joe harper
Member
As many of you know, I have been out of the day to day operations of our company
for 1 year. Here are some of my observation...since returning in march of this year.
It is UGLY out there...!!!!!!!
We have just ended our major cleaning season.While the numbers are basically the same.
Volume was down considerably. I have had 60 days to access the decline. here are a few
of my observations. These are a few of the fundamental changes I have seen.
First off...I can attribute some of the decline to "poor management" and the shying
away of proven procedures. Certainly the economy is a large factor...we are high end
cleaners & many of our clients are in foreclosure. Most are looking down the barrel of
a "short sale".
We made the decision to RAISE our prices...rather than compete with other companies
cutting their price trying to survive. As a higher end cleaner..it is expected to loose a
certain percentage of clients every year to divorce and or relocation,economy ect...
We have also found that some of our previous clients...have been forced to suffer
through a inferior service because of budgetary restraints. While this is unfortunate...
it does allow this client to experience the "bottom-feeding bait & switch experience"..!
Times are hard here for the upper middle class. They are seeking lower prices ...because
they are loosing their homes and do not see the value in protecting their investment anymore.
I have made the decision to downsize...to weather this storm..! Lowering prices is a bad
idea in my market.
The attrition rate has been brutal for many good cleaners in the area. Businesses are
dropping like flies! In the past year, my son chose to blow-off small jobs. This was a poor decision. You should NEVER prejudge a sale.! I have noticed that our seniors have been
hit the hardest. So I have decided to drop our minimum charge 20% for them.
Over the last 30 days this has proven to be a profitable decision. The volume of work has increased substantially. Many of these jobs are in small mobile home parks...lots of referrals
while we are in the parks...increase the bottom line without additional travel !
As I have stated previously...commercial work is at ridiculously low prices. We have chosen
to remove ourselves from the market."We cannot be competitive with the "En-CraPPinG" fad.
We will choose our battles."We will STILL be around for the RESTORATION of these carpets in 1 year" I would caution the new guys entering the industry..."If you choose to compete
in the commercial WAR that is in progress...! YOU WILL LOSE...their are companies cleaning
at .05 cents a square foot.."SAD"..!
I know this is a Looooog post...HOWEVER, it could spawn some helpful discussion..????
for 1 year. Here are some of my observation...since returning in march of this year.
It is UGLY out there...!!!!!!!
We have just ended our major cleaning season.While the numbers are basically the same.
Volume was down considerably. I have had 60 days to access the decline. here are a few
of my observations. These are a few of the fundamental changes I have seen.
First off...I can attribute some of the decline to "poor management" and the shying
away of proven procedures. Certainly the economy is a large factor...we are high end
cleaners & many of our clients are in foreclosure. Most are looking down the barrel of
a "short sale".
We made the decision to RAISE our prices...rather than compete with other companies
cutting their price trying to survive. As a higher end cleaner..it is expected to loose a
certain percentage of clients every year to divorce and or relocation,economy ect...
We have also found that some of our previous clients...have been forced to suffer
through a inferior service because of budgetary restraints. While this is unfortunate...
it does allow this client to experience the "bottom-feeding bait & switch experience"..!
Times are hard here for the upper middle class. They are seeking lower prices ...because
they are loosing their homes and do not see the value in protecting their investment anymore.
I have made the decision to downsize...to weather this storm..! Lowering prices is a bad
idea in my market.
The attrition rate has been brutal for many good cleaners in the area. Businesses are
dropping like flies! In the past year, my son chose to blow-off small jobs. This was a poor decision. You should NEVER prejudge a sale.! I have noticed that our seniors have been
hit the hardest. So I have decided to drop our minimum charge 20% for them.
Over the last 30 days this has proven to be a profitable decision. The volume of work has increased substantially. Many of these jobs are in small mobile home parks...lots of referrals
while we are in the parks...increase the bottom line without additional travel !
As I have stated previously...commercial work is at ridiculously low prices. We have chosen
to remove ourselves from the market."We cannot be competitive with the "En-CraPPinG" fad.
We will choose our battles."We will STILL be around for the RESTORATION of these carpets in 1 year" I would caution the new guys entering the industry..."If you choose to compete
in the commercial WAR that is in progress...! YOU WILL LOSE...their are companies cleaning
at .05 cents a square foot.."SAD"..!
I know this is a Looooog post...HOWEVER, it could spawn some helpful discussion..????