Advertising Budget and general plan...

[B&BGaryC]

Two million a year restoration company with small carpet cleaning crew. 2 men, 2 vans, only 150k a year.

What sort of advertising budget do we need to get those vans to 400k total gross.

What do I spend the lion's share of the advertising on? How diverse do I get?

 

[Scott Rogers]

15% of realistic expect gross for the fiscal year.

Repeat customers and referrals will lead to your fastest growth potential.

The key is consistency, once and done programs will rarely pay for themselves and divert funds from other programs.


1)Next day, 6 month and 12 month check up /reminder calls (personally calling customers pays off much better then post cards)

2) referral rewards program

3) 5 around distribution

4) Website

5) Consistent news paper or local add magazine presence.

6) Basic/moderate YP adds

7) Charity and community support program (Donated cleanings in highly visible locations or)

unless you can afford saturation levels of frequency I would avoid TV and Radio

And since you say you loose phone calls due to being answered by the wrong person, correct this immediately. No point investing in lost opportunities. Get a new number so all customers from advertising are directly routed to you. Customers calling on the old number can still be directed to the new number. But quit allowing those not vested in your success answer your calls.

Since you are also currently over staffed for the current gross revenue, I would seriously look at putting together a night (commercial) route for you tech to run 2-3 nights a week. You should be able to run solo 2-3 days a week so 1 truck can produce night and day.

 

[Royal Man]

Advertising is often what is efficient ways to build relationships. Than it is how much you spend.

You can start with your Google Places listing and getting more reviews as a low cost way to get attention.

Market to the clients you already have on a regular basis. Don't over look this valuable base.

Let others open the door for you. Client referral systems and center of influence marketing.

Maximize every job. Learn proper sales techniques. Read books (I like Tom Hopkins) and role play with your tech every morning before you go out and re-enact sales situations.

 

[Jim Martin]

Advertising is often what is efficient ways to build relationships

...........No........

shaking someones hand is how you build business relationships.......advertising ( if your lucky..and I do mean damn lucky).....may get your foot in the front door to be able to shake that hand...but I would not hold my breath and wait for it to happen...........

 

[Royal Man]

You must have long arms.

I make relationships everyday with people that are miles away.

The beauty is that we all have different approaches.

Choose what works best for you.

 

[renegade_cowboy]

I sure hope you get paid and taken care enough to build someone elses business.

 

[Jim Martin]

You must have long arms.

I make relationships everyday with people that are miles away.

The beauty is that we all have different approaches.

Choose what works best for you.

I would much rather stay focused on my target area instead of miles away from me.....

 

[Brian R]

Does the budget come from the 2 million or the 150k? Big difference.

Because you can only afford to spend %s of what you have.

If you're trying to figure what you can take from the 2 mill to get to the 400K the answer is ALL of it.

You'll have 400k gross for the year in a day.

Realistically you need to tell us how fast do you want to get there. Within the year? By next year.

Question is too open ended for specifics because of the dollar amounts you listed.


The lions share of whatever ads you decide to do should be Networking. Like said....a hand shake. You can do this by "advertising" in your local community. Get into a networking group....and then hit all the other Networking groups. Get into whatever local community activities that you can.

Yes, spend some money on a website and SEO unless you can do it yourself. But that shouldn't be the Lions share of the money by any stretch unless you decide to go nationwide.

The "Lion's Share" will be time on internet based things....but that's no different from the time you will spend networking.

Internet is quick and easy for the most part but it won't make the jump you are trying to make in a short amount of time unless you decide to cover a huge area.....Then it's just maybe.

 

[joe harper]

I sure hope you get paid and taken care enough to build someone else's business.

ACTUALLY...."there is away to make that hAppEn".... :shock:

Gary, can enter into a LEASE of the CC division of the Company... !gotcha!

The owner can LEASE..."all the ASSET'S"....of the cleaning division of the company.
Gary...could have ...FREE REIN of the company...for a FIXED FEE...to the owner..!

Projected income for the division is...150K

Gary..could accept all responsibility of OPERATING the division...!
scheduling
advertising
maintenance
chemical
labor
repairs of equipment

Owner ...pays all insurance's to "protect his interests that are co-mingled"...&
retains control of phone #'s and Company Name..


