interesting perspective from a industry insider..

[Mikey P]

I asked the authors that I have gathered for the MB Front Page to come up with some new pieces for March.
I gave them this list to choose from..

[FONT=arial, helvetica, sans-serif]Building/offering equipment that is made to last .[/FONT]
[FONT=arial, helvetica, sans-serif]How we as cleaners are effected by fabric and flooring trends[/FONT]
[FONT=arial, helvetica, sans-serif]A busy cleaner effects our entire food chain so why don't suppliers do all they can to keep and make cleaners more successful[/FONT]
[FONT=arial, helvetica, sans-serif]Is one method of stone polishing enough?[/FONT]
[FONT=arial, helvetica, sans-serif]How to move a brand new hire up the ranks to crew leader/trainer[/FONT]
[FONT=arial, helvetica, sans-serif]Big Boy Truckmount manufactures Vs the Little guys, what do you get with each?[/FONT]

I got this from from one of them who wishes to remain anonymous.




The question is often asked, as to why suppliers don't do more to help cleaners be successful. But, I’ve long thought that a good forum discussion would come from the question, "Why don't cleaners do all they can to make themselves more successful business people?"

When I first came into this industry, I was impressed by the technical expertise that so many cleaners had, and certifications they held, but appalled by how many of those same ones were totally ignorant about marketing and running a business. Today, over 20 years later, that hasn't changed. You might say that the "Professional Carpet Cleaning Industry" is no more professional now, in that respect, than it was two decades ago.

I agree that suppliers should do what they reasonably can to help their customers be more successful. It benefits everyone from the cleaner, the distributors, to the manufacturer. However, if a cleaner truly wants to be successful he needs to take his own initiative to get educated about business, and that requires more than attending a one or two-day industry seminar, now and then. He needs to take small business marketing and accounting courses, learn how to write a strategic plan, and learn how to write a business plan - which includes the marketing plan, and is one of the biggest contributors to success, when followed. These things apply to the smallest business as much as to a large corporation - just on a different scale. It doesn't have to cost a lot, if courses are taken at a community college.


Cleaners, especially single owner/operators, who thinks it's enough to have only the technical expertise, will rarely ever go beyond owning a job and, in the end, when they get out of the business or retire, have nothing of real value to show for it, other than some used equipment, a vehicle or two, and perhaps a worn out body. Conversely, I know of several carpet cleaning businesses that were run like true businesses, and sold for a few million when the owners decided to cash in.

Seminars and workshops that are put on by the likes of Piranha Marketing, and other Industry marketing gurus, are excellent at teaching specific techniques, and they should be adjuncts to a good grounding in business and marketing knowledge. However, they are no substitute for actually gaining a good understanding and knowledge of basic business operating principles, as taught in a formal course. Cleaners often invest more on those seminars, and the related materials they purchase there, than it costs to attend business evening classes for a few months at a community college. Even if they only audited the classes (attend classes, or online studies, but not required to take the exams) they would be so much further ahead, and able to work towards building a successful business with their newfound business knowledge.

God bless the carpet cleaner! I don't know of many who work harder (loggers, and commercial fishermen, perhaps), and it just tears at my heart to see so many of them struggling to make it and, to use a well-worn phrase, only "own a job with no benefits". But, I have difficulty feeling empathy for those who don't pull themselves up by their own bootstraps, by acquiring a good understanding of the basics of business.

Yes, it is legitimate for cleaners to ask why aren't suppliers doing more to help us. But they should also ask themselves, what am I doing to help myself be more successful? Once an individual takes initiative for their own actions toward success, it's amazing what good will come of it. I speak from experience.



What are your thoughts?

 

[KevinL]

You're totally right. We all know there are things we could be doing to be more successful but we just get so busy doing the day to day operations and we aren't that good of businessmen. I'm trying to write a business plan now to get a big loan and it's a pain in the butt. I didn't go to college and I've never had to write a paper. I can come up with plenty to say but I don't know the proper layout or how to keep out the slang and STUFF.

 

[floorguy]

I get what he is saying, and it relates to maybe 40% of the cleaners....maybe??

