How many of you guy's are STUCK..."In NO mans land?"

[Brian R]

Hey, at least I pay my guys 50% and I don't even take their customers. !gotcha!

 

[Royal Man]

Hey, at least I pay my guys 50% and I don't even take their customers. !gotcha!

Do you factor in blower size in their payrate?

 

[Able 1]

[quote="Brian R AKA Corky":31bynt5k]Hey, at least I pay my guys 50% and I don't even take their customers. !gotcha!

Do you factor in blower size in their payrate?[/quote:31bynt5k]


I'm "stuck" and love this thread but if you "multi truck" guys only make 15-20% profit per van, Im even more unsure of what I plan to do...

 

[joe harper]

[quote="Dave Yoakum":wzwegfyn][quote="Brian R AKA Corky":wzwegfyn]Hey, at least I pay my guys 50% and I don't even take their customers. !gotcha!

Do you factor in blower size in their payrate?[/quote:wzwegfyn]


I'm "stuck" and love this thread but if you "multi truck" guys only make 15-20% profit per van, Im even more unsure of what I plan to do...[/quote:wzwegfyn]

Keith,

"Just IGNORE those two.."mArkEtInG GuRu'S"..the have NO more :idea: of how to operate a sucessful business than my GOAT :roll: "

Is their something specific you want to know...?
We all started with one truck.. !gotcha!
I have had as many as 6 running...."AND LOST MY ASS"..

We found our "sweetspot" for now is 3.... 8)

 

[Ken Snow]

[quote="Dave Yoakum":uzhwab2o][quote="Brian R AKA Corky":uzhwab2o]Hey, at least I pay my guys 50% and I don't even take their customers. !gotcha!

Do you factor in blower size in their payrate?[/quote:uzhwab2o]


I'm "stuck" and love this thread but if you "multi truck" guys only make 15-20% profit per van, Im even more unsure of what I plan to do...[/quote:uzhwab2o]


Keith~ 15% of $250,000 = $37,500,
15% of $300,000 = $45,000
15% of $350,000 = $52,500

Those are very doable numbers and profit %'s PER van. And in actuality the higher the gross of the van the higher the profit % will be as the fixed costs will stay realtively constant, only variable go up relative to sales. At 300k plus per van profit % can be closer to if not above 20%.

 

[Steve Toburen]

Keith~ 15% of $250,000 = $37,500,
15% of $300,000 = $45,000
15% of $350,000 = $52,500

Those are very doable numbers and profit %'s

Ken's numbers (and my guess is his actual experience!) just show the incredible profit potential of this business.

For example, my ex-business partner (and still best friend) just spent a week with Sioux and me. He is now in a technology distribution business and we always share our numbers with each other. the guy is one of the most savvy businessmen I know. This year he told me they will show a net profit of only around 500,000 bucks on a gross in the neighborhood of $40,000,000.00! (Admittedly their margins have been squeezed by the recession.)

Now in Ken's scenario IF you wanted to you could hit this same half million dollar profit (maybe even more if you added W/D) with a ten truck operation and probably 20 employees or so. In my friend's distribution company he needs over 100 employees and 10 times the volume to achieve the same net profit. Something to think about.

Steve Toburen
http://www.SFS.JonDon.com

PS It is all about staying in your "Comfort Zone". If the above ten truck scenario doesn't fit with your family goals/personality/desired life style then don't go for it. But don't say it can't be done because it can be done and a lot of hardworking cleaners/restorers ARE hitting these numbers!

PPS Hey, on edit I just noticed this is my 1,000th post! Shouldn't there be champagne or something? (In honor of the occasion I won't even add one of my shamelessly self-promoting links to a Special Report or blog post.)

 

[joe harper]

I think some have become "stuck" on the 20% figure, that was posted about our
company taking over a friends business..?

That is NOT the profit margin we operate our business...! "We recieve 80% to perform
that service...!" "It is really NO differance, than feilding a call from one of our cleints.."

Considering, that we have NO expense in attaining the customer... !gotcha!
The additional "jobs"..allow us to pay for additional employees & operating cost
for "OUR" business..!

