Low Balled? or just luck in the past

[Douglas Hicks]

A common figure I hear is if you get more than 80% of hte jobs you estimate, you are too cheap. It sounds as if you know your costs, I'll bet the low-bllers do not. And how many of the low-bllers will be in business next year? At the end of 5 years, 95% of the new start ups are gone. Keep your prices up, some of those who chose the cheap guy will be back. When they come back, make an adjustment. Or, take great pleasure in telling them, "I am sorry, we have already filled that time slot. It will be a couple of months before we can schedule your job."

[Guy B]

A common figure I hear is if you get more than 80% of hte jobs you estimate, you are too cheap. It sounds as if you know your costs, I'll bet the low-bllers do not. And how many of the low-bllers will be in business next year? At the end of 5 years, 95% of the new start ups are gone. Keep your prices up, some of those who chose the cheap guy will be back. When they come back, make an adjustment. Or, take great pleasure in telling them, "I am sorry, we have already filled that time slot. It will be a couple of months before we can schedule your job."

Great Post Doug, And Very, Very True!!!!!

Again, If you're a "1 Man-1 Unit Show" you will not be able to compete with Companies with, multiple employees, multiple rigs, and make a reasonable profit, there's just no way. I found this to be true in my case, when I first started. If you're going after condos, apartments and large Communities you must have 2 or 3 (Or More) high volume (GPM) pressure washers, to get the job done faster. That will enable you to be more competitive on your price, get the job done quicker and still turn a pretty good profit.

Even if you do this you still may not get some jobs, Nature Of The Beast.

[centexpw]

Very true Doug. I would guess, out of business in 2 years. But there is always another startup to take their place. Knowing your costs is incredibly important. The only one who wins is the buyer in a lowball situation. And that isnt always true. People will accept low quality for low prices for a while. Mr Lowball finally realizes he cant work that cheap and fails. Mr Buyer is dis satisfied in Mr Lowballs work and get no satisfaction.

[Tim Fields]

The only one who wins is the buyer in a lowball situation. And that isnt always true. People will accept low quality for low prices for a while. Mr Lowball finally realizes he cant work that cheap and fails. Mr Buyer is dis satisfied in Mr Lowballs work and get no satisfaction.

Very true Michael. That is why if questioned about prices, I always find a way to work in the "gotta charge enough to do it right". Some get it, some don't, and sometimes, I'm just too high.

[JL Pressure]

Very true Michael. That is why if questioned about prices, I always find a way to work in the "gotta charge enough to do it right". Some get it, some don't, and sometimes, I'm just too high.

If you're to high to do sales I suggest you stop smoking pot LOL

I like that line, gotta charge enough to do it right

[highland]

Thanks guys, a lot of good info here. I am a 2 person 2 unit setup at this time. I can see where having more people and units would allow me to lower my price some------but not that low.

[Carolina ProWash]

Dave, the Carolinas (especially NC) are seriously the hatchery for newbies..and a few old die hards that just won't come around to the 21st century either...just keep your contacts - good chance they'll be back to you. Far too many haven't grasped what it costs to be in business so they're not around long. Other companies seek to grow to multiple crews (more than 2-3) and MAY be more efficient. At the end of the day, the customers that you want to keep are the ones that are keeping you regardless - not because of your size or price, but because you deliver what they NEED.

[JL Pressure]

Dave, the Carolinas (especially NC) are seriously the hatchery for newbies..and a few old die hards that just won't come around to the 21st century either...just keep your contacts - good chance they'll be back to you. Far too many haven't grasped what it costs to be in business so they're not around long. Other companies seek to grow to multiple crews (more than 2-3) and MAY be more efficient. At the end of the day, the customers that you want to keep are the ones that are keeping you regardless - not because of your size or price, but because you deliver what they NEED.

What she said.

Dave you are right, not that low for sure. $.05 on sidewalks you arent making money, sidewalks are to spread out, to many moves and obstacles, I dont care how many crews you have $.05 is to low to make anything but pennies

I can tell you, we often will work on a property for 3, 4 5 years in a row and all of a sudden they go with someone else because of LOW price, I would say I get half of them back within a year or two

[Isaac B]

Good thread, just reminded me to follow up on a few properties I lost out on. Good news tho, Budget Time in near!