HP - 60 cents a foot and raising prices etc.

[roro]

It wasn't until I went to my first conference, met some other carpet cleaners and was mortified to discover I was overcharging.
Bring back the '80's.

roro

 

[Ron Werner]

I've been around these boards a long long time. I have met or talked over the phone to more cleaners than I can name. I've picked up on a few things that are related to this topic that I want to share.

Yes, it is possible to get those high prices ... 50 to 70 cents a s.f. No, I have never actually met anyone doing that yet, but I know people and I know the psychology that drives people to do unusual things. There is no doubt that there are a certain number of people in every market represented by cleaners here who will pay those high prices. The question is, how many?

I have more stories than I can remember of cleaners lying to me regarding their pricing, standard of living, size of their business and just about anything else you can name. Most times they don't even realize they have given themselves away because they can't keep up with the lies they tell. Several of the cleaners who have reported to me over the years that they get high prices and only clean for those willing to pay for quality have gone by the way side. Most were liers ... that's just a fact. A few that I know are actually getting those prices, but only run one van with themselves doing the cleaning, and they do very few jobs each week. I have yet to meet a successful mulit-truck, profitable carpet cleaning business that charges more than the normal rate for their market.

Pricing is just like vacuuming. I remember the first time I went to summerfest. I went to van after van of cleaners who posted high prices and/or prevacuuming on every job. I did not see one single vacuum cleaner on a van and the vans looked like their owners couldn't afford to do even minor repairs ... much less replace anything major.

The folks who truly make the money in this business are those companies who charge at the standard rate for their markets, market heavily, upsell on evey job and run more than 5 trucks.

The rest of us single operators can brag and lie all we want on the internet. We might as well, because this is the only place we'll get any respect.

That becomes the challenge.
I would love to be able to charge 40/sf, or even 30. But I could never take the time I do to actually clean the carpet.
One other thing you won't find with most, if not all, multitruck companies. The guys clean so fast they leave a lot of soil in the carpet. They clean for appearance. Mind you, they do a good job, the customer is satisfied, however, the carpet really hasn't been cleaned.
Witha MT comp, its volume, how many jobs can they get through in a day. They charge a normal rate, and stay busy because they leave the carpet "looking" clean and leave the customers "happy".
So, lets say these guys spend about 2hrs in the average house. As an owner operator I can't even do everything in 2hrs that they do with 2 guys. I average 3-4 hrs in the average house.
In order to make a profit I need to charge more.
So, do we clean for appearance and make LOTs of profit, or actually take the time to clean it properly and make a moderate profit?

 

[Mike Draper]

Marty says "just to scrape the dirt off the top" Anything else and your a lying asshole who overcharges.

 

[Ron Werner]

I found this quote which I think is rather timely and fitting to the topic

"Good enough" is NEVER good enough.

 

[braddaddy]

I know in the HVAC business (which I planned to be in..took hvac classes and work ft for a gas utility co) some companies charge according to the area they are in. The BMW, Lexus, 5000 sq ft house areas will have a different price than the escort, cavalier, 1200 sq ft houses. Its surprising how the wealthier customers almost want a higher price....they expect it. Can you imagine servicing these 2 areas and having a set room or sq ft price? I believe in, and will market my company with an on-site estimate. Sq ft pricing will trap you in either a high-priced market or a low-priced market. Trying to fit in the middle will drive you crazy.
Also, you must consider.... 1.00 a sq ft or even 2.00 in a market with a 1200sq ft house going for 1.5Mil is like .10sq ft in a market where 1200sqft house is 65K. Hek... even the quality of carpet in the 2 areas are at different ends of the price spectrum. They each have the right to the best cleaning, but I cant see how you can or should charge them the same.
Just my newbie thoughts....

 

[hogjowl]

I'm not aware of any room pricers that charge the same price for all houses.

They all have sq. footage exceptions built in.

 

[Guest]

I'll let you in on a little secret...
I do a restaurant for 20¢ per sq ft with my 17" self contained portable. They move all the furniture to one side for me. I do vacuum. I'll come in on a day they are closed (Monday) and do the whole thing at once. Easy money. The dining room is 30x40'. Everything else adds up to less than 300 sq ft. That's $300 for 4 hour's work.
The only reason I do it so cheap for them is because I do it every 4th Monday like clockwork. I could NEVER do this with my box machine and 12" wand for this price. Nor could I do it if I had to move furniture. Monday is clean/prep/receive day. No customers but always some staff working.
This evening I did a condo. It measured out to about 850 sq ft for a 2 bedroom/1.5 bath. In this area, that means it is a $130,000 home. That was $255 (30¢ per sq. ft) for also about 4 hours work. I can't turn that sort of thing down!
I made the mistake of trying to do work for a landlord and empty apartments. That's about $10 per hour when it is all said and done. I can't be bothered. Let someone else have it. Same situation with the town I call home. Low income, immigrants, elderly. Certainly not worth making $10-12 per hour working like a dog. My first two months I didn't want to turn away work. I have another part time job. It pays $16 per hour. It is easy. I can't take less than $20 per hour doing this.

 

[braddaddy]

I'll let you in on a little secret...
I do a restaurant for 20¢ per sq ft with my 17" self contained portable. They move all the furniture to one side for me. I do vacuum. I'll come in on a day they are closed (Monday) and do the whole thing at once. Easy money. The dining room is 30x40'. Everything else adds up to less than 300 sq ft. That's $300 for 4 hour's work.
The only reason I do it so cheap for them is because I do it every 4th Monday like clockwork. I could NEVER do this with my box machine and 12" wand for this price. Nor could I do it if I had to move furniture. Monday is clean/prep/receive day. No customers but always some staff working.
This evening I did a condo. It measured out to about 850 sq ft for a 2 bedroom/1.5 bath. In this area, that means it is a $130,000 home. That was $255 (30¢ per sq. ft) for also about 4 hours work. I can't turn that sort of thing down!
I made the mistake of trying to do work for a landlord and empty apartments. That's about $10 per hour when it is all said and done. I can't be bothered. Let someone else have it. Same situation with the town I call home. Low income, immigrants, elderly. Certainly not worth making $10-12 per hour working like a dog. My first two months I didn't want to turn away work. I have another part time job. It pays $16 per hour. It is easy. I can't take less than $20 per hour doing this.

what was the mistake you made with the landlord and apartments?