This type of "FREE" customer generates about 8 to 10 additional jobs a week... 8)
The profit from these jobs...Literally pay for ALL the operating cost of HCC...for the
week.. :shock: .................... "Less the OWNERS salarys"....................!!!!!



"I AM NOT ADVOCATING THAT THE O/O...RUSH INTO A MULTI-TRUCK OPERATION..."

I am SIMPLY...trying to get the O/O to plan for the FUTURE....and protect their
investment.. :!: You need to have a PLAN to retire and have your business carry
on ..When you can "NO LONGER" do the physical LABOR... :idea: :idea: :idea:

"AS LONG AS YOU ARE THE "ONLY" LABOR FORCE IN YOUR COMPANY"
You are jepordizing your family & their FUTURE... :shock: "PLAN for the InEvAtAbLE"...!

 

[Tony Neville]

I like this thread, it gives some bench marks to look at and help you to change the course of your business.

I do however disagree with Steve T. I believe that you should stay out of your comfort zone otherwise you run the risk of being complacent and lazy. Instead go out do something that challenges you, in talking to others, in your marketing, in your attitude. Just be a force for careful thought out change, whatever that means for you!

Tony

 

[Jim Bethel]

Great thread Harper!!

 

[joe harper]

Here is a little "TIP"...on how to get a FREE TRUCKMOUNT.... !gotcha!

While many may attribute this "TIP"...to marketing...I would say to you..It is
more along the lines of ......FINANCIAL DISCLIPINE..... :idea:

Instead of buying that 30K SUV or PICK-UP... :!:

Go purchase a NEW cargo van...or at least a late modle van with LOW miles...!

Then "invest" the money to get a really professional WRAP...!!!

This van is NOW your personal vehicle...Drive it "EVERYWHERE" you go... :!:
Keep it "spotless" at all times...! it GOES everywhere you GO..to the grocery store,
movies,golf course,little league,doctor,friend's house,Home depot,McDonald's,fishing,
family trips,church, ect...ect...ect..."I MEAN EVERYWHERE".... :!: :!: :!: :!: :!:

If you live on a busy street..."park it in your front lawn"...If you are NOT doing anything
on the weekend....? Have a friend or family member follow you to a BUSY "high-end mall"
or shopping center...! Leave the van there for the day ...and go home & wait for the
PHONE to ring... !gotcha!

I REALIZE...some of you men live in gated communities.. :idea: So HOA..will frown upon
you parking the vehicle OVERNITE.. :x ..However..you are allowed to park the van at
your home during the day.."While you are out working"...!!! Many of you neighbor's do
not even realize you are in the CC business... :shock:

OK.....Here is where your NEW TM...comes from... 8) 8) 8) 8)
Drive the van for ONE YEAR...!!!! I assure you the additional REVENUE...generated by
your "ROLLING BILLBOARD"...will more than BUY YOU A NEW TM.... !gotcha!

I drove our NEW ..box truck..to one of the MOST EXCLUSIVE golf courses in fl.....
for 6 months.... :shock: Not only do we NOW own this high-end clientele...
We landed the contract for the 50K sq. ft. CLUBHOUSE... 8)

I parked it AWAY from the BMW's,BENTLEY's, & MERCEDEs...Every homeowner and
SUCESSFUL...Doctor, Attorney , and businessman at the club...began to use or service..!

Park-em out front BOYS.... !gotcha!




Ps It became a JokE...to all of members...that I was driving the truck..to the course...

UNTIL...I let them know...that I understood that some of the members could ONLY afford
to drive a 50 K ..."pOrScHE"....

 

[Brian R]

This is new?

 

[joe harper]

This is new?

Go GooGlE...an OrIgaNol ThoUgHT...mArY... :roll:

A..Little".. fInAnCiAl DisCiPlInE.. would have gone a LooooooooonG way in your VirTuaL wOrlD...

 

[Brian R]

As much as you accuse me of my financial problems...it makes me think that you might be having some issues with your company.

Wanna talk about it?

 

[joe harper]

As much as you accuse me of my financial problems...it makes me think that you might be having some issues with your company.

Wanna talk about it?

I am RETIRED...jAcKwAgOn.... :roll:

"Just keep cHaSinG your tAil.." eventually you will "PASS-OUT"... !gotcha!

