OK let's do the math. Consider the
BIG TRUCK approach that Mike had in California. A modest price tag for a rig like that would be around $100K (or more).
Now let's amortize $100K for 7 years at today's rate of 5.25%. The monthly payment comes to $1425.
That means that your first $1425 doesn't count. You'd need to generate $1425 before you get to zero. The first $1425 goes down the drain - it doesn't exist. And that doesn't even factor fuel, equipment maintenance, or insurance costs for the
big truck.
By comparison a few thousand dollars can put together a nice VLM/Porty setup. Load that into a fuel efficient vehicle and a person can be heading down the road and turning a profit from the word go. From a pure business perspective there's sound wisdom to this model.
Additionally it looks like water restrictions will continue to be a problem out west (the new norm). From a marketing perspective and from an ecological perspective, catering to "low moisture" also makes sense.
I know a lot of you will scoff at what I've outlined here. Of course, every business owner will have their own strategy, each approach has its merit. But I can assure you there are a lot of cleaners around the country who are taking this approach, and they're being successful at it too. It doesn't surprise me that Mike is interested in going down this path too. Smart guy
Here's our cleaning company's VLM van.
