Business Question

[ahhchoo]

I know you aren't supposed to promote your business on this site and I'm not going to since I'm not going to name it or anything, all I'm curious about are my prices as I'm very new to the business and don't know much about what I'm doing when it comes to charging people. I was going over a list for prices for the spring so if someone calls and asks for a tune up I can give them a fast answer as to how much it would be and I was shocked at how high the prices were adding up to with the parts and labor. I have always just done the work and never had to deal with how much it costs. I also had a hard time categorizing them as there are so many different engines these days (e.s.t. T.B. Conventional, MPI). So I did my best and want to know if I am going to end up ripping people off or ripping myself off. I am in the NY area since that is probably important.

These are all for mercruisers. Tune ups here include: Thermostat, spark plugs, plug wires, cap, rotor, anything else under the cap, carb filter, checking belts and fluids. (Oil changes are not part of tune up).

4-cyl conventional:$275
4-cyl digital:$263
4-cyl est:$249
6-cyl conventional:$362
6-cyl thunderbolt$346
6-cyl mpi$457
8-cyl conventional:$407
8-cyl Thunderbolt$393
8-cyl mpi$495

Like I said, I was pretty shocked at the prices but that is what it was adding up to. Just looking for honest opinions. I would like to have gone to a strickly business forum but don't think they have one for boating.

 

[achris]

Re: Business Question

How do these rate against your competition? I sometimes ring (other places) and get a price for particular jobs, just to make sure I'm not stiffing myself, and so my customers are getting a fair deal, and will come back....

Chris.....

 

[rodbolt]

Re: Business Question

I bill it by time and materiel.
saltwater motors can and do get nasty.
if the customer doesnt need a cap or a rotor or an oil change I tell them, based on 30 plus years of experience and any previous maint history.
I can tell you that a typical 200 or 500 hr service on a pair of F250 yamaha outboards can run in the 1200 dollar range.
but trust me customers are funny.
they will ask for a routine maint and fail to tell you they overheated it or its actually runnining poorly.
thats the difference between preventative maint and corrective maint.
that and the actual cost.
but I can tell you if you dont put any disclaimers for salt water corrosion or sudden part price increases,and Volvo is going to have another in march, your setting yourself up for mad cows.
last one I did was when inside of two weeks Volvo jacked the price of the lower swivel pin and bracket from 89 dollars to 268 dollars and told no one,until the part came in.
but now I simply repair the original stuff and cut volvo out entirely

 

[JustJason]

Re: Business Question

You'll find out in short order that it's impossible to flate-rate work on boats.

The engines are the same, but you have to factor in the boat side of things.

I've had plenty of boats where it takes an hour to pull all the seating to even get the engine cover off. Then it takes another hour to put it back together. Stripped stainless steel screws, broken spark plugs, no access to anything... etc. Ever hear of the $1000 dollar starter job??

Take all that, and then this... There are 2 types of customers. The 1rst is meticulous about his boat. Keeps up on all the maintenance, and documents everything. The 2nd kind just doesn't give a ship, runs the boat till it breaks, then complains and points fingers to the mechanic/shop.

Tune ups don't fix clogged carbs, fuel system supply leaks, electrical shorts....

Be the fairest you can, but don't give your time away either. Every boat that's new to you is bill's on the bid system. Once you've worked on a particular boat a few times (and I say boat, not engine) you can narrow down your bids to a more accuratte number. But typically when a customer calls I give them a ballpark, explain the ballpark, and tell them that it can be much higher if there are extraordinary circumstances.

 

[zbnutcase]

Re: Business Question

And be prepaired to deal with dead batteries...LOTS of them, and that too eats time. 'nutcase

 

[Fun Times]

Re: Business Question

And be prepaired to deal with dead batteries...LOTS of them, and that too eats time. 'nutcase

And also there will be lots of times when the boat is out of gas along with no Ignition Key.

 

[Don S]

Re: Business Question

Then you have all the anchors, anchor lines and chain, fenders, toys, canvas, along with seats,m gas cans, and everything else you can imagine around the engine compartment.
Don't forget, you can't leave any finger prints or dirt on the deck or sides of the boat. It must look better than new when returned to the customer. And every customer thinks that when the internet says it takes 1 hour to do a tuneup, that that is what you should be charging.
There are only a few on this forum that really understand what it takes to do this kind of work and make a living at it, the rest are a bunch of DIYers that have an opinion on how the pro's should do it, but have never tried it themselves.
Let's put it this way, I am a marine tech, I fix boats, I fix my own boat. If my SUV breaks, I take it to a qualified dealer. Not the guy down the street.

 

[Lou C]

Re: Business Question

I hear people complain all the time about what mechanics charge and I tell em that they really have to understand the realtity of running such a business...with all the points mentioned above...and if it was that easy...well....a caveman could do it...(thanks GEICO)..
Some of my neighbors see me working on my stuff (boat...2 Jeeps and one Subaru) and ask me how much certain jobs run me (parts) trying to figure I guess if they are getting ripped off..I tell em well I don't have to run a shop...pay rent...insurance...pay help...etc all that stuff that a real businessman has to do...I won't do work for neighbors because it can backfire easily and cause problems...I tell em get it fixed right the first time not half AZZED because on the water your life depends on it....

 

[ahhchoo]

Re: Business Question

Hey guys,
Thanks for all the great responses. I've been doing it for a few years now with a professional shop but when people call to ask how much to tune-up the engine I usually end up hurting myself because I am trying to both give a quick professional answer and at the same time I'm trying to be very fair.
I just came up with these numbers over the winter as a place to start, they are much higher than I was normally charging. Like I said I'm used to the mechanics but never had to deal with the business side at all. I'm glad I posted this because now I know its not as easy as I thought it should be. I think it was justjason that mentioned the ballpark "I give them a ballpark, explain the ballpark, and tell them that it can be much higher if there are extraordinary circumstances." I guess i'll start with this year using these numbers as a ballpark. I'll explain that it could be more for many reasons and see how it does, it won't be worse than last year.