 

[Brian R]

Retired my aching ass.

Do you run a company or not you dildo?

 

[FB7777]

I am RETIRED...jAcKwAgOn

damn, I love that commercial

 

[Steve Toburen]

I like this thread, it gives some bench marks to look at and help you to change the course of your business.

I do however disagree with Steve T. I believe that you should stay out of your comfort zone otherwise you run the risk of being complacent and lazy. Instead go out do something that challenges you, in talking to others, in your marketing, in your attitude. Just be a force for careful thought out change, whatever that means for you!

Tony

Yes and no, Tony. I should have been more specific. In my mind there are two "Comfort Zones". One is a "daily comfort zone" where yes, every day you need to kick yourself in the butt to get out of the house, to walk through the door of that new medical clinic, to go back and kiss up to that arrogant adjuster for the nineteenth time, call the unreasonable client instead of ignoring her, etc. I forced myself out of my comfortable "displacement activities" every day I was in business and eventually it paid off.

However, in my post above I was meditating on (for lack of a better expression) what I would call a "Life Comfort Zone". Too many entrepreneurs wind up with the business running them instead of the other way around. As Michael Gerber reminded us in the "E-Myth" the reason you own your own business is for it to serve you and your life goals.

Now to a degree someone can get their business under control through maturing as a business manager, introducing systems and procedures into their company and just generally growing into what they have created OR what has "exploded" on its own. This certainly is possible. I did it and many on this board have done so too and more power to them.

But I do see other good, hard working people who despite their very best efforts just are "drowning" in their business life and in the process are making themselves and their families miserable. Some individual's personalities and Life Goals just do not lend themselves to starting/ growing/ owning/ managing a large business. This does NOT make them a "bad/weak" person or a failure in life.

So I guess what I'm suggesting re: your "Life Comfort Zone" is to search for that "SWEET SPOT" where it all comes together for YOU. Too many entrepreneurs fall prey to the "letting others define their success" syndrome which leads them into trying to be someone that simply they are not.

Or the other danger is some feel so insecure in their own life that they try to convince everyone that what they have achieved is what everyone else must achieve. (I'm not accusing anyone on this forum of this behavior!) A truly secure person recognizes there are many routes and definitions of "success". Sooo ...

I would timidly submit to everyone that they truly are already a "success" IF they are:

a) Providing for the daily needs of their family and ...
b) Setting aside enough funds into a Personal Investment Plan for a comfortable retirement and ...
c) Have protected their loved ones in the event of their untimely demise or disability and ...
d) Are growing emotionally, mentally and spiritually and helping their families to do so AND ...
e) Having fun and enjoying each and every day and ...

it doesn't MATTER how much they charge per square foot/how many trucks they have on the road/how they market their services/how much money/real estate/net worth, ya-da, ya-da, ya-da they have.

Folks, define where your "sweet spot" is in life so that every day you wake up looking forward to the day and loving life. This is going to take some serious trial and error and maybe some "false starts" along the way. (Don't ask me how I know this.) and to achieve your Life Sweet Spot, Tony, you definitely have to get out of your Daily Comfort Zone.

Respectfully submitted,
Steve Toburen
www.SFS.JonDon.com

PS OK, now you all can bash and flame away- it wouldn't be Mikeysboard if a sincere post wasn't subjected to a degree of ridicule!

 

[Brian R]

I think Steve just smacked every one of us in 1 post.

 

[Lee Stockwell]

Great thread.

 

[joe harper]

Retired my aching ass.

Do you run a company or not you dildo?

Brian, I have retired before ..when I was 42..I had a MiD-lIfE crisis..that was worthy of a
AcAdAmY AwaRd... !gotcha!

YES, I am retired.. :!: My son handles ALL the "day to day" operation of the company.. :!:

I have "ZERO" debt...for the 1st. time in my life.... :!:

I have structured the business in such a way...That I lease the entire company to my
son...! So I have no responsibility per say.."Other than to mentor my son...upon his
REQUEST"

So in essence..I still own the company...And he lease's it from my "HOLDING" corperation..!
This structure provides everyone involved some significant "TAX" shelter... !gotcha!

