another minimum charge discussion

[Mikey P]

looking over Ben Surdi's website I noticed this..

Pure Cleans pricing is determined by a thorough evaluation of the carpet. Unlike other companies, we are trained and certified in over 7 methods of cleaning and will align the proper process & system with the type of carpeting and soil conditions that are present. Typically residential carpet cleaning packages range from 40 dollars 85 dollars per room depending on the type of cleaning we are doing for you.. Our minimum charge is $199. Hard surface cleaning is priced by the square foot and varies depending on the type of flooring we are cleaning. Commercial work is also charged by the square foot and takes into account the level of soiling in the carpet. Stains & odors require on-site inspection to determine time and procedures for improvement. Oriental rugs are priced by the square foot.

I would think for a company as eager to grow as Ben's he is doing more harm than good with that number.

Unless he has a return client special for one roomers.

We get burned plenty with our local $150 minimum, far too often spending two hours there on difficult set ups but I can't imagine how many we would lose if we stuck to that number for regulars looking for just a touch up or one room...Too many good enough cleaners in town who will come out for $80 or so..

 

[Blue Monarch]

A minimum charge is a tough number to come up with for sure. I'm at $85 right now. Should probably up it to $95 for new clients.

Good custies are lower sometimes when it's just a touch up. I know they'll be back in the future with higher dollar tickets.

 

[Desk Jockey]

We're $148.50 but that is truly a minimum. If it was going to take longer due to setup issues we would tack on a setup charge.

Many times that's an add on to commercial work when then want some done on this side of the building and then we have break down and re-setup and moved to the other side of the facility. $35.00-$50.00 depends on the time.

Spot job is $95.00 one man, up to 30-minutes on location, no furniture moving.

I'd rather see the unit collect dust than do it at a loss or minimal gain.

 

[GCCLee]

One property it's 65 another it's 100

Resi I shoot for 135 which pretty well covers any 3-4 br carpeted home around here. Might charge more if some narly stairs are involved.

Hardwoods have also become so popular now, that no one wants to pay an arm or a leg to clean a bedroom or two, possibly just a set of stairs.


I say it's a loaded question!

 

[Shane Deubell]

How did you even find his website .

 

[GCCLee]

How did you even find his website .

Bawb Vawter : )

 

[Brian H]

Our minimum job size is $50 yet our average job size is just about $150.

By keeping our minimum low, we can do those small jobs for people and gain them as a customer. While higher minimum cleaners are scaring people off when they only have one room or area that needs to be cleaned, we are attracting them as a customer. When they need to have a larger job done, they will naturally call us since they are familiar with us and like our quality of work and prices.

It's not necessarily about the minimum size job being done today, it's about building a long term relationship.

 

[Billy]

Well I'm going to catch it now but I'm used to it.

Our Minimum Charge is $300.00 & this is for all jobs, Carpet, Spotting, Touch-up etc.... doesn't matter.
Our Onsite Estimates are $50.00 - $100.00 unless previous client.


We rarely just do a minimum charge though. Example: Yesterday we did one bed room cleaning only, that was $420.00.

 

[Brian H]

Wow Billy, they could almost replace the carpet for that price!!

 

[Derek]

but then the question arises: how many custy's or prospective custy's are looking at our site's for price? very few i bet (unless your marketing is price-based.) most just want the phone number. granted i am not a resi-based CC'er, but from those who do Google my site, they rarely look past the main page. i know because my Statcounter "implanted" into my site shows me what pages they have viewed and for how long they viewed it.

 

[Mikey P]

Brian with a $150 average and ten of your fleet doing over and we'll over 300k a year there must be an incredible amount of $50 jobs completed to offset the big jobs.


That or those ten trucks are doing 10 jobs a day all year long.

 

[Billy]

Wow Billy, they could almost replace the carpet for that price!!

LOL Not really because we have had that said to us by prospective clients before trying to get us to negotiate yet they end up doing the job when they find we don't negotiate & they check on replacement.

 

[GCCLee]

Well I'm going to catch it now but I'm used to it.

Our Minimum Charge is $300.00 & this is for all jobs, Carpet, Spotting, Touch-up etc.... doesn't matter.
Our Onsite Estimates are $50.00 - $100.00 unless previous client.


We rarely just do a minimum charge though. Example: Yesterday we did one bed room cleaning only, that was $420.00.

Speakin of its 4:20 right now as i post

 

[Mark Saiger]

$80 plus tax (ends up at $85.50) but we don't start mentioning minimum service call fees right away. We sometimes find that people will tend to add on something else so it will fit into what we would desire for a minimum. That is for a local area (or ease of driving you could say). If we are an hour away in the middle of the woods, we are trying to get at least $150 or more and most times it ends up being double as people think we are affordable and keep adding on....

We just try to listen enough, offer enough information and usually secure a decent job rather than tell them right away we have a minimum and turn people off to even using our services.

Mark Saiger

 

[GCCLee]

Tax?
Are you all upfront with this or just include it into the overall price

 

[Mark Saiger]

Tax?
Are you all upfront with this or just include it into the overall price

We tell them $80 plus tax (or anytime we quote a fee we them "plus sales tax")

Mark

 

[GCCLee]

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We tell them $80 plus tax (or anytime we quote a fee we them "plus sales tax")

Mark

Accounting purposes ? Keep it simpler : ) or are we supposed to charge tax uuuhhh : O

I know we pay the tax in the end so..

 

[mirf]

We charge $90.00 plus tax here

 

[GCCLee]

We charge $90.00 plus tax here

I'm starting to see a trend, keep it coming............

 

[Mark Saiger]

Accounting purposes ? Keep it simpler : ) or are we supposed to charge tax uuuhhh : O

I know we pay the tax in the end so..

