Lisa W. I am thinking about going all in with a rug shop.

[daniel@procarpet]

I realize I can stay small, clean 10 rugs per week, average 200 per rug, and do good.

I found a great commerical location (very good). Rent shouldn't be too bad. The location is key though.

Lots of people frequent the area as there are some landmark businesses seconds from this place. It is right off the expressway and either on the way for people leaving work or on the way to work. Like I said it is in a very good spot.

I want to get a personal loan (no less than 100k) and advertise like crazy. Billboards, radio, televsion, and of course signage, maybe a box truck parked at the street wrapped up.

There are so many people that buy affordable rugs for 250 or less. They don't want to spend a hundred dollars or more to have them cleaned. I can make money doing them cheap. Maybe five levels of cleaning service. Basic clean (vacuum, precondion, and steam clean) would be 25 dollars for any size rug up to 100 sq ft and 15 dollars for runners. I wouldn't have any problems doing most of the rugs cheap, but I alos know a lot of people would spend more for the deeper cleanings associated with pet damage etc. I feel I could pay back a 150k loan in two years or less plus interest.

Any investment takes risk. You can loose big on real estate, the stock market, or alternative investments. Of course I would put up about 50k of my personal money.

I just wanted your feedback. I realistically think a small shop could do 100-150 rugs per week or MORE with the right advertising and pricing system.

Also we could sell our residential services as well for customers coming to the rug shop.

There are already several rug shops but I always hear from people that they charge too much or wish there was a cheaper alternative.

I would be minutes from my target audience. Of course once the business was established and we relied on word of mouth, referrals, and marketing to the database, then overhead would go down.

I am tempted to do this.

 

[LisaWagnerCRS]

Re: Lisa W. I am thinking about going all in with a rug sho

Daniel,

The truth is any service can be a successful business if you get the foundation right.

Most who fail in rugs jump in deep, get all the "stuff", and then thing "if I build it, they will come." I personally would not start a business based on some telling me there isn't a cheaper option - because those customers would only be coming to you because of price. Yeah there is always a market for price-shoppers - but there also is no loyalty. When you live by price you die by price.

If you don't really care for rugs, you can be a spray and suck rug guy that's cheap - and you will do good volume, but make little net profit - and will contend with the next guy who comes by and says "hey, I can do that cheaper!" All they need is to run Groupon ads and get lots of your "I want to pay the cheapest price" customers you are targeting.

Please read this report I wrote where I tackle some of the myths about this business, and what elements make for a successful one, and different ways to do it.

Rug Secrets Insider's Guide => http://www.scribd.com/doc/37967161/Rug-Secrets-REPORT-2010

Then take a look at this article on getting higher prices and better clients.

Higher Prices => http://www.scribd.com/doc/35158272/CF-How-to-get-higher-prices-and-better-clients

If you have an EXISTING client list, and you are serious about doing rugs, I would do marketing in advance of you opening, that you are getting training and setting up a shop - and to get them ready for it.

I would STRONGLY discourage starting up a low price operation, or a complex one. 5 levels of pricing is complex. With the right education and marketing you can charge a good price period. We wash synthetics, because that's the way to get them really clean - and we charge the same as we do the woven wool rugs. Dirt is dirt - and it needs to be removed.

There is this mindset with cleaners that because people got a good deal on their rugs they will not take care of them. That is not true. When I get a deal on a silk blouse I do not expect my dry cleaner to lower their price to clean it. People buy things they like, and they take care of things they like - and the people who do not want to take care of their rugs, and don't think you are worth paying, is just not your "right fit" customer.

Doing 100 rugs a week at $100 each gets you $10,000. So does 50 rugs at $200. At half the volume, twice the price, you can put in more time per piece and do an even better cleaning, and more time into service to make it a "wow" for them, and get more referrals.

So don't focus on the VOLUME - focus on the NET PROFIT you are after. Otherwise you will bring in a ton of rugs, to clean and hopefully at least break even, and it will be a lot harder to get the loan paid off.

Learn what you need to with your skills - get the smartest tools at the moment for the volume you are doing - and come in doing it right. Come in saying you are the best, and then do everything you can to prove it.

And if you don't really like rugs - then pick another service that you do love. Because the ones who do really well in this field are the ones who have their heart in it... and nothing kills passion in a business more than not making squat on all your back-breaking labor.

