Ken Snow said:
randy said:
We got a call on that account last year, they sub the work at 5 cents a square. Just no profit there to get, probably costs many cleaners more then that to do the work. Same thing with CVS, zero money on that account. As long as there are ignorant, desperate "owner operators" willing to be 5 cent slaves then this bullshit will continue. Our industry deserves it, we created the trend by accommodating a business model that craps down the throats of owner/operators.
Typical response- perhaps instead say "how do companies profit from doint this and how can I learn from them?" Doesn't mean you have to do it but there are likely some good learning points.
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I don't think anyone makes a profit at 5 cents a square. Over the years
we have seen many of these "national carpet cleaners" go chapter 7 and leave lots of their local contractors holding the bag, so how profitable is that. This kind of how low can we go thinking is what gets a company "large" but horribly unprofitable. Look at some of the long established (20-30 years) companies within our industry
that still have to tap credit lines to get through the winter. Perfect example of a business that is not really all that profitable. Often they would be better off split up, sold off in parts and the proceeds invested in a mid-cap stock. Higher return with a lot less work.