Owner Ops, What do you NET per hour?

[ACE]

I’m not talking about when the machine is running. What do you really make per hour when you take into account all the time spent on accounting, sales, driving, maintenance ect.

It’s as simple as dividing your annual net profit by the average hours worked. I net around 50k and work ,on average 50 hours a week (more in the summer, less in the winter) That works out to $18.51 per hour with no overtime pay or benefits. I hope to improve that number next year. Unfortunately the only way I see to significantly improve my hourly rate is by adding more employees and making a few dollars for every hour they work.

 

[davegillfishing]

about 58$

 

[Brian R]

When I was an O/O exclusively I never worked 40 hours a week. As soon as I came close...prices started going up.

I couldn't tell you what my Net per hour was but I can tell you it was never enough.

Even now with as many jobs as I have on the books for my area (I'm cleaning them myself) I still refuse to work 40 hours per week.

Less hours, more money per hour.

I will be honest and say my Net hourly is probably less then when I depended on it...I'll have to check quickbooks and get back to you.


I know it didn't answer your question.....I was just sayin.

 

[Brian R]

Ok, about $36.80 per hour Net .....just for the month of June so it may be skewed a bit.


I have my TX area separate from all my other income so It was actually easy to figure from QB

 

[joe harper]

Not to HijAcK the thread.......BUT..!

Most everyone in this BIZ ....Started their biz so they would NOT have to work by
the HOUR... :idea:

The MAJIC # in this biz is 30% of the gross for personal income... :!:
If you are not retaining this #....you are in trouble... !gotcha!

An hourly rate is IRRELEVANT for the owner in this BIZ...Most here are working or
thinking about their Biz 24/7.... :shock:

For most O/O's here the average gross income is between 75K & 150K....so they
should have a 22.5K to 45K ...JOB.... :idea:

A single truck operator after 3 to 5 years....should be netting (30%)...generating 60K a year..!
"To GROSS 200K." you will need an employee of some sorts.... !gotcha!


These are relatively good JOB'S...considering the WRITE OFF"S...you are able to mAnIpulaTe
& LEGALLY deduct... :shock:

Simply...look at your DEPOSITS every month...&...calculate the %... :!:
All cash should be put into a sEpAraTe account for THERAPY......

 

[Cameron1]

Less hours, more money per hour.

I
That is only if the money did not go up with the additional hours. Personally, I just don't see how you can work less than 50-60 hours per week if you want more than just a living.

 

[Brian R]

I "worked" less than 40 hours "working".......cleaning and driving etc.

The other 128 hours was spent working ON the business. !gotcha!

Sorry for the confusion.

 

[Bob Foster]

I don't consider this a business unless you can retain a decent amount of money on top of a comfortable personal draw.

What it's about for me is building a business that will make enough money to escape the per hour, week or month mentality to more of how much did I invest this month, quarter or year that will allow me to gain financial freedom.

Every persons definition of financial freedom is different. For me, its broken into a few levels.

1. Establishing a healthy business that has the ability to make me a reasonable income (of course I want more than a reasonable income) and surplus income available for investment
2. Getting off the truck(s) so my business is not dependant on my own physical labor
3. Develop other forms of financial security and income not related to my carpet cleaning business

But first get profitable beyond personal draws by increasing productivity and rationalizing all expenditures. Nice tools and trucks don't make you wealthy unless you're smart with what you do with your profit.

Seriously consider the consequences and its real value to your life goals before making any financial obligation. That really strikes home the older I get.

It's not what you make it's what you keep.

Personal success is much different but related to financial success.

 

[Brian R]

Is it just me or did Harper and Foster both just pull a "Yoakum" in this thread?? :shock:

 

[joe harper]

"I CAN PULL MY OWN..."yOkUm"....thankyouverymuch.... shiteatinggrin

 

[Brian R]

NObody wants to see that.

 

[Bob Foster]

No Brian, it's what the number truly is. At least Mike asked about net and not gross.

The stuff I brought up are some of the most important factors in costs. As you previously commented on another thread, paying yourself is kind of cool.

Net per hour is ambiguous. It means nothing compared to even one single owner operator to another because there are so many factors that could or should be considered costs. One of which some call "bank".

 

[joe harper]

NObody wants to see that.

"I canT'T ....SEE-IT....eIthEr ..anymore..I WENT BLIND... :shock: "

ps. I announced my "yokUm pUllInG"...prior to posting IT.... :mrgreen:
Bob ..."BrOkE-bAcKeD"...his YaNkInG.. because he is an ExhIbOnIsT...