Hope that was not too much of a "tough love" post. I just don't want to see you build a headache and get trapped in the priceshopper prison. It's so much more fun to aim higher.

Lisa

 

[Mikey P]

Re: Lisa W. I am thinking about going all in with a rug sho

Great stuff Daniel and Lisa!

 

[daniel@procarpet]

Re: Lisa W. I am thinking about going all in with a rug sho

Lisa I do about 20-30 rugs per month and plan on doing more. I would love to get up to 50.

I charge 2-3 dollars per sq ft. I am happy getting anything over 200 to clean and protect a rug.

I would never spend a fortune on rug equioment unless I needed it. I agree that buying 30k dollar centrifuges etc is a waste.

Really my overhead would be low. In fact I would not even really need to clean rugs to make a profit. A big truck wrapped up on the street would get me loads of exposure. I am going to pm you something. I don't want it getting out on this board. There is a business that is problably one of the most successful restaurants in the US as far as profit and volume go. This is not a high end joint, but loads of high end people frequent this place. They are jam packed from the time they open until they close. They are a landmark business. Sure there are lots of good businesses, but this place is unique and I will explain why in the PM. Anyways I have known the owner for 25 years. He is very wealthy but also very low key and down to earth. A hard worker. People in the community know and respect him. I told him I was the best carpet cleaning service in town. I am cleaning some carpet for him next week at his house free of charge (he will probably pay though) and in return I am getting a picture of him, the carpet job, and a testimonial that will be made into a flyer. These will be left in the business right by the register. I couldn't tell you how many people frequent this place on a weekly basis, but it is a lot (over 30k), and 80 percent are daily customers or several times per week if you understand what I am saying. This business is practically right next door. The shop would be in a great location. The rent would be worth the exposure.

Honestly I would loose money just to invest in getting better clients. Let's just say I open the shop and do not clean rugs. Why would people come in to book a carpet cleaning. They wouldn't. Now if they come in to drop a rug off or sofa cushions etc. WE could even let people bring their cars in to be detailed. Anything to make money. They come in and see we offer tile cleaning, upholstery, repairs etc. You ask why would they pay more for a better job? Because I will give them literature explaining how we are different and why they should pay more. I could send out a thousand dollars worth or post cards per week or spend a few hundred plus utilities to get 24/7 exposure.

Now back to rugs. I have asked customers for the past two weeks if I opened a rug shop where they could get any size rug basic steam cleaned for 25 dollars (that price is not set in stone and could be 49 or whatever) would they take me up on that offer. Everyone said I would get a ton of business. Word spreads quick. Hey take your rugs here, they cleaned my home depot special for 30 bucks and it was ready the next day. Of course I would offer submession cleaning, protection, etc. The basic clean would be to vacuum, pre-treat, and steam clean with one of my mahcines now, or I could just buy an electric tm etc. This would be a simple operation. A place to dust, a place to clean, and a place to dry enough rugs at one time. 150k would go a long way in terms of labor, overhead, advertising, and marketing.

I can see it now. A commercial airing prime time of a lady shopping with kids buying a rug for 149 etc. She needs it cleaned but there are no viable or reasonable options. She just wants it cleaned for an affordable price. In the same commercial we can talk about how we also offer premium rug cleaning for hand made rugs. I am very good at cleaning rugs by the way.

I would say only about 50 percent of the rugs would be cleaned using the basic cleaning service. To make things simple there could be three packages. No bait and swich. Just discuss the options with the customer and let them decide. No hand made rug would be cleaned except using hand wash techniques and no less than 2 dollars per foot.

Also think about a billboard with the same people driving back and forth several times a day seeing my ad that says stop right here to get your rugs cleaned (25 dollars any size rug basic clean). Hundreds of thousands of people would see it on a daily/weekly basis.

If it doesn't work, then it doesn't work.

I don't know about Cali, but here most people just want a deal. They understand they will have to spend several hundred for a nicer piece.

Now what can go wrong. I'll wait for your response.

 

[daniel@procarpet]

Re: Lisa W. I am thinking about going all in with a rug sho

I think I could do 5k rugs per year and average a hundred per rug with add on services.

I wouldn't want to be a bait and switch rug shop.

500k would go a long way.

In reality 250k would just about break even (I think). That is 10 rugs per day 250 days out of the year. If we do a great job and treat people fair then they should come back again and again and referr us out. Yes we will actively seek referrals.

