The sound of sucking money: DIVERSIFICATION

Joined
Oct 7, 2006
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18,838
Location
Benton KY USA
Name
Lee Stockwell
What was your most stupid "diversification"....that was touted by either Trade Mags or BBoard shills?

I'll chime in later...
 

Mikey P

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Oct 6, 2006
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The High Chapperal
lets see...


buying into the reSoil hype that I too could make millions with a POS portable.

cleaning a few rugs a week for an actual profit aint happening.

all sorts of VLM equipment when a Cimex (or maybe a trinity) is all you need to hide the dirt.
 

Hoody

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Oct 24, 2007
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Bowling Green, Ohio
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Steven Hoodlebrink
lets see...


buying into the reSoil hype that I too could make millions with a POS portable.

cleaning a few rugs a week for an actual profit aint happening.

all sorts of VLM equipment when a Cimex (or maybe a trinity) is all you need to hide the dirt.

you forgot scratch-b-gone
 
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Steve Toburen

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Oct 23, 2006
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Durango, Colorado/Santiago, Dominican Republic
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Steve Toburen
Acoustic ceiling cleaning.

Close second? Restaurant hood cleaning. (Wow did I hate hoods.)

Steve Toburen
www.SFS.JonDon.com

PS Looking over the list above my guess is all of these diversifications have been successful with other people. So how much of our problem is just not FOCUSING on a new business area? (I still hate hoods.)
 

Desk Jockey

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Oct 9, 2006
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A planet far far away
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Rico Suave
Acoustic ceiling cleaning, bought the whole package, spray cart and all. Did a couple of ceilings on fire jobs, too big a hassle for the results. BIG waste, over sold wish I could get my money back plus interest!:p

Used the cart for many years to spray antimicrobials so it wasn't a complete waste....just a very expensive sprayer. :(
 

Shane Deubell

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Jun 30, 2011
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4,052
Have stayed away from most of them, although at 1 point we had a couple grand in floor slip proofing product.

Most of them are just too nichee for me but i m thinking of adding air duct cleaning this winter.
 

Newman

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Aug 1, 2008
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1,064
Location
St. Charles, IL USA
Name
Chris Newman
lets see...

cleaning a few rugs a week for an actual profit aint happening.

When I purchased my business, the previous owner had a 30 year long area rug "contract" servicing a very large local dry cleaner with 28 locations. We would pick up, clean, price, wrap, and deliver (to one location) for $0.39 psf synthetic and $0.52 psf for natural fiber. He was renting a 1500 sf shop for $1200 a month for his rug shop. He charged regular homeowners the same prices. Add in the dedicated cargo van and and the cash sucking sound was even louder!

6 months later I got the call from the new CEO of the dry cleaners (owners son). He let me know that he had planned for 2 years to go with another plant that used machines to do the cleaning. He just kept me on for a while to let me "get on my feet". Should I have been disappointed that I lost a huge contract? I hung up the phone and let out a rebel yell! Problem solved! A wonderful