With the other 30% being people who have no business trying to be in biz....

or the other 30% (where I put myself) who dont have a knack for it, or dont care about that side....or enjoy what they do, and all that, may ruin it....or tons of other things on my mind, but then it would sound like babbling....

in the end, the last group, dabbles in a little bit of it all, and maybe does or doesnt have enough to "hire it out" (damnit I swear if i hear 1 more person say that) if you think about all the things people say "just hire it out" and add it all up.....well its just a stupid number i am sure....

as i get older into this job, or work or what ever...my dream would be for a bigger company to buy me out for a modest sum...For the equip, and contacts...then hire me on as a working manager, putting me on my accts, and others, with workers....making a cool what ever it would be, and then leaving the job at the job...

I am a bad ass when it comes to being on the job and organizing it...getting the guys to do what they need to do, and adjusting on the fly if needed....

plus i have that touch with my accts, to where its just enough personal that everyone is happy.....they know i aint bullshiting, and i know (cuz its happened a few times) when push comes to push....they teter to my side...

any way there is my Martin Luther King, I have a dream speech.....hahahaha

 

[Hoody]

Whoever wrote that couldn't be any more correct.

I've said this before and I'll say it again - I've spent the last 8+ years working with or for other companies to gain as much experience as possible. Not to sound heartless but the mistakes I made then weren't on my own dime, so now I have more appreciation for things in general(equipment, appearance of equipment, myself, ect). I think that gives a great advantage now, over someone with no knowledge just starting in the business.

At first that wasn't my original intention. I planned on being a hard working 9-5 guy much like my father and putting away as much as possible to hopefully one day enjoy retirement, sans family trusts/invents I inherit. I have some college education, and for some reason enjoy this industry for whatever reason, I still don't really know. I think it's my wanting to help/fix things personality, and we ultimately solve a problem for the people we do work for so I get a self satisfaction out of a job well done. I also like the fact I'm working hard since I am younger and able to do it, but know my body won't always be able to keep up. Much like many others I've learned I'm not employable, mainly because of my personality of wanting to fix and make things better so having the control to make those decisions works better for me. I have a pretty good understanding of accounting and book keeping from the college classes I've taken - though far off from being an accountant. I really have no desire to want to push the paperwork, but I wanted to have someone on staff that I could go to, ask for a report, analyze and make decisions from it, and control the checkbook.

I'm out on the truck for every appointment, an owner(majority) but gave myself 'Operations Manager' as a title, because that is what I do. The husband and wife that originally owned the company, still work for the company, the wife does all of phone/office stuff. The husband still works at his factory job - he makes amazing money there, has great benefits, and I don't blame him one bit for that. He helps on larger accounts in the summer for our turnovers, and does outside sales. He is an amazing salesman but he's burnt out. The business was still in the stone age when I took over, and I've spent a lot of time and money bringing it up to date, training Patti on how to do things and creating systems and procedures so we have a consistent product and give a consistent experience all across the board. Before it was giving a price to whatever Ken felt like making for that job at the time, and most times he under-bid it to win it because he had no idea how much it really cost him to do business. He thought making some money most of the time was better than making a targeted profit goal. I've messed up a time or two and have done that same thing myself, but will still work for a smaller profit, so long as we still PROFIT.

To try and keep this short(you're welcome Marty) I have 6 mo, 1 ,3, and 5 year plans. I took over April of last year, and we're up over 50% from 2011, so I'm very happy about that. I'm working on actually getting a residential client list going to have clients to market to. My pipe dream ultimately is to buy out the small remaining portion I don't own, and then one day sell out, and travel for the rest of my days. I don't plan on being Ken Snow type big, but 2-4 trucks is the goal. Once I get into WDR I'm sure that will cause a need in growth/investment I do live in a flood plain. I live pretty frugally now and put back so one day I can live comfortably and not have to work. So far I'm on track, so we'll see. I learn something every single day, whether its online, talking with people more successful than me, or by my own mistakes. I think some people become complacent that they already know it all, and can't do any better so they settle for that, and that is why they own a job. There is always something more to do, and to learn to make more money.

 

[Mikey P]

So if all works out as hoped and planned Steve, how will your company look and operate five years from now?

Who will be your clients?
Who will answer your phones?
Who and how many will be out sucking the rugs?
What services will be offered?
What will be your daily responsibility?


and what Bulletin Board will you be most beholden to for helping you become a Carpet Cleaning Rock Star?

