I CHARGE 150.00 PER HOUSE INCLUDING SOFA AND LOVESEAT

[hogjowl]

Well ... at least Steve doesn't use cap locks.

 

[PARAMOUNT]

it takes me total of three hours to clean carpet and sofa/lovseat. two hours for carpet and one for furniture. that's the time i arrive to the time that's leaving. there are those homes that are a little more dirty and more things to move but overall three hours. cheap prices, not cheap service it will always work.

 

[Fred Homan]

Price too cheap.....

 

[breathe72]

Paramount, I told you they'd be all over you. LOL. Hey, you must be hitting some truth or your post wouldn't be getting all these replies.

Its still about building value, selling yourself. Creating the experience, making money, and keeping that customer.

 

[TimP]

Ok now that we have a time value to figure now look at this as a profit equation. You make 150 bucks in 3 hours. 50 bucks an hour sounds great don't it. Well running a truck mount is in the neighborhood of 5 bucks an hour. So you're down to 45 an hour. Also if you can stay busy 8 hours a day 7 days a week your insurance should cost around a buck an hour so down to 44. Then your truck and TM. If you stay busy and wear it out in say 6 years you're looking at 6 an hour there. So you're down to 38 bucks. Then add chemicals. I'd say 10 bucks a job so minus another 3 bucks. Down to 35 bucks an hour. Then lets say you drive 20 miles do and from this job and that costs you 6 bucks. You're now down to 33 bucks. Then pay your income taxes. You're looking at like 16 bucks an hour. Now if you take into consideration advertising, phones, other over head issues. I'd say you don't hardly make squat. Just some food for thought, think about it. You don't nearly make as much as you bill for.

 

[Rex Tyus]

I still say bullshit!! A single operator is not cleaning an entire house, plus a sofa, plus a love seat to IICRC standards in 3 hours.

 

[Mark]

I still say bullshit!! A single operator is not cleaning an entire house, plus a sofa, plus a love seat to IICRC standards in 3 hours.

And certainly not for 150.00 with the cost of things today you would be out of business in no time at all. People fail to realize the other added cost that at some point you better figure out.... Saving for retirement ... health insurance.. disability insurance and the list goes on and on

 

[PARAMOUNT]

my overall cost to run this business is aprox 22.00 per job, i do an avg. of 10-12 jobs a week 10x150 = 1500--220(cost)=1280. this includes fuel, chems, ins., marketing,( which is good old fashion flyers and word of mouth). my goal for a full year is only 40000 thou and i will bypass that with little trouble

 

[TimP]

And how much are you taking home after tax? Remember you have to pay employer and employee taxes, unemployment tax, state taxes depending on your state. And I don't see how you are getting 10-12 jobs a week every week all year long. I personally don't see how you're getting all the work done to IICRC standards in 3 hours anyhow.

And there is no way you're at 22 bucks for running a TM for 3 hours, insurance, chemicals etc. A tm will burn about 5 bucks an hour so you're telling me that the rest of your over head chemicals, phones, advertising, wear and tear on your van and TM is 7 dollars? I don't think you have an appreciation of what it costs to be in business.

 

[theden]

Paramount If you really are charging so little for you services why charge $150. What are you going to do when a competitor advertises $139 for the same service and another for $99. To be a professional in this industry we need to invest in quality equipment, the best cleaning products and ongoing education and training. You are not a renewable resource and you will eventually wear out along with your equipment. Out of your $150 how much are you setting aside for new equipmnet, health insursance, a retirement plan, disability insurance, liability insurance, continuing education, just to mention some of our expenses. My guess is you are not. These cheap prices remind me of a joke that I lose money on every job but I make it up on volume. The truth is it's not funny but pathetic. It's this mentality that has caused this once respectable industry to be looked upon as nothing more than a commodity. Good luck to you.

 

[truckmount girl]

You may have equipment paid for now, but eventually that is going to need maintenance, repairs and replacement.

Are you insured adequately so that if you are in an accident and you are hospitalized and your vehicle totaled you will survive and be able to replace the losses?

Are you supporting a family? If not, have you planned for that possibility?

Most of us have been where you are....it aint pretty as soon as something goes wrong. Heed the advice of those who have weathered this business over 5-10 years...you are not charging adequately for the services you are providing and eventually you will either be forced to raise your prices or fold.

BTW, unless you have helpers, 3 hours is not adequate to do the type of job you mention. Some step(s) of the procedure are not receiving adequate time. HOWEVER, for your pricing, you are delivering WAY too much.

You seem to have a lot of drive, enthusiasm and spunk...with a short course on business you could go far. Most of the new start-ups that fail in this industry, fail not because they can't clean, but because they don't know how to charge properly for their services and set up and run a business for long term success.

Take care,
Lisa

 

[Rex Tyus]

Lisa, you have such a way with words. That is what I was thinking but bullshit kept creeping out.

 

[PARAMOUNT]

i dont know what to say it only costs me 22.00 average for mid- sized home. fuel is expensive these days but i dont drive that far to a home, avg. 5 miles. my question is this what does it costs for the o/o per home (fuel,chems,vehicle,ins,med ins taxes). let me know

 

[TimP]

I agree with you 100% Lisa.

