Can You Make Money?

[Goldenboy]

I charge .30 cents a square. If I offered 50% off for resi cleaning could I still make money? This would be during Jan. Feb. March. I am DEAD slow.

Golden Boy

 

[sweendogg]

Instead of cutting your prices, why not try offering value added services to help people justify your service. Also don't be afraid to do some commercial cold calling.

 

[Becker]

50% off would be a big pill to swallow.

IMO, it gives the wrong impression.

Smart clients will see you have low over head and huge profits to cut price that much for a sale.

I think all 50% off sales are false.

Becuase after all, it is 50% off of what?

My thoughts.. don't offer such a huge discount, maybe a free recliner with any sale over $000.00.
Or stain protector, or every 4th room free.

I went with 10% off on a recent flier.

So far I'm excited about my ROI.

 

[Ken Snow]

Yes- but that doesn't mean I thinik it is right for some of the reasons that Don pointed out.

Another thing you could do is cut back some steps i.e. have your customer vacuum, move furniture etc. I like the every X room free idea~ it can pump up the job size as well as give an implied discount.

 

[ruff]

I charge .30 cents a square. If I offered 50% off for resi cleaning could I still make money? This would be during Jan. Feb. March. I am DEAD slow.

Golden Boy

Shouldn't be a problem if you were top 25 material.
Just sneak your name to the list buddy
Nobody here will notice

I agree with the previous remarks, 50% discount is not a good message.

Though making money with that discount depends on your cost of doing business.

I guess if you can tie it with them getting a neighbor to do it at the same time may help. Getting you a new client. Tight scheduling. A very large ticket.
Etc.

 

[Jim Martin]

run something like this....I made good money last time I did this and gained a lot of new clients from it......I used a new lap top last time...this time I am doing the same thing except extending the time and using a ipad.......just something to consider.....

 

[J Scott W]

Advertise that you are the 26th best cleaner in the USA plus New Zealand.

 

[Dave Rampage]

Waldo,

Why don't you go with 35%. That will help a lot. I do 35% in January and February and it does well.

Dave

 

[Jeremy]

Get a commercial route with the snake oil marketing system...

 

[juniorc82]

By doing 50% off you would only devalue your own service. I would got no more than 20% at most. Pluss the only custys you will attract are the price shoppers who will sell you out next year to save 5 bucks. I am with the value added service.... People have money you just need to figure out how to get it.

 

[Brian R]

Get a commercial route with the snake oil marketing system...

Now there's an Idea



I've done the 50% off thing for customers but this is how I do it.

I only offer it to existing customers....good customers (but maybe haven't heard from them in a while) and I pick the area I want to work in for one day.

"Hello Mrs. whatyername, I just wanted to let you know that I will be in your area next week on Wed and wanted to know if you would like to have your carpets cleaned for half off the regular price."

I used to fill schedules like that.

 

[Jim Martin]

let your existing clients do the marking for you.....best cheerleaders you have are your long time clients...find away to have them work for you and build more clients.....this is all I have been doing for years..and I stay very busy and we are always getting more and more clients......

 

[daniel@procarpet]

What does .30 per sq ft equate to in room pricing on average?

Let's assume you are cleaning 250-300 sq ft for most living areas, 150 sq ft for most dinning areas, 250 sq ft for the mb, 100 sq ft for additional bedrooms, and 50 sq ft for hallways on average.

That is 270 dollars for 2 bedrooms, mb, hallway, living/dinning area or 5 rooms and hallway.

That's not bad.

15 cents would be 135.

You can make money but you are going to need to do five a day.

You are basically 45 dollars per room on average?

I won't get into the whole sq ft versus room pricing debate. Either way your pricing is fine.

 

[Bill Soukoreff]

My take is the opposite. I charge a bit more in January and February. It is cold and the hassle factor is great. At first I did it to deliberately be slow. But it backfired and I still book three weeks ahead and it makes working in this weather a bit easier. Pricing does not have to be fair. Mine varies through out the year and pricing is always by the job.

 

[Walt]

Try 50% off protector. That way you can still get paid. Tell them you bought a lot and got a discount and you are passing the savings on to them. To make that true, buy a case and get a discount.

 

[Art Kelley]

15 cents would be 135.

You can make money but you are going to need to do five a day.

quote]

Dang. Maybe that's why I bust my ass so much every day. I do four or five a day every day at those prices and I do make money. But I put a lot of hours on my truckmount. I am still working about half pace in the winter which pays my basic bills.

 

[Fred Homan]

Include Green Guard protector "Free"!!! It may cost you a penny or two per sq ft. So what!

 

[Royal Man]

Does price really matter?

I would guess you are going to market to your existing client base?

If so, the offer is just to pique their interest.

In the winter most client won't clean for any price (even free)in your neck of the woods.

When I sends out a special most clients don't even ask for the special.

They just called because my company became top of mind with the advertisement.

