pricing advice?

jonajona Posts: 89Member
So being new to this trade. Not ready yet to starting selling still practicing and learning.im wanting to have some more experience before making a name of myself. But still have the curiosity of whats the best way to price things. I know i need to take in consideration the materials and my time but how do you figure it out. Thanks in advance

Comments

  • MidOhioHydrographicsMidOhioHydrographics Posts: 9,444Member, Moderator, Business Ninja El Moderator
    I've heard $20 min charge, and $.50 per square inch as a general rule. But you have to feel out the market. You may end up at $15 minimum charge. Do some searches online to see what others are charging for certain items and it will give you an idea.
  • Sac_HydroSac_Hydro Posts: 1,050Member ✭✭✭✭

    Do some searches online to see what others are charging for certain items and it will give you an idea.

    I agree! When I first started out I think I googled "hydrographic price list" and printed out 10 different ones, then took the similar items and did an average. It gave me a good idea where to start on common items. You will start to get a "feel" for pricing once you get down and dirty on some customer pay jobs. I was never a fan of the "per square inch" method, as there are so many other variables besides size. Yeah I know "size matters" but I guarantee I can give you two different 40 square inch Items that one may take 4 or 5 times as long to process through your shop than the other.
    Also things are different (for a new guy) depending on whether you are an actual shop with a store front, or doing it at home. I think people seeing you in a shop adds credibility. Even though you could be a garage dipper that may be more experienced and do a better job than "Harry's Hydrographics", with his 4,000 square foot shop and $10,000 paint booth, more times than not, he will be able to get more for a lesser job. Repeat & word of mouth customers would be a different story, but when you are just starting out its tough..

    Back in the day when I trained with Yoda he had a rule "I don't stick my hand in the tank for less than $15". Although I don't look at it that way, its one of his philosophies that is always in the back of my head when I price things. BTW I think he is up to $25 now, but that's what fame and fortune does for ya!
  • TsunamiTsunami Posts: 4,952Member, Business Ninja ✭✭✭✭✭
    In production you can expect those minimum prices, but individual minimum $50.00 to touch anything I think is fair and so do my customers.
  • Sac_HydroSac_Hydro Posts: 1,050Member ✭✭✭✭
    edited October 2014
    Tsunami said:

    In production you can expect those minimum prices, but individual minimum $50.00 to touch anything I think is fair and so do my customers.

    Yeah I guess I didn't do a very good job of explaining that part.
    What I meant by the $15 - $25 thing is, when you are looking at multiple items or production jobs, think about the dipping process while doing your estimate. Example A guy brings you some dash pieces 3 are good size, 1 is a 2" small bezel and 4 are tiny screw covers, Picture a way to dip multiple things together on a jig, but get a minimum for each dip no matter what..

    Our Minimum for a customer transaction is also $50. Anything less, the time spent talking to the customer and the transaction time isn't worth it, no matter how small the project is..
  • TsunamiTsunami Posts: 4,952Member, Business Ninja ✭✭✭✭✭
    Sac_Hydro said:

    Tsunami said:

    In production you can expect those minimum prices, but individual minimum $50.00 to touch anything I think is fair and so do my customers.

    Yeah I guess I didn't do a very good job of explaining that part.
    What I meant by the $15 - $25 thing is, when you are looking at multiple items or production jobs, think about the dipping process while doing your estimate. Example A guy brings you some dash pieces 3 are good size, 1 is a 2" small bezel and 4 are tiny screw covers, Picture a way to dip multiple things together on a jig, but get a minimum for each dip no matter what..

    Our Minimum for a customer transaction is also $50. Anything less, the time spent talking to the customer and the transaction time isn't worth it, no matter how small the project is..
    I understood completely what you were saying Joe. Just making sure others that might not of had the pleasure of Jim's training class didn't misunderstand.
  • jonajona Posts: 89Member
    Thanks for everyones input. I know it will take me a while to get the feel for the pricing. Im also curios how other people sum up their cost and how much to add on materials and labor and things like that. I really dont understand that method of per square inch.
  • K2ConceptsK2Concepts Posts: 13,380Administrator El Jefe
    @Sac_Hydro‌ Yes Joe, we have a much better way of explaining it in our class materials now...wish you were in the area sometime so we could go over it...it makes much better sense and even goes right along with your "jigging" idea...

    @jona‌ pricing per square inch is just that...measure the length of the part x the width of the part and then multiply the answer times what ever price per square inch you decide on...

    Example" a part that is 20" long by 8" wide? 20 x 8 = 160 square inches. 160 square inches x .50 cents a square inch = $80

    And there ya go...I tell everyone that it's a rough estimate and for a firm price? Bring in the part. But it keeps you off the phone and you don't have to come up with a price list for every single part on every single model of every single car of every single manufacturer...which would be impossible...

    It also keeps your pricing off the street or the internet so some dummy doesn't come along and just copy it and drop it by 50% just to start his business right next to yours...
  • jonajona Posts: 89Member
    Thabks jim. Makes sense now. I just wanted and idea and see how the pros are doing it. Now at 50 cents is that a good price that will cover all the materials, mark up and time? How do you break down your cost?
  • K2ConceptsK2Concepts Posts: 13,380Administrator El Jefe
    Yes you will be fine...it's a rough rule of thumb so go measure out some pieces and see if it works for you first before you go embracing the idea...lol...
  • jonajona Posts: 89Member
    def. i will lol, like i said im not ready yet at the moment to go on charging customers, im still learning dont want to burn myself starting out a business, so im just getting the pricing idea, i broke down on material cost roughly per square meter and i came up around 30 - 40$ per square meter , that including, film, activator , primer, clear, reducer, and shop supplies. etc, is that about right?
  • jonajona Posts: 89Member
    thanks for all the help and advice, as soon as i can and have time will go to one of your classes jim
  • jonajona Posts: 89Member
    btw, that was based on using 8oz of clear, primer, paint, etc, per square meter, just to get a rough estimate
  • MidOhioHydrographicsMidOhioHydrographics Posts: 9,444Member, Moderator, Business Ninja El Moderator
    Tsunami said:

    In production you can expect those minimum prices, but individual minimum $50.00 to touch anything I think is fair and so do my customers.

