Help with pricing...

[Auto Glass Rescue]

Okay, so last week a gentleman saw the signage on my truck and approached me about adding my WR service to his business. He operates several automotive detailing spots within parking garages. We have just started emailing, but so far it sounds like he just wants to markup my service to his customers.

I get $55 in my area so this is what I’m thinking… It would monthly deal that would start over each new month.

Referral Jobs within a month
0-2 Jobs referred $55 per repair
3-4 Jobs referred $50 per repair
5 or more jobs referred $45 per repair

Thoughts or comments? Am I off track here? Any other information or ideas would surely be appreciated! I really want to get this right the first time because he stated he knew others that also were in the detailing business.

Thanks!

[mend master]

Sounds like you are reading him right. As any good businessman, he sees the opportunity for a another avenue for profit he hasn't had previously. If he can get you to do them at a price where he can make a profit without investing in equipment, training, or employees, it could be a worthwhile venture. I like your tiered approach tied to performance. I suspect he may press you for a reduction in your pricing so that it seems more worth his while, but I don't think you're too far from where you need to be.

[glassdoctor]

Might also consider something like $50/job across the board, and an additional discount if there is more than one at a time.... like $45/ea. I'm guessing he would want to mark them up at least $10 ea to make it worth the hassle, so keep that in mind. To make it work, you definitely have to give a price break, and he can't be too greedy either. If he can simply mark your $55 up to $65 to create a profit margin, it might mean you can increase your own retail a bit. If he tries to mark up to like $75, then there probably won't be much work to worry about anyway.... lol

[Auto Glass Rescue]

Great, thanks for the input! Now what about the billing, what would you suggest? I was thinking that the detailer would charge the customer for the WR, and then I would turn around and charge the detailer when I complete the repair. Does this sound right, or would you suggest another way of billing?

Thanks again!

[glassdoctor]

The detail company will bill their customer, and sublet the work to you. So you would have to collect from the detailers, as a subcontractor. So you bill the detailer and do not add sales tax, since they are billing the customer and will include tax on their end. I would be more comfortable getting paid at the time of the repair, but assuming these guys are legit and not trying to con you, it wouldn't be a problem to have them cut you a check each week/month.