Just be a problem solver with your headline.

Play up winter cleaning benefits with, after the holiday clean-up and now dries even faster, etc..

Throw in a client testimonial, owner on every job and an outstanding guarantee and you will give them far more reasons to clean other than price.

Price should be one of the last reasons to choose your services.


I don't know why so many cleaners think that price rules.

 

[Mikey P]

how about FREE pro TECH TOR or a free lazy b :idea: y or love seat with 3 or 4 rm minimum.


you still make your .30 but spend a half hour extra time there instead of here.

 

[joe harper]

OK waldo....

Here you go...RAISE YOUR PRICES....!!!

It is amazing to me how MOST here panic....

What ever the HERD is doing ...DO THE OPPOSITE....

Don't ...lower your prices...It will take 3 years to get them back to.30..
Your price is more than fair for the service you offer...
The PaniC move ....is to ASSUME you are NOT busy because your price is to high...

Everyone is pAnicInG..assuming that the customers are "shopping" for a cheaper price..
WRONG>!!!!!!!! they are shopping for "VALUE"...as they ALWAYS have..!!!

The entire industry are ALL fishing in the SAME pond...! 90% of this board are "room pricers".
RUN a whole house SPECIAL...$199.00..! DO NOT advertise 3 or 5 room sPecIaLS for $89.00.

TARGET the "whole house" market..!!!! "NO AMOUNT OF ROOMS"...Just limit the areas to
700sft....!!! "If they request 2 or 3 rooms.?" Then explain to them that you have a $99.00
minimum & that will clean "Up-To" 300 sq ft. and any additional areas will be >
30 cent a sq ft....

A reasonable client..expects to pay $200.00 to have their "WHOLE HOUSE"...cleaned..!
They realize that NO ONE can PROPERLY clean their ENTIRE house for $89.00.....

SELL SERVICE & QUALITY...NOT PRICE....!

BE DIFFERENT......or you will go the way of the DinOsauR.....

Just don't do ANY work for a month...!

Your phone will ring "off the hook"...because these idiots that are lowering their prices
will be .."OUT OF BUSINESS".....be patient...!

 

[Mikey P]

OK waldo....

Here you go...RAISE YOUR PRICES....!!!

It is amazing to me how MOST here panic....

What ever the HERD is doing ...DO THE OPPOSITE....

Don't ...lower your prices...It will take 3 years to get them back to.30..
Your price is more than fair for the service you offer...
The PaniC move ....is to ASSUME you are NOT busy because your price is to high...

Everyone is pAnicInG..assuming that the customers are "shopping" for a cheaper price..
WRONG>!!!!!!!! they are shopping for "VALUE"...as they ALWAYS have..!!!

The entire industry are ALL fishing in the SAME pond...! 90% of this board are "room pricers".
RUN a whole house SPECIAL...$199.00..! DO NOT advertise 3 or 5 room sPecIaLS for $89.00.

TARGET the "whole house" market..!!!! "NO AMOUNT OF ROOMS"...Just limit the areas to
700sft....!!! "If they request 2 or 3 rooms.?" Then explain to them that you have a $99.00
minimum & that will clean "Up-To" 300 sq ft. and any additional areas will be >
30 cent a sq ft....

A reasonable client..expects to pay $200.00 to have their "WHOLE HOUSE"...cleaned..!
They realize that NO ONE can PROPERLY clean their ENTIRE house for $89.00.....

SELL SERVICE & QUALITY...NOT PRICE....!

BE DIFFERENT......or you will go the way of the DinOsauR.....

Just don't do ANY work for a month...!

Your phone will ring "off the hook"...because these idiots that are lowering their prices
will be .."OUT OF BUSINESS".....be patient...!

 

[joe harper]

BlAtAnT PlaGiarIsM......

"You have NO......sHaME...!!!

 

[Mikey P]

if you skip on MF I'm gonna put on my bald guy wig and keep repeating that answer

 

[daniel@procarpet]

OK waldo....

Here you go...RAISE YOUR PRICES....!!!

It is amazing to me how MOST here panic....

What ever the HERD is doing ...DO THE OPPOSITE....

Don't ...lower your prices...It will take 3 years to get them back to.30..
Your price is more than fair for the service you offer...
The PaniC move ....is to ASSUME you are NOT busy because your price is to high...

Everyone is pAnicInG..assuming that the customers are "shopping" for a cheaper price..
WRONG>!!!!!!!! they are shopping for "VALUE"...as they ALWAYS have..!!!

The entire industry are ALL fishing in the SAME pond...! 90% of this board are "room pricers".
RUN a whole house SPECIAL...$199.00..! DO NOT advertise 3 or 5 room sPecIaLS for $89.00.

TARGET the "whole house" market..!!!! "NO AMOUNT OF ROOMS"...Just limit the areas to
700sft....!!! "If they request 2 or 3 rooms.?" Then explain to them that you have a $99.00
minimum & that will clean "Up-To" 300 sq ft. and any additional areas will be >
30 cent a sq ft....

