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Run rates

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Run rates

Postby G3valeting » Sat Mar 22, 2014 11:21 pm

I thought it high time we discussed this topic , for those of you thinking i am showing off nothing could be further from the truth it's about trying to help others and get this profession as this is what it is and we are professionals after all's said and done ,and as such earning as much as we can is a given in my book .. When you consider our quite serious investment in tools for the job vans, machine polishers , pdg's chemicals etc we should as a profession be charging professional prices not £5 washes and full valets for £30 hence my post .
I understand location as an issue some parts of the country are not having it as good as others and as such prices differ but as a collective we should have a standard national pricing of around the same ball park figure imo .
For example my cheapest full valet ie bronze exterior foam -wash/dry- de-tar-ipa wipedown -wax wheels cleaned -glass cleaned -tyres dressed takes around an hr an ten minutes less if spray sealant -price medium car focus size £55 so by the time i take fuel ,chems , travel time to job tax etc i'm left with around £32 ph which is quite good on other jobs this can drop to around £23 ph still not bad but not something i feel happy about.
If for instance correction work this averages out at around £25 simply because the customer will not pay £35 ph if i can earn £250 a day i am over the moon (rare) .

My point also is this i started out in the beginning doing cheap valets to bring the work in (mistake) as you tend to get skips (zafiras) that take 6 hrs for £50 no money earnt after tax chems travel etc that tag is harder to shake than you think , you risk losing regs because at the start you were cheap then you hike up your prices to keep up with the dw flash harry earning £300 a day detailing bentleys an veyrons and you want some of that action but you cant because although your prices have gone up you get calls enquiring how much your full valet is and you don't want to lose the job so you do it a bit cheaper to gain the job , then you have a fractured pricing system . Not a good idea .

The other problem is travel or weather time , this knocks your run rate down quick as because you do your first job and its a 20 minute dash to your next job traffic jam ahead so you wait eating into your money earning time you arrive start the job and it chucks it down for 20 mins again making you later so making you late for your next job ,or a job you bargained taking 1 hr becomes 2 etc .
if your chucking out £5 washes or £12 wash vacs you've earnt sod all , the higher run rate absorbs some of this and does not make you feel like your chasing your arris for nothing.
Which takes me back to my first point professional business professional money.. All these things have to be taken into account when operating a business anything less than £20 per hour is a waste of time imo as after tax ni advertising etc your earning around £9-11 an hr if your lucky and will never survive..
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Re: Run rates

Postby Spic & Spanners Valeting » Sun Mar 23, 2014 12:26 am

Interesting topic Garry. I too aim for the £25 per hour mark. An average full day valeting may be 3 to 5 cars, ranging from full valets to mini/maintenance valets. But.... After taking into account set up / pack up time, travel time and the odd chatty punter I'm left with around 5 to 6 hrs actual paid working time. (£125 - £150) Not too bad eh? Not really. Then you take into account the running costs mentioned above by Garry and you soon realise that your mates working at Tesco aren't that far behind you, and they work rain or shine, and get paid holidays, and sick pay, and..... What the fook are we working for ourselves for?... lol. This is where clever bookkeeping matters. There are allot of things that we can offset against our Tax bill, like use of home office for example. % of heating, % of water, phone, internet etc..... This is where the deficit can be clawed back. It really isn't the gravy train allot of people think. However, you do get some really good days.
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Re: Run rates

Postby DMD Detailing » Sun Mar 23, 2014 10:06 am

Interesting indeed, I think some of the guys that have just started out should be reading this post, I myself made the mistake when I setup offering cheaper prices but quickly worked out that its not paying the wages :cry: . I have now changed my prices to make a better profit but still offer an affordable service. I have also changed my prices to reflect where I am based and surrounding areas.

