out of businesses..
- Thread starter Mikey P
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juniorc82
Supportive Member
I have gained around 10 - 20% in annual revenue even through the recession. However I dont feel like I am a good poster child for to gauge because my business in only 7 years old ( 3 years full time) so I dont believe I have even came close to the plateu. I will also say that this will be a differant year for me because I have took on alot more overhead and have noticed that certain jobs have been turned down due to lack of profitablity where as in the begining I was simply thrilled the phone was ringing.
SamIam
Member
When the housing crysis hit I had a few realtors working for the banks so I was getting $1500 a month in revenue plus repeat referrals.Sales never dropped.
What helped me was hearing I wasnt charging enough going to 25 a room then to 30 helped and having my website pull really well helps also, now I need to think about another price increase.
I would love to do 2 jobs a day. 4 to 5 is killing me.
What helped me was hearing I wasnt charging enough going to 25 a room then to 30 helped and having my website pull really well helps also, now I need to think about another price increase.
I would love to do 2 jobs a day. 4 to 5 is killing me.
Yeah, and your still not charging enough at $30 per room.. 25-$30 per room is good if your not actually doing the work(employees). If you are cleaning every job you should at least get $40 IMO. I was stuck in this trap for a while, and you have to decide which way to go, charge more or grow with employee's(not sure what is best yet).
Its all relative, if Im doing 3 roomers all day then 30 is not enough (for me). If I'm doing 10+, then hell yeah... I have a graduating price schedule in place where the per room price gets cheaper (to a point) as the job gets bigger, and love how well it works.
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Yeah, for 10 rooms I go $320.00 and make out well doing it, but I get more of the 4-5 room jobs on average, so like like you it really doesn't work out so well.. Best advise would be to stick to a good minimum charge, and not leave your house for less!
Ken Snow
RIP
Good advice- don't leave ur house and play on Mikeysboard. That will pay a lot of bills 
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Good advice- don't leave ur house and play on Mikeysboard. That will pay a lot of bills
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Really, we have enough business not to do jobs with low profit.. It's just me and a full time helper, every 2 jobs at my minimum make up for the 1 I lost for $50. Ken you giving advice to an owner operator is kind of a joke since your business is way different. Your guys would be pushing hard to upsell because 18% of $50 isn't much,right? I am a "go getter",but not sticking to a minimum is silly for a small business..
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Ken Snow
RIP
Not giving advice Keith, just pointing out something. I agree that my business model does not in any way make me an expert on oo issues, thank you for pointing that out~ seriously. I fail to see how that relates to working vs not working~ within reason though. I also thought most oo's had much higher minimums than $50.
steve_64
Member
- Joined
- Aug 11, 2012
- Messages
- 13,371
i do a LOT of $50 jobs.
poor economic region and so many people just want one room thats 10x 12 just traffic lanes done. as ken said id rather do that as an o/o and be working.
ken once said "cash flow is king" and i couldnt have agreed more.
plus those 50s like to pay cash and honestly im in and out in 30 minutes on most. probably cleaning 40 sq ft of carpet sometimes. they lead to referals very often also because they are grateful and no one else would do it.
then again i like working so i dont mind all the set ups. sometimes im dropping hoses off third floor balconies for $50. whatever it takes.
poor economic region and so many people just want one room thats 10x 12 just traffic lanes done. as ken said id rather do that as an o/o and be working.
ken once said "cash flow is king" and i couldnt have agreed more.
plus those 50s like to pay cash and honestly im in and out in 30 minutes on most. probably cleaning 40 sq ft of carpet sometimes. they lead to referals very often also because they are grateful and no one else would do it.
then again i like working so i dont mind all the set ups. sometimes im dropping hoses off third floor balconies for $50. whatever it takes.
rhyde
Member
Two words for weathering the turbulent economy
plasma donation
plasma donation
steve_64
Member
- Joined
- Aug 11, 2012
- Messages
- 13,371
lol i would get a healthy check. but i donate to michigan red cross as often as i can. next donation puts me at 2 gallons. they call me to ask me to donate. im ab neg so i have always gone to the head of the line.
Ken Snow
RIP
Way to go Steve! Brian Hanna just hit 52 pints (6.5 gals).
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Desk Jockey
Member
Selling or giving?
Ken Snow
RIP
LOL
curt johnson
Member
It's easy for everyone to say "don't leave the house for less than $150" or whatever......There have been many times where a $50 or $60 job has fed me (or bought a lot of cold beverages!). We also never know where that $50 will lead in referrals.....
Desk Jockey
Member
As an owner op I'd jump at $50.00 it's a paid demo a chance to prove yourself. However we cannot offer a service that cheap with employees running the truck.
