Creating Lowballers?

Helping Give Ball Park Figures to Newbies and Others

  • Creates Lowballing

    Votes: 16 22.5%
  • Eliminates Lowballing

    Votes: 15 21.1%
  • Doesn't Make a Difference

    Votes: 40 56.3%

  • Total voters
    71
O

OrangeCrest

Guest
I have been wondering for a while if not giving a ball park figure to a newbie or someone trying to get into a new market, actually creates "Lowballers," because they don't know what to charge, but would charge as much as the next guy if they knew the going rate.

Thereby, not giving them a ball park figure, they go by their gut feeling after working at $7 to $15/hr, and feel washing down a trailer in an hour is good money if they get $30.

Gas stations post their prices for everyone to see. Any grocer can go into their competitions store and lower their prices to try to beat their competition.

I know at Costco, Sam's Club (Wal-Mart) would come in and do price checks and lower their prices on some products below Costco, and vice-versa.

In this example, Costco still out sells Sam's Club; even though you can find some lower prices there.

In fact, Sam's Club in the past year has pretty much photo copied Costco's image and format. They still can't draw away the crowds.

It must come down to quality and service.
 

onecallpowerw

New Member
Creates Lowballers

This is due to a saturated Market. This is common sense. Take a look at the phone companies for example. Since the break up of AT&T (MAMA), you have several phone companies that compete for customers.

This is what is happening to our market. This year alone, I have counted just on this board, 19 newbies saying they need information because they are starting a power wash business. To some, this may be a low number. Not counting the ones that do not come to this board and we all see popping up in our areas overnight. I say NO MORE.

Common Sense dictates that the more avalibility causes the price to come down. Some would say let your work speak for itself, but why ? The professionals are still losing income due to saturated markets.

Example: I went to yet another estimate yesterday and the gentleman asked how long until we could get to him, I told him 1 1/2 weeks. To me this is not long at all. Needless to say, he told me that he had a competitor that was $65.00 dollars cheaper and could get to him within 3 days. Of course this causes me to spend more time explaining our process, our insurance, our guarantee's etc...... This all cost money. Needless to say this was yet another overnight company that underbid as well as another wash & go establishment. Why should those of us that have been and still trying to make a living give information so that we may have more and more competitors.......
 

Flue Steam

New Member
Remind the customer that when he wants the job done correctly, your price will be the same and it will be two weeks before you can get there, but at least he saved a few dollars for a few weeks by letting the lowballer preclean for you.
 

David Saulque

<b>PWN TEAM - Hood Moderator</b><br<b><font color=
I seldom give a firm price today, I just give a hour rate. I give a hour range like 4.5 hours. I don't like giving a price upfront. During the day the system are up and the grill is hot and it is impossible to give a good free estimates without opening it up.

David
 

Larry L.

PWN TEAM - Moderator Emeritus
I wash as in it depends how long/chemicals,the same truck I wash this week any be different next week.Even the fleets I wash now are on it depends and I'm the one that makes the call on it depends.

As for as creating lowballers it done on their behalf not ours,even a newbee should know his cost and what he wants to make.If you'll take a closer look at who is really the lowballers you will find out it's not the newbee.
 

