Just Curious..... Is 100 bucks an hour enough?

[Doug Cox]

I know for a number of years 100 bucks per working hour was the amount we all strived for, but seriously, I couldn't survive at that amount anymore. I am currently at probably 150 an hour and sometimes passing the 200 mark. Just interested in others opinions.

 

[SamIam]

Its all about over head, but ya $150.00 an hour sounds right unless your Mike and you VLM for about $525 an hour, which would get it done all day everyday in my book.


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[Mikey P]

200+ is our goal for resi jobs

 

[Captain America]

About 75-100$ an hour counting drive time from start to finish.....more if you don't count drive time
I will work for less on big jobs but never less than 50$ an hour..apartments and hotels in off season.
However this is a one man operation in central texas...Everything is cheaper in texas especially smaller towns.
Also my profit margin is about 70 percent for sole operator.

 

[Able 1]

I think "the more you make, the more you spend" is fitting here.. Every year I like to see 20% growth(never seen under 10%). Every year I feel like I should have made more and try to figure out how . I will do apartments at $100 an hour sending my tech out there to clean them, and taking the other work myself.

For a guy that does it all himself, I would jack up my prices(though $150-$200 is real good).. Your market is less competitive then it is here, though. For me working with a helper $165-$200 is a good average, but I get home sooner, and I am not as tired.. I will always try to service the apartments that I currently have, but there is better money in residential work(just not as consistent).

 

[Vivers]

I'm sure that number is fine in some markets. But I'm definitely with Mikey and above in our area

 

[Desk Jockey]

We target $160.00, sometimes we hit it sometimes we don't but that's our goal.

 

[Goomer]

but seriously, I couldn't survive at that amount anymore. s.

Which could not survive anymore.....your business or your lifestyle?

 

[Chris A]

If my big ass truck is parked in one spot all day then yeah, $100/hr is ok. Driving around doing 5 $100 jobs and taking all day, not so much (but I do that too sometimes.) I worry way less about what I bring in per hour and way more about what I bring in per day, week, month, etc.

 

[Ed Valentine]

Doug;

I believe that $150 per hour is reasonable when compared to other service industries. For example, the Heating & Cooling companies charge a min of $75.00 per call and $100 per hour , plus, parts.
Cleaning a carpet is generally viewed as mostly labor; however, as the Industry above sells "parts" (repair), your job is to sell, "Cleaning" (refurbish). IMHO, its all the same.

Therefore, never sell yourself short. Great question.

best Always;
Ed Valentine
cross-american corp.

 

[Shane Deubell]

Kinda like govt unemployment numbers, not really that accurate.
Its just an easy number to talk about without getting into the weeds.

Like chris said, fixed costs play a big part in this, plus tax avoidance, non-productive costs like driving.

Seems like no 2 cleaners are matched up the same anymore. Some people do water damage, some dont. Some rugs, some not. Encap????
These all have different cost structures.

Hell, i would take an unlimited amount of encap work at $100 hour. For example...

 

[Jim Martin]

you charge for the level of cleaning that you give.....and for what your area will handle.....Don't miss understand me....I am all for $100 to $125 an hour...but your not comparing apples to apples when you start dragging in HVAC tech and electricians....or plumbers...these are trades that you HAVE to be licensed and certified for....you HAVE to keep up on certain things and in some cases pay out yearly monies........

 

[Desk Jockey]

Which could not survive anymore.....your business or your lifestyle?

His coke habit!

Ok Ok Life style that dude buys bikes and lives high on the hog like a rock star!

 

[Russ T.]

We have to come to know our particular value, in our particular market. Each is different. Some markets will not bare a super high end carpet cleaner, others will.

The size of your business will be affected by the direction you push. If your goal is simply to get as many trucks on the road as possible, leave the vacuum, rotary, 175, CRB, Zipper, etc at home. (Maybe not Zipper as it looks like a high production tool).

I think it's important that the direction you are pushing reflects the type of person the owner is. Either can work (quality or quantity) if you commit to it and work it.

Lots of smaller biz doing well here. Look at Mike, Jim M., Saiger, etc...

Bigger doing well too, Hagopian is a great example.

Personally, I'd rather stay small and strong. I'm not sure I'd do so well managing a fleet of 30 trucks. I struggle with anxiety as it is!