Shane Deubell
Supportive Member
- Joined
- Jun 30, 2011
- Messages
- 4,052
Try to keep the min to $99 but sometimes during the winter might run out and do a $75 job just to get out.
Min is a $100.....
with that said, if its right in my city...(3 miles) ill go down to $75 and tell them so....makes them think or know they are getting a deal....
if its out side that range...i ask if they are flexible, and then schedule while i am in that area...and give it to them for the $75....and let them know its normally $100...
and remind them, when they bring up the "ohhh but its only this".....i tell them "takes the same gas, time to drive there, and time to set up for 1 room or 10"....then they get it
and like what was said....its a nice paid demo, and you can get referrals from it......also those that call and need it done now....
with that said, if its right in my city...(3 miles) ill go down to $75 and tell them so....makes them think or know they are getting a deal....
if its out side that range...i ask if they are flexible, and then schedule while i am in that area...and give it to them for the $75....and let them know its normally $100...
and remind them, when they bring up the "ohhh but its only this".....i tell them "takes the same gas, time to drive there, and time to set up for 1 room or 10"....then they get it
and like what was said....its a nice paid demo, and you can get referrals from it......also those that call and need it done now....
Desk Jockey
Member
We're $148.50 even when it's acrossed the street, which we have done a few rentals acrossed the street. Our shop is not in the best area of town so we don't actually do much work around here.
Damn! You guys give everything away...
Good on you for donating everything though!So, I cleaned 1BR and hall for $55 for a custy's mom that was 3 blocks from her house and I cleaned 2 rugs for her for $60. She went and told people what I charged her for the 2 rugs, and lead to low profit jobs(well 1 was a good one).
I just think working on the cheap end(no upsell) devalues our services, and we all know being in business isn't cheap! It's just bad for our industry..
I had a long time custy call me about a month ago and asked if he could pay me $20.00 per hour.. LOL
I was talking to my accountant this year and she told me across the board the minimum charge for 2 guys in a rig is $100.00 if they preform a service(not just to estimate, or look at something). Little jobs is where I'm losing money.
You can think you are doing OK when doing a $50 job, but look at the price of doing business, and break everything down and you would be better off working for someone else.
So, what is within reason? That IS a minimum you know?
$50 was just an example(because I have done it) and waste of time to me. My minimum starting in March(LOL) is $89.00. Ken off the top of your head with all expenses included how much would one make off a $50.00 10 miles away(no job close) with a helper(making $14 per hr), just a 10X10 and hall? And how about she was 10 mins. late to show up, and likes to talk ALOT about everything?
Ken Snow
RIP
Very little but if ur paying the assistant anyway then less is made if not doing the job. I also wouldn't set it up with nothing close so it isn't really a realistic scenerio. I would also count on many of those type jobs adding on or having more so e next time.
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mirf
Supportive Member
Keith, just for my company, we have a $90. min but can and is waived. In the case you discribe I would just send the helper or go myself. When done have another job to do ASAP. I like to and need to work. I have heard that you have to let those clients go to but if she likes to talk I give her SPECIAL referal dollars to offset the minimum. Really I can do all the office stuff I like but if the wand is not working it is not billable.
Mikey P
Administrator
Re we talking blood or Jack Daniels?Selling or giving?
Mikey P
Administrator
So, what is within reason? That IS a minimum you know?
In California dollar that would be a minus $4.79 at best.
Desk Jockey
Member
Who's blood, some people's blood is a good percent Jack!
Very little but if ur paying the assistant anyway then less is made if not doing the job.
Why would I be paying them it they weren't working, salary? More is made by sticking to a good minimum.. If you just give is away that's what it worth to the custy.
I also wouldn't set it up with nothing close so it isn't really a realistic scenerio. I would also count on many of those type jobs adding on or having more so e next time.
This is where the example goes astray. This is a very realistic scenario for an O/O, and not sure why you would think differently(we can't just send Pedro, or John,or D'Shawn that's cleaning in the area). We take it as it comes in when we are slow and will schedule all over the place just to keep working, and with that there should be a minimum... So, Mrs. P just had her kids bedroom painted and while everything is out of it she wants the carpet cleaned tomorrow(89.00 from now on).. So Mrs. P has off on Monday and wants her FR carpet cleaned first thing in the morning(89.00 from now on).. So Mrs. P has all the furniture out because she has new coming the day after tomorrow (89.00 from now on). I could go on all day...
I don't work for many people that don't have both working in the house(maybe that's the reason they can't be home all day) and that limits flexibility?
I can't really come up with a reason not to stick with a minimum and if they don't want to pay, don't go(. If I sit doing nothing that's just fine with me). If want to make money while I'm slow I'll recycle some brass quick connects.
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I'm just saying...