Its trying to find that balance that covers your run rates, gains profit and is an affordable services for the customers in your area, for example I would not get away with offering a £40 wash, but I know others claim they do, and that goes for £5 for a mobile valeting service Wash, now thats not going to pay but their is someone local to me offering this service #Idiot.
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Re: Run rates

Postby Shine My Ride » Sun Mar 23, 2014 4:39 pm

An awesome post, if I may say.

I too think £25/hour is what we should be aiming for as an average.

I set up in August 2011. When I set my prices, I matched a local competitor that, in my opinion, was at the quality I was looking at. After a year, I came to the conclusion that £65 for a 4-5 hour valet was pointless, and I was booked a few days ahead. I then hooked up with Dave (in a non-sexual way Mark) and his expertise, combined with a rejig of the prices, it has got busier and busier. For much of 2013 I was booking four weeks ahead.

As has been said, this is a professional business, not a hand car wash, so lets price it accordingly
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Re: Run rates

Postby Car_clean » Sun Mar 23, 2014 10:48 pm

Spot on mate.

The thing I hate is feeling you have to justify your prices to some people. I can get it done for 'X amount' down the road blah blah. I'm not a scout on bob-a-job!
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Re: Run rates

Postby kev1789 » Thu May 08, 2014 7:46 pm

A statement I like to use is "you would pay more for a nice piece of steak cooked by Gordon Ramsey than you would for a kebab from the local pizza shop! That's the difference".

I often feel like I should charge more but fear out pricing myself.




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Re: Run rates

Postby Spic & Spanners Valeting » Fri May 09, 2014 5:46 am

kev1789 wrote:A statement I like to use is "you would pay more for a nice piece of steak cooked by Gordon Ramsey than you would for a kebab from the local pizza shop! That's the difference".


LOL... I use tesco value bread Vs warburtons. Both can make a sandwich, but one will be better... lol
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Re: Run rates

Postby G3valeting » Fri May 09, 2014 7:36 am

Nothing wrong with earning what you are worth, as i have said many times it is a professional service you are offering with various stages of cleaning/decon/paint rectification and as such demands pricing accordingly, the problems lie in many forms area demographics and customers perception of value for money which is linked again to pricing (of which i shall make another thread later) plus a few more .
As has been stated many times the person who is a) either looking to get his car cleaned for as cheap as,isn't likely to use our services and never will if they do you usually get the extremely rude imo "i could get this done for £4 by the poles" etc so for a start your not putting those types in your must have client list. So going cheap isn't the answer or you'll be chasing your harris for evermore for £30 a day .
Customers must realise that a) they are phoning you b) you are offering a service whereby you go to them at place of work or home, chemicals invested in fuel tax insurance living costs food etc so you price accordingly £25 per hr is the minimum you should be charging and not shy away from, most people understand this the ones that either don't or refuse to are not the customers you should have on board imo.
Aim for a certain clientele and go get em again another post which i shall add later .


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Re: Run rates

Postby in the details » Sun Sep 28, 2014 1:10 pm

Interesting read through all of this but one question is anyone working from premises?

For me personally i am but my unit is only big enough for two cars basically a big double garage but i love the properties its brought me.working as long as late as i want with no worries of weather rates and everything being included is great but ive done the thing of having the business with both sides two it run of the mill valeting services at similar costs to local competitors but also offering the detailing services at my usual costs for machine polishing etc and i tend to find its working for me but i imply detailing techniques to all sides of the business with all my safe methods no matter what the service but ive found marketing both sides to the business keeps me busy with people who want mini valets etc while i can book for days ahead for machine polishing etc
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Re: Run rates

Postby kev1789 » Wed Oct 01, 2014 8:20 pm

Which do you find you are busier with? The valets or the details? The thing with valets is a massive percentage of the public just take their car to the hand car wash for a cheap spruce up and don't care how rough the finish is because they only pay £3.00. But people who want a "detail " are already aware of what a detail actually is so imo they don't take them to the hand car wash meaning that potentially 100% of them appreciate the price is going to be significantly higher. ( maybe that's because hand car washes only offer mini and full valets and don't YET offer details )




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