agree 100%. I just need help adjusting to to today's business model.
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Someone posted a comment about it being a 'baseline' which in all reality if you deduct all your expenses and some have way higher expenses its not a bad list to use as number for profit to acheive. Two and three million dollar in liability insurance may cost Jeff less than it does me. But if you expect to be around for
the next couple years you can't bid that way.

Unfortunately many people who just lost their jobs google on a whim and find this opportunity and in turn frustrate those that have been doing it for years.
 
Don M. said:
Looks like Scrappy might get some competition. LOL
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No chance, no one is making that in KY...

that was my point, nice place to live but i dont beleive anyone could make those numbers.

125 per hour is correct. I dont care where you live or the demographics.


Its the US, unless your in select areas like Beverly hills or manhatten. The price across the board will be close in the commercial world.
 
Ashley Phillips said:
What about regional price list?
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The only thing thats going to vary are your expenses. The prices accross the board for commercial will be very close.

the delco list is just a baseline, no one should use it as a model.
 
Ron Musgraves said:
The only thing thats going to vary are your expenses. The prices accross the board for commercial will be very close.

the delco list is just a baseline, no one should use it as a model.
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I think this is true. The only time it's going to be a big difference is in a few small areas with very high cost of doing business (like where I live!).
 
Ron Musgraves said:
Lets do a roundtable in your town?
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Sounds good to me, we'll call it the most expensive roundtable ever! I looked into flying to the Phoenix roundtable, and all the tickets were over $700.00.
 
Here is my input . . . Take it for what's worth . . . THESE ARE MY ACTUAL PRICES!!!!

Average 2,000 sq. ft. roof takes 2 hours. Minimum Charge $150.00
Flat - $341.00 Medium - $429.00 Steep - $553.50

House Washing:

Method #1. $95.00 to $295.00 or 10 cents/Sq. Ft. for single story and 20 cents/Sq. Ft. for double story. (Note: Vinyl Sided Homes go for as little as $39.95)This needs to be removed!!!1 I don't care if people are doing them that cheap there is no way you can make money at that price!!!

Method #2. $0.50 to $2.00 per linear foot for single story homes. About $1.00 average.
$2.00 per linear foot for double story homes.
Note: Pricing by the linear foot is a more accurate way of pricing than by the square foot.

Method #3. $70.00 for a single story and $100.00 for a double story house.THIS IS ABSURD

Method #4:
Single Story 1,500 to 2,000 sq. ft. - $150.00
2,000 to 2,500 sq. ft. - $200.00
Any two story - $250.00

I offer three house wash packages my avg. prices for a single story 2500 sq ft home are
Silver - $ 344
Gold - $436.00
Platinum - $596.40

Two story is
Silver - $395
Gold - $502
Platinum - $685

Maybe this will help since ever one is so set one keeping this around
 
Pricing is a touchy subject for contractors regardless of the industry. An entire price list should contain one sentence for every field. "Charge as much as you need to be profitable and grow your business."

There is no more a "going rate" for a house wash as there is a "going rate" for an automobile. A car is a car, right? Gets you from A to B. Yet, you can purchase a Nissan Altima for $22,000 or shell out $350,000 for a Maybach or Bentley. The difference in price is in the journey.

Every PW company offers a different level of service and interaction. In residential work people aren't paying for a pressure washing job, they are paying for peace of mind. The same holds true for commercial work except there is a lower ceiling on what you can charge. I can get $.20 for commercial concrete on a one time clean. I have gone as low as $.07 for 50,000 s/f of sidewalk. Those are the numbers I need. Some may need more, some may accept less.

Robert has acknowleged the list is out of date. Let's help him update it.
 
Ken, I think you hit the nail on the head... there are so many different factors that affect how each contractor will attach a price to their service.

... guys, just research pricing strategies and you will discover so many methods/techniques/studies that back up multiple models or base lines that work. But, in my opinion, it is how you apply your pricing strategy that really matters.

To be honest, and I'm sure many will share this sentiment, I couldn't really care less if there is an industry price list floating about. Let's face it, there is a lot more to our business than pricing alone - many who have commented on this thread have posted along the lines of their selling of an 'experience' and 'value-adding'. This shows a more developed understanding of their target markets, business model and application of pricing strategies - does an 'industry price list' really affect you in a big way?! It is this developed understanding that separates you from the guy who is just applying what he reads/hears from others/seen someone else doing - so many internal and external factors affecting our businesses that it is difficult to replicate what others are doing in terms of pricing, strategy, promotions, etc.

I know many are guarded about their USP's and strategy (and rightly so), but there are many 'newbies' who would benefit from a little direction - if this price list does this - GREAT!

HOWEVER...

As we all know, this price list cannot be comprehensive and truly reflective of pricing. In simple terms, what some of the guys up north get for their residential services, would be unheard of (99% of the time) in Florida... and likewise, a contractor charging 'pennies' for their service 'just to get work' will soon realize that their business model cannot be sustained. This is in line with what Ken is saying... 'Charge as much as you need to be profitable and grow your business'.

In conversations with guys in this industry and in other contracting industries, the concensus has always been that they charge what they need to charge.

If you need an overview of some pricing principles read all of this link:

PRICING STRATEGY

... EDUCATION NEVER STOPS!! :D :D
 
I have a question , How much was fuel, and chemical when that price list was made up ?
 
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