A reasonable client..expects to pay $200.00 to have their "WHOLE HOUSE"...cleaned..!
They realize that NO ONE can PROPERLY clean their ENTIRE house for $89.00.....

SELL SERVICE & QUALITY...NOT PRICE....!

BE DIFFERENT......or you will go the way of the DinOsauR.....

Just don't do ANY work for a month...!

Your phone will ring "off the hook"...because these idiots that are lowering their prices
will be .."OUT OF BUSINESS".....be patient...!

I agree with that logic. Charging more only makes sense. I toyed with the idea of starting a side business but everytime I acutally try to do it I think about all the pain dealing with cheap customers is. It's not for me. I quit doing area or sq ft pricing. Instead I price everything by the job. One job may be .75 cents a foot and the next only .20 cents. Selling an estimate is harder than it seems. Most people want to know about what it will cost on the phone. I have been bending over some by giving them a ballpark room price, but the inspection always yields a higher price. I think it is important to at least get your foot in the door and then discuss pricing options with the customer.

I haven't heard the best way to close a free estimate over the phone from anyone on this board.

 

[Steve in Omaha]

uphol$tery cleaning
uphol$tery cleaning
uphol$tery cleaning

 

[joe harper]

Daniel,

He is NOT charging MORE.........700 sq ft X .30 = $210.00
He is actually "discounting the job"...$20.00...for a larger job...!

His .."job average" should be brought up to @ least...$200.00....with NO add on sales...!

THE KEY IS TO STOP COMPETING FOR THE SAME CUSTOMERS AS EVERYONE ELSE...!


It takes "BIG BUCKS"...in advertising..to fIsH in the BIG lake of "BUDGET CLEANERS"....

ASK ..."Mr Cole"...A HIGH VOLUME..of work must be achieved to be successful...!!!!



PS.."What is with the PRIDE.." in charging different customers...a DIFFERENT price...?
Decide on the PROFIT margin you NEED to make.....&....BE CONSISTANT....!!!!

 

[Greg Cole]

Daniel,
He is NOT charging MORE.........700 sq ft X .30 = $210.00
He is actually "discounting the job"...$20.00...for a larger job...!
His .."job average" should be brought up to @ least...$200.00....with NO add on sales...!
THE KEY IS TO STOP COMPETING FOR THE SAME CUSTOMERS AS EVERYONE ELSE...!
It takes "BIG BUCKS"...in advertising..to fIsH in the BIG lake of "BUDGET CLEANERS"....
ASK ..."Mr Cole"...A HIGH VOLUME..of work must be achieved to be successful...!!!!
PS.."What is with the PRIDE.." in charging different customers...a DIFFERENT price...?
Decide on the PROFIT margin you NEED to make.....&....BE CONSISTANT....!!!!

For once, Harper and I agree on something :shock: . Independent cleaners 9O&O's) are nuts if they discount. They can't possibly run the volume to turn the profit margins to survive long term. Likewise it isn't a sustainable model for a little guy wanting to grow. Break downs, fuel variations, insurance increases, labor issues, sickness, etc. all will take a toll on your business. The reason I make money is because measure everything and have diversified the services we provide to allow for a broader revenue stream.
I agree with consistancy as well. I would suggest creating a price schedule and stick to it. YES - you will lose some jobs, but long term you will build a solid customer base and be more financially solid. Listen to Harper- as much as we trade blows back and forth - I actually have researched his outfit and respect the business he has created.

 

[Loren Egland]

I had 3 whole house empties this week. Our normal charge is .45 psf + $4.00 per step.

I gave a discount on 2 of these empties in order to keep the job, but I was still able to come out ok with these discounted prices.

Wednesday had a one story that was about $600 but he asked for $400. I said yes and it took me about 3 hours.

Thursday had a 3800 sq ft house with stairs that came to about $1300. The guy was still a little concerned with price even after a $500 discount but said ok to $800. Cleaning time was 6 hours plus estimating and set up and tear down. I was dog tired when through.

today had 700 sq ft at $315 that took 2 3/4 hours drive up to drive away.

I used to be stubborn about not giving discounts, but I am more sensitive to situations and the economy lately. I pick my spots when it comes to a few discounts on occasion.

 

[Goldenboy]

Thanks for the ideas and special thanks to Charles Lyman for taking the time to send me a couple of ideas in the slow months. I know Mikey gets frustrated with this board at times. But in the winter times its a must need for Broke Dicks and thats why he opened this place.

Golden Boy

 

[cucu]

get some apartments and on repairs and when your doing the vacants put out some flyers in the same complex with the repairs and or roto scrubing the units you should be up to $125 on the AVG ticket for about 45mins to 1hr work...the other plus if you want it is small water damage jobs.