Pricing Strategy for a House I Bid on Today


#1

I bid on a house today in a mid-upper-class neighbor hood today. It had only 3 types of window panes: 12”x16”, 12”x8”, and 18”x18”. For the first 2 types I priced with a base-price of $.60 outside and $.50 for the inside. For the 18”, I priced them at $1 per side. I gave her a quote of $400 out and $600 I&O. The lady I gave it to said that was a bit higher than she expected and she would get another quote and get back to me.

I’m trying to determine if my price and pricing strategy is reasonable. I believe that there are 2 things to consider before replying:

1.	I have noticed that the commercial price for WC in this area is about 2/3 of the average pricing that I have read in all the forums I have been reading.  I have tried pricing residential accordingly.  

http://www.activeboard.com/forum.spark?forumID=50569&p=3&topicID=8255024

2.	The window didn’t really have sills. The first 2 types were French style and the dividers were shallow and sloped almost right at were they met the glass.  This would make it easier than normal to wipe around the edges.  The edges of the 18” were the same.

3.	36 of the 2nd story panes were over a part of the roof or porch.  The housekeeper said I could easily go out one of the windows and clean them from the outside.  I priced them as 2nd story.

Here are the exact numbers of all the windows:

  • Outside, Type 1: @ .6, .9, and 1.2 $

      • Ground level = 104
      • Elevated = 24
      • 2nd story = 228
  • Inside, Type 1: @ .5 and .75, $

      • Ground level = 344
      • Elevated = 12
  • Type 2 (18”): @ $1 each side

      • 36 Panes X2 = 72 Total sides (all ground level)

The exact totals for these were: Out = $393.60, In and Out = $610.60

All things considered, Is this reasonable?
Any suggestion or different perspectives on the matter?


#2

Did you estimate how long it would take you to do the job?

How would this meet or exceed your per/hour goal?

If you’re confident with the pricing and it matches your per/hour goal, don’t sweat it too much if you don’t get the gig. You can’t land them all.

I always start off with a ‘per pane side price’ but once I’ve totaled the numbers, I compare the price with how long it will take me and adjust price as needed.


#3

If I am reading this right you are bidding on ~400 French panes in/out. If you could get $1 each for them you would be doing good in my opinion. Sounds to me like you may have overbid unless I’m mis-reading something.


#4

That’s what I’m starting to do…the adjustment part.


#5

I not sure about the hourly rate since I’m still rather inexperienced. I’m sure I can do the job well, Im just not sure how long it would take me. The last res. job I did took me about 9 hours not including drive time at $20/hr. (180 total, not including tip) That was totaly different though, and actually would never expect to come across a job like that again.

I listed exactly how much I charged for each pane/side but it may not be clear. For outside fr.pane - .60 (base price), outside 2nd story - 1.2 (.6x2), for elevated (high but not 2nd story) .9 (.6*1.5). For the inside the base price was .5. Total of 356 french + 36 18". they were a bit larger than most french panes though, but not large enough to use my 14" scrubber.


#6

Yeah this is how I do it to

It helps me get a price that’s closer to expected goal/per hour


#7

To be honest I think you are over thinking the whole thing, It does require a bit of experience to just walk around a house and have a price by the time you get around, but the whole pricing by the pane thing gets very convoluted . Try to figure out an average of what a single window will take you and then multiply by the amount of windows and then by your rate for that length of time
eg, a house with 10 windows that will take 5 minutes each
15 windows that will take 10 mins each and
5 windows that will take 20 minutes each
To me thats 30 windows at 10 minutes or 5hrs at your hourly rate
Its not exact but you have your price in seconds and you will not be far wrong


#8

I have to agree. I think you are over working yourself. If I am reading correctly you are talking residential pricing? I have to ask where you are located as I have never seen res pricing that low.

"- Type 2 (18”): @ $1 each side

      • 36 Panes X2 = 72 Total sides (all ground level)"

That’s $2 per window. The lowest price I have read is $5 with a screen cleaning. With the quoted text, if it took you 10 minutes per window, in and out with a screen. You are only going to complete 6 windows per hour. You have 36, that’s going to take you 6 hours. Not including the other parts of the home. At your current rate, cleaning 6 windows per hour @ $2 each, your making $12 per hour. Maybe that’s good for you, but won’t be if your business grows.

Some advice I can give you.

  1. Residential customers do not like complicated pricing structures. KEEP IT SIMPLE. PRICE PER WINDOW (Flat fee) or PRICE PER HOUR.
  2. Raise your prices to include travel. Find out what others are charging for service in your area. If that’s the rate for res work, I personally would not do window cleaning in that area. I could not afford to live.

I can’t figure out your counting process. But it looks to me like you have well over 200 windows. At my old pricing you are looking at over $2000.00 for the job. A picture of the place would be nice.

When you have large jobs, don’t do them alone. The amount of time and energy put into the job can be put to better use and drumming up more business. Hire a couple of good cleaners and let them do the work. Monitor the quality or work with them. Either way, the quicker you get the job done the more money you make.


#9

if i tried to do bids with all that crazy mathematical formula stuff i would be dizzy all day long my head hurts just trying to figure out how you counted them. definately just decide on an average per window and stick to it .after you get your price then you can go 20 - 30 percent lower or higher depending on difficulty or access issues


#10

You are referencing a post on a forum that is almost two years old, and it appears that the pricing examples you used are for commercial work, rather than upper-end residential.

In addition, Window Cash’s [U]support[/U] forum has received many negative comments on other [U]independent[/U] window cleaning forums/bulletin boards.

[B]You can’t determine local pricing from any forum posts.[/B]

Pricing should be determined by costs + profit. Determine an hourly $ goal, and find a way to understand what your hourly production rate is for the variables you encounter – window count, access issues, level of contamination, and other factors (travel, etc.)

A very simple example: Your gross hourly rate = $50. You can clean 10 panes of glass and their screens and tracks at ground level in one hour. $50 / 10 = $5.00 per pane.

Use the Search feature to read posts here regarding pricing.

We all utilize trial and error in our own local markets to determine our pricing structure. Your productivity will increase over time. Don’t be afraid to lose work over pricing. If you win all your bids, your pricing is too low (and the converse is true.)


#11

I choose to first do it by factor bidding, assign a factor to each pane then multiply for the estimate. While I’m doing the job I keep careful records of what it took per total man hours. I must make a certain amount per man hour to run my business efficiently. I don’t like the wag system (Wild A#@ guess). I figure it both ways to ensure I’m on target with my initial estimate. When I factor bid it keeps me consistent with all my clients. It is easy to explain to customers that the more windows or the more cut ups the more labor is involved and it is more expensive. I then NEVER negotiate a price!
EDK


#12

Wasn’t there also a factoring in of “BMW in the driveway” & “type of doctorate” ?