Second option for pricing
We now offer a second option for pricing.
It may be better suited for some.
Estimate plus 45%. When body
shops estimate body work, it's basically an educated guess. They think
about how long it might take and guess how much in materials.
Multiply the labor rate and there is your price. Some shops
use software to do this, some shops hand write them. Neither
are 100% accurate.
A little known secret for customers is: most
shops beat the hours on collision repair by half. In other words, shops charge 5
hours and actually only take 2.5 to complete the work. Now I
ask you, is this an accurate estimate?
Custom work is even more difficult to
accurately price. Imagine charging for 1 hour labor and it
takes the shop 2 to complete.
Neither scenario is accurate here.
Scenario 1 the shop makes twice as much but it cost's the customer
twice as much, scenario 2 saves the customer money but the shop
looses money.
For the above reasons we basically charge for
every hour worked as they are logged. Therefore we have to
charge a higher rate to make up for scenario 1 above, but log the
hours to avoid scenario 2.
Now we said all that to inform you of this:
We have a second option for our customers. We write a
guestimate and add 45% to the total. No more charged, no less.
Now the risk is in your hands, if we finish early you paid more then
you had to. If we finish late, we loose money on the job.
With this second option there is no room for negotiations.
To summarize:
- Guesstimate and then we log actual
hours and bill each accordingly. As per your signed T.O.S
agreement. Typically starts out lower and can increase
significantly as the project progresses. Specially if the
customer adds items as we progress.
- Estimate plus 45%. No more, no
less. no T.O.S agreement. Typically starts out
higher but can actually finish lower but still costs you the
same amount.
It's up to you which pricing formula suits you
best. But one thing is for sure. If you ask a body shop
to guarantee an initial price, chances are its going to be Estimate
tripled. They would have to cover their gambling habit because
custom work is a gamble when it comes to pricing.
 
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