 

[Bob Foster]

It's wanking not yanking...

 

[Bob Foster]

Maybe Fred "How big's your stack?" Boyle will chime in here. And the smart ones will pay attention (just like they should to Harp when he's not wankin).

 

[Brian R]

Yikes....I stand CorECTED. :shock:


I understand that hourly means nothing....that's why I answered it.

What you 2 said was great info.....I was just answering the question. Iseeru


Back to wayanking

 

[Ken Snow]

All great points and posts and I commend Mike for measuring it any way that makes sense for him. He now has a baseline and can measure against it. There are many ways to improve a gross/net, some of which are:

Raising prices
Lowering prices
Becomming more efficient in scheduling and performing the work
Generating more revenue out of each stop/client by providing additional beneficial services
If work is there, hiring an assistant to become more productive
Adding a second etc. truck
negotiating better pricing on consumables & marketing products

etc.

 

[joe harper]

All great points and posts and I commend Mike for measuring it any way that makes sense for him. He now has a baseline and can measure against it. There are many ways to improve a gross/net, some of which are:

Raising prices
Lowering prices
Becomming more efficient in scheduling and performing the work
Generating more revenue out of each stop/client by providing additional beneficial services
If work is there, hiring an assistant to become more productive
Adding a second etc. truck
negotiating better pricing on consumables & marketing products

etc.

"WE NOW HAVE A WEINER" oops ..WINNER...In the 1st ANAL...oops again ANNUAL....Sunday morning "YokUm-OFF"...
"All hail the KOJ..." :mrgreen:......"King Of The Janitor's"

 

[Bob Foster]

All great points and posts and I commend Mike for measuring it any way that makes sense for him. He now has a baseline and can measure against it. There are many ways to improve a gross/net, some of which are:

Raising prices
Lowering prices
Becomming more efficient in scheduling and performing the work
Generating more revenue out of each stop/client by providing additional beneficial services
If work is there, hiring an assistant to become more productive
Adding a second etc. truck
negotiating better pricing on consumables & marketing products

etc.

All done with a well-functioning brain, knowing how to read financials and some sober advice from people qualified to give it. But more importantly that it be acted upon.

 

[Brian R]

Let's not forget lowering your overhead in comparison to work performed.

 

[Ken Snow]

That's a good one Brian and kind of what I meant on one of my examples, though I wouldn't go as far as suggesting someone try to clean carpet with a towel spinner lol.

Sent from my DROIDX using Tapatalk

 

[ACE]

Thank you Dave Gill for actually answering the question.

Brian, that was lame man, you have to look at it over the course of a year. I know you keep an eye on your numbers. Or have you only been back on the truck for a month?

Harper, I hope that 30% net is not including the owner’s salary for the work he dose. IMO the goal of a O/O still on the truck should be to keep half. Of course you have to pay your dues buying start up equipment and buying customers (advertising), so it takes time. Heck, you said you keep 20% without being on the truck and with higher overhead.

 

[Bjorn]

work what the fook are you guys talking about work

 

[joe harper]

Thank you Dave Gill for actually answering the question.

Brian, that was lame man, you have to look at it over the course of a year. I know you keep an eye on your numbers. Or have you only been back on the truck for a month?

Harper, I hope that 30% net is not including the owner’s salary for the work he dose. IMO the goal of a O/O still on the truck should be to keep half. Of course you have to pay your dues buying start up equipment and buying customers (advertising), so it takes time. Heck, you said you keep 20% without being on the truck and with higher overhead.

Owners Salary .....is an OxY-MoRaN.....

The OWNER..."keeps what is Left"... !gotcha!
Haven't been on a truck in 15 years.... :shock:

20% was what I lease my son the business for... :idea:

I work on MY "cHaRiTy orGaNiTion"...MOSTLY...Saving the COuGaR PuP'S... :mrgreen:

 

[davegillfishing]

no problem..that is one of the problems with forums and bb's everyone has a agenda and cant just answer a question
without making it something its not..you asked a very very very simple question and it was turned
into something that you did not ask..a good bit of the reason that i dont post a lot..i help where i can but
most things get turned into a big drawn out thing that ends up not being what the person asked about..
if you cant answer the question and stay on topic of the direct question start a new thread and addressee your
agenda there that way people can decide if they want to read your OPINION instead of choosing to open a post
and being forced to scan through your off topic opinion..there now!! lol

 

[Bob Foster]

Kinda my fault Dave. Sorry.