Who says I have to do this now anyways. I could do it years from now, but I atleast want to try something different.

It is so hard trying to compete with the hoards of tm owner op cleaning operations.

I do good, but I see my limitations.

I need a different angle.

There is always going to be competition. Every Wal Greens just about has a CVS right accross the street. Grocery stores open right on top of one another. As long as I can get a small piece of the pie I will be happy.

 

[Lee Stockwell]

Re: Lisa W. I am thinking about going all in with a rug sho

It's not on Lamar is it?

 

[daniel@procarpet]

Re: Lisa W. I am thinking about going all in with a rug sho

It's not on Lamar is it?

What landmark business is in the ghetto?

Oh wait there are tons of wing shops.

Come on Lee :!: :!:

 

[LisaWagnerCRS]

Re: Lisa W. I am thinking about going all in with a rug sho

Daniel, it looks like you've put a lot of thought into it. My point was mainly (if you read the article you'll see....) to be strategic about your pricing.

Some of the rug plants in Los Angeles do 800-1,000 rugs a week, at 50 cents a sq ft, and can't make any money at it. They always gripe to me about how hard it is to make a living. That's just not the kind of operation I'd run. Low price, high volume, means MORE work.

You sound sold on the idea - so go for it. Just track your numbers and make sure you are hitting your sales goals you are after.

Also... in the rug report I gave you the link to, it shows some other ways to clean rugs more thoroughly without having to mortgage the house to buy big equipment.

One final thing... my dry cleaner does not charge me less for silk blouse I got a deal on. The price you pay for the item, if you LIKE it, does not mean someone will not pay to properly care for it.

Hope I at least gave you some things to think about. I've seen so many people be too low a price for too long - just don't want to see you get into that trap.

Lisa

 

[roro]

Re: Lisa W. I am thinking about going all in with a rug sho

Full marks for your enthusiasm Daniel and I hope it goes well for you.

When I started doing rugs it enabled me to have a depot and office separate from our home and that made us more professional in the eyes of our customers. We achieved that and the revenue was sufficient to cover our rental and later on to buy a suitable building in a suitable location.

Location is important but...If my wife and I have got dressed up and are going out to a restaurant the last thing I would want to do is handle a soiled rug and drop it off en route.
You may need to rethink that concept.

On pricing we differentiate on rug fibre and construction types e.g. polys / wool / handmade / heavies (Aubusson or similar) / silks. We also factor in size.

roro

 

[sweendogg]

Re: Lisa W. I am thinking about going all in with a rug sho

Dan, you definitly were not short changed in the marketing department. But crunch on this for a little big. You are going after the cheap, fast rug cleaning market. That means you are going to have to rely on Volume to make your profit.

Now even doing the quick and out method of dusting, prespray and extract when you factor in all the other details: ie preinspection, post grooming, fringe detailing (alot of cheap rugs still have fringe), Final vacuum and wrapping the rug. You are going to have atleast an hour in each rug average . Well 10 rugs a day becomes a full day for a single person. That means having a full time guy at the shop just to clean the rugs so you can stay on the truck. Say you charge 40.00 a rug up to 100 sqft and 75 for the big boys. You will get most of the smaller rugs, unless you offer delivery service. So lets say you get $400.00 a day... is that enough to pay your employee, and your overhead and come away with profit?

here is another scenario: You offer cheap cleanings, so you undoubtedly will have customers come in with a few heirloom rugs worth several thousand dollars, expecting to pay the cheap price.. and they will be the ones who finagle the most about price. Unless you are trained well to spot these types of rugs, Many don't look like they are worth that much. Yet they tend to have some of the most cleaning considerations such as unstable dyes, shrinkage issues, buckling and such. hell there are lot of designer tufted rugs that look incredibly cheap but people payed buco bucks for talking 2 and 3 thousand for a 4x6. They have stencil bleeding, delamination, and even the funky latex offgassing issues. These price shopping people won't bother to tell you these issues, and since you are out on the truck all day, that means your rug guy has to be able to spot all of these problems and still manage to get his cleaning quota in. Inevitably you are going to buy a rug this way and there goes the profit.

And finally third scenario. You present a top quality carpet cleaning business, but turn around and have a cheaper rug cleaning business. If you gain customers from the rug cleaning, they are going to be expecting the same bargain pricing they got for the bargain rugs.

