My business model....explained.....again.

Brian R

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There are some New guys here so I thought I would bring this up again. I catch hell sometimes but I don't mind...I tend to do things differently than most...to a fault usually but never to "just" do it differently to be different.

Ok, I sub out my work...almost 100% of it...It's been 100% of it for the last 2+ years (now I have some equipment and do a couple jobs a week)...before that I cleaned it myself for over 20 years.

Here's how it works.

I find local quality cleaners in my area who need work...I sub to them and we split the job 50/50...almost no matter what.
Why 50/50? Because the cost of getting, retaining and managing a customer is as much as actually cleaning for the customer in my experience...and I've been on both sides of this deal. I've done sub work in the past to get started.

That's where there is some differences of opinion here. That's good...keeps us thinking. !gotcha!

This system really works...and it works for me AND the Tech. It allows me to grow my business as fast or large as I wish and it keeps the tech doing what he wants to do and make money doing it.

Here's where the main difference is.

Some will say that a cleaner cannot clean for only 50% of the job profitably...that is a very very very vague statement and cannot be true because percentages are relative.

The cleaners that I use are quality guys..but they are not business men...nor do they want to do the marketing and all that goes with running a company...they just want to clean and make more money.
That seems like a very doable plan.

I become their office etc and they don't have to lift a finger in this dept..I even supply invoices, work orders, business cards etc....because at the end of the day...they are "my" customers.

Here's the formula that should clear it up for "most" guys here who really think about it.

A cleaner cleans a house for $100.00 (just a number)
He get's 100% of that right? wrong...he will get about 60% ($60.00) of that after all his costs involved if he got the customer himself....and that's a high estimate considering...again...% is relative.

A cleaner cleans for me and does that same house for $175.00...or better...again I'm being conservative...but I charge more than these guys and I try to get the customer that will pay more.

He get's 50% from this job which is $87.50 and I get the same.

He didn't do anything to get that job and wouldn't have done the job at all if it wasn't for my end of the deal.
There is an arguement that if I wasn't there at all...he would have a better chance of getting the job himself.
This may or may not be true but I base this on marketing to people "he" would not market to or retain after the fact.

So anyway, he just made $27.50 for his operating costs and made pretty close to what he would have made if he would have done the job at his cost.

The beauty is he has extra jobs from me and that lowers his operating costs because he would have been out there cleaning anyway.
The more jobs you do in a day, the lower the operating costs for each.

This is just how I/we do it and everyone is happy.


The way he makes more money is by doing jobs that he wouldn't of had himself..if he does a full days work for me...he still makes money even if he doesn't do any jobs for himself.

Disclaimer: It is my experience and opinion that the jobs I get end up being at least double the amount that they would have charged. We also do upsells over the phone and through my website as to make more money.

A more realistic view...or more common situation I should say is...
A cleaner would have cleaned that house for $100.00....carpet only.

By working with me That job would have jumped to upwards of $500.00 because we promote tile and grout cleaning and sealing, upholstery cleaning and carpet protectant etc.
At the top end it would have been closer to $700.00.....we've done this plenty of times

Would the cleaner have gotten the same? Maybe...but not likely since all he normally would have done was go into the home, clean the carpets, get the check for $100.00 and leave...not even metioning the other services.

We've all heard "oh I didn't know you did tile and grout cleaning...so I called another company"
Maybe not from your customer...but from another cleaner talking about his customer.

Anyway, that's how we do it and it works out great...it really does. We all make money, we get happy customers that come back to us and we all do what we want to do in business...whether it be clean or market.

I will admit that what I do has a greater chance for growth than the cleaner...but also a greater chance for headaches....it's the good with the bad and the headaches are the reason the cleaners just want to clean anyway.


Good luck to you no matter how you end up doing it....this is not "THE" way to do it....it's just "A" way to do it.
 

Brian R

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By the way...I should mention that most of the cleaners on this board are cleaners AND marketing guys. So this business model is not right for them and sometimes even a little offensive.

The guys that work for me are not computer guys..probably never heard of Mikey's Board and spend more time doing other things than carpet cleaning oriented entertainment.

Just saying. shiteatinggrin
 
P

Phoenix Phil

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Thanks Brian. It is an effective plan for some and if and when I leave my 23 year corporate job it may become something for me too.
 

RIP IT

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Chris
I have done the same thing for over ten years when I go on holiday and return the favour for a friend of mine who is also a carpet cleaner. As well, I subby out some of my WDR work to a couple of other friends which takes the workload off me so I can have time off regularly and spend a month away from the business to play golf or take the family on holidays knowing the customers are being looked after as well as coming home to a handful of $. I leave some of my airmovers with them at all times and they get 50%-65% of the jobs value. If they use my airmovers on their jobs we split the hire fee. The system works very well because I dont have the hassle of dealing with employees, the subbies are mates of mine and they are responsible for the work they do.
 