the_GUNN_man

New Member
One thing we all have to remember is that we were all newbies once. I bet a lot of us were low ballers at one time too. When I first started I washed trailers for $40 and spent 2 hours doing it. Now I charge $70 to $80 for a trailer and I do it in 45 minutes( by myself) or less. Everybody has to start somewhere. If we don't help out new guys what is this board for? If everybody here has to be long time professionals then what is the use of coming to this site? We all should know everything and this would become a shoot the bull board. I will continue to help guys out the best I can. I do car lots and I hear a lot of people say they want to do them too. Once I explain all the equipment( DI tanks, water softeners, water tanks, etc.) they see it is more then just getting out the old 7 hp pw and hooking up to tap water. Same thing when washing commercial new brick. When I tell them about spending $1000 or more up front for lifts and using chemicals that are $10 a gallon and you dilute it at most 4 to 1 costing $2.50 a gallon or coming out of your hose at $1 every 4 to 6 seconds(depending on size of machine) they see that it is much more expensive then house wash. On top of waiting 90 days to get paid but you have to pay up to $2000 to start the job. Another way I get guys to think is by telling them I will still bid lower then them but make more per hour. If a newbie washes a house and spends 8 hours doing it and makes $300. That is $37.50 an hour. He thinks that pay is awesome. I come in and bid it at $250 and do it in 3 hours I make $83.33 an hour. I understand the problem comes in when they bid $100 for a house wash. Most of the time they will learn by themselves that trying to run a business and making $25 an hour won't cut it. They will get a few jobs from fliers and they will get turned down for a few big jobs because of no insurance. Then they will try and advertise in the newspaper. Now they need to make a little more to cover the cost of the ad. They get a little more work. Now they try out the yellow pages. Small ad but still big money. Time to raise prices again. I need an X-jet, surface cleaner, bigger machine, trailer, truck to pull trailer, hose reels, etc. You just have to get newbies time. I was working for $25 an hour out of the back of a small truck. I had a 4 gpm machine so at least I started with a decent machine. Now I have 3 trailers(not all operational) 2 enclosed and one open, 2 hot water machines, 2 cold machines, water softener, DI tanks, water tanks, 30" surface cleaner, 2 double stack hose reels, 1 single hose reel, 3 extension poles, nozzles, turbos, spare pump, tons of wands, brushes, ladders, sprayers(no shur flo yet), x-jet, etc. I am on par with equipment most of you have and would be considered a professional. Yet 4 years ago I was pulling my pw off the back of my truck and working for $25 an hour. Now my employee(just one) hates it when we dip down to only making $50 an hour because I bitch. I will stop bitching at $65 an hour but won't be happy until we are at least at $80. Most of the time we are between $80 to $100. Except with brick work then it can vary between $125 and $200. We all had to start somewhere. Four years ago you would have been hating me too but look at me now. Here is one way to look at newbies or do it yourselfers. They buy way more pressure washers then the professionals do. So if pressure washers were only sold to pros they would cost more. How many people out there have washed houses, decks, driveways, etc. and seen a pw in the garage? I have done many many jobs like that. People buy those little machines and realize A. They don't know what they are doing and B. It takes a lot of time with that small machine. In my opinion we are here to be helpful. There will always be someone on this board that is in the same area as another. I understand that they will not like people giving advise to that person. What can you do. It would be kinda cool I guess if there was some way to only have certain people from certain locations but then again it wouldn't be fair. Mike Gwasdacus from Abel is within 15 minutes of me. He has been so helpful and he too is on this board. He is a great guy, a little moody at times but all in all someone who like to help others. I guess I would be moody too if my operation was as monstrous as his is. He has a lot to manage. I don't know how this guy ever gets any sleep. I guess my question is how many of you would have hated me 4 years ago?
 

the_GUNN_man

New Member
One more thing. As far as giving out prices and ballpark figures goes, I still ask sometime when I am not sure on what it it will cost to wash something. BUT, I am more concerned on how long somebody thinks it will take vs. how much to charge. I don't wash fleets. I am thinking about getting started and I don't know how long it takes to wash a cab or a trailer. I do not know how much chem cost is on both. I know it makes a difference if you are two stepping or not. I am not asking now I am just using that as an example. One thing I am interested in is grocery cart washing. How many can be done in an hour? What I planned on doing was going to a smaller store and doing a freebie to see how fast we are.
 
B

Bully Wash

Guest
Take this same question and ask if those newbie's and for that matter the old timers who follow others around to learn your accounts are in the same ball park.

You gave them no price but showed them who your accounts are, did you help them? YES since it is not all that hard to find out what someone is charging.

As for helping the newbie sure but I draw the line on prices, not out of fear but how can you offer a price sight unseen? no two jobs are the same even if owned by the same company.

Every market, Mc D, Taco stand is different, one area might have tons of gum, another more leaking oil cars then gum. Would you bid the same price blind?

That is what others do when they say charge x dollars or cents per square foot etc.

But to answer your question are we helping them by offering a price range, NO as they are only trying to learn.

Better we try to educate them on the proper ways to do things.
That is if they are not in our backyard as compeitors.
 

jon chapman

New Member
Gunn Man

amen brother. you put it in perspective.
I am a newbie. Got into business this year. These boards have been invaluable! My wife thinks Im an idiot because i spend so much time here. I have learned much more than just using a hit and miss method on pricing. Most of you guys are north or midwest. In my county there are 1 million people. 1 YP covers 1/2 of county and there are 73 PW Business listed. not counting painters who also PW. Every day I see between 1 and 5 guys in a truck with a magnetic sign that PW. Think theres competition where you are?
I wanted a Business. To own a business you have to be professional. That costs money. The more money I lay out, the more I charge. Do I still under bid some? Yes. Very rarely do I get killed though. I am determined not to be the lowest bidder and as my sales skills and experience go up so will my income.
Businesses deal with consumers. A certain percentage will always go with the lowest price no matter what. I bid on a comercial job today and the guy said he was going with the lowest price. I pretty sure my price will not be the lowest. but I still expect to get the job, and Ive only been in business 4 months!!
I get that kind of confidence from you guys.
I plan on being around a while. Thank you very much
 

jon chapman

New Member
one more thing.

basic economics. If a business is successful, others will enter that business until market saturation, the profitable will remain, the others will get out. ( hopefully sooner than later.) Then the cycle starts over again.
 
O

OrangeCrest

Guest
My idea is, if someone is bidding around the same price as I am, I am pretty confident that I will when the bid from my repetition, skills, personal appearance, equipment and presentation.

Now, if a newbie comes along, or someone who is trying out that particular market, they can lowball me only because they didn't realize, or take in account all what was required in order to complete that job.

