Your experiences at moving on from a one truck operation

[BLewis]

Hello everyone, I've been for the most part MIA from this board for about a year and not for any particular reason. I have had my arse handed to me in a plate this year. I have stopped in from time to time and I have been following the CC page as I found it easier to stop by and visit. However the past few days I have taken the time to catch up here and realize I have been missing WAY to much info and education. I am especially excited about the new webinars even though I haven't been able to make any as of yet.

Now for my question. I have been a one truck operations for a few years now and have been carrying the cost of my back up Vortex for about 3 years. Finally about a year ago I managed to let go somewhat and let my son start alternating our night shift which has helped give me some much needed rest. I have my son as a lead tech that usually gets 40-50 hrs per week and another part time tech that gets 25-30 hrs a week helping with our commercial (restaurant) business at night. I haven't advertised in 2-3 years and sales have continued to grow but we are very close to maxing out the one truck. In the past few weeks I have been taking the V out to catch up on missed jobs or mishaps or last minute PM work that has come. Well, that has slowly turned into taking the Vortex out more and more and doing so 3 days this week. So my plan is to hire another tech to take over the V (yeah I know I'm behind) and when the PC is paid off I plan on getting another TM and continie to keep the V as a back up.
Is this how most of you multi truck companies (meaning more than one truck) have progressed? I originally had aspirations to be a 2-3 truck company but in past 2 years have decided I wanted to stay at 1 unit but lately I see the need to move on mainly out of nessity because I have found myself turning down commercial work because I just could not handle anymore.
Sorry for the long post (but if you remember me you know that's not unusual)
Searching for help and suggestions....Billy

 

[Mark Saiger]

Hello everyone, I've been for the most part MIA from this board for about a year and not for any particular reason. I have had my arse handed to me in a plate this year. I have stopped in from time to time and I have been following the CC page as I found it easier to stop by and visit. However the past few days I have taken the time to catch up here and realize I have been missing WAY to much info and education. I am especially excited about the new webinars even though I haven't been able to make any as of yet.

Now for my question. I have been a one truck operations for a few years now and have been carrying the cost of my back up Vortex for about 3 years. Finally about a year ago I managed to let go somewhat and let my son start alternating our night shift which has helped give me some much needed rest. I have my son as a lead tech that topically gets 40-50 hrs per week and another part time tech that gets 25-30 hrs a week helping with our commercial (restaurant) business at night. I haven't advertised in 2-3 years and sales have continued to grow but we are very close to maxing out the one truck. In the past few weeks I have been taking the V out to catch up on missed jobs or mishaps or last minute PM work that has come. Well, that has slowly turned into taking the Vortex out more and more and doing so 3 days this week. So my plan is to hire another tech to take over the V (yeah I know I'm behind) and when the PC is paid off I plan on getting another TM and continie to keep the V as a back up.
Is this how most of you multi truck companies (meaning more than one truck) have progressed? I originally had aspirations to be a 2-3 truck company but in past 2 years have decided I wanted to stay at 1 unit but lately I see the need to move on mainly out of nessity because I have found myself turning down commercial work because I just could not handle anymore.
Sorry for the long post (but if you remember me you know that's not unusual)
Searching for help and suggestions....Billy

Sending you a link of info on how we ended up doing it...

Will be a pdf file and maybe give you some ideas too....

PowerPoint notes of mine....

 

[Desk Jockey]

That's how it worked for my father. One truck and slowly more work than one could handle. He added a truck to catch up the slack and last minute jobs and before you know it there were two, then three and it just continued to grow.

 

[Brian H]

During the times when the work is too light to support yourself and that employee in training, take yourself off the truck and get to work doing marketing, etc.

You are old enough to have a son working full time, so I will assume you are in your 40's... Time to get the next generation trained so you can start planning an exit strategy.

 

[BLewis]

Brian, I quit the restaurant business and started this business at a ripe old age of 50 so I have needed to get my butt in gear for the last few years! I used to supervise 35 mil a year in that industry but this is totally different to me. I am making baby steps and just now getting to where I feel I can let go. At 58 I figure I have 4-10 years to set up where it can support me with being just a marketing person etc.