I'm guessing 30% of gross for the o/o and another 30- 40% of true net for his wealth investments.

If you have 700 truck payment and shop rent, insurance, utilities, fuel, chems and maintenance your net is going to look a lot different if you're a new business or a well established business depending on how busy (% of full production) you are. I would bet it would vary by over 100%.

So a $40 per hour net might look really good to someone and terrible to another. Trip on the numbers and the financial obligations, stress and head aches will kill a business in a couple of quarters. Besides bucks you need business systems to keep it together.

Maybe debt ratio against net per hour might be good to look at?

 

[cleanimagemarketing]

Here's a simple way to make more money:

1. Don't buy a fancy new truck. Buy a used one that still looks good, pay cash.
2. Don't buy every product that someone raves about on online forums.
3. Don't buy every piece of equipment that looks neat in ICS or Cleanfax.
4. Find a Chemical line that works and stick with it.
5. Don't fall into the trap of thinking you need a brand new $20000 truckmount. There are lots of effective ways to clean carpet.
6. Stay out of debt. Start from the bottom, work your way up. Pay cash for everything!
7. Charge a fair price for your customer and YOURSELF! Don't burn yourself out.
8. Find advertising solutions that work, but don't break the bank. Instead of expensive ads, hit the streets and introduce yourself, do great work.
9. If you do something for a customer, charge for it! If you have to spend extra time on a spot, or use a special chemical (ie, Red Relief), charge for it. If you treat urine spots, charge for it. Don't get into the habit of giving away your time and products.
10. Stay organized. Keep up with your books. Keep your equipment in good working order. Maintain everything well.

I think if you can do all that, you can net 50% or more as an owner op.

And no, I'm not an expert or a guru, just a guy trying to start a business. But remember why this country is in such a financial crisis and try not to make the same mistakes in your personal life.

 

[Brian R]

Brian, that was lame man, you have to look at it over the course of a year. I know you keep an eye on your numbers. Or have you only been back on the truck for a month?

For the most part yes. I had a full time month in March I think too.
I did some deals and that's what makes me full time for a while.

I hadn't cleaned a carpet in 2 years before that at least.....So that's all I had to go on. Sorry.

I never figured out my Net hourly because it never meant anything to me.

I figured what I had at the end of the year and what that % was of the Gross.

Nowadays I'm just looking to put money in the bank.


Ken, if the towel fits....

 

[davegillfishing]

Kinda my fault Dave. Sorry.

I'm guessing 30% of gross for the o/o and another 30- 40% of true net for his wealth investments.

If you have 700 truck payment and shop rent, insurance, utilities, fuel, chems and maintenance your net is going to look a lot different if you're a new business or a well established business depending on how busy (% of full production) you are. I would bet it would vary by over 100%.

So a $40 per hour net might look really good to someone and terrible to another. Trip on the numbers and the financial obligations, stress and head aches will kill a business in a couple of quarters. Besides bucks you need business systems to keep it together.

Maybe debt ratio against net per hour might be good to look at?

no worries brother..i am just busting balls a bit..having a little fun trying to aggravate someone, anyone that has thin skin..
i actually get a lot out of some of the posts the bleed into other things that they were not intended for..

carry on men

 

[Bob Foster]

Here's a simple way to make more money:

1. Don't buy a fancy new truck. Buy a used one that still looks good, pay cash.
2. Don't buy every product that someone raves about on online forums.
3. Don't buy every piece of equipment that looks neat in ICS or Cleanfax.
4. Find a Chemical line that works and stick with it.
5. Don't fall into the trap of thinking you need a brand new $20000 truckmount. There are lots of effective ways to clean carpet.
6. Stay out of debt. Start from the bottom, work your way up. Pay cash for everything!
7. Charge a fair price for your customer and YOURSELF! Don't burn yourself out.
8. Find advertising solutions that work, but don't break the bank. Instead of expensive ads, hit the streets and introduce yourself, do great work.
9. If you do something for a customer, charge for it! If you have to spend extra time on a spot, or use a special chemical (ie, Red Relief), charge for it. If you treat urine spots, charge for it. Don't get into the habit of giving away your time and products.
10. Stay organized. Keep up with your books. Keep your equipment in good working order. Maintain everything well.

I think if you can do all that, you can net 50% or more as an owner op.

And no, I'm not an expert or a guru, just a guy trying to start a business. But remember why this country is in such a financial crisis and try not to make the same mistakes in your personal life.

Right on brother!