Lisa isn't making this up that there are plenty of people who have cheaper rugs that will pay to have them cleaned properly. If they like it they will care for it. If they are only price oriented, they will only clean a rug once and throw it away for another bargain rug.

 

[Ken Snow]

Re: Lisa W. I am thinking about going all in with a rug sho

At .80-$1.00 a sq ft someone should be able to make a great living cleaning rugs whether it is small volume or large volume. If you offer a variety of services/topical treatments (soil and stain repellant, Deodorizing/Antimicrobial, Moth Retardant, Urine Decontamination each for another 30-60 cents the average sq ft price can easily be $1.10- 2.00 or more giving high quality, needed services and good value.

Plus if you have the ability to do or sub out specialty stain removal and repairs for those who need those high skill services, you can really do well.

Ken

 

[daniel@procarpet]

Re: Lisa W. I am thinking about going all in with a rug sho

Let's bust this thread wide open.

I have thought about this for two years. I saw this place and it just clicked in my mind that it would work.

I am first and foremost a residential and commerical carpet cleaning service. A lot of people talk about doing ads, val pak, door hangers, flyers, post cards etc. It would cost me about 300 dollars total to have 2k flyers distributed. Not bad.

I called the broker today. The lease is 1000 per month. THat is just 250 per week. With insurance and taxes the cost comes to 1250 per month or 312.50. My business would be seen by a couple hundred thousand people on a weekly basis. :!: There are a lot of wealthy people minutes from the site and they drive by all day long. The lease is worth it just for the signage.

I can sign the lease and easily pay it. I have a nice retirement account.

My problem comes with getting capital for nice signage, billboards, tv and radio commercials.

Every business in the area, health clubs, reastaurants, retail shops etc will have a flyer explaining our special of cleaning any rug basic clean for 25 dollars. Did I mention there are a lot of very successful businesses right next door.

Sure I will clean rugs at 25 dollars all day if it only takes 5 minutes. There will be package pricing.

Here is where I will really make my money. When a customer comes in, they will be given literature explaining our residential services (tile cleaning, carpet, repairs, upholstery etc). I could even offer to do free interior auto cleaning with a rug order of 150 or more (or maybe just the floor mats).

The lease is three years. Why can't it be 12 or 18 months?

Oh the building is 2k sq ft with showroom and warehouse in the back. Plus the floor already has drains. I have been seeing signs all day long that this will work.

I think I am going to do it.

 

[daniel@procarpet]

Re: Lisa W. I am thinking about going all in with a rug sho

Ken I am always fair with people.

I have a friend that does rugs and repairs. He does specialty dying and weaving etc.

He could do some repairs if needed.

 

[daniel@procarpet]

Re: Lisa W. I am thinking about going all in with a rug sho

Dan, you definitly were not short changed in the marketing department. But crunch on this for a little big. You are going after the cheap, fast rug cleaning market. That means you are going to have to rely on Volume to make your profit.

Now even doing the quick and out method of dusting, prespray and extract when you factor in all the other details: ie preinspection, post grooming, fringe detailing (alot of cheap rugs still have fringe), Final vacuum and wrapping the rug. You are going to have atleast an hour in each rug average . Well 10 rugs a day becomes a full day for a single person. That means having a full time guy at the shop just to clean the rugs so you can stay on the truck. Say you charge 40.00 a rug up to 100 sqft and 75 for the big boys. You will get most of the smaller rugs, unless you offer delivery service. So lets say you get $400.00 a day... is that enough to pay your employee, and your overhead and come away with profit?

here is another scenario: You offer cheap cleanings, so you undoubtedly will have customers come in with a few heirloom rugs worth several thousand dollars, expecting to pay the cheap price.. and they will be the ones who finagle the most about price. Unless you are trained well to spot these types of rugs, Many don't look like they are worth that much. Yet they tend to have some of the most cleaning considerations such as unstable dyes, shrinkage issues, buckling and such. hell there are lot of designer tufted rugs that look incredibly cheap but people payed buco bucks for talking 2 and 3 thousand for a 4x6. They have stencil bleeding, delamination, and even the funky latex offgassing issues. These price shopping people won't bother to tell you these issues, and since you are out on the truck all day, that means your rug guy has to be able to spot all of these problems and still manage to get his cleaning quota in. Inevitably you are going to buy a rug this way and there goes the profit.

