One of the advantages Solar Art has in buying many tint companies over the years is that we get to see different ways window tinting businesses are run. Among the most important factors in running a profitable window tinting company is pricing structure. It’s an area we often see neglected but can have a huge impact on the bottom line.

I came into the automotive tint industry at a time when the first “ceramic” product was introduced. At the time, my most expensive tint for a car was around $300. This was a new product, so the market price had not really been set.Based on the product cost, I set my price around $400 and waited nervously. A few weeks went by and my film rep told me the guy down the block was getting $500 for the same tint. I told him that was crazy and no one would ever pay that much. After some convincing, I decided to try it and changed my price to $500.

I remember the first time the customer walked in after that. I walked him through the good, better and best model but now the best was $500! The individual wanted the best so after talking him through everything, I had to give him the price. I wrote it up on an estimate ticket with all the services and nervously slid the estimate across the table for him to sign. In my mind I was waiting for him to react crazy, arms flailing and storming out because of the ridiculous price. BUT the exact opposite happened. He calmly grabbed the pen, said “okay” and signed the estimate.

My mind was blown. I had just sold a tint for $500 with no push-back, no negotiation, nothing. At that moment I learned that pricing is not about what “you think” it’s worth. It’s what the market says it’s worth and directly related to the value you provide. Just because you buy a product for cheap does not mean you should sell it for cheap—it means you should sell for what it’s worth and look to increase your margins.

Another lesson this taught me is that you will only get whatever your highest price is. In other words if $500 is your top-of-line, that is the most you will ever get. Having more options not only allows you to get a higher dollar sale in some instances but it can also make the other products’ prices seem more reasonable.

Whether automotive or flat glass, profit margins can make or break a business. I’ve seen many businesses know how to drive sales but not be able to manage the back end of turning that sale into profit. There is no point to sales if you can’t be profitable enough to have money to reinvest in your business. Price confidence is critically important to business health. Many owners feel if they raise their prices, they’ll lose business. While true with some customers, overall you would be surprised how little an effect small price increases have on revenue. The reason I like this focus is that it doesn’t require any special marketing, more sales, or any unknowns. It just takes some analysis and discipline to make the right choices around how you price.

There will always be the $99 tint jobs and owners who think they just have to be the cheapest to get the business. They will always exist but never grow because they will never be profitable enough to reinvest into their business. If you believe in your product and offer great service, then you should be confident in your pricing and ultimately you will create more value in your business for the future. Happy pricing!