 

[Desk Jockey]

The author was right on target, despite the truth being painful it's a reality for the majority of us.

It is far too easy to get caught up with the "flash" of this business, the equipment and solutions, being the hero to your clients everything and to avoiding any of the boring elements that come with being a business owner.

I think that it's too much of a burden to put on your distributor to expect them to educate you in business management, although some sure go to great lengths to try and do so (Jon-Don & SFS).

I like the community college idea, audit or not that is a great idea and not very expensive other than your time. Evening classes are generally filled by non-traditional students so you won't feel out of place. You make go like on your schedule to allow for some out of class study time.

You can also hire a good accountant, one you're comfortable speaking with and willing to help you better understand numbers, P&L, Balance sheets and how to understand the value of reports you can easily generate.

It's all a process, just as you didn't instantly become a great cleaner, you won't instantly become a great manager or business owner. It takes time and a desire to improve those skills too. It's not glamorous but it is crucial to your existence as a cleaning business.

 

[Hoody]

So if all works out as hoped and planned Steve, how will your company look and operate five years from now?

Who will be your clients?

The typical answer would be for Mr and Mrs Piff, but I set up package pricing to be able to hit middle class and high end and so far its working, without appearing to be or being bait and switch. Over the phone its being sold as if they want to save money but still get a quality cleaning, they can move things and vacuum well before we get there so we're just knocking out the traffic patterns, and competing with Stanley and the like. I don't plan on changing that. I ultimately want to sell the the third package with the whole pony show, and then 6 months down the line have them call me to hit T.Ps again to take care of any spots. I make the same amount of money if they purchase the pony show, and the T.P. 6 months later, as I do if they picked the middle package twice a year. But my machine, and labor time are less with the first option which means less cost and more profit.

Who will answer your phones?

Patti is a stay at home mom, and even if I decide to buy the last portion out before year 5, I'll offer her to be an employee and still answer the phones. The thing I like about service monster is she can schedule from home, and since it's online-based I could be at our shop/office or from my phone see the schedule in real time. Its an win/win for both. There are obviously some negatives to that, that have to be worked out.

Who and how many will be out sucking the rugs?

I will still be on the truck in 5 years, but I want to have two vans going full time. I have one working turn key unit right now, and the butler system we have is getting an overhaul because we'll need it this summer for turnovers. I'm sure I'll have to replace the equipment I have now by then in 5 years, thought I'm meticulous about up-keep and maintenance. Ken and Patti's son does flooring installation with a local installer, but he's getting burnt out on working with the guy. I want to send him off to a class to gain more knowledge so he can do repairs, and re-stretches. He's eager to learn and likes it, but I have no desire to become a carpet store. I've watched many cleaners try that and fail, the overhead is crazy and just something I do not want to do. But repairs and re-stretches are fine, and if I can get him enough work to go full time with it. That is up in the air and just an idea, but I could see outfitting one of those Ford Transits for that.

The shop I have is a little over 3000 sq ft enough to park 5 vehicles if I really had to plus a little office space. When we signed the lease we were also guaranteed that price for as long as we wanted to rent the space. I see us there long term.

What services will be offered?

Carpet(Res and Comm), Upholstery/Fine Fabric, Tile and Grout, Janitorial, VCT, WDR. I've been following posts in the Hard Surface room, and highly considering polishing. I want to take a stone class at some point in the near future. Not sure about rugs, but luckily I'm close enough to Hagopian if I ran into a problem rug I could take it there. Also again possible repair and re-stretch and dye repair.

What will be your daily responsibility?

Besides being on the truck still, managing daily operations, problem solving, and estimating/project manager of WDR jobs. I really can't see me sitting in an office all day long, and really don't want to. I'll be out working, or selling.


and what Bulletin Board will you be most beholden to for helping you become a Carpet Cleaning Rock Star?

Trouble maker. But I've learned more here than any other board, and its fun, even if you are an ass sometimes.

 

[Shane Deubell]

Smart Man and nailed it!

I think the turnover of cleaners can be frustrating for a distributor trying to help. Being a small business owner is a professional career just like an engineer, accountant etc and it takes 3-4 years to learn/practice all this information. Problem is 90% of the cleaners are gone by then.

