One of the most crucial factors that determine the success of your pressure washing business is the prices you charge your clients. If you charge rates that are too high, you might find it difficult to find clients. At the same time, if your prices are too low, you may find it impossible to cover your costs and make a profit. Do your research and work out the rates you can charge your customers in the initial stages of starting your company. Many entrepreneurs make the mistake of charging low prices in the beginning. But, later, when you hike your rates, you stand to lose customers who have always expected to pay a certain charge. There are many factors to keep in mind when striking the perfect balance in your rates, hourly or by square foot. Here’s what they are:
Source of Your Contact Information
When you receive a call from a potential client, make sure you enquire about the source of your contact information. Ask if he got the number from a newspaper or internet ad or if he found your website online. He might have seen your truck about town or another client might have referred you to him. Many people also prefer to check the yellow pages of the phonebook to look for the services they need. Depending on the source, you can quote the rate. For instance, if he got your information from the yellow pages, remember that he is likely to check with your competing companies and go with the one that offers him the best deals. On the other hand, if he is contacting you because of a referral, you can quote the same rates that you charge your present customers.
Location – Urban or Rural
The location and area where your pressure cleaning company operates can also dictate the rates you charge. If you work in an urban area, you can choose to cater to a specific niche of the market such as homes or commercial establishments or even, vehicles only. By way of economies of scale and specialization, you might be able to offer prices that are more competitive to your clients. However, if you operate in a rural area, you might find that you need to diversify to capture a larger segment of the market and offer services that are more varied. Like for instance, you might have to offer cleaning services for farm buildings and implements, as well as, tractors and other machinery. Diversification needs you to have a larger amount of equipment and costs so you’ll need to work out your rates accordingly.
Study Your Competitors’ Jobs and Rates
When you hear of a competing company completing a pressure cleaning job, you could visit the site and check the kind of job done. Try and find out about the prices for the job that can help you estimate if the competing company has insurance and workmen’s compensation. You can also assess the kind of chemicals and detergents used and if you can provide better services at lower costs. Accordingly, when you need to fix your own rates, you can add the cost of these essentials. Let your customers know how important the service quality is when explaining the rates you charge.
Cost of Materials Used
Carefully estimate the inputs you’ll use to complete the job. This estimate should include the chemicals, cost of the fuel you’ll burn, and the price of any supplies that you’ll buy and use up specifically for this task. Make sure that you use enough materials to do a great job, but at the same time, take care to conserve and prevent wastage. Of course, you can keep the costs down by buying supplies in bulk from a single vendor and availing of discounts. You can transfer some of these savings to your customers and offer prices that are more competitive. Whether you’ve hired employees to work for you or if you’re working yourself, you need to factor in the hours you spend on the job. You must also factor in the cost of transportation to the worksite.
Area that Needs Cleaning
If the area under consideration is very large, you might want to offer a lower rate or the estimate could become too high to match your customer’s expectations and budget. When examining the house, yard, driveway, or surfaces you’ll clean, keep in mind the time it will take you to clear the area of furniture like garden chairs and tables, garden gnomes and other ornaments, flowerpots and planters, and so on.
Figure out the distance from the location you’ve parked your trailer because you’ll spend time loading and unloading supplies and carrying them to the worksite. Also, consider the kind of job to be undertaken. For instance, are you removing grime, mildew, paint, algae, and moss? Or, if you have to cover up fixtures to protect them from possible damage during the power cleaning. The surfaces you’ll power wash also count. A cleaning job for block paving is likely to take longer than cleaning concrete blocks. Further, cleaning a roof will entail setting up ladders, longer hoses, and so on.
Material to be Cleaned and Finishing Needed
The kind of surfaces you’re working on will dictate the kind of detergents and chemicals you need to use for a thorough cleaning. For instance, you could be working on concrete, cedar or composition roofs, mobile home roofs, single or multi-story buildings, stucco, painted surfaces, and others. Many surfaces need you to check the caulking so water and chemicals don’t seep in and cause damage. In addition, many clients might require finishing and sealing to prevent future damage. All these add-ons can raise the final charges.
Estimating an Hourly rate
If you’re considering working at an hourly rate, you can expect to charge between $40 and $60, but if you intend to provide environmental services, the rate could vary between $80 and $100 or more. When estimating the hourly rate you can charge, add up the costs of your business such as vehicle rent, insurance, gas and transportation costs, supplies, internet and phone bills, advertising, marketing, business premises rent, and so on. Also, add a reasonable profit you hope to make and divide by the hours you expect to work every week. The number you get should be your estimated per hour rate.
It is always advisable to take your time when working out the ideal rate to quote to your clients. You should also consider giving them a breakup of the costs and the profit you hope to make. Customers like to know that you have a concrete estimate of the expense and that you’re not just quoting a vague number. Using these pricing strategies, you should be able to run a profitable pressure cleaning business.
References:
1. “Mobile Power Wash Pricing Survey – Rates for Pressure Washing.” PowerWash .com. 31 May, 2011. Web. 10 Aug. 2016.
2. “Pressure Washing Pricing and Rates.” PressureNet .net. n.d. Web. 10 Aug. 2016.
3. “Fleet Washing Price Guide” Power Wash .com 9 June 2011. Web. 5 Aug. 2016.
4. Popovics, Victor Hayes. “How Much to Charge per Hour for Pressure Washing Work.” Ultimate Washer. N.d. Web. 5 Aug. 2016.
5. “Pricing up Work.” Pressure Washing Coach n.d. Web. 5 Aug. 2016.