Mark, thanks I'll print that out tonight and read/study over the weekend

 

[Mikey P]

Two or three trucks with great employees could and should be able to create enough work through happy customers and their referrals that you should only.have to "market up" another 20% or so to stay busy.
You may luck out and get "free" marketing" in the form of online reviews..

I think what's more typical in this industry due to hum drum chimps, is one out of three trucks income going to marketing. 0r three out of five in big markets..

And then there is winter...

 

[Shane Deubell]

I always ask myself, are we actually busy?
Or do i just FEEL busy?

Instead of thinking of trucks and hours what is the revenue $$ per year?
What is the gross margin
What is profit
What is return on advertising

Can i improve any of those numbers. Make sure you are getting the most out of your current investments before taking on new ones.
In general i think people add trucks too soon .

 

[Desk Jockey]

In general i think people add trucks too soon .

yep! Lockhart makes a living buying stuff for pennies on the dollar that newby's thought they needed.

 

[Shane Deubell]

yep! Lockhart makes a living buying stuff for pennies on the dollar that newby's thought they needed.

Lesson learned from the great Ken Snow before i even started. Return On Asset

Has stuck in my head and i always ask those questions before looking for the next scheme.
Hard to do because its boring blocking/tackling but its where fat profits come from. The details...

 

[Desk Jockey]

Hard to do because its boring blocking/tackling but its where fat profits come from.

I have a hard time with that. I always want a new truck and a new machine.

I'd like to order another Spartan van....but I better wait and see what winter brings.
Everyday I flip flop on how bad its needed or it its just a luxury.

Billy's case is different he has the work coming in. He just needs to continue to market once he has the second tech to keep the second truck busy.

 

[BLewis]

One of the good problems that we have is that we service 2 PM's. One is owner managed and they have about 250 units the other is mostly just managed but they started about when we moved back to Lexington. They started at 70 homes and now are over 400 so monthly turns can get interesting when you have a full schedule. We didn't get our college turn this year but only fell $129 short for the week compared to last year

 

[Desk Jockey]

We didn't get our college turn this year

Probably more profitable without it!

 

[cobra]

I always ask myself, are we actually busy?
Or do i just FEEL busy?

Instead of thinking of trucks and hours what is the revenue $$ per year?
What is the gross margin
What is profit
What is return on advertising

Can i improve any of those numbers. Make sure you are getting the most out of your current investments before taking on new ones.
In general i think people add trucks too soon .

Shane I agree. Just recently passed up opportunity to acquire 3rd van for these very reasons. The second van was a no brainer as we were stretched way too thin and with no back up. People and emotions will lie to you, NUMBERS DONT!!!!!!!

 

[WillS]

You'll definitely notice yourself beginning to pay for marketing as you add on the trucks. When you hire employees to staff those trucks it begins to hit you, they need to make money to. If you are cutting their hours every week because of low business on those, eventually they will leave or their quality of work will begin to decline because they are broke too.

The stress of adding on more trucks is about getting them to book up all the time. You should already have the equipment stocked up for the truck, before you even add that truck on. Than all it is, is staffing the truck. Hence why I would start setting a higher marketing budget to do this.

When we only had 1 truck, we felt overwhelmed doing 6 to 7 houses a day at times 6 days a week. Added on the second truck and we started doing 4 houses per truck per day. With 3 trucks now, the 3rd truck is sometimes lucky to see 20 hours or more on it. Probably why we are putting so much more into marketing, focusing on return customers, etc. We had 2 employees quit within the last month because hours on that third truck were so low, even though they were being rotated. Also, they don't realize June/July is slower time for us due to school being out, vacationing and the 110 weather.

 

[Desk Jockey]

We had 2 employees quit within the last month because hours on that third truck were so low

I have them quitting because they are working too much.

Youth, they still think they need a weekend.
You just spend all the money you worked all week for.

Stay, work all day Saturday & Sunday and look how much more you made. Plus you didn't spend a dime on your...soon to be ex-girl friend.