And finally third scenario. You present a top quality carpet cleaning business, but turn around and have a cheaper rug cleaning business. If you gain customers from the rug cleaning, they are going to be expecting the same bargain pricing they got for the bargain rugs.

Lisa isn't making this up that there are plenty of people who have cheaper rugs that will pay to have them cleaned properly. If they like it they will care for it. If they are only price oriented, they will only clean a rug once and throw it away for another bargain rug.

25 dollars synthetics only. Wool rugs will be extra.
Fringe is extra.
Washing starts at 1.50 per sq ft.
Pet damage will be priced accordingly.


Ok I don't have to advertise any price. I can just promote the business and offer premium rug cleaning and run an occasional special. There are lots of things to consider. There are four real rug shops. One does tremedous volume. Probably several hundred per day. Everyone that has ever used them then called me says the same thing. The price is too high. I wish there was a better alternative.

I just want a small piece of the pie.

I know I have to do something different. I see more and more carpet cleaning outfits starting up, more jan services, and I just need a different angle. So what if I only do 10 rugs per month. If I average 200 per rug, I will just about break even. I currently clean around 20 so I should be able to do 50 with a real shop.

I could put a sign up saying we are opened from 7 am to 10 am and 5 pm to 8 pm Monday through Friday. That's how I could start.

I just don't want to sign a three year lease and realize I made a big mistake.

I honestly feel this will work out.

 

[LisaWagnerCRS]

Re: Lisa W. I am thinking about going all in with a rug sho

Please start at $50 instead, and give some wiggle room to referrals from the neighboring businesses. It will not be five minutes of work. You talk, check it in, discuss options and pre-existing issues, and then chase them around to book the pick up, and chase them around to get paid.

It is PERFECT in your head - just like the professors who teach MBAs teach from theory - I've never been in a business class that looked like REAL business - it's dirty, it's full of the unexpected, it's NEVER as planned.

Best thing Joe Polish ever did for me was before I began working for him, when I was making a bid for consulting, he asked me to come up with what I felt was the best price. I gave it, and he said - "good, now double it." And he made me promise to ask for the doubled price and just keep my mouth shut until the person said yes or no... and they said yes.

It made me realize that just about everyone undervalues what they are worth to others. I know many who would never pay an IT guy $65 an hour to do work they can do themselves... but I pay it because I don't want to even think about it - I don't want "do it yourself" I want "done for me." I pay to get my own time and sanity instead.

So... do not undervalue what you are offering. You will lose money at $25. Believe me... I've coached a ton of people in many aspects of cleaning companies - if you are going to trap yourself at a low price, at least make it higher that this.

Then... when you realize you are pocketing more profits, you'll thank me. =)

Lisa

 

[daniel@procarpet]

Re: Lisa W. I am thinking about going all in with a rug sho

Please start at $50 instead, and give some wiggle room to referrals from the neighboring businesses. It will not be five minutes of work. You talk, check it in, discuss options and pre-existing issues, and then chase them around to book the pick up, and chase them around to get paid.

It is PERFECT in your head - just like the professors who teach MBAs teach from theory - I've never been in a business class that looked like REAL business - it's dirty, it's full of the unexpected, it's NEVER as planned.

Best thing Joe Polish ever did for me was before I began working for him, when I was making a bid for consulting, he asked me to come up with what I felt was the best price. I gave it, and he said - "good, now double it." And he made me promise to ask for the doubled price and just keep my mouth shut until the person said yes or no... and they said yes.

It made me realize that just about everyone undervalues what they are worth to others. I know many who would never pay an IT guy $65 an hour to do work they can do themselves... but I pay it because I don't want to even think about it - I don't want "do it yourself" I want "done for me." I pay to get my own time and sanity instead.

So... do not undervalue what you are offering. You will lose money at $25. Believe me... I've coached a ton of people in many aspects of cleaning companies - if you are going to trap yourself at a low price, at least make it higher that this.

Then... when you realize you are pocketing more profits, you'll thank me. =)

Lisa

I could just have a 50 dollar minimum per rug and offer packages at 1-3 dollars per foot.

There is a lot to consider. First I need to get the lease worked out.

I will contact my attorney tomorrow and get some feedback from him. He may be able to get me better lease terms.

