Pricing II: Your Worth and Your Costs

Here’s where having a basic knowledge of stone comes into play. If we have 1,000 ft² each of three different stones, your production time for each one will be different.
A 1,000 ft² area of marble can be done in one to three days, depending on what equipment you’re using; who’s operating it; the experience of each crew member; and room layout. The same area in granite can take anywhere from seven to 20 days, depending again on the above circumstances; in limestone, it may take three to five days, assuming that the stone is filled – and that fill will need to be replaced as voids are opened.
Then, plug in what you think you’re worth. For ease of mathematics, let’s just say $1,000 a day, so each floor will have its own square-foot-worth depending on production times.

FIGURE 1 ($1,000 per day)
Stone (1000 ft²) Time of Job Per Day Total Cost
Granite 7-20 days $1,000 $7,000-$20,000
Marble 1-3 days $1,000 $1,000-$3,000
Limestone 3-5 days $1,000 $3,000-$5,000

Now you have a rough idea of your pricing. Let’s look at your customers’ costs, because this will play a factor in what they are willing to spend on restoration. If they only spent $10 ft², your charge of $15 ft² doesn’t seem reasonable, does it?

FIGURE 2 (Replacement cost)
Stone Slab ft² Tile ft² Install ft²
Granite $35-$100 $10-$25 $5-$10
Marble $28-$60 $5-$15 $4-$7
Limestone $28-$60 $4-$12 $4-$7
Note: All prices will vary from region to region, and from quality of each slab.

Take this information and add in your projected costs. As you can see, your costs are lower than the install in many situations. Pricing yourself at $1,000 a day may be too low and not enough for you to plan for the future.

FIGURE 3 (Replacement vs. your revised rate)
Stone Slab ft² Tile ft² Install ft² Your Price²
Granite $35-$100 $10-$25 $5-$10 $7-$20
Marble $28-$60 $5-$15 $4-$7 $1-$3
Limestone $28-$60 $4-$12 $4-$7 $3-$5

Consider, as well, that your customers have to factor in the cost of removing the installation before they replace it. Your rate of $10 ft² for restoration is no longer out of line.
This information is valuable for you only. Never give your customer square-foot or day pricing! If you do, you may find yourself in an awkward position.
For example, if you tell a customer that you could do their foyer for $7 ft², the call may come later as, “I only want the middle 35 ft² done instead of the whole 350 ft². That should only cost me $245, right?”
You’ll sound like you’re trying to switch your pricing when you tell them that it will cost nearly the same to do one-tenth of the area. You’re far better off just giving the customer a price for the service, not for the area.
Or, if you tell the customer that you bill your crew out for $1,800 a day and the job should take three days at $5,400, you’re setting yourself up for headaches. If your crew works like mad dogs putting in two 12-hour days to finish early so they can get to the next job (or have a day off), your customer may think you cheated them out of $1,800 for that third day of work (even though two 12-hour shifts are equal to three straight-eights).
This is why you give customers a price: not a square-foot or per-day price, just a price. If they want to estimate the per-day or -foot pricing themselves, then they’re giving themselves that information – not you. Because, if it comes from you, they’ll view that as your standard; when they want less or more work performed, they base it on the particular rates you told them, and they’ll view any deviation as a change in your standards.
Far too often, in anticipation of making a sale, many a contractor resorts to selling on price. They feel that if they’re too high, they’ll lose out and go broke. Here is where you keep your cool (and, most likely, the customer).
You can figure out what the installation is worth to the customer, and what you need to be successful. When you put the two together and sell yourself as delivering quality, you can get what you want and deliver what the customer wants. This is a win-win situation.
Remember that a customer will find the money for something that they want. And what is it that they want? Well, why did they call you? To have their old stone look like new again.
Reason with the customer on the importance of dealing with a reputable restoration contractor. Do they want corners cut or a quality job? Ask them if they take their $80,000 Escalade to Joe’s Garage for a tune-up or back to the dealer? If so, why would they entrust a more-expensive floor (in some cases) to a fly-by-night operation?
I know that there are a lot of big contractors that cut corners. This is where you stand on your reputation, and your high-quality customers as references. Focus the customers back on the stone; what they paid for it; and what it’s worth to them. Assure them that you’re in the business of restoring it to better-than-new condition, and that’s what they really want. They don’t want to pay to have it look almost like new.
Of course, this pricing and sales strategy only works if you can deliver the goods. You need to be able to do high-quality work and know your competition as well. But who really wants to be remembered for only doing so-so work? Shouldn’t it be the goal of everyone to strive for the best results possible?
Until next time, keep your stick on the ice.
Tom McNall is founder and owner of Great Northern Stone Care, a Huron Park, Ontario-based stone-cleaning and -restoration company servicing all of southern Ontario. Tom also offers corporate and private consultation and serves as a trainer for the MIA.