Minnesota requires that we charge 6.875% sales tax on everything we do. We are considered a "Service" and everything we do is taxable.

For some services such as mechanic repair, they do not charge tax on "Labor", but do on parts and supplies, etc....Being a service, makes it so they tax it all.

Minnesota is also now making services such as "Lawn Service" charge sales taxes....

Just anther way to "Keep that money coming in" for them.

For us, I pay Sales Taxes Monthly (due to amount made each month) and my accountant pays all other taxes (some Monthly and some quarterly)

I pay in a lot of taxes, workers comp, Simple IRA plans....

I am actually meeting with my accountant on Tuesday so he can get my quickbooks for a couple days and get all our taxes done. Being an "S" Corp, LLC, I have to have our corporate taxes done in March.

I am flying out to California Wednesday Afternoon, and he will send the QuickBooks back to me via the internet and I will get them downloaded to all computers needed.

Mark Saiger

 

[GCCLee]

Saiger" data-source="post: 4270016" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch">

Minnesota requires that we charge 6.875% sales tax on everything we do. We are considered a "Service" and everything we do is taxable.

For some services such as mechanic repair, they do not charge tax on "Labor", but do on parts and supplies, etc....Being a service, makes it so they tax it all.

Minnesota is also now making services such as "Lawn Service" charge sales taxes....

Just anther way to "Keep that money coming in" for them.

For us, I pay Sales Taxes Monthly (due to amount made each month) and my accountant pays all other taxes (some Monthly and some quarterly)

I pay in a lot of taxes, workers comp, Simple IRA plans....

I am actually meeting with my accountant on Tuesday so he can get my quickbooks for a couple days and get all our taxes done. Being an "S" Corp, LLC, I have to have our corporate taxes done in March.

Mark Saiger

Yea, all that just made me freakin CRY!




Thanks, I already feared this year as I did not pay quarterly. Couldn't afford to. Gotta top the hump soon or else...........

 

[ruff]

My minimum buys them up to 300 s.f. of carpet cleaning and are as follows:

• Easy set up: $184.00 .
• $234 third floor and above.
• $284.00 if we need to use a portable.

Our minimum job size is $50 yet our average job size is just about $150.

By keeping our minimum low, we can do those small jobs for people and gain them as a customer. While higher minimum cleaners are scaring people off when they only have one room or area that needs to be cleaned, we are attracting them as a customer. When they need to have a larger job done, they will naturally call us since they are familiar with us and like our quality of work and prices.

It's not necessarily about the minimum size job being done today, it's about building a long term relationship.

I have no argument with that approach Brian, it makes total sense. It works better for large companies though.

The issue is for us O/O that have been around and keep fairly busy. Not the ones who are building their business or looking to expand. Any minimum less than that, I am losing money, as most days I can easily fill that time slot without discounting my prices. I do offer a discount to long term clients that need a small job or clean in less than a year. However, that's reserved only to good clients that have consistently supported my business- they've earned it! It is one way of saying: "Thank You".

My experience, and I don't know if it is San Francisco specific, (and yes, I have tested it) is that most of those clients that need a small "just this time" job, end up always wanting those small "just this time" jobs. Which is o.k., nothing wrong with it, I just reserve the rewards for those who earned them.

Do I lose potential long term clients? Absolutely!

 

[bob vawter]

Our minimum job size is $50 yet our average job size is just about $150.

By keeping our minimum low, we can do those small jobs for people and gain them as a customer. While higher minimum cleaners are scaring people off when they only have one room or area that needs to be cleaned, we are attracting them as a customer. When they need to have a larger job done, they will naturally call us since they are familiar with us and like our quality of work and prices.

It's not necessarily about the minimum size job being done today, it's about building a long term relationship.

Brian is spot on...but again it's prolly jus a Michigan thang!
my min was a dollar a min while working mysef....

 

[Ron Lippold]

7% tax on alll we do.

 

[Vivers]

We have a minimum charge as well but with repeat clients we will bend the rules most times

 

[bob vawter]

7% tax on alll we do. Cash is king

Ron.....everna aysa ashca...on the boards

 

[Able 1]

Yea, all that just made me freakin CRY!




Thanks, I already feared this year as I did not pay quarterly. Couldn't afford to. Gotta top the hump soon or else...........

My best advice to you is get on top of this, and pay quarterly if you can especially your state tax.. I was always a year behind(like you the money wasn't there), and when you are starting out it's best to stay current. This year I am paying quarterly, and I would guess I owe 12,000 from last year to the feds(paid my state).. The sooner you figure it out the better..

 

[steve_64]

Brian is spot on...but again it's prolly jus a Michigan thang!
my min was a dollar a min while working mysef....

im $50 minimum also. i do so many that only take me 15 minutes from pull in to pull out i cant refuse it. and its usually only a 3 or 4 minute drive.

many of them will also add a chair or something too bumping it up a little more.

i average about $100 a job, but that may have gone up this year.

chris, it costs more if you dont make quarterly payments to the state. they penalize you for it. i learned the hard way also.

im just glad our state hasnt forced us into charging a sales tax. i deal in round numbers for the ease of doing things. my bank account even ends in .00. when i get pennies in my account i pass it on to my credit cards or something. i even pay my utilities in round numbers and usually have a credit.

keeping it simple.

 

[GCCLee]

Thanks Steve,
This is the year! Accountant has already called screaming at me so as usual I am in the dog house

 

[jcooper]

We get lots of calls just wanting upholstery(a couch) cleaned, Standard normal couch with us is 100 bucks. 100 is also our min charge.

If our min. charge was like Ben's(200$), we would be missing our on a lot of great clients and wouldn't get many upholstery only clients.


Doesn't Ben have some crazy giant truck? I'd imagine that's why it's 200$.