When I die ..The company will flow through to him in the form of a TRUST..."Of which he is
director & TRUSTEE... :idea:" So if he wishes to pass the TRUST on to his family..son or
daughter.."SO BE IT"

In the EVENT that He is ever in a DIVORCE..???? His Wife will have NO claims upon the TRUST... :!: He can ALSO bleed off ALL assets of the TRUST/CORP. or simply sell it ...
after my UntimelY deMisE....

So......In closing, "I" would just like leave you with this ThoughT.... :arrow: "SUCK-IT".. :!:

 

[Brian R]

Well then shut the hell up. :mrgreen:

 

[daniel@procarpet]

NO MAN"S LAND....means enough work for {one and 1/2 trucks}...."but not 2 full time trucks"..

Give me some of your concern's and I "may" have some solutions for you... !gotcha!

Ok I'll give this a shot. Business has it's ups and downs. I am fortuante in that I stay busy enough, but I also know that if I conitinue what I am doing I will be in the exact same place five years from now. That may be good or bad, The reason businesses do not grow is not because the owner does not do a good job. The reason is because the owner does not have the systems in place and the owner simply does not want to grow. The owner likes having the flexibility of lower overhead.

I love the situation I am in and I mean love it. I have been contemplating making some changes that would drastically
change my lifestyle. Right now I basically work when I want to. If I want to take a few days off, I can. As you know I want to open a real business location. A billboard in the area to get the same exposure will cost at least 4k per month and I can't even use it. A retail space is 1/4th the cost and I can acutally use it to work out of. The real issue here is do you want to put in the neccessary time and effort to grow a profitable business, or do you want to stay small, but enjoy a much less stressful lifestyle? That is where I am at. I feel it is in my best interest to work HARD now while I am young so I can enjoy a much better retirement latter. I have made the decision to go all in. This is a huge gamble for me. Not really but I like to think it is.

What are the costs versus benefits.

Costs:
- I will actually have to get off my lazy azz and work.
- I will be responsible for doing more work just to make what I am now.
- I will have to spend money on signage and other equipment.
- I will be in a term lease
- I will have a lot more responsibility
- I will have to spend more time trouble shooting. Currently it seems like I wake up and have to check emails, make phone calls, get the truck ready, make sure all the tools are stocked, make sure my help is up and ready to work, make sure I have all the necessary forms ready for the day etc. I also have to do the banking, create and work on marketing pieces, deal with designers, work with my IT guy, and just think about the direction I want my business to go.

This is a lot of stuff to deal with and I am just a smalltime bdcc. No wonder people cave in and get a real job.

Benefits: Instant exposure to hundreds of thousands of people.
- Increase workload or more steady revenue and hopefully more income
- The business will have the framework to support growth
- We will be viewed in the eyes of the public as a real business and different than other services
- This will support other marketing mediums. An example would be marketing pieces promoting your service with phrases such as we are located next to _________ (an established well known business of 50 years). This gives you instant credibility. Let's say you want to focus on sales and go to a business in the area your shop is in. Chances are good they have seen your storefront and when you apporach them you can say we are such and such located in the area next to ______. We offer theses services. I just think it makes you seem more credible.


If there was a way for me to be booked out weeks at a time doing what I am doing now, I would do it. It isn't happening. Look at Jim Martin for example. No one thing leads to being booked like he is. It is a combination of killer work, nice truck with good signage, and people seeing him work day in and day out. All I want is to be able to run two trucks full time, get paid a good price (I refuse to match the three room 89 dollar deals everyone else is running), and grow from there. If you do what everyone else is doing, you will have to compete with them. If you are differnent and create demand for your business, you will or at least should get higher pricing.

Let's say Mrs. Piff walks into a business etc and sees a marketing piece for carpet cleaning three rooms 89 dollars. She has seen a million of those. Now let's say she walks in with a nice well crafted marketing piece prominently displaying your services, benefits, and a glowing endorsement from the owner of the business highly recommending your service. She will think hey they did a great job for __________. Now you have something other than price for her to focus on. She will have trust in you and all this leads to higher pricing.