FAIR price for the OWNER to lease would be...$3600.00 a month..."FIXED RATE"
"In this situation"..I would recommend a WEEKLY payment of...$900.00 per week.. :idea:

The lease could written with an OPTION TO BUY..."purchase price MUST be established
at time of the initial lease signing>!!!!"

Sooo..Gary can.... BUY-OUT...or...GET-OUT... !gotcha!

If he purchased ...HE can STILL sub-contract...to the OWNER... 8)

 

[XTREME1]

ask Greg Cole. I think as of right now on the board he is the only qualified to answer that question for you. Even then it would be nearly impossible without doing an up and down audit of the business, practices, market area, procedures unfortunately you really need to hire a worthwhile consultant to help evaluate these things.

Contact your CPA and Bank and see what they say and maybe they can help you in your area

 

[Scott Rogers]

Im curious Gary, where did you come by 400k as your goal? Did you base this off any thing or just thought that would be a nice number?

I just did a few quick searches on Billings, and while it may be possible to hit 400k is it feasible to repeatedly get that in your area based on current demographics?

Personally I think 250-300 would be much more realistic.

basic stats

excellent unemployment rate under 6%
105k people (your goal requires 4.00 per person)
56 cleaners
average income 45k
median age 36
median house 176k

For population 15 years and over in Billings city:

Never married: 25.5%
Now married: 52.7%
Separated: 1.5%
Widowed: 7.4%
Divorced: 12.9%

Less then 40k housing units (your goal requires over 10.00 for each residence)


Based on your current special of 4 rooms and 1 hall for 110.00, I am guessing your job average is around 140-150 at that rate you would need to do approx 54 jobs a week or 2800 jobs a year

 

[Royal Man]

Great research Scott

Wow!! That is more saturated than my area ( 81 cleaners with a population of 250K)

They start up here because we have a very low level of unemployment

(I found 61 cleaners in his area.)

It makes it a tough row to hoe. But, like in a lot areas it seems cleaners don't take advantage of the Internet or other opportunities very well.

They get complacent in doing the same thing every year.

Keep looking for opportunities.

 

[Brian R]

I sure hope you get paid and taken care enough to build someone else's business.

ACTUALLY...."there is away to make that hAppEn".... :shock:

Gary, can enter into a LEASE of the CC division of the Company... !gotcha!

The owner can LEASE..."all the ASSET'S"....of the cleaning division of the company.
Gary...could have ...FREE REIN of the company...for a FIXED FEE...to the owner..!

Projected income for the division is...150K

Gary..could accept all responsibility of OPERATING the division...!
scheduling
advertising
maintenance
chemical
labor
repairs of equipment

Owner ...pays all insurance's to "protect his interests that are co-mingled"...&
retains control of phone #'s and Company Name..


FAIR price for the OWNER to lease would be...$3600.00 a month..."FIXED RATE"
"In this situation"..I would recommend a WEEKLY payment of...$900.00 per week.. :idea:

The lease could written with an OPTION TO BUY..."purchase price MUST be established
at time of the initial lease signing>!!!!"

Sooo..Gary can.... BUY-OUT...or...GET-OUT... !gotcha!

If he purchased ...HE can STILL sub-contract...to the OWNER... 8)

Very similar to what I did with my Sacamento area.....and it's working for all parties involved.

 

[B&BGaryC]

Im curious Gary, where did you come by 400k as your goal? Did you base this off any thing or just thought that would be a nice number?

I just did a few quick searches on Billings, and while it may be possible to hit 400k is it feasible to repeatedly get that in your area based on current demographics?

Personally I think 250-300 would be much more realistic

Based on your current special of 4 rooms and 1 hall for 110.00, I am guessing your job average is around 140-150 at that rate you would need to do approx 54 jobs a week or 2800 jobs a year

I got 400k because in the last thread I was led to believe unless I was doing 400k I was a total dickhole and I should just quit.

I would say our average ticket is 150 or so but we are not running a 110 dollar 4 room and hall special. We gave a bunch of 4 room and hall certificates to the radio station for $225 in radio advertising per certificate. In the dead of winter we might run 4 and a hall for $140.

