Let's play what's my number AGAIN.....

[John Olson]

So Mr Crowley and Mr. snow say it only cost them $13 an hour to run their machine and mr Crowley said owner operators work for free so there is no labor if you run your own machine.

So lets play the "what's my number game" it is really simple (since I'm not s smart man it has to be"

1 open your accounting software and find your expenses.
2 make sure to include your salary/owners draw unless your like Crowley and work for free
3 make sure to include replacement cost of your equipment as you should be putting enough away to make payments if something happened to your equipment
4 divide all of that by the numbers hours you out on your machine

Now Mr. Crowley pointed out they do a lot of work that doesn't include carpet cleaning. He makes a good point and that rehired more math but unless your expenses include specific vehicles and maintenance etc etc for the different areas won't make a lot of difference but it can be removed from the equation but requires more math and it should be done if your business is very diversified.

So let's see if anyone can actually run their machine for $13 an hour well form those that don't work for free

 

[Jeremy N]

It would cost me at least $13 to come up with the answer...

 

[Lee Stockwell]

Millions of dollars worth of time are spent on this board.

 

[Mike Draper]

here is a good example. Greg puts 1000 hours per year on his truck. Greg says it cost $12.43 an hour to run his truck. This would mean that all of gregs overhead for the year is $12,430. All his marketing, his fuel, chemicals, maintanence, insurance, his accountant, his uniforms etc. I dont buy it. Even if you cut it in half to 500 hours per year. that would meant that greg only has $6215.00 of overhead a year. :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll:

 

[Royal Man]

here is a good example. Greg puts 1000 hours per year on his truck. Greg says it cost $12.43 an hour to run his truck. This would mean that all of gregs overhead for the year is $12,430. All his marketing, his fuel, chemicals, maintanence, insurance, his accountant, his uniforms etc. I dont buy it. Even if you cut it in half to 500 hours per year. that would meant that greg only has $6215.00 of overhead a year. :roll: :roll: :roll: :roll: :roll: :roll: :roll: :roll:

Don't forget labor and related expences, taxes etc....

 

[Mike Draper]

even if greg is super cheap and runs his business with the minimal expenses his overhead would probably not be less than $24,000 a year. At 1000 hours that is a runnign cost of $24.00 an hour, cut your hours and your cost per hour of running the machine goes way up. 500 hours would be $48.00 an hour to run your truck.

 

[joe harper]

There is ONLY one # that matters in this BIZ.......................30%.................... :idea:

We can cRunCh #'s...all day & for every scenario..... :roll:

Look at the GROSS RECIEPTS...for 1 day...1 week...1 month...ect ect ect.....
If you are NOT retaining 30%..net/net profit as your personal income..... !gotcha!

GO FLIP BURGERS... :!: :!: :!: :!: :!: :!:


YES..!!!!! "That is right ladies."

Sooooooooooooo...."If you left a 35K a year job." To become your OWN boss.. :?:

And your NEW company is grossing 75K a year..... :idea:

You are on your way to bAnkRupTcY cOurT...... :shock: :shock: :shock: :shock: :shock:

That is RIGHT....you now have a $22,500 a year job..."MAYBE".... :roll:

CHANCES are ...you will be lucky to NET 15K a year..."Because SHIT HAPPENS"...

 

[XTREME1]

Until this year I spent less than $1,000 a year marketing and even now it is less than $200 a month. John Olson is skewing the information I had given him and I told him specifically what the number included the numbers was 100% depriciation of the TM over 2,000 hrs, gas and maintenance.

The problem with the TM cost per hours is you are including expenses that have nothing to do with it. I never advertised VCT but got that from doing carpets. I will do $50,000 in VCT this year and that number will go up next year with a chain of coffee shops I should be picking up and I was asked to bid Cumberland Farms. So John tell me how to log that after I tell you how I started it. I cleaned for a woman Barbara who worked at a big epoxy company she told the boss about my work and he brought me in to do the carpets, not wanting to lose the carpets to someone else when he asked if I did VCT I said hell yeah. That has generated me about $40,000 from that company in 3 years. He knows other businesses and tells them about me and it grows and grows and grows. In theory the TM generate that business for me so how do I credit that back?

I do about 25 rugs a week right now and could easily do 200 if I pushed it but the average rug is around $75 so that is another $1,800+ a week. You are telling me that these things do not count when I have to break down my costs, so they are basicly free and all the expenses go to the TMs

We will put more than 1,000 a year on each truck



Harper this has nothing to do with that aspect. I crunch my numbers all the time but while offering so many different services to attribute it all to the TM is unrealistic

 

[joe harper]

Greg...

VCT ...really.... :roll:

ShittiesT...job in the WORLD....

WORST HOURS....WORST LABOR COST....WORST CHEM COST..."Are you a jAniToR"...?

55K in VCT work...is PaThEtiC for profit margins... :!:

You can make MORE profit...in 1 month of CARPET CLEANING.... :mrgreen:

 

[John Olson]

Greg as I said if you are bringing in an exceptional amount of diversified business then those are different numbers. So run those separate so you know how much it cost you and how much you made. The bigger the company the more math but your accountant should be able to extrapolate those numbers pretty easily. I am not an accountant and this exercise is a simple check anyone can do to get a basic understanding of they are making money or not.