    @Tsunami, I don't think $50 for an x-box controller or cell phone case would fly around here. I haven't done many custom jobs, but I just can't see someone paying that. I guess it would weed out those little pissy jobs though!
  • UndercoverCoatingsUndercoverCoatings Posts: 558Member, Business Ninja ✭✭✭
    Thats the tough bit, @MidOhioHydrographics‌ Trying to justify that for small items is tough, but then again, you're getting paid for your time. Small as that xbox controller may be, it will still zap quite a bit of time...Potentially 3hrs or so if its the only item you have to process.
  • TsunamiTsunami Posts: 4,952Member, Business Ninja ✭✭✭✭✭
    Guys I wouldn't pay $50.00 for a controller either. Everything in perspective. If I have a job that fits into my certain base and film projects then yes I can do it for less. But if that's the only thing I have with that base and film then doing for less will cost me money. Jigging, scuffing, cleaning, basing,dipping, clearing all take product, I call them sundries and electricity and labor and operating expensiveness. Keeping your prices up is a good thing for this industry.
    When I started with my other business I could get $110-$125.00 a square foot. Now with the bad economy, low ball garage contractors, we can barely get $40 TO $70.00 for the same work.
  • K2ConceptsK2Concepts Posts: 13,380Administrator El Jefe
    Yea, the Xbox market has been killed...I'm watching guys do them for $4 each and I let them...we got bigger fish to fry...

    As for $40 a meter? That can fluctuate with your buying power for sure. For example if you started out your pricing buying $150 a gallon clear and then you found a nice clear for around $49 a gallon? That would drastically affect your pricing of course...but you don't go adjusting your prices down...you add it to your bottom line GP increase...which is then translated to your GN...which is money in your pocket for growth or to use to increase your buying power in other supply areas...

    But you have to start somewhere...so run with what you got and don't be afraid to pivot...
  • Sac_HydroSac_Hydro Posts: 1,050Member ✭✭✭✭



    For example if you started out your pricing buying $150 a gallon clear and then you found a nice clear for around $49 a gallon? .

    Wouldn't that be nice!
  • MidOhioHydrographicsMidOhioHydrographics Posts: 9,444Member, Moderator, Business Ninja El Moderator
    Sac_Hydro said:



    For example if you started out your pricing buying $150 a gallon clear and then you found a nice clear for around $49 a gallon? .

    Wouldn't that be nice!
    If you buy bulk you can get there! Not including shipping, Prime Coatings Diamond Matte clear is about $50 per mixed gallon of you go 30 gallons at a time (30 gallons clear, 5 gallons cross linker, 5 gallons reducer). It's mixed 6:1:1. But, Durability of said clear is yet to be seen. PCL26 even gets down to about $60/gallon at 48+ gallon kits ordered.
  • jonajona Posts: 89Member
    Thanks to everyone. I appreciate all the help,how do yo guys price down your cost on materials only, ? is 30-40 dls close or am i way wrong here
  • K2ConceptsK2Concepts Posts: 13,380Administrator El Jefe
    Sac_Hydro said:



    For example if you started out your pricing buying $150 a gallon clear and then you found a nice clear for around $49 a gallon? .

    Wouldn't that be nice!
    Actually? Yes it is...$49.99 per kit, 5 quarts sprayable...no minimum...gotta know where to shop...
    jona said:

    Thanks to everyone. I appreciate all the help,how do yo guys price down your cost on materials only, ? is 30-40 dls close or am i way wrong here

    I wouldn't recommend that..nor do we practice that...never let your customers know you can dissect your pricing...it never leads to anything good...
  • RBurressRBurress Posts: 1,553Member, Moderator, Business Ninja El Moderator
    Exactly. "So if I buy the stuff for you to dip it with, then how much will it be?". It is a lump sum price all the time. The materials are really just a drop in the bucket, the labor and overhead is where most of the cost come from. Of course, it's being efficient with every aspect of it to make the best profit margin.
  • Sac_HydroSac_Hydro Posts: 1,050Member ✭✭✭✭




    Actually? Yes it is...$49.99 per kit, 5 quarts sprayable...no minimum...gotta know where to shop...

    Dude is Walmart selling clear now?
    Talk to me goose...
  • K2ConceptsK2Concepts Posts: 13,380Administrator El Jefe
    Sac_Hydro said:
    Actually? Yes it is...$49.99 per kit, 5 quarts sprayable...no minimum...gotta know where to shop...
    Dude is Walmart selling clear now? Talk to me goose...
    Nooo... not Walmart. . And just for that?  I'm not going to tell you where we buy it m. 
  • Sac_HydroSac_Hydro Posts: 1,050Member ✭✭✭✭
    I think you should sell it at k2shoponline.com
  • K2ConceptsK2Concepts Posts: 13,380Administrator El Jefe
    Thinking about it...
  • bodyman1bodyman1 Posts: 23Member
    Tsunami said:

    In production you can expect those minimum prices, but individual minimum $50.00 to touch anything I think is fair and so do my customers.

    I'd say that's a good rule of thumb , very knowledgeable you are!
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