Average service: a good vacuuming, move 2 or 3 pieces of furniture plus any small items, pre-condition, agitate the traffic areas with groomer, high flow glided wand extraction, treat all treatable spots within reason, fan dry with airpath, block and tab furniture

 

[B&BGaryC]

Oh, and groom.

Job usually dry within an hour.
we haven't sold much protector because all we have to put it on with is a hydroforce and that soaks the carpet. People don't like hearing the promise of good dry times going out the window by spending more money on their service. We had a great battery sprayer but I got it stolen off the truck turning my back to long on the van at the car wash. Even though I paid him full retail price for the sprayer he said I would never get another sprayer. It would teach me to appreciate my equipment. I should have bought another sprayer with that money.

 

[Greg Cole]

ask Greg Cole. I think as of right now on the board he is the only qualified to answer that question for you. Even then it would be nearly impossible without doing an up and down audit of the business, practices, market area, procedures unfortunately you really need to hire a worthwhile consultant to help evaluate these things.

Contact your CPA and Bank and see what they say and maybe they can help you in your area

Thanks Crowley- bring me into this! lol
Seriously, obviously restoration is your strongest area. Contrac the carpt cleaning out and put the energy into growing the restoration business.

 

[Scott Rogers]

I got 400k because in the last thread I was led to believe unless I was doing 400k I was a total dickhole and I should just quit.

LOL, your not a dickhole, you should not quit!! You have a lot of drive and I think with that you could easily be successful doing this on your own, even more so then as a employee. If I could find a employee like you I would go multi-truck for sure. You do come off a bit stubborn though. Some times it pays to step back and look at things from another point of view

I would say our average ticket is 150 or so but we are not running a 110 dollar 4 room and hall special. We gave a bunch of 4 room and hall certificates to the radio station for $225 in radio advertising per certificate. In the dead of winter we might run 4 and a hall for $140.

I got that price 110.00 off your website.

When you approach your boss to discuss budgets and goal, make sure you put a lot of thought into it. To rapidly grow, I would look at 15% of reasonable expected gross for the fiscal year, then gradually dial that back to under 10% after a couple years of sustained growth. Once you brand yourself to the area as the goto company you shouldnt have to market nearly as hard.

As far as a reasonable goal, You know your market much better then I do. I would probably shoot for 200k.

that 26 jobs a week at 150 avg. You would be running 1.5 trucks to do that or 6 day weeks!

I would look to spend 15% 30k in advertising to do that.

labor should be 30% or 60k That would be 1 full time employee (you) 1 part time employee (Tech)

15% insurance,utilities,admin cost (invoices,accounting,etc.)

15% supplies ( pre-spray,rinse, protector, deodorizer, spotting chems, specialty cleaner, blocks, tabs

10% equipment replacement ,service and repair

15% pretax profit (owner)

That would be tight but a doable budget

 

[B&BGaryC]

I am stubborn and a bit bitter about all the ways I feel I have been wronged over the years. Of course taking no accountability for the ways in which I have wronged my employer. The biggest of which being giving up on planning and working on expanding because it is too much of a challenge to get him to listen to what I have to say.

 

[davegillfishing]

Oh, and groom.

We had a great battery sprayer but I got it stolen off the truck turning my back to long on the van at the car wash. Even though I paid him full retail price for the sprayer he said I would never get another sprayer. It would teach me to appreciate my equipment. I should have bought another sprayer with that money.

dude i lose more respect for you every time you post something..why would you work for a asshole?
that is stupid!!! please grow some balls have some self respect and go start your own business..
i would have slapped the crap out of him if that went down with me like that..respect for your employees
is everything and he has non for you..crazy way to live and you will be no where in 5 years let alone
5 weeks or even 5 months..this is not a slam on you just you allowing someone to treat you like that..

 

[Brian R]

I am stubborn and a bit bitter about all the ways I feel I have been wronged over the years. Of course taking no accountability for the ways in which I have wronged my employer. The biggest of which being giving up on planning and working on expanding because it is too much of a challenge to get him to listen to what I have to say.

Gary...come on now....You just listed very good and common reasons to become self employed.


Piss or get off the pot bro.

 

[Royal Man]

Considering that spraying down Teflon can easily add 25K to the bottom line. It might be worth it to at least have Mr Boss buy a pump up sprayer.

The first application will pay for in.

The rest you get 30% of the sales and he gets the left over profit.

