Handed them their asses....now they are on the war path.

[Desk Jockey]

So what is the "reasonable" profit margin target?

P. S.
I hate to tell you the profit margin on restoration work. A $600.00 Ozone machine can you some "righteous bucks dude" or what a 10 year old airmover rents for.

P.S.S.
Remember guys that operate out of their homes are the real crooks since they have less actual overhead.

 

[PrimaDonna]

$1,200 per day profit margin is small?

We have been averaging $2k a day in May and June. That is with only 1 truck and two guys. 8 hour day or less (payroll hours between 35-40 hours a week). This commercial job required 3 techs, 2 vehicles to get them there and over 8 hour days both days, 2 hours of travel per day (hour each way) for less then our average daily residential when the cost was spread out over 2 days. So, the profit margin for the commercial job was smaller compared to what we can do compared to residential. Plus a lot more "administrative" time developing estimates, getting insurance certs to them, w-9 paperwork and emails with the client, etc.

We aren't always booked out every day and there are slower times, so we will work jobs like this because they are still profitable....just not as if we had billed the same amount on the residential side. It was a good job for us and we certainly would do it again. We are expanding more and more into commercial but the numbers have to make sense on our end.

 

[PrimaDonna]

Remember guys that operate out of their homes are the real crooks since they have less actual overhead.

Well then color me a crook.....Our dining room was converted into our office and our detached 3 car garage is our shop.

 

[Desk Jockey]

Well then color me a crook.....Our dining room was converted into our office and our detached 3 car garage is our shop.

I had you there from "Hello".



j/k

 

[Shane Deubell]

 

[idreadnought]

We have been averaging $2k a day in May and June. That is with only 1 truck and two guys. 8 hour day or less (payroll hours between 35-40 hours a week). This commercial job required 3 techs, 2 vehicles to get them there and over 8 hour days both days, 2 hours of travel per day (hour each way) for less then our average daily residential when the cost was spread out over 2 days. So, the profit margin for the commercial job was smaller compared to what we can do compared to residential. Plus a lot more "administrative" time developing estimates, getting insurance certs to them, w-9 paperwork and emails with the client, etc.

We aren't always booked out every day and there are slower times, so we will work jobs like this because they are still profitable....just not as if we had billed the same amount on the residential side. It was a good job for us and we certainly would do it again. We are expanding more and more into commercial but the numbers have to make sense on our end.

I must admit your doing something right. Not many people I know of can average do 2k per day of work from one truck, with or without 2 people. Good job, keep up the good work.

 

[PrimaDonna]

Thank you. It's been many years of trial and error and making mistakes along the way. But staton the course, doing right by our clients and patience and now we are here!!!

 

[Steve Toburen]

...never show them what juice you use and don't TRAIN their guys on how to do it...

I really HATE it when I am forced into agreeing with Jimmy.

Steve

PS NEVER mention equipment or chemical with a commercial account. Only that "We will make it look better than you ever dreamed and IF you go with our Stay Beautiful maintenance program we GUARANTEE it will stay that way!" That's it- loose lips sink ships (and large commercial accounts)!

 

[Mikey P]

 

[hogjowl]

Admittedly, I've been skip reading this DAT, but were y'all talking about profit margins or gross?

And did Meg understand?

 

[Jimmy L]

And paint over any name on any machine you use so they can't go out and buy it.

There was a guy on here ( His name is protected) that came on these boards wanting to tell everybody including commercial accounts how this new technology ( encapsulation) was going to be magic! I kept telling him to shut up and not tell what ever secrets he had to the competition. Oh no he said this is news that should be told! You see he was a RICkY KLOWN................ but what sadly the real TRUTH was he was just telling everyone how he was doing the SHAMPOO/BONNET cleaning.......................old methods............... and not some new found method. Encapsulation is just a new term for these old school methods...................not something new.

Encapsulation =dry residue=nothing more

 

[Shane Deubell]

Admittedly, I've been skip reading this DAT, but we're y'all talking about profit margins or gross?

And did Meg understand?

They started using carpet cleaner math, so i kinda tuned out.

 

[PrimaDonna]

Different stokes for different folks. Many of us here do things that make make others of us shake our heads.

But sometimes.... It works.

I love this board and all the input. Thank you for your perspectives.

 

[bob vawter]

Sounds scandalous and a bit kinky.....meeee owwww!

it is my dear...it really is!

 

[idreadnought]

Admittedly, I've been skip reading this DAT, but were y'all talking about profit margins or gross?

And did Meg understand?

more than $1,200 per day profit margin after labor and chems. $2,000 per day gross off of one truck.

 

[NobleCarpetCleaners]

Had lunch last year with my investment guy. He brought another client, a janitorial franchise owner. Sorry can't remember which one, national company, he was Sac local. 35+ employees. The franchise guy calls me back month later to have lunch. Tell me what you need on the phone I said. He said he'd like to hire me to train a crew of his in encapsulation. Bout hung up on him but instead I asked him if his years of business experience included duping the competition? He asked why I meant. Dude! I said, how about a year of gross income to train couple of your guys so they can go out and compete with me.

I've heard lately more then one multi-truck owner say they encourage their employees to go out should they say they're leaving. I don't know what to make of that.

 

[Desk Jockey]

We got a call on the 35K we did Saturday AM.

The facilities manager was blown away, said he couldn't believe the difference from Friday before we cleaned and Monday after we cleaned.

Thanked us for our excellent work and gave us another 10K to do next week.

 

[steve_64]

whats this "we" stuff? we all know you dont get up in the AM. on a saturday.

 

[Desk Jockey]

LOL

I went to a fire job and cleaned carpet & upholstery. I almost work as long as they did. Almost.

We also got a call to clean 15K at a city facility where we did an initial cleaning two weeks ago of 1,500 sq/ft. They were unhappy with the last cleaners and couldn't get them to come out for an estimate. They gave this job away, supposedly they are too busy to give the estimate.

Oh well, good job for us!

 

[PrimaDonna]

They gave this job away, supposedly they are too busy to give the estimate.

Don't you love when that happens?

I'm amazed (even tho I shouldn't be at this point because it does happen so frequently) when I hear clients say this has happened.

 

[steve_64]

They were unhappy with the last cleaners and couldn't get them to come out for an estimate. They gave this job away, supposedly they are too busy to give the estimate.

Oh well, good job for us!

They probably weren't set up for a job like that. probably got overwhelmed with the volume too.

 

[Mikey P]

This was the earlier mention church campground that has over the years amassed a nice collection of DYS machines...

They had us out to do a method demo (hew, hwe w/RE and encap)

They chose the Cimex encap based more on final appearance than price.


They certainly have the ability to buy a Cimex, they just don't have the man power and funds these days.

 

[hogjowl]

Keep em in the dark.

Just clean it.

 

[Desk Jockey]

We cleaned at a church/school today 21,000 sq/ft. We used combo cleaning HWE/OP/Encap. Like Mike said they can afford to buy the equipment but I don't think they have the personnel to run it.