Pricing question

[jkdbjj]

Customer has opted for me to remake all of their store hours signs. They have 21 locations, and want me to go install at each store.
The signs themselves are simply adhesive vinyl for the inside and outside of each store. Totaling around $500 for the stickers.

What I am having trouble with is pricing the installation. The stores span a geographical area that is local, yet obviously spread out. I would think it would take 1-2 days to drive around to hit all stores, and probably at least a tank of gas.

Any thoughts on how you would price this second part?

Thanks

 

[J Hill Designs]

hourly @ shop rate + mileage

 

[Billct2]

16 hours times your install rate.

 

[Gino]

Most people have a shop rate and an on-site rate. This becomes a little of both.

I'd give a completely estimated amount and be explicit that you are only guessing what you think it will come to. Quote out at your hourly rate, plus drive time, gas and quote it, but tell them it will be completely based on Time & Materials, plus travel time.

When working in retail locations, you can never count on anything going right.... or the way you planned it. Store might be busy and you are held up by their customers. Maybe an area has to be cleaned for you and they didn't have it ready and you have to wait.

We just finished setting a store last week on Thursday One of our signs was scratched and we couldn't put it up. We can't figure out who scratched it, but we don't point fingers at the customer. I informed the manager what happened and told my contact in the office what happened. Told them if they could wait, I'll come up Saturday morning and make the correction. The place was about 1-1/2 hours away. Kinda an expensive loss, but it had to be done. My neighbor and I were going to the casino and this was just the scenic way and a little out of our way. Got there, reported in and went to go get one of their ladders. I had to be very careful taking this ladder through the store and not hit anyone. Got to the set of cases, went up on the coolers, made my measurements and slapped that sign on the wall. Turned around and my ladder was gone.... well moved to where I couldn't get to it. I had to call for a store monkey to come and get it to let me back down. I returned the ladder to it's place, told the store manager I was finished and called my contact and told hm everything went fine. As I was walking back to the car, Howard said, what took so long ?? I told him to get in the car and shut up.

So, what should've taken 5 minutes, ended up taking about 25 minutes all total. Now, I couldn't charge for that because it was originally our responsibility, but if this was you going in and were held up an extra 20 or so minutes.... how can you charge ahead of time for that ??

 

[MikePro]

time + materials plus sales tax.
travel + removal of old vinyl should be included in your install time.

you'll also have to cut/prep the vinyl, of which a proper upcharge should be included in your materials price.

21 locations in 2 days? that's pretty optimistic. I'm going to guess 3 days minimum, which would give you about an hour per location, even less when you factor travel to/from the store.

 

[jkdbjj]

OK, so Google routes estimates 270 miles and 7 hours of driving.
Each store once I arrive will take no more than 20 minutes. The current store hours are "cling material" hence the upgrade.

This is a great long standing customer, so I am consider lowering my hourly rate. Or is that a dumb thing to do? Never good at those decisions (showing my rookie behind now)

Thanks...

 

[Billct2]

Instead of lowering your rate you could give a "package price" discount.
Show the full price and then show a discount for all the work being performed at once.

 

[Locals Find!]

Based on a shop rate of $85 an hour and figuring drive time, time on site to about 30 mins. (gotta figure in going to and from vehicle and parking into things) and your mileage at $2.00 a mile to cover gas, insurance, and wear and tear. The pricing I pm'd you comes pretty damn close.

 

[HulkSmash]

Based on a shop rate of $85 an hour and figuring drive time, time on site to about 30 mins. (gotta figure in going to and from vehicle and parking into things) and your mileage at $2.00 a mile to cover gas, insurance, and wear and tear. The pricing I pm'd you comes pretty damn close.

I strongly suggest you second look what addy sends you. There's a high possibility it wont be right.

 

[Locals Find!]

I strongly suggest you second look what addy sends you. There's a high possibility it wont be right.

I will send you exactly what I sent him and you decide. I won't post it out in the open though.

 

[jkdbjj]

So he would lead me astray?

 

[Gino]

So he would lead me astray?

Deleted. Won't look right. Just never mind. It's exactly what I thought.

Listen to Colors, he knows.
​

 

[Locals Find!]

Here is my math based on the information given by the OP not counting actual product as that was already priced separately.