Also if I ever decided to move, I wouldn't want some other rug shop moving in on top of me.

I wish I had more time to think about this.

I am leaning on just charging higher prices and doing a better job than anyone.

Like I said I really only need to do about 50 rugs per month to make any money.

 

[daniel@procarpet]

Re: Lisa W. I am thinking about going all in with a rug sho

Price is irrelevant.

My dad says I do enough rugs now to get a place to work out of.

He is right. I can spend 1500 per month on a yp ad or spend 1200 per month and get much better exposure. Just a simple vinyl sign and flyers in the area will drum up busines.

I asked him how many people would see it on a weekly basis. He said a lot (close to 200k). It's a lot.

I could just advertise premium rug cleaning at affordable rates.

I just can't commit to a three year lease.

Hopefully I can talk them into letting me do a 12 month lease.

If it doesn't work out, I can swallow that loss, but that won't happen.

I know one thing. I will bust my azz to make it work.

 

[Ken Snow]

Re: Lisa W. I am thinking about going all in with a rug sho

$65 an hour for an IT person- where do I sign up????

Daniel, along with the rent, taxes and insurance you have heating and cooling, remodel costs to make it presentable for clients as well as setting up your rug wash area, all of which could easily cost 10's of thousands or more.

Also the world will not show up because you are there and they drive by, you will need a compelling reason (not necc price) to make them notice you and give you a chance to earn their business.

Ken

Ps Lisa has great advise, but remember her like myself come from very mature business backgrounds. Creating a business from scratch is a whole different animal than growing an existing one.

 

[daniel@procarpet]

Re: Lisa W. I am thinking about going all in with a rug sho

If you have an EXISTING client list, and you are serious about doing rugs, I would do marketing in advance of you opening, that you are getting training and setting up a shop - and to get them ready for it.


Lisa I have noticed that 90 percent of my revenue and referrals come from 10 percent of my client base.

I don't know if that is good or bad, but I treat these customers RIGHT and we have a special relationship. Today I got three referrals for estimates. It's like a chain effect. I guess I need to just be practical. All I want to do is just break even. I don't see why I can't still have a 125 minimum. I am listening to your input. I will just have to see what works.

I think letting my best clients know I have a nice rug cleaning shop and that they can tell all their churchmembers etc. about my shop will definitely work.

I really don't want to work cheap nor do I plan to.

This deal is really dependant on one thing. THE LEASE TERMS.

If I can get a 12 month lease, I will do it.

If they will only do 36 month, then I am out.

 

[joe harper]

Re: Lisa W. I am thinking about going all in with a rug sho

Dan,

Find a local PROFESSIONAL cleaner...!!!

Go to their shop & ask for a FLAT RATE price...!

We pay a PROFFESSIONAL ...$1.00 a sq.ft...and charge $3.00 sq ft... :idea:

If you run into some SPECIAL rugs...either by construction,yarn, or abuse ...?
Call your PRO...and get a SPECIAL quote...!!!

If they are synthetics...CLEAN THEM ON SITE... !gotcha!

We offer a 1 week TURN-AROUND....!
So schedule 1 day to make deliveries...WEEKENDS will work for most... :idea:


PS Everyone makes a profit...!
Their is NO NEED for you to invest your capital to generate LESS profit..............
NEVERMIND....the liability INVOLVED... :shock: In a year if you have a STEADY volume
rugs coming IN....THEN revisit your :idea:

 

[sweendogg]

Re: Lisa W. I am thinking about going all in with a rug sho

Please start at $50 instead, and give some wiggle room to referrals from the neighboring businesses. It will not be five minutes of work. You talk, check it in, discuss options and pre-existing issues, and then chase them around to book the pick up, and chase them around to get paid.

It is PERFECT in your head - just like the professors who teach MBAs teach from theory - I've never been in a business class that looked like REAL business - it's dirty, it's full of the unexpected, it's NEVER as planned.

Best thing Joe Polish ever did for me was before I began working for him, when I was making a bid for consulting, he asked me to come up with what I felt was the best price. I gave it, and he said - "good, now double it." And he made me promise to ask for the doubled price and just keep my mouth shut until the person said yes or no... and they said yes.

It made me realize that just about everyone undervalues what they are worth to others. I know many who would never pay an IT guy $65 an hour to do work they can do themselves... but I pay it because I don't want to even think about it - I don't want "do it yourself" I want "done for me." I pay to get my own time and sanity instead.

