Pricing

[J&JR]

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I am just starting and am finding it difficult to set my pricing. I dont want to use an hourly rate because I don't know how long things take. I don't want to be a lowballer because it doesn't help anyone. I have found some rates on the internet from a Texas website that seem reasonable but I'm still in the dark. Anyone have a good average rate scale for a major city like Atlanta and its suburbs?

Jim Rabey
Cleanly Done LLC

 

[grasshawg]

Jim,
Too many variables invloved to even try.
You can start by using the search feature at the top. This is an age old question. Tons of info in this BB on pricing. You didn't say what area you will be concentrating on: Fleets, houses, driveways, roofs, decks, etc. Get my drift? There are a few guys on here from your area. Maybe they'll see your post and help ya out. Mostly, its just trial and error. Depends largely on cost of living for your area, also.
As a general rule, figure out what kind of profit you would like to make & add your material cost. After a while, it'll start to come to you. You'll have to make some mistakes at first. That's the best way to learn.
I dont' run my machine for less than $50-75/hr. I don't charge by the hour though. That's just what it averages (sometimes more, sometimes less) after I get done with the job, get it?
Hope that little nugget of information helps you out. Good luck!
Randy

 

[johnmurrell]

how many $ ?

Hi Jim
Pricing is a balance between what the customer thinks it is worth, what you think you are worth, what it cost in materials to do the job and what it costs to run the business.
To get a feel for your market you could try asking friends/relations/neighbours if you can practice on their homes. Start by asking what they think the job is worth to them/ how much they would be prepared to pay, do the job and let them see how much work is really required to get the result they wanted. You can then ask yourself if that will cover expenses and put food on the table etc. As your technique, organisation and fitness improve the time required will decrease so don't worry too much about hourly rates yet.
Always remember that what you charge is not what you get! the business (or bank) takes the first cut for expenses.
You will make mistakes, so don't take it personally - just make the time to analyze what went wrong.
Enjoy it all.
John