As one grows these numbers will grow and fall and should be checked every year. What you feel you need to profit is up to you but these numbers won't change because you want them to. Figures don't lie.

 

[XTREME1]

I am not a janitor Harper I do enjoy VCT work and I have a really good guy doing it with me. Matt is a master. You are in Florida where you get shit money for it. I get .50 a sq ft. Our profit is high on VCT.

Hours aren't bad, we do them saturday mornings. You have to pick the accounts you want to do, don't have them pick you

 

[Ken Snow]

John Olson" data-source="" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch">

Greg as I said if you are bringing in an exceptional amount of diversified business then those are different numbers. So run those separate so you know how much it cost you and how much you made. The bigger the company the more math but your accountant should be able to extrapolate those numbers pretty easily. I am not an accountant and this exercise is a simple check anyone can do to get a basic understanding of they are making money or not.

As one grows these numbers will grow and fall and should be checked every year. What you feel you need to profit is up to you but these numbers won't change because you want them to. Figures don't lie.

I agree with your comments here John, however as numbers increase in sales the portion as % of sales to cover overhead decreases and the profit after break even soars. Accountants are great but many don't understand the dynamics and nuances of the numbers they produce.

 

[XTREME1]

That is why it is ridiculous to try and attach a number to 1 piece of equipment and say that is your whole company

Again for the record I wouldn't have done that job either unless I had a couple guys sitting on there arses and it was called in that day

 

[joe harper]

I am not a janitor Harper I do enjoy VCT work and I have a really good guy doing it with me. Matt is a master. You are in Florida where you get shit money for it. I get .50 a sq ft. Our profit is high on VCT.

Hours aren't bad, we do them saturday mornings. You have to pick the accounts you want to do, don't have them pick you

OooooPs....Our base price for VCT was $1.50 sf....15 years ago... :shock: :shock: :shock:

 

[XTREME1]

wow. I should move to Fla and hire me some cubans. Why couldn't you make profit on that?

 

[joe harper]

[quote="John Olson"8s5efr0]Greg as I said if you are bringing in an exceptional amount of diversified business then those are different numbers. So run those separate so you know how much it cost you and how much you made. The bigger the company the more math but your accountant should be able to extrapolate those numbers pretty easily. I am not an accountant and this exercise is a simple check anyone can do to get a basic understanding of they are making money or not.

As one grows these numbers will grow and fall and should be checked every year. What you feel you need to profit is up to you but these numbers won't change because you want them to. Figures don't lie.

I agree with your comments here John, however as numbers increase in sales the portion as % of sales to cover overhead decreases and the profit after break even soars. Accountants are great but many don't understand the dynamics and nuances of the numbers they produce.[/quote8s5efr0]


SEE HOW SMART YOU ARE... shiteatinggrin shiteatinggrin shiteatinggrin shiteatinggrin

NOW you are talking gEnAtalIa.... !gotcha! YOUR BIG NUTT....

 

[joe harper]

wow. I should move to Fla and hire me some cubans. Why couldn't you make profit on that?

WE did...!!!!!

But then the Russians came in...& were doing everything for .20 a sf.... :shock:

They literally would have 6 or 7 guys riding in the back of the trailer with the EQUIPMENT.. :!:

All of the Fast food chain's & Convenience stores....said ..BYE BYE... :roll:

 

[floorguy]

Greg...

VCT ...really.... :roll:

ShittiesT...job in the WORLD....

WORST HOURS....WORST LABOR COST....WORST CHEM COST..."Are you a jAniToR"...?

55K in VCT work...is PaThEtiC for profit margins... :!:

You can make MORE profit...in 1 month of CARPET CLEANING.... :mrgreen:

i would argue this....with this main point

THE RIGHT EQUIPMENT

I am not stripping a floor with a 175 and a squeege

My propane stripper and 2 autoscrubbers works wonders

so does stripping my own previous work

 

[Brian R]

There is ONLY one # that matters in this BIZ.......................30%.................... :idea:

..."Because SHIT HAPPENS"...

I would agree with both those statements.

Doesn't matter what it costs or what you sell it for. 30% or better to keep is a good number.


I know it gets to the point of being cliche but it's not what you make (or spend) ...It's what you keep.


Since I've changed the structure of my business (again...and again)...I've put 35.36% away for 2011.....And really it should be more than that.

But the second statement Harper made sometimes applies more than we like.

 

[Ed]

Greg...

VCT ...really....

ShittiesT...job in the WORLD....

WORST HOURS....WORST LABOR COST....WORST CHEM COST..."Are you a jAniToR"...?

55K in VCT work...is PaThEtiC for profit margins...

You can make MORE profit...in 1 month of CARPET CLEANING....

Joe, you are spot on as usual. VCT is a cut throat, poor profit business. For the money (and by the way, I was charging .50 per s.f. 10 years ago, when I did all the work myself and the profit margins STILL sucked.