 

[Lee Stockwell]

3 dollars per minute TM running time. Not including setup/wrap up or travel.

 

[dealtimeman]

Lee I prefer 4.50 a minute it sounds more exotic.

 

[Captain America]

I'm with Chris gotta look at the whole day and week especially profit margin not gross....
They say in cleaning class with 1 van-50 percent profit
2 vans-30-40 percent profit
3 vans -20 percent profit......

 

[dealtimeman]

It's not what you make it is what you keep.

 

[clean image]

Good subject.
I do mostly stone, TG..
So a job that I estimate 120
Man hours on will be more competitive than a 2 hour job.
This of course because I am also running multi trucks.

Also supply and demand plays big. If slow go down to keep crews busy. Get busy go higher to pay overtime and invrease profit margins.

 

[ruff]

It's not what you make it is what you keep.

Indeed......
And what you do (invest, save, real estate etc.) with what you kept.

 

[Jim Martin]

It's not what you make it is what you keep.

what you make determines how much you get to keep.........

 

[dealtimeman]

Most businesses either don't know what their margins are, or don't want to know what their margins are untill it's too late and they are closing their doors.

Ps. and I am buying their equipment.

 

[dealtimeman]

In everything we do, I always remind the guys to be as efficient as possible and efficient does not mean fast as possible. Because if you have to do it twice all because you did it too fast the first time and missed something that is not very efficient at all.

That being said most hear could do very well making 75 an hour assuming they are not driving all over town and their systems and overall operational is running well/ Efficiently. Different services will make/cost you differently and (for us at least) the more diverse the services we provide the larger the potential hallway/avenue is for generating more work and making the most out of the time you are getting paid for and thus paying for(employees, your time, etc)

Our margins on water damage are double of most companies because of the systems/infrastructure that we have In place.

With a few very expensive pieces of equipment and fundamental changes to our operation has cut our labor costs in half as well as given us the opportunity to serve more customers without having to return to the shop for more supplies / equipment.

It was by no means planned but this has happened and has come to fruition through trial and error and we don't believe we are yet as efficient as we could be.

I could go on but my fingers hurt.

 

[Willy P]

This is a loaded thread.... Yesterday I did one residential job and 6 apartments in 2 buildings. I started at 9 and was finished at 4 with about an hour or so drive time. I do my best to schedule as tight geographically as possible. I grossed $680 but by the time I take 27% for operating expenses, I'm down to around $500. Now I pay myself a wage year round so some of that has to be squirreled away for the slow months. I'm planning on retiring in the next 5 to 7 years- that needs attention and dollars.Some days I gross over $1000, had one day this summer where I grossed $1800 - not bad for a lone wolf POG. $500 a day keeps me comfortably afloat, over that is gravy.

 

[Papa John]

It boogles my mind as to why a $150 can take as long as a $400 job sometimes.
Maybe the saying, "The work described will expand to fit the time alotted it" is true?

 

[Able 1]

It boogles my mind as to why a $150 can take as long as a $400 job sometimes.
Maybe the saying, "The work described will expand to fit the time alotted it" is true?

I hear you there! My pricing structure is messed up, some days I feel like I'm just driving my van around collecting hundo's other days I'm dead tired with crap to show.. 5 rooms plus is my sweet spot for residential. I'm going to bump up my prices for anything under 5 rooms next year..

 

[rwcarpet]

I'm fat and happy @ $100-120 an hour. Lower cost of living in my area. Average home value in my area is $80,000....selling price is $120,000. Compared to working the asembly line at $25 and hour with someone telling you what to do......priceless.

And gas just dropped to $2.99 in my area.

 

[Mikey P]

It boogles my mind as to why a $150 can take as long as a $400 job sometimes.
Maybe the saying, "The work described will expand to fit the time alotted it" is true?

No chit. .

 

[Ron K]

what you make determines how much you get to keep.........

Wrong Jim what you spend determines what you keep if you make 1000 dollars a day and spend a 1000.

 

[Shane Deubell]

What you want to do is start looking at how much money you are making running the business.

So go over your numbers for last month, quarter,year and account for all labor.
Either pay yourself an hourly wage or %% commission.

NOW how profitable are you?

That is the number you want to look at and increase.