You can either do more jobs or make more at each job to get to the same place.

I bet you could easily double your job average with a little training and simply looking for it.

 

[Doug D]

[quote="B&BGaryC":52h47nch]I am stubborn and a bit bitter about all the ways I feel I have been wronged over the years. Of course taking no accountability for the ways in which I have wronged my employer. The biggest of which being giving up on planning and working on expanding because it is too much of a challenge to get him to listen to what I have to say.

Gary...come on now....You just listed very good and common reasons to become self employed.


Piss or get off the pot bro.[/quote:52h47nch]

been trying to tell him that ever since I have known Gary!! :roll:

 

[B&BGaryC]

Does it cost two hundred dollars for one two color randomly placed business card sized ad in everybody else's paper too? (THAT WAS THE SALE PRICE)

I can't start a carpet cleaning business. I can't handle the winter, don't like the liability in restoration work and there is a nagging thought that perhaps since I couldn't make it work here maybe I can't do better on my own with less financial backing, worn out equipment, old dingy van etc.

 

[joe harper]

Does it cost two hundred dollars for one two color randomly placed business card sized ad in everybody else's paper too? (THAT WAS THE SALE PRICE)

I can't start a carpet cleaning business. I can't handle the winter, don't like the liability in restoration work and there is a nagging thought that perhaps since I couldn't make it work here maybe I can't do better on my own with less financial backing, worn out equipment, old dingy van etc.

One of the ONLY things my father taught me ..WAS............... :arrow:

"THE JOB....NEVER CHANGES...!"

"YOUR...ATTIDUDE....TOWARD THE JOB DOES...!"


Take that for WHAT it is worth...I am Not being judgemental... :idea:

BUT...until "I" learned this little PROVERB...I struggled the same way you are NOW... !gotcha!

Remove the "eMoTiOnS" from you decision and you Will make a good BUSINESS decision.:idea:

 

[davegillfishing]

gary if you ever truly want to get your shit together and start your own
business fell free to give me a call..no bs on the boards and mis direction
just a proven method that works..i am proof. my company is 5 years old and we have
over 2500 customers..the guys at service monster were amazed at our customer
retention and frequency of jobs from existing customers..shell was on the phone
with them a few weeks ago and they are the ones that brought it up and commented
that it is rare to see those numbers..i spend 229$ a month on advertising and we are doing
180k on one truck and 100k on the other..i go fishing all the time and seldom work
a 40hr week..the first few years are tough but then it gets better and better..
that is in the middle of the worse economy in history..i would be doing 1/2 a million
if things get so screwed up with the economy..it just slowed us down a bit. make yourself
rich not someone else..you are being held back.
i have helped many many people but over the phone..i dont post all my crap on the boards
because there are too many keyboard warriors that run their mouth and i dont have the
time or patients for it..i know what works because i lived it..
offer stands.
904-230-0678 shell will answer but tell her to get you in touch with me..she is a great screener/protector for me..lol

 

[Lee Stockwell]

Best offer in months! Doesn't seem that long ago David moved there and started from scratch.

 

[Brian R]

Some great posts here Gary....take the advice this time. I know you've heard it before.


Oh, and move to somewhere warm. !dork!

 

[davegillfishing]

lee it was 5 years ago on march 26th that i did my first job!! crazy what i have changed, wasted
made and evolved into..if i could start over with the knowledge i have...scary the money i would save
at the beginning.

i will help him with as much real world info as i can but he cant move to fla..
not enough room for both of us..lol
you ether brian..florida is closed!!!

 

[Doug D]

Does it cost two hundred dollars for one two color randomly placed business card sized ad in everybody else's paper too? (THAT WAS THE SALE PRICE)

I can't start a carpet cleaning business. I can't handle the winter, don't like the liability in restoration work and there is a nagging thought that perhaps since I couldn't make it work here maybe I can't do better on my own with less financial backing, worn out equipment, old dingy van etc.

sounds like you are already defeating yourself! face it, either put up or shut up! you come on here asking for help as to what to do when your boss is trying to cut his expenses. you got plenty of advice as to what to do! get out and start your own or just take it in the arse by your boss and keep working to build his business so you can make peanuts. which one is it Gary!?

 

[B&BGaryC]

Chicken, not lazy.