So... do not undervalue what you are offering. You will lose money at $25. Believe me... I've coached a ton of people in many aspects of cleaning companies - if you are going to trap yourself at a low price, at least make it higher that this.

Then... when you realize you are pocketing more profits, you'll thank me. =)

Lisa

I could just have a 50 dollar minimum per rug and offer packages at 1-3 dollars per foot.

There is a lot to consider. First I need to get the lease worked out.

I will contact my attorney tomorrow and get some feedback from him. He may be able to get me better lease terms.

Also if I ever decided to move, I wouldn't want some other rug shop moving in on top of me.

I wish I had more time to think about this.

I am leaning on just charging higher prices and doing a better job than anyone.

Like I said I really only need to do about 50 rugs per month to make any money.

And having the 50 minimum is exactly what we do. That way we don't loose on small rugs.

 

[XTREME1]

Re: Lisa W. I am thinking about going all in with a rug sho

I do thursday pick ups and thursday drops most of the time. $20 per rug for that service and between 1 and 1.50 a sq most cleanings. We send out specialty stains and refringes. We handle deodorizing and flushing the rug in house. Saves us in the slow times. We could do more but we don't have the greatest system of tracking and wrapping and delivering just yet

 

[LisaWagnerCRS]

Re: Lisa W. I am thinking about going all in with a rug sho

All I want to do is just break even.

Daniel - first of all, 80/20 rule applies to most good businesses (that 80% of their revenue comes from 20% of their clients) - so if yours is 90/10 then you are doing the right things - great work that gets clients to use you frequently, and great referrals from them.

If you are going to start this business venture, knock out of your head the "just break even" goal. That's like going out on the field to "just have fun" when actually it is sooooo much better to play to win, and to actually win.

Business is not an environment to "play safe" in. Playing safe creates mediocre results. Entrepreneurs flourish from the energy of having cool challenges, and meeting up to them. So I say to stir up the "entrepreneur within" and get a little more open to risks. One of the dangers of being 2nd and 3rd generation in a business is that loss of passion and complete and utter fear of starting a new business from nothing. That place where you MUST succeed because it is survival for your family - that is how many businesses in this industry, and many service industries, have started.

Dan Sullivan says great entrepreneurs have two qualities in the beginning that lead to their success - courage and ignorance.

Most of us would not look back and say "yep, that's exactly how I planned it!" Most simply create and change course as we go - just knowing we have to keep moving ahead.

YOU are not starting from zero. You have an existing business, and an existing track record. You have a fear of failure because it's a new idea for you. But no great business comes from dipping a toe in a little bit - you need to decide you are going to make this work, and dive in. No second guessing, just full commitment to the idea that you will win the game, period.

I have worked with so many start-ups, and this piece is the biggest barrier... the "what if?" spirals that our minds get us into.

"But what if it doesn't work?"

Well... figure out why it didn't work and FIX it.

"But what if it wasn't as good as I wanted it to be?"

Well... dissect it, see what worked and what didn't, and tweak it to make it stronger.

We are in a business/craft that is daily problem solving for others. We can take that same excellent skill and apply it to our companies to fix pieces of it to create a strong whole entity.

You need to not be afraid to play a bigger game. Going in "just" wanting to break even is a small game.

When I was a little girl my mom used to say that I'd say about things "I'm not going to want anything a lot, so that if I don't get it, I won't be disappointed."

That was a coping mechanism from having a deadbeat dad who used to promise to come see us, and never come.

And it was a limiting belief that kept me for years from wanting to grab what I really want, and creating a bigger life for myself. It took me years to change that way of looking at the world - and what I deserved to experience and enjoy.

You have been talking through the numbers, you have all the pieces that show you that you could make this work (you've said it several times already) - so take the energy from second-guessing yourself, and instead put it into you WILL make this work, you WILL come in at a stronger price, and you WILL do it even if it's for 3 years.

Make a decision, and then go kick ass at it.

Lisa

P.S. And if you need marketing tools, templates, and systems... well, I may know a place where you can get help on that too. LOL.

 

[daniel@procarpet]

Re: Lisa W. I am thinking about going all in with a rug sho

I'm getting closer.

I met with the broker today and got a good look. The building has potential and is in a great location.