XTREME1

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Greg Crowley
That is all well and good Brian but like I said before it isn't the subbing that I have an issue with, we all are in business to make money. It is the fact that you post false addresses. You can BS all day long but it is deceptive and will steal business from the local established businesses because people make an effort to by locally. I worked very hard building my business and companies similar to yours were posting fake addresses sandwiching mine.
That is wrong and deceptive and you do that
 

XTREME1

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no they weren't you are full of shit and you previously admitted it
 

XTREME1

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No you didn't your frigging lying through your teeth. When I brought this argument to you, you said you may not have those locations but you hire local guys
 

Hoody

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I am one of those losers that have nothing better to do than read the board while my kid naps. I read every thread, post, ect, and I'm not taking sides, but I don't recall you stating that you rented those suites either. I may be wrong, and if you can show a thread or post you made stating that I will admit that I'm wrong. I'm sure you could get that big doofus Crowley to apologize for his error as well. I did a search for the mention of suites with your name, and the only two posts that showed up were the ones you've posted below.
 
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I'm curious as to what kind of job Brian's subs do. Do they show up in lettered trucks or work from the back of pick up trucks with portables?

Just curious.
 

Marc Imbesi

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Brian, why do you bother posting here?

I'm really starting to wonder if there is any good stuff being shared here. I've just started doing some research and I feel I'm wasting my time trying to get through the bullshit. Do you post anywhere else?
 

Brian R

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Crowley's right....kinda. I've had some suite address' for years and I've rented and dumped some after a month or so. UPS Stores.
The arguement was from me that Google picked these address' up and listed them...not me... Remember? That was when I started..I've never used my home address for obvious reasons.
I DID however use some of my subs address' that didn't want to use them but this was because I am now able to hide them when I listed them on Google.
I've also stopped doing that except for one case.
I found...and many told me...that too many address' on Google with the same phone number and/or website etc actually hurts my business.
I've deleted most of these address' but Google has brought them back here and there.

This is all I will be saying about this...PM me and I'll talk to you about it.
 

XTREME1

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again not true. You were using nonexistant addresses on streets. Save some credibilty. All I said was that was the only aspect of your business model I didn't like.

Vince there are plenty of other boards for you out there. It was nice meeting you
 

Brian R

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VCipollone said:
Brian, why do you bother posting here?

I'm really starting to wonder if there is any good stuff being shared here. I've just started doing some research and I feel I'm wasting my time trying to get through the bullshit. Do you post anywhere else?

Vince, don't let a few guys discourage your from the obtaining some knowledge from this board. It can be entertaining sometimes as well.
Most guys here and here to help and get help...that's what makes this board great.

You'll get some comments and some small attacks but usually it's all in good fun...if you choose to take it that way.

Feel free to post.
 

XTREME1

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Hey Brian,
I didn't criticize you I said that is a portion of your business I don't like, otherwise subbing is cool with me.
You sent me a PM about what you say you do but you are outright lying to me, we had this conversation before. Don't lose your integrity trying to cover your tracks.
I can pretty much recite what you said to me verbatum.

Vince you are an insulting ass, I never said anything to you except it was nice to meet you. Now you can go ace yourself.
 

Marc Imbesi

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Dipwad GC said:
Vince you are an insulting ass, I never said anything to you except it was nice to meet you. Now you can go ace yourself.

Dipwad GC said:
Hey Vince, Fill out your profile or get the ACE out

Now who is lying? That was quite a welcome I received from you. You kick all of the strangers you meet?

This BB is nothing but a Boy's Club of overpaid janitors flexing for position. Can someone suggest another, friendlier, more knowledgeable group of people willing to share and help, BB? I already know about ICS.
 

Marc Imbesi

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FCC said:
so who is "vince" really Brian?............seems oddly protective of you............

and if he wants to learn something I'll help him out.......


First impressions are everything. It was easy for me to see that Brian is a nice guy and a giver of valuable information. I have never met or spoken with Brian.

What can you help me out with, FCC? Seems my profile is filled out more than yours. Why aren't people giving you crap about it?

First Name: FCC Last Name: FCC

Like I said, this is nothing but a Boy's Club.
 

XTREME1

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an unknown comes out guns blazing against a good guy like Joe Harper so I said fll out your profile which is required or ace off, which you chose to do. Those were your options. I am glad you chose the latter. I still have not seen the insult I gave you before you insulted me and Joe.
 

Brian R

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Can we start another thread about this please?

I would like to stay on the subject...which was how I structure my business....not the marketing or personallity part.
It was just to bring to light the subbing...how and why I do it.

Thanks
 

XTREME1

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You should move it to the clean room if it isn't a marketing discussion
 

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