20 plus trucks to bankruptcy

Desk Jockey

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Buy me that duct truck Willy. I'll pay you back...........eventually! :icon_rolleyes:

Those are some nice looking trucks, like the Cleano unit too.

What happened to them Willy?
 

Ken Snow

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Not sure why it would bother me more than anyone else Willy, nor do I or anyone know any details of what drove them under. No effect on me whatsoever.
 

Mikey P

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Ken


When you get a new customer are they typically bailing ship on an owner operator or a multi truck company like yourself?

and could you say what the top three reasons they stop using either type biz model is?
 

Ken Snow

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Making an educated guess Mike- #1 certainly referral from a friend or co-worker that used us. Whether they were unhappy with another company or not I don't know and we would never ask. #2 someone who has the need and has no particular loyalty and hears/sees one of our ads.

I know didn't answer the exact question you asked, but for us it isn't relative and I don't see anything positive from asking.
 

Mikey P

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maybe cause you don't want to hear that Modernistic sent out a goof one too many times and you fear what her goof limit will be with your guys..


if you have 40 crews running they can't all be Cracker Jacks.
 

Willy P

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To find out what made them so dissatisfied so I don't do the same thing? :icon_rolleyes: I always ask if the carpets were professionally cleaned before.
 

Desk Jockey

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They could with a population pool they have to chose from.

But you're right any tech can have a bad day and you're only as good as the work you perform that day.

That's the message we constantly pound into our tech's and even as good as our people are, we still get the occassional reservice. I think we bring it on ourselfs by telling them to call us if it doen't look just right. Some would call back anyway but some call back just because "the nice technican told them to." LOL :headbang:


Willy they looked like they had nice equipment & trucks, they either had deep pockets or were doing something right for a while. :confused:
 
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Ken Snow

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You got it Richard- definitely only as good as the last job we do for someone.

Mike, we do not have anywhere near 40 crews, but if we did they would all be top notch as our 20 something are today. They don't get the promotion to run a crew unless they have proven themselves over a few years and many thousands of jobs.

Ken
Ps. Modernistic is a fine competitor and I consider Bob McDonald a business friend. I have never said anything negative about him or his company nor have I ever heard of him or his employees saying negative things about us. Neither of us does business that way.
 

bob vawter

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You got it Richard- definitely only as good as the last job we do for someone.

Mike, we do not have anywhere near 40 crews, but if we did they would all be top notch as our 20 something are today. They don't get the promotion to run a crew unless they have proven themselves over a few years and many thousands of jobs.

Ken
Ps. Modernistic is a fine competitor and I consider Bob McDonald a business friend. I have never said anything negative about him or his company nor have I ever heard of him or his employees saying negative things about us. Neither of us does business that way.

10x2 right on!:clap:
 

randy

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For every "big " outfit like this that hits the skids and slides into bankruptcy there are probably 50-75 owner/operators that arrive at the same place just without being noticed. The average carpet cleaning operation (statisically speaking) is a couple of guys and two trucks. They just assimilate into the 25% annual turn over of carpet cleaning companies. Every year for like forever that has been the average, 25% are newbies and 25% just went out of business in one form or other. This business must have been down & out enough for it to just be an asset liquidation. Sad, mismanagment and a lousy business model are extradenarily expensive.

You wonder how long they existed operating off cash flow, equipment leases and lines of credit without ever really making a profit. Recently we bought out a small operation (nail & hair salon) that had 34 full time employees and was in operation 8 years. Here is the shocker: $256,000 in cumulated tax losses. We can write that off over as long as 20 years against income from other enterprises. Even with the owners skimming (I'm guessing she was hauling between $40,0000 to $80,000 in cash out the back door from what I can see thus far) I'm left wondering how and why this operation stayed afloat as long as it did.

Carpet cleaning stats based on research from Craig Jasper's research as presented in his seminar training.
 
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Willy P

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Willy they looked like they had nice equipment & trucks, they either had deep pockets or were doing something right for a while. :confused:


For years it was $89 for 5 rooms, stairs and a "free" armchair. They had "waste handling fees, fuel surcharges" and some other ridiculous fee that I can't remember. It was a shitty job with little interest from the management if the customer didn't buy "Aquaguard" and/or deodorizer. The quality was pathetic. Seems like a goos course if you want to hit the rocks, even with a couple million population to draw from. They were a part of http://www.albertacarpetcleaning.ca/, (see the website template) they even tried to set up in Tjereland, but they got tossed in the bucket for shitty practices. Asscoles. ( I just invented a new word :lol:)
 

randy

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Yep, it sounds horrible but you know it's pretty consistent across the board for low capital requirement start ups. Many of these operations consist of a couple of portables and a van so it's kind of understandable. Recently I had dinner with a guy that runs four trucks in a junk hauling business. He knows what he took in today, spent today for gas but that's about it. Can't tell you what his receivables are, just that the invoices are in a folder in the closet. Doesn't know what he grossed last month or even last week. I have a feeling that is more common than we would ever guess.
 

randy

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Is that The Marty ?
I thought he left carpet cleaning to dance in a gay bar or was that...
 

Willy P

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For every "big " outfit like this that hits the skids and slides into bankruptcy there are probably 50-75 owner/operators that arrive at the same place just without being noticed. The average carpet cleaning operation (statisically speaking) is a couple of guys and two trucks. They just assimilate into the 25% annual turn over of carpet cleaning companies. Every year for like forever that has been the average, 25% are newbies and 25% just went out of business in one form or other. This business must have been down & out enough for it to just be an asset liquidation. Sad, mismanagment and a lousy business model are extradenarily expensive.

You wonder how long they existed operating off cash flow, equipment leases and lines of credit without ever really making a profit. Recently we bought out a small operation (nail & hair salon) that had 34 full time employees and was in operation 8 years. Here is the shocker: $256,000 in cumulated tax losses. We can write that off over as long as 20 years against income from other enterprises. Even with the owners skimming (I'm guessing she was hauling between $40,0000 to $80,000 in cash out the back door from what I can see thus far) I'm left wondering how and why this operation stayed afloat as long as it did.

Carpet cleaning stats based on research from Craig Jasper's research as presented in his seminar training.


I've seen a lot of companies come and go. I worked for a company that was the highest priced cleaners in the city in 80 to 83 era - 35 a square, 50 with protector which was a given on every job. 4 truckmounts, rug plant , furniture shop, flood gear and a minimum 2 week out period, year round. The money was fabulous for the techs at 20% and the owner was doing really well, nice home and family. The owner decided to "invest" in a low cost operation and instead cut his own throat. He bought 10 rug bugs, the first high pressure portables available here at 6 g's each, rented office space and set up and staffed a phone room. He not only lost the machines he'd bought , he ended up walking away from the successful business with a few grand and that was it. They come, they go. I've been on my own with only one resurrection for 30 years or so.
 

Desk Jockey

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Pull your hed outa da prophylactic, it's the USC Trojan's! Doomasss!

TrojanWebsite.jpg
 

XTREME1

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Right now they are subbing the work but said "Willy and others w/ porties only need not apply" :)
 

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