21 (# of stores) x .50 (30 minutes) = 10.5 hours x 85 = 892.50
7 (googled drive time in hours) x 85 = 595.00
270 (googled # of miles) x $2.00 = 540.00

Totaled - 2027.50

2027.50 / 21 = $96.55 per store. I would personally round up for incidental costs (paper towels etc...)

$100.00 per store x 21 stores = $2100 install only.

If anyone questions my method or my math do it in the open instead of trying to make the OP believe I am trying to mislead him. I stand behind my method as you guys taught it to me right here at S101.

 

[Mosh]

If there any removal of old lettering needed, beter check on that. I always run into "its just a sticker, it should come right off" when you get to a location away from the shop. Be prepared. $50 bucks plus $1 a mile traveled a store is not out of line, unless they are like 6"x6" total size.....

 

[jkdbjj]

Well my final estimate ended up being just over 1000. Well short of 2100. These people spend 50k a year on me or have for the last 3 years.

My total investment will be 85.00 in materials. A good tank of gas 65.00 and my elbow grease.
Each decal will be 15"x20" one on the inside of the glass and one on the outside of the glass. (tinted windows). The current stickers are window clings, so they are falling off. So I will need to alcohol the area and stick the new ones up.
I budgeted 3 days of driving around.
Profit around 900 for hopefully 3 days of labor.

Maybe this is the reason my business doesn't grow very well

 

[2B]

In the end if you are comfortable with the pricing and the customer is willing to pay then you are golden.


personal when traveling we go off of the hours away from the shop and not the miles traveled

 

[Mosh]

So I hit it right on the head!!!

 

[HulkSmash]

Well my final estimate ended up being just over 1000. Well short of 2100. These people spend 50k a year on me or have for the last 3 years.

My total investment will be 85.00 in materials. A good tank of gas 65.00 and my elbow grease.
Each decal will be 15"x20" one on the inside of the glass and one on the outside of the glass. (tinted windows). The current stickers are window clings, so they are falling off. So I will need to alcohol the area and stick the new ones up.
I budgeted 3 days of driving around.
Profit around 900 for hopefully 3 days of labor.

Maybe this is the reason my business doesn't grow very well

900 in 3 days?

I need to make 140 an hr to make any type of profit

 

[Mosh]

900 in 3 days?

I need to make 140 an hr to make any type of profit

You need to lower your overhead....I thought he originally said two days? Three would be pushing the price, two day would be a good turn for one guy doing simple vinyl installs.

BTW, I would put them on the outside of tinted glass.

 

[Gino]

900 in 3 days?

I need to make 140 an hr to make any type of profit

Well my final estimate ended up being just over 1000. Well short of 2100. These people spend 50k a year on me or have for the last 3 years.

My total investment will be 85.00 in materials. A good tank of gas 65.00 and my elbow grease.
Each decal will be 15"x20" one on the inside of the glass and one on the outside of the glass. (tinted windows). The current stickers are window clings, so they are falling off. So I will need to alcohol the area and stick the new ones up.
I budgeted 3 days of driving around.
Profit around 900 for hopefully 3 days of labor.

Maybe this is the reason my business doesn't grow very well

No harm meant towards the OP, but this my son is the difference between a home-based operation and a full blown business with a plan.

I wouldn't do that for a day. You are over-looking so many hic-cups.... but that's in my world. Perhaps for you it is different and that is why so many people talk about lowballing. They might do 50k with you in a year, but based on your thought patterns and policies [or lack of].... you are probably leaving a lot of money on the table.

You aren’t leaving any time for mistakes, traffic lights, detours, or some other problem creeping up or having to go back and do something again.

Your reasoning is exactly why your business is not growing. You’re thinking scared and take whatever anyone dishes out to you. The thing to do is hire someone to go out and do this for you, while you stay at the shop/house and get other orders going, answer phone calls and keep production going. While you’re out doing this one job and making a whomping $900, you might be missing the call of a lifetime. If you have your cell with you and have call forward on, you’re not accounting for phone interruptions. There are so many reasons for you to hire someone to put these up, pay them $250 to $300. That becomes a cost, so you need to add that in.

Now, this thread is out where everyone and their uncle can see it, but at $1,000, you are most definitely leaving lotsa money on the table. Even Addie’s numbers are wrong. You people think small; therefore, you’ll remain small.

Don’t get the wrong idea. $1,000 isn’t chump change, but for what you are providing and doing…. it’s fools gold.