A professional framework for detailing pricing
A professional framework for detailing pricing
One of the most common failures in the detailing industry is "commodity pricing"—setting rates based on what other local shops charge. For a professional B2B operation, pricing must be derived from a clear understanding of your internal costs, fixed overhead, and desired profit margins. If you aren't pricing based on data, you aren't running a business; you are running a hobby that occasionally pays you.
The Hourly Burden Rate Model
To scale, you must know what it costs to have a tech (or yourself) standing in a bay for 60 minutes. This is called your "Shop Rate" or "Load Rate."
1. Calculating Total Labor Cost
This is far more than just the hourly salary. To find your true labor burden, you must include:
- Base Wage: e.g., $25/hr
- Employer Taxes (FICA, SUTA): +10-15%
- Benefits and Insurance: +5-10%
- Burdened Total: Often 1.3x - 1.5x the base wage.
2. Identifying and Allocating Overhead
Add up every fixed cost your business pays regardless of whether you wash a single car:
- Rent and Utilities: The cost of your physical Detail Shop.
- Insurance: General Liability and Garage Keepers.
- Software Subscriptions: Like DetailerBase.
- Marketing Spend: Your average monthly acquisition cost.
Divide this total by your actual billable hours per month (not just the hours you are open).
- Example: $4,000 Overhead / 160 Billable Hours = $25.00/hr Overhead Rate.
3. Supply and Consumable Costs
A professional job uses chemicals, microfiber towels, polishing pads, and PPE.
- Interior Details: $5 - $10 in chemistry.
- Paint Correction: $15 - $30 in pads and compounds.
- Ceramic Coatings: $50 - $150 per vehicle for the coating itself.
Standardized Pricing Tiers and Vehicle Classes
We recommend a tiered pricing structure that accounts for the physical surface area and interior volume of the vehicle. Use your Appointment Scheduling system to enforce these tiers automatically.
The Multiplier Framework
| Vehicle Class | Multiplier | Rationale |
|---|---|---|
| Small (Sedan/Coupe) | 1.0x | Baseline duration and one-man supply usage. |
| Medium (SUV/Crossover) | 1.25x | 25% more surface area and glass. |
| Large (Full Size Truck/SUV) | 1.5x | Higher roof height, 3rd row seating, and more intensive labor. |
| Extra Large (Van/Lifted) | 2.0x | Requires specialized equipment (ladders) and doubled supply usage. |
High-Margin Value-Based Add-ons
Your core services (Wash, Wax, Interior) should cover your overhead. Your profit "accelerators" are your add-ons. These are services that take minimal time but add significant value to the Invoice.
- Engine Bay Detail: 20 min / $50 surcharge. High perceived value for B2B resale.
- Headlight Restoration: 45 min / $100 - $150. Massive visual difference for low supply cost.
- Ozone and Odor Removal: 30 min setup / $75. Essential for Used Car Resale.
- Glass Coating: 15 min / $50. High margin add-on for any exterior package.
4. Dynamic Pricing for Commercial B2B Work
For commercial clients, such as dealerships or limo services, move away from individual car pricing toward "Bucket Pricing" or "Volume Tiers." This allows you to offer more competitive rates for 10+ vehicles while maintaining your required Hourly Burden Rate. Ensure your service contracts clearly state the "Standard Condition" expected; anything outside that must trigger a surcharge.
How DetailerBase Supports Professional Pricing
- Automated Pricing Tiers: Set different price points for the same service based on the vehicle category selected by the customer.
- Condition Surcharges: Add pet hair, sand, or heavy soil fees directly to the Invoice with a single click in the Staff Portal.
- Professional Proposals: Send detailed, branded quotes that break down the value of each step (Decontamination, Correction, Protection) to justify your professional rates.
- Reporting and Margin Tracking: Use our Financal Reports to see which services are your most profitable and which are dragging down your shop rate.
- Tax and Expense Integration: Automatically track your supply costs per job to calculate your true net margin for every technical service you offer.
FAQ
How often should I increase my rates?
We suggest a formal review of your burdened labor rate every 12 months. If your Waitlist is consistently longer than two weeks, or your supply costs have risen by 10%, it is time for a transparent price adjustment.
Should I provide "mobile-only" surcharges?
Yes. Mobile operators must account for fuel, vehicle maintenance, and lost transit time. We recommend a "Mobile Convenience Fee" or a minimum job requirement (e.g., $150 minimum for mobile visits).
How do I handle "the cheap guy" down the road?
Don't compete on price. Your customers are B2B operators who value reliability, Insurance Protection, and professional results. The "cheap guy" usually lacks the legal structure and standardized quality you provide.
What about "package" discounts?
Instead of discounting your labor, "bundle" services. For example, "Book a Full Interior and get a basic Exterior Protection for $20 off." This maintains your hourly shop rate while increasing the total ticket size.
Take control of your business margins. Explore our Pricing features and build a shop that generates predictable profit.
Related Resources
Commercial detailing contracts: A guide to professional B2B agreements
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