This is a game. In order to win, you have to outthink the competion. Business is really simple. It is a matter of who can provide the best service for the best price not always the cheapest price.

That is why carpet cleaners fail to move past a small operation or at least grow revenues through higher pricing. No one thing is a magic bean. It is a combination of things. It takes a lot of risk to succeed. That is why that call it investing not making. Investing involves calculated risks.

I am tired of typing.

 

[Steve Toburen]

I am tired of typing.

Good points. There is no right or wrong in this but ya might want to check this out BEFORE ya go all out:

http://sfs.jondon.com/861/resources/spe ... ad-between

Just saying ...

Steve Toburen
www.SFS.JonDon.com

PS If you don't wanna mess with the download email me and I'll send it to you in a pdf.

 

[rwcarpet]

Harp.....there are areas of the country where the concerns for "lack of work" are real. With a couple of feet of snow on the ground, not many custys are calling. A local competitor of mine runs at least 6-7 trucks....had 1 call on Monday. That can be costly when you've got a bunch of employees looking for a paycheck, and equipment setting idle. But if you can count on year round work (maybe encapping your commercial custys during the cold weather), then it's a different story. I sat idle most of January, but picked up some really decent jobs in Febuary. I still have my employee laid off, but will call him back in a few weeks. I also got nailed on a workers comp claim which raised my rates quite a bit.

I guess that if you took on hard floor maintainence (vinyl), it could pull a company through the Winter.

 

[joe harper]

WOW Dan... :shock:

That was a long ass-ed post...with YOU just picking VERSUS out of the "GurUs"
Bible..to offer ..UP your own SERMON...

It is great that you have READ 99% of that info from this board...!

Sounds to ME...."That you feel there is more CredIBiLitY"...in being a self-proclaimed
Carpet cleaning GUrU...!" Rather than a sucessful businessman.. :idea:

I HATE TO BREAK THIS NEWS TO YOU....

But if you become the LARGEST CC company in the world...."YOU will still called a JaNiToR."

The MOTIVATION of any private business owner is to have CONTROL of their OWN life... :!:
They are willing to gamble the ups & downs of creating financial security...in lue of a steady
pay-check that an OUTSIDE PARTY controls... !gotcha!

Dan ...I seems to me that you are trying to satisfy you EGO for recognition ...Rather than
make a business decision... !gotcha! Because...NO business decision should be entered
into ....willing to LOSE money... :!:

 

[FB7777]

now that you've had the testicular reattachment surgery, are you going to Nashville Joe?

 

[joe harper]

Harp.....there are areas of the country where the concerns for "lack of work" are real. With a couple of feet of snow on the ground, not many custys are calling. A local competitor of mine runs at least 6-7 trucks....had 1 call on Monday. That can be costly when you've got a bunch of employees looking for a paycheck, and equipment setting idle. But if you can count on year round work (maybe encapping your commercial custys during the cold weather), then it's a different story. I sat idle most of January, but picked up some really decent jobs in Febuary. I still have my employee laid off, but will call him back in a few weeks. I also got nailed on a workers comp claim which raised my rates quite a bit.

I guess that if you took on hard floor maintainence (vinyl), it could pull a company through the Winter.

Sorry to hear that ...!

RW....it is 80 degrees here today...
Weather is always an issue for our industry....I certainly would diversify to "something"
if our business was up north..."It is easier ...Just to MOVE to the good weather.. :idea: "

COME ON DOWN.. :idea: ..."I will save you a seat... "

 

[joe harper]

now that you've had the testicular reattachment surgery, are you going to Nashville Joe?

I will decide the night before the GIG.... :shock:

You know Marty & I are afRaId .....crowds...& ..can't leave our own "bAck-yarDs"...

 

[Brian R]

Careful Dan...if you start thinking too much you will get on Harper's bad side. :shock:

 

[joe harper]

Careful Dan...if you start thinking too much you will get on Harper's bad side. :shock:

Dan ...Has promise...!

You are the RaMbLinG FOOL... :x That has sent him into the DITCH... :roll:
That is why YOU are dAnGerOuS... :idea: YOu are TWICE his age & have accomplished
.............................................NOTHING.............................................