That's why when I found out exactly how my "colleagues" were charging I quickly came close but not as high as them. I figure the slight amount less would be because I have less experience. You shouldn't be out there to be the lowest guy in town but to be competitive. You don't have to low ball to gain business. Yeah I started out fairly cheap but I did this as a way to advertise and get started. Right Now I'm right near the same price as the closest competitor that offers the same service as I do. I even believe we need to go up but I'm not sure the market can bare it and I'm not going to be the guy to rock the boat only having 1 year in it. But whatever floats your boat if you're meeting your needs then keep doing it. But if you want to make some real money start easing up because you are worth more. See what your competitors are charging that clean to IICRC standards. Check into established businesses cause they know what it takes to make it. Gain an appreciation for what you're worth.

 

[Rex Tyus]

my question is this what does it costs for the o/o per home (fuel,chems,vehicle,ins,med ins taxes). let me know

That is a fair question. The is no absolute answer. You have fixed expenses (those that do not change,) and variable expenses. The more volume you generate the lower you fixed expenses will be as a %. Variable expenses often stay constant as a %. The key is to generate enough volume to drive down the fixed expenses as a percent without pricing below your variable expense structure.

I use the AMEX accounting program. As long a I can pay my American express I have positive cash flow. 8)

 

[ginoun]

\I'am looking for that kind subcontractor
can you work for me I do have 9k carpet job for you and i will paid you$220 OK??

 

[-JB-]

 

[Alan Wirth]

Take it easy on Paramount.

In our area we get $150 minimum which will buy the customer 3-4 rooms carpet cleaned avg. size house 2,000sf.
You'd be surprised how many customers won't pay that but we offer a lot of other services and have a huge strip/wax and carpet cleaning base of customers here (mainly doctors).
When I started out I would get $99 for the whole house and we did a great job and worked hard for the money but it got me to where I am to day A double wide with a cement pond!

Keep up the good work Paramount you'll do fine.

Alan
AFC Floor Care
Serving Tampa since 1983
Go Bucs

 

[Fon Johnson]

Mike, if you are for real I suggest you go to SFS as soon as possible. Some of the best run, most profitable business' with little overhead operate at a 30% to 40% profit range. You have two choices: Learn QUICKLY what it really costs to run a business, or be prepared to sell out for pennies on the dollar in a couple of years. A gross revenue of 40k will leave you with 10k in profit it you are really tight and making good profit. If you're not for real, I hope you are happy with wasting the time of caring people who are trying to help. Either way, you have a lot of thinking to do.

BTW, if you are indeed for real, and you are really profiting that much per job with no write-offs, you better be setting aside 1/3 of all that money for uncle sam. That one fact is what kills most small business'.

 

[PARAMOUNT]

so if i have a gross revenue of 40 that equals to 10 net
what about gross of 80 with net of 20 or gross of 120 with a net of 30
cmon, there is more to it than that.

40,000 in six months of this business thus far and loving it, after overhead and taxes ill have 30,000, not bad for a newby.

 

[Fon Johnson]

40,000 in six months of this business thus far and loving it, after overhead and taxes ill have 30,000, not bad for a newby.

So all of your costs and taxes only equat to 25% of your gross. That is pretty immpressive. How do you get the IRS to settle for so little? I'd love to do that..

 

[danpauselius]

Paramount,

I just wanted to point out that having your current stash of equipment and chems paid for doesn't really allow you to charge less. You see, eventually, you'll have to replace all that stuff and if you're not charging enough to do that, you'll be out of business at that point or you'll be forced to go into debt anyway.

This is why you don't lower your prices after your last TM and truck payment. You'll NEED that money to buy a new TM and truck in the not so distant future.

I am glad to see you are booking jobs but I would suggest that you begin to raise your prices until you notice a good amount of rejection. Why charge $150 when they are perfectly willing to pay $250?

 

[Fon Johnson]

I live in Appalachia (read somewhat economically depressed) and you will run into very few people who will buck at $240 just to clean the carpet in a house like he describes. Those same people would gladly pay an extra $80 to clean a sofa/love seat. Regardless of where he is, there are not many who fell like $320 is too much for that amount of cleaning.

He is going to have fun trying to raise his prices on all of his loyal clients when he realizes what he needs to be charging. Either that or the IRS will figure it out for him.

 

[Jimmy L]

I hear ya Fon I have been taking some of an older cleaners customers since he retired and I found that its sticker shock when presented with my quote.

The guy had lots of customers he had built up but never increased his prices from ten years ago.No doubt feeling he would lose them.

 

[Dennis Klager]

Unless you live in Bolivia, it doesn't cost you 22 bucks to do a job!
I spent more than that on coffee and doughnuts on my way to the shop.

I'd love to see a listing, of what you think, are your expenses.



Okay........you know which buttons to push.

Who are you?

 

[Mark]

I did a job about a month ago for a lady she was using a local cleaner for the past few years but suddenly he went out of business .... Well i thought she was going to go into shock when I gave her the price. He was doing her whole place for $80.00 (and she showed me his invoices) Point being it caught up to him real quick he needed a new truck and machine so he got a job instead.

 

[WISE]

cmon, there is more to it than that.

I have 47 items/categories in my budget program between fixed and variable.

Obviously, I don't know your business, but it seems to me that the volume is not there to support that price structure.

Volume cures alot of ills, if you had several trucks out there, it may be a great set-up, but as an O/O--not too sure.

Best of Luck--

WISE

 

[Harry Myers]

I would rather clean 1 sofa and seal it for $150.00. Work smarter not harder.

 

[Scott]

I still say bullshit!! A single operator is not cleaning an entire house, plus a sofa, plus a love seat to IICRC standards in 3 hours.

Rex, I really miss your BS flag animation. Can you raise it for old times' sake?

Scott

 

[Craig Lindquist]

Well,
good for you.