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Auto repair & detailing

Car Detailing Pricing Calculator

Set detailing prices from what a vehicle costs you in time and product, then check the margin the price actually returns.

Your numbers

$
Burdened: wages plus tax, insurance and the vehicle, not the hourly wage.
$
$
Permits, disposal, equipment hire, subcontractors.
%
Overhead as a share of revenue. Work it out from last year's accounts.
%

Result

Price to quote $666.67
Direct cost $420
Overhead recovered $146.67
Net profit $100.00
Gross margin 37.0%
Markup on direct cost 58.7%
Quote $666.67 to cover $420 of direct cost, recover $146.67 of overhead and leave $100.00 of net profit. That is a 58.7% markup on cost.

Overhead and margin are taken as shares of the selling price, which is why the cost is divided rather than multiplied. Adding 15% to cost does not produce a 15% margin. Gross profit is what is left after the cost of doing the job. Overhead comes out of that: the building, the office wages, the vans, insurance, software and advertising. A healthy gross margin still loses money if overhead is larger.

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What moves the number

  • Hours by service tier, measured rather than estimated.
  • Product cost per vehicle, which is genuinely calculable and usually underestimated.
  • How many vehicles a bay or a working day can actually take.

Where this one goes wrong

Building a tiered price list where the tiers differ mainly in price. Customers pick the middle option, so the middle tier has to be the one you actually want to sell and the one that returns a proper margin.

Questions

About this calculator

How many price tiers should a detailer offer?

Few enough to explain in a sentence each. Three is common because it gives a clear middle choice, and every tier has to be work you would genuinely do rather than a decoy.

Should add-ons be priced separately?

Yes, particularly the ones that consume a lot of time such as pet hair removal, odour treatment and heavy decontamination. Bundling them means the worst vehicles subsidise nothing.

How do I know whether my prices work?

Time a sample of real vehicles per tier and compare against the price. Most detailers find one tier is carrying the business and another is close to break-even.

How useful was this calculator?

Not rated yet. Yours would be the first.

The formula

price = direct cost / (1 - overhead% - margin%)

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How to use this calculator

  1. Labour cost ($). Burdened: wages plus tax, insurance and the vehicle, not the hourly wage.
  2. Materials cost ($). Enter your own figure; the page starts at $180.
  3. Other direct costs ($). Permits, disposal, equipment hire, subcontractors.
  4. Overhead rate (%). Overhead as a share of revenue. Work it out from last year's accounts.
  5. Target net margin (%). Enter your own figure; the page starts at 15%.

The result updates as you type, so you can try a figure, see what it does to price to quote, and change it back. Nothing you enter is sent anywhere or saved.

A worked example

These are the figures the calculator opens with. Every number in the results column below is produced by the same calculation the page runs, so you can follow it through before putting your own figures in.

What goes in

InputValue
Labour cost$240
Materials cost$180
Other direct costs$0
Overhead rate22%
Target net margin15%

What comes out

ResultValue
Price to quote main result$666.67
Direct cost$420
Overhead recovered$146.67
Net profit$100.00
Gross margin37.0%
Markup on direct cost58.7%

Quote $666.67 to cover $420 of direct cost, recover $146.67 of overhead and leave $100.00 of net profit. That is a 58.7% markup on cost.

How sensitive the answer is

Holding everything else steady and changing only labour cost, this is what happens to price to quote. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.

Labour cost ($)Price to quote
$120 $476.19
$180 $571.43
$240 example above $666.67
$360 $857.14
$480 $1,048

Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.

What each figure means

Labour cost ($)
Burdened: wages plus tax, insurance and the vehicle, not the hourly wage.
Materials cost ($)
A money amount, starting at $180.
Other direct costs ($)
Permits, disposal, equipment hire, subcontractors.
Overhead rate (%)
Overhead as a share of revenue. Work it out from last year's accounts.
Target net margin (%)
A percentage, between 0 and 80, starting at 15%.

What the results tell you

ResultWhat it is
Price to quoteThe headline result. A money figure.
Direct costA money figure.
Overhead recoveredA money figure.
Net profitA money figure.
Gross marginA percentage.
Markup on direct costA percentage.

Estimating is the easy part

The jobs you never hear about cost more than the ones you mis-measure. BDEVY builds the marketing, systems and automation that bring them in.