Like I said there is a 2k sq ft shop/warehouse in the back, a showroom, parking in front, and bay doors in the back. Rent is crazy cheap to me. A grand per month is worth it. The building does need new carpet in the showroom, painted inside for sure and the outside could use a coat, and the floor needs to be cleaned in the shop. Also the ceiling tiles in the showroom need replacing.

He hasn't talked to the owners yet but said they would possibly do an 18 month lease but would be hesitant to put a lot of money into it without a 36 month lease. If they can paint, put new carpet in, fix the ceiling tiles, and give me an 18 month lease, we have a deal. I still may do 36 months, but that is a big risk. Business is good right now and I have a good helper that can go solo for me.

Like I said I am willing to break even or loose money (I hope that doesn't happen) to get the exposure and clients. I have the money to cover the lease for three years now not including the 1500 per month rent or the money I make cleaning.

This is kind of a no brainer. I just want to get as much as I can. I may offer to do all the work except installing new carpet for one month free rent.

 

[joe harper]

Re: Lisa W. I am thinking about going all in with a rug sho

I'm getting closer.

I met with the broker today and got a good look. The building has potential and is in a great location.

Like I said there is a 2k sq ft shop/warehouse in the back, a showroom, parking in front, and bay doors in the back. Rent is crazy cheap to me. A grand per month is worth it. The building does need new carpet in the showroom, painted inside for sure and the outside could use a coat, and the floor needs to be cleaned in the shop. Also the ceiling tiles in the showroom need replacing.

He hasn't talked to the owners yet but said they would possibly do an 18 month lease but would be hesitant to put a lot of money into it without a 36 month lease. If they can paint, put new carpet in, fix the ceiling tiles, and give me an 18 month lease, we have a deal. I still may do 36 months, but that is a big risk. Business is good right now and I have a good helper that can go solo for me.

Like I said I am willing to break even or loose money (I hope that doesn't happen) to get the exposure and clients. I have the money to cover the lease for three years now not including the 1500 per month rent or the money I make cleaning.

This is kind of a no brainer. I just want to get as much as I can. I may offer to do all the work except installing new carpet for one month free rent.

You got the "NO BRAINER CORRECT"..... :roll: :mrgreen:

 

[sweendogg]

Re: Lisa W. I am thinking about going all in with a rug sho

Well, go for it. The only way you'll ever know if it was worth it is to do it. And if you keep sitting on the idea.. its going to just bite you in the ass later if you don't try.


Just keep the advice offered here in mind.. and don't be afraid to change your plan if you have to.

 

[XTREME1]

Re: Lisa W. I am thinking about going all in with a rug sho

a quick bit of advice I got a shop too small ONCE< ONCE and I thought it was a good idea ONCE

 

[Ken Snow]

Re: Lisa W. I am thinking about going all in with a rug sho

I recently opened a new location that was somewhat of a risk for us. The landlord was willing to give me a 3 year lease, with 3 -3 year options and an out clause after the first 12 months. I had to make a decision to exercise the out clause prior to 60 days of the end of the first year. Anyway it is now been 20 months and we are very happy.

Best of luck to you!

Ken

 

[Desk Jockey]

Re: Lisa W. I am thinking about going all in with a rug sho

1K to get in the game is damn cheap! If nothing else it give you a shop to work out of and a reason to work a little harder.

I do believe you would get an increase in work just from being visible and parking your vehicles out front as a billboards.

Every time we bought a bigger location we thought how are ever going to fill it.....and pay for it. But it always happened, we just marketed and worked harder.

Rugs though?
I don't know that I'd do it just to clean rugs, there has to be an easier way to make a buck than to clean rugs all day long.

Hot, dirty, piss filled days, on your knees scrubbing fringe, not at all what I'd want to do. Sounds less like a dream of success and more like one of suck-cess! Don't trap yourself into something that would put your existing business in jeopardy.

You might consider looking at increasing your corporate commercial carpet cleaning, water damage restoration. Both of those can also bring in more sales to support your move without working yourself to death.

Of course that's if you're just using rugs as a vehicle to get where you want, if you really love rugs and enjoy cleaning them, then more power to you, you're a better man than I.

 

[mirf]

Re: Lisa W. I am thinking about going all in with a rug sho

List out all your expenses and see if it still works for you. I think it can work with the right pricing and location.