I am not a janitor Harper I do enjoy VCT work and I have a really good guy doing it with me. Matt is a master. You are in Florida where you get shit money for it. I get .50 a sq ft. Our profit is high on VCT.

I guess "high profit margins" are relative. It certainly depends on what one's benchmark for profits are. The simple formula is look at the money you can make in a given time frame cleaning carpets and what you can make doing VCT work in the same time frame, then add all the product cost in to the VCT side and unless you are cleaning carpets for next to nothing, I don't see how they could compare at .50 per s.f. Besides, aren't you charging at least .50 per s.f. for carpet cleaning like everyone else on these boards? Hell, .50 per s.f. is considered bait and switch on some of these boards. :mrgreen:

 

[dealtimeman]

Greg...

VCT ...really.... :roll:

ShittiesT...job in the WORLD....

WORST HOURS....WORST LABOR COST....WORST CHEM COST..."Are you a jAniToR"...?

55K in VCT work...is PaThEtiC for profit margins... :!:

You can make MORE profit...in 1 month of CARPET CLEANING.... :mrgreen:

Harper I have to disagree with you on this one. I have done over 100000 a year off of VCt and kept almost 40000 of the 100000. With VCt it us the same as with all other services, if you don't charge well you won't make good money. my medium VCt price is .35 for a strip over 5000 sqft and .28 for just scrubbing and recoating. I do very well with floors and get paid a hundred dollars an hour for pushing a buffer over the floors every month. I make a lot of my "profit" in the maintenance of the floor. A three dollar pad will last thousands of sqft, making the maintenance almost cost nothing to perform.

And by the way I AM A Janitor!

 

[XTREME1]

I don't find VCT to be cut throat at all. You just have to find mid range places that large janitorial companies don't want
I can scrub and coat 5000 sq ft in a few hours and bring in close to $2,000 for $30 of cleaner and $145 finish

 

[Hoody]

Define "a few hours" with how many machines and how many people working ?

 

[XTREME1]

1 person, 1 machine about 4-5 hrs

and then I sell the cleaner to them which makes it easier for the next time I go there

 

[Willy P]

$2000 for 4 to 5 hours work? $175 materials? :shock: Really? $400 an hour for labour?

 

[joe harper]

Greg...

VCT ...really.... :roll:

ShittiesT...job in the WORLD....

WORST HOURS....WORST LABOR COST....WORST CHEM COST..."Are you a jAniToR"...?

55K in VCT work...is PaThEtiC for profit margins... :!:

You can make MORE profit...in 1 month of CARPET CLEANING.... :mrgreen:

Harper I have to disagree with you on this one. I have done over 100000 a year off of VCt and kept almost 40000 of the 100000. With VCt it us the same as with all other services, if you don't charge well you won't make good money. my medium VCt price is .35 for a strip over 5000 sqft and .28 for just scrubbing and recoating. I do very well with floors and get paid a hundred dollars an hour for pushing a buffer over the floors every month. I make a lot of my "profit" in the maintenance of the floor. A three dollar pad will last thousands of sqft, making the maintenance almost cost nothing to perform.

And by the way I AM A Janitor!

I disagree... :!:

333,333.33 square feet of VCT is ...NOT a janitor.... !gotcha!

YOU ARE IN THE VCT ....BUSINESS.... :idea:

I was speaking of the guy's that MAYBE....do 10k sqft....a year... :!:

ps ..333,333.33 sq ft of CARPET...at .15 sq ft. is TWICE the PROFIT..AND HALF THE LABOR & MATERIALS.......IMO... :mrgreen:

 

[Hoody]

So you're scrubbing and re-coating 1000-1250 an hour ?.... With a 175 ?

 

[Shane Deubell]

Thats a load, we all have some jobs that are profitable like that but not everyday.
That is an autoscrubber and 0 detail work and maybe 1 thin coat of finish

most commercial customers are not that dumb.

BTW
Why would it matter what your sqr ft price is or what service you provide, gross profit that matters on a job.

 

[XTREME1]

yes with a red pad. actually I am scrubbing/cleaning alot more than that and hour and very little break between coats because start at one end andgo around and next coat

Hoody stick to something you know. Come on down to my area and I will show you. Posted the pics here before

I have several accounts like this and it may be alot of work the first time doing them regualy is a piece of cake. Again you choose your customers, they don't choose you.

Don't hate the player Willy, hate the game



3 coast shane......when it is stripped and waxed it is 1 acrylic 4-5 finish. I thought I did give you the gross or can't you add and subtract?

Pulled this picture because custys name

plus the side rooms and a huge lab. Over 5,000 sq ft 4-5 hrs and that finish is dry shane and you think they would be unhappy, you are right they were unhappy with all the shitbum companies they used before. Doing a preschool and church later this month 6,000 sq ft and matt and I will be finished in 3.5 to 4 hrs

 

[Dmreed4311]

Did your formula on my oldest Tm (11 years) put in my average techs salary plus my salary salary divided by 5. My total came out to be 267.77 per hour based on it having 4123 hours on it. I keep pretty good books and know exactly what each van makes, seems high to me and Iam border line illiterate so I may be a little off.