I wont be a LOWBALLER

john neilson

Roundtable Host 2009
I have recently relocated to Florida and I am a greaser. This whole pricing thing is just nuts. Are there are so many " splash and dash " guys around or do the businesses just not care? I have examined my bottom line and I am at a loss here. The following seems to be the going rate, <!--[if gte mso 9]><xml> <o:OfficeDocumentSettings> <o:RelyOnVML/> <o:AllowPNG/> </o:OfficeDocumentSettings> </xml><![endif]--> [FONT=&quot]# of Filters/ Price
2-6 ----- 150-250
6-10 ---- 250-325
10-15 -- 325-395
15-up -- 395-up

I found this on line. I'm at a loss here for pricing. I bid a pizza place at $338.00 for an 8 ft. stainless hood. 1 fan , straight shot to roof.
The owner just about choked on the quote. Am I pricing too high?

[/FONT]


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I have recently relocated to Florida and I am a greaser. This whole pricing thing is just nuts. Are there are so many " splash and dash " guys around or do the businesses just not care? I have examined my bottom line and I am at a loss here. The following seems to be the going rate, <!--[if gte mso 9]><xml> <o:OfficeDocumentSettings> <o:RelyOnVML/> <o:AllowPNG/> </o:OfficeDocumentSettings> </xml><![endif]--> [FONT=&quot]# of Filters/ Price
2-6 ----- 150-250
6-10 ---- 250-325
10-15 -- 325-395
15-up -- 395-up

I found this on line. I'm at a loss here for pricing. I bid a pizza place at $338.00 for an 8 ft. stainless hood. 1 fan , straight shot to roof.
The owner just about choked on the quote. Am I pricing too high?

[/FONT]


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I don't do KEC, so I'm not sure about those prices, but welcome to Florida! I get laughed at, yelled at, cussed out, or hung up on, and treated like a crook, on a pretty regular basis when I quote prices.
 
Yeah I'm a rookie at when it comes to pricing still (lack of experience on this) ... so far I pretty much take Square Foot and times that by .10cents to get an idea of pricing and then factor my expense (fuel) and try to get my estimated price. I had a friend of mine wanting me to do her driveway (single car - town home) ... I quoted her $60 for driveway, sidewalk and entire front of town home ... well let's just say I got the whole "I call you in the summer when I'm interested in doing it" (polite way I guess of say "No"). I don't want for folks to feel that I'm over pricing but I too need to turn around some profit (or at least break even when it comes to family and friends). The way I see it if they can afford to keep the rest of their property operational (lawn, A/C, etc.) then they should not mind having to pay my asking price for professional work. Guess we'll see what happens when summer comes along.

btw ... hope you enjoy your stay in FL ... best of luck to you in moving and operating your business there too.
 
There are a lot of things people forget when they ask for pricing of a job. Many times they think that all we do is sit and make money. They forget there are expenses such as trucks, insurance, equipment, chemicals, workmens compensation, supplies and on and on. So, they are looking at $60 for a driveway, and thinking, he isn't going to be here more then a half hour, when in reality, it might be an hour job, plus driving to and from, prepping equipment and supplies, etc. If it is a small job, and it is the only job you are doing that day, it might take a half hour of prep, and another half hour of drive time. So now you are two hours into the job.
After that, you can figure some type of equipment time. I figure about $20 a machine hour. Some cost more, some cost less. I could go on and on, but eventually, at $60 for a driveway, you are losing money. Big money. I would rather stay home then pay to do a job. I will go broke a lot slower if I do.
 
Just had a similar conversation at lunch with my brother, mother and former wife (yes, we're still friends). The topic was 'generating more business', but the sub topic of "low ballers" kept creeping in to the conversation. I offered to wash my former wife's house for cost of materials, just to be able to leave my sign in her yard for a while to generate new leads... she turned me down. I later offered to do any one of her neighbor's driveway for free for the same reason, but nothing ever came of that. Today I find out why. Her new neighbor does house washing on the side for $75. She mentioned he does several of the neighbors around her as well. He works for UPS full time and does pressure washing on the side. How am I going to compete against that?

I don't want to be a 'low baller' either, but these guys can do serious damage to the profession. One of the primary talking points was price vs quality. People in my area are concerned with price, not quality. Even some one doing a really bad job can manage to make a dirty house look clean. If they really screw up and the homeowner goes after them legally and wins doesn't mean much when they're so many more 'low ballers' in the area.

The only thing I can think to do is to specialize in something the average 'low baller' won't or can do.
 
Fuel, depreciation, maintenance and repairs.
 
There are a lot of things people forget when they ask for pricing of a job. Many times they think that all we do is sit and make money. They forget there are expenses such as trucks, insurance, equipment, chemicals, workmens compensation, supplies and on and on. So, they are looking at $60 for a driveway, and thinking, he isn't going to be here more then a half hour, when in reality, it might be an hour job, plus driving to and from, prepping equipment and supplies, etc. If it is a small job, and it is the only job you are doing that day, it might take a half hour of prep, and another half hour of drive time. So now you are two hours into the job.
After that, you can figure some type of equipment time. I figure about $20 a machine hour. Some cost more, some cost less. I could go on and on, but eventually, at $60 for a driveway, you are losing money. Big money. I would rather stay home then pay to do a job. I will go broke a lot slower if I do.

I love the ones that want a " cash " price. If you don't want an invoice, your not getting my inspection report nor a sticker. Cash, Check, its all the same.
 
Where at in Florida are you?
I Saw a invoice today for a 15 store contract, 2 fans for a popular franchise. They are on a 6 months also they all have greaselock system, need lease cleaning with this system. Greaselock.com
 
I have recently relocated to Florida and I am a greaser. This whole pricing thing is just nuts. Are there are so many " splash and dash " guys around or do the businesses just not care? I have examined my bottom line and I am at a loss here. The following seems to be the going rate, # of Filters/ Price
2-6 ----- 150-250
6-10 ---- 250-325
10-15 -- 325-395
15-up -- 395-up
I found this on line. I'm at a loss here for pricing. I bid a pizza place at $338.00 for an 8 ft. stainless hood. 1 fan , straight shot to roof.
The owner just about choked on the quote. Am I pricing too high?

I can't help you about proper pricing where you're located since I'm in Canada but if I had to do KEC for that kind of prices I would simply shut down my business and go back working in an office like I used to do...

My rate for an 8 ft. hoods, a vertical run to the top and a fan is 375$ and by the way I don't leave the office for less than that... Please remind me if one day I move to Florida to think of another was to make a living... ;)
 
I can't help you about proper pricing where you're located since I'm in Canada but if I had to do KEC for that kind of prices I would simply shut down my business and go back working in an office like I used to do...

My rate for an 8 ft. hoods, a vertical run to the top and a fan is 375$ and by the way I don't leave the office for less than that... Please remind me if one day I move to Florida to think of another was to make a living... ;)
My prices prior to the move were similar to yours. I also do carpet cleaning for the restaurants. I can offer deals for both services, But I wont work for free.
 
Heads up John, there is a company on this forum called Splash & Dash
 
You know I have had that business name for more years than most of the people that use it derogatory have been in business. All my customers love the name never had anyone dislike it. So it doesn't bother me at all, I will buy the high and mightys equipment when they cant make their payments because they wont work for under 200 an hour.
 
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