We live in an information economy now and we really have to continue to learn/improve or be left behind real quick.

 

[Jimmy L]

The drama of life and family has held many back from being bigger companys.

 

[The Great Oz]

Most suppliers I've met do try to help their customers. The only non-technical courses that get any attendance are marketing related, and even marketing isn't the number one issue.

It's learning proper cost accounting so you can stop saving dimes while missing out on dollars.

 

[hogjowl]

There are a couple of people I can recommend that will can offer more than empty talk when it comes to teaching a cleaner about effective accounting and business practices, but I have yet to meet a marketing guru who has anything more to offer than theory and empty talk.

However, let me hasten to say that I burned out looking before I talked to Howard. He may be all that and a bag of chips for all I know.

 

[Mikey P]

If iI owned a supply shop I'd be stuffing service monster down every start ups throat

 

[TomKing]

The problem is most suppliers where former cleaners themselves and often are just a bit better than the customers they serve.

Suppliers often say how tuff it is and how they are not making any money or not having the best year. They have this cloud of please buy from me. They often have this attitude of let me show you how smart I am.

I remember my first fest in Nashville several of the truck mount dealers where cocky and actual made me feel stupid when I asked questions. Steve Poulos was with Hydramaster at the time and took me through the Hydramaster truck and gave me a great lesson. 3 years later I own 3 of them.

People suppliers need to be cheer leaders. Be a consultant and educate me. I had a doctor I was selling once say "Tom I love it when you are the scientist, I hate it when you are a salesman". I have never forgotten that lesson.

On 3 occasions my local supplier has tried to sell me a new off brand chemical line product. I asked who has used it and what where the results. They had no testimonial but the companies. 2 weeks ago one of my guys came back to the shop with the product. Not that they gave him to try but that they sold to him. After I told the supplier I did not want to try it. Nice act like a child Mom tells you no so you go ask dad.

In our city we have 340 companies listed on Angies list that say they do carpet cleaning and restorations.

Supplieers need to act as sales men and pick the top 10% that they feel have the right potential to grow and invest in those companies.

Pick 34 companies and help build them to dominate. You will have better customers and less people to service.

Not every company can should or deserves to survive. If you are going to make the market stronger you have to see major players rise up and control more market share.

Local suppliers need to stop selling against us in hotels, schools and goverment accounts. Many industries distributers will not sell to individuals. Most suppliers will sell to anyone that walks through the door. Why not guide them to your top 10%.

I would have invite only training and business development days. I get tired of sitting in meetings and listening to some yahoo say how Facebook is a fad, that the do not have an electronic customer managment system, that they don't need a website or that the have 80% repeats every year and don't need to advertise. If I have only been at this for 4 years I can't imagine how it must feel for those of you who have been around operating successful companies for many years.

If you put the best of the best in a room they will make each other better. I met the 2013 franchise of the year Chemdry owners at my last JonDon training I attended. What awesome people. I want to sit in a room full of people like this makes me better.

I don't want to sit in a room with the guy who says I am not a salesman, comes into the room speaks to no one sits with his head down and never interacts during the day or week. I learn so much from interacting with other cleaners. I was at a auction today and met two other companies in my city that I will be able to network with in the next week.

If I where a supplier I would find the best cheer them on and invest in them. Their success will be my success. I have only seen this with one company in this industry. They have areas to grow but at least are headed in the right direction.

Just go to a IICRC carpet cleaning class. Most instructors spend half of the time trying to teach how to price and run a business rather than teaching about why you came to learn how to clean. The fact that almost every instructor does this should show you why a basic business class is really needed in this industry.

 

[cu]

I think most rug suckers get in to the biz but don't understand how to run a biz. Some of them will go to joe p or Howard and believe they have to live every word to be in the money.
Programs like Sfs must help people how to run a biz. But I'm sure Jon don lose on each one they run. Supply shops should run business classes just as they do iiiccrcc classes . Have a insurance agent have a class on what types on insurance your biz needs etc
. It would be smart of pro chem ,hydramaster or sapphire to sponsor the classes . For the people who have helped me build my biz I'm loyal to them CMS and Judson 97 % of everything I buy for my trucks come from them. All the advice I have got from them has been golden.

I feel it should be a two way street. As the cleaner,s company grows. He should not forget who helped him understand how to run a biz

 

[Mikey P]

Great stuff guys, keep it coming!