If I bid $250 and some lowballer bids $65, the customer looks at me as if I was trying to rip them off; or the customer realizes that he is dealing with someone that doesn't know what he is doing and takes advantage of him, and thinks that all P/Ws are suckers.

Giving them a ballpark figure, I feel, levels the playing field and actually leaves the decision on who is the better man, price being removed from the process.

One day at Costco, I was directing trucks into the depot and a pickup truck with a water tank and P/W pulled up and four guys jumped out. One guy wet down the trailers, the next two guys brushed them down and the next guy rinsed.

It took them around 8 to 10 minutes per trailer.

I don’t do this, but… four guys at 10-minutes per trailer, and you know they are probably charging around $20/trailer. Even 20-trailers is going to take a little more than 3 hrs 40 min.

That would work out to $120/hr., which is $30/hr per person, minus expenses.

Anyone with experience in this think this is worth that much?

I see an opportunity by micro managing this and cutting the crew down to two guys; thereby, being able to charge the $20/trailer and lowering my overhead.

It may take you a little longer, but I feel that even though you are charging the same amount per trailer, you have now added to your profit margin significantly.

I’m no Rumsfeld, so I really think that this would work.

A hard earned $400, but what ever floats their boat.

=)
 
B

Bully Wash

Guest
If all the energy put into worrying about low ballers, weekend warriors etc. was put into something more constructive like doing maintance on your equipment, going out and selling yourself to more accounts you minds would not be so concerned about them.


They have been around as long as this industry has and will continue to be around long after most of us are gone.

Not only this industry but carpet cleaners, painters, auto repairs, plumbers and any other service business has them.

Over the many years I have been in this business the two most talked about subjects are low ballers and what do you charge, did I bid to low or high.

Granted most of us got started the same way, a few lucky ones worked for another pressure washer first but most had to learn the same way, trial and error.

I would like to think most of those low ballers are learning and soon will raise their prices. Some never will, others will and to those that survive they will be the next generation to complain about low ballers.

What goes around comes around.
 
B

Bully Wash

Guest
Mike Gwas has the answer, I don't worry about them and I see Mike doesn't either.

What about the rest of you? do the low ballers bother you that much?
 
O

OrangeCrest

Guest
Not really, because there is way to much tape to go through to get my type of work. Fly by nights are history before the paper work is even completed.
 

onecallpowerw

New Member
I know the topic is about lowballers but lets all get real. The information that most give on this board goes way beyond just simply helping along a newbie. Bottom line is this... When you have a saturated market area, the price will drive itself down. This is simple economics. You all being great at what you do will not matter. Period. The price for your services will drop and you all will need to either change your life style and cope with a reduction in income or get out of the business. That is the bottom line.

Remember, some can live on $30,000 per year. Some can not. I personally do not want to take that chance. I like what I do and so do the guys that work for me.

GunnMan,

Yes we were all newbies at one time or another. But I can say this... I did not go to any board to learn the business, I learned by trial, error and common sense. I priced according to what I needed to survive and to grow the business to 4 rigs in 4 years. I must say we are back to just 3 rigs but we did make it to 4. All I am saying is if I can do it... Anybody can. Why should we that have made it offer information to the newbies. Especially pricing let alone anything else. I mean hey, why do they not have to work for it ? If their heart is in it, they will find a way. Instead, we just continue to help, help and help. Virtually anybody can go to anyone of the Pressure washing sites, get the info they need and with a little cash can be up and running in your area within days, thus causing a saturated market. I will be the a**hole and say no more. Again, 19 newbies since the start of 2004.
 

MR ALAN

New Member
Gordon,
Just because someone comes to the boards and gets advice, does not mean that they actually will apply it.
I know a guy that I talked to many times and was helping get started. We covered what equipment he needed and what he did not need.
I gave him much info that could have put him on the road to success, but after all I showed him, he went and bought inferior equipment including his tow vehicle. "The salesman said this is good stuff" That was his first of many mistakes.
They say that knowledge is power, but that is only half of the deal, as Knowledge is potential power. One has to use what he knows first and I have seen many guys buy junk after I or someone else schooled them on what they needed, to be competitive in their area.
Oh well, not my money being wasted. And as far as lowballers go, I don't worry about them, as I do not sell on price alone.
 

oneness

New Member
I agree with Mike...Who cares about lowballers. They come and go, and they'll always be here, just like they're in every other industry that doesn't require a lot of up front money to get started and doesn't require any real government oversight/certification. Painters and lawn care are a couple of examples.

Contractors helping eachother, whether they be newbies or have been in business for a long time, can only help the industry. Sure, the market may become saturated, but that'll happen with or without my help. I'd rather help a new guy, and know he's using the right chems, the right equipment, and has a better grasp on the kind of money he can make. A guy who is happy with $20.00/hour will be happy with that with or without me. If I offer help, MAYBE I can help him realize he's worth more than that.

There are plenty of fly-by-nighters here...I don't lose many jobs to them. I'm happy with what I make, though by some of your standards, I'm the lowballer. :)
 

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