After all on your death bed do you really want to remember the money you wasted on the girl or remember the quality time you spent at work restoring peoples property when they were in need. Kid? Hey kid you listening to me?

 

[Brian H]

We had 2 employees quit within the last month because hours on that third truck were so low, even though they were being rotated. Also, they don't realize June/July is slower time for us due to school being out, vacationing and the 110 weather.

I am not sure of the unemployement laws there in Nevada but could you layoff that 3rd crew during your slow time and push the extra work to your remaining crews?

In Michigan we do a seasonal layoff of some of our workers for 3 months or so during our slower time of January, February and March. Some guys really look forward to it and jump at the chance to be off for that entire time. Others only want to be laid off for a few weeks or a month. We will only run 10 crews or so during that slow time so we try to make it work for those that want to be laid off and those that want/need to work all winter.

 

[WillS]

We haven't done layoffs before, I'm not sure and would have to look into it. We still want to at least give them a certain amount of hours, because even with less hours, they can make up some in tips or cleaning rugs we pick up. June and July are our slowest months since no winter here. In summer of course they want to stay busy because they are spending money on their GF's, going out and doing things, etc. Of course, neither of those guys girlfriends are working so they are the only ones bringing in money. I don't get it.

 

[Desk Jockey]

Of course, neither of those guys girlfriends are working so they are the only ones bringing in money. I don't get it.

They need to find new girlfriends. That's not a good start.

 

[Wing It]

In the process of buying a second butler so I will let you know in a few months. If it doesn't work I will sell the 10 year old truck, but I don't expect that to happen. I think we will run that thing until its dead. I have been responsible for it for most of the 10 years. Any trucks from here on out will be up in the air on selling early as I don't expect anyone to care for a truck like the owner. I will also be more open to buying used rather than new.

 

[BLewis]

WOW, I just spent the last hour listening to Tom Kings webinar and I am so pumped! I sure have been missing out on a lot the last year by not being here. Can't wait to listen to the rest. I feel good that I have done a lot of things correct but I am WAY behind the eight ball.

 

[Desk Jockey]

I could listen to him all day, he has so many ideas. One sharp guy!

 

[Brian H]

I agree with Ford!!

If I was starting from scratch I would want Tom on my team!!!!

 

[BLewis]

I have had the privilege of speaking with Tom a few times and even went up to a seminar that he conducted a few years back and got to see his new shop just after he moved in. But, I've been to busy working in my business the past year and not near enough time "on" the growth of the business. I almost feel like a fool

 

[Desk Jockey]

I almost feel like a fool

I do the same. I get too busy with menial tasks and forget who's supposed to be flying the plane.

 

[Brian H]

I do the same. I get too busy with menial tasks and forget who's supposed to be flying the plane.

Guilty as charged...

 

[Shane Deubell]

WOW, I just spent the last hour listening to Tom Kings webinar and I am so pumped! I sure have been missing out on a lot the last year by not being here. Can't wait to listen to the rest. I feel good that I have done a lot of things correct but I am WAY behind the eight ball.

Watched a little more today, Tom made some great points when interviewing employees and how to identify attention to detail in your questions.

Attention to detail is pretty important in our line of work.

 

[Nate The Great]

I do the same. I get too busy with menial tasks and forget who's supposed to be flying the plane.

So autopilot is broken?

 

[Desk Jockey]

ever see the movie airplane? The autopilot needed to be blown...up.

 

[TomKing]

WOW, I just spent the last hour listening to Tom Kings webinar and I am so pumped! I sure have been missing out on a lot the last year by not being here. Can't wait to listen to the rest. I feel good that I have done a lot of things correct but I am WAY behind the eight ball.

Billy come on up and hang with us for a couple days. Would love to catch up.

Residential day truck full time is the next step. You are rocking the commercial.

 

[TomKing]

We found when we ran 1 truck still needed a back up for breakdowns. 2,3, was the same. At 4 trucks we usually can move things around to cover all jobs.
If you are 2 trucks buy a third and run 2 guys on one truck and one single. We did that when we went from 2-3. Pretty soon we had everyone in their own truck every day.
now we have 4 and we run 3 days 1 night. Lots of ways to do it.