If like to hear from some of our suppliers get about the extra steps that do to help out us low life janitors

 

[SamIam]

The Idea of owning a job. To work quitely with ones own hands an mind Your own business! I did take a business class and accounting maybe it helped.

I think what helps most is knowing your market building a good reputation, be skilled at what you do, and dont throw away your money on foolish get rich scams!

I do like reading Steve T stuff he's good. He sold a business retired and went back to work to help us retire. Well I think thats how it went.

One thing Steve said in a post is charge more! I say if if you can get it get it.

I liked Cole's class at MF9 make sure your advertising is consistant! not all over the place.

Brand your service and market that brand.

Lastly the distributors only need push people toward these forums to learn and grow, schools in session.

 

[SMRBAP]

I'll open up with a shock and awe statement - then explain below.

Maybe the best thing our manufacturers and distributors could do for our industry is place "requirements" for purchase.

This isn't just an "our industry" issue, or a blue collar industry issue - but an issue across all industries, blue collar, white collar, service oriented, retail oriented, and its even bleeding into the b2b level.

Since the invent of craigslist and the like, any guy with a hammer, saw, and screwdriver is a plumber, electrician, and general contractor.
Anyone with a computer can set up an ebay store and peddle whatever widget's they have a passion for and update their linked in page as President, CEO (insert whatever facade title here) of ABC sales co.

My first biz was pro audio sales. This was near the birth of the pro audio computer based recording world. It was a web based biz, and it happened on accident. Year one I was still working as an engineer, my second year I went full time at it and I broke into the 7 figure mark with near 40% margins. Years 3-4, growth was through the roof, margins stayed about the same, and the product line I sold was expanding at a steady rate.

The end of the 4th year I had the VP of US sales of Sony Digital Media sitting at my side - trying to figure out, how a 26 year old kid was outselling the sum of sales by national chains. Simple - I knew how to run this/that business.

Year 5 - most of the manufacturers had just opened up distributors, and so because they had so many small purchase requests that didn't meet their minimum buy ins, nor the business requirements that they had in place (must purchase 10k min and have support capabilities). Distributors didn't have any requirements.

By year 6 - an interface I sold for $1200 at just under net 40%, could be had anywhere, ebay, CL, small web based resellers, for $25 over dealer cost. These "companies offered zero support, blew off returns, and mastered misinforming the public about the true capabilities of the products.

Year 7, my numbers were 300% of year two - however I made less, about 70% of yr 2. Year 8 that disparity grew more, and I decided it was time to plan my exit.

Many of those manufacturers do not exist today, just 6-7 years later. The price war started at the retail level and ended up starving them out of existence.

 

[ruff]

It reminds me of the parents who blame the schools and teachers for the fact that their kids grew up to become brats.

It is not the suppliers' job to make the cleaner a better business person. It is the business owner's responsibility.

That said, most suppliers do make an effort and offer classes and other help. Hoping their clients will appreciate it and if successful will remain loyal clients. In other words, a mutually beneficial relationship.
They deal with a tough bunch though, as many seem to resent if they make any profit.

A good local supplier will offer a relationship which means classes, quick repairs, technical help and know how etc.
Remember though, it ain't their hobby!

 

[Mikey P]

Not their job..
No.
But like any worthwhile parents, why wouldn't they take the effort to guide their "kids"...?

 

[ruff]

Most do.

Though you should ask them (off the record) how many feel that the people they helped (%) reciprocated?

 

[Shane Deubell]

Best marketing advice ever....

http://mikeysboard.com/forum/showthread.php?265435-Snip-it-of-Greg-Cole-live-from-Las-Vegas-2013

Mikey taped a couple minutes of greg's presentation at MF, in video at 2:38 he shoots a close up of a marketing diagram he uses. Write it down and tape it to your wall!
1 advertising campaign is not going to cut it, we need to be building a comprehensive plan that covers all the bases.

The only difference is we need to build a BD version or a semi-BD version as most of us are not ready for big media like tv/radio/billboards, BUT we can afford youtube/yard signs/van/small billboards.

 

[Mikey P]

Most do.

Though you should ask them (off the record) how many feel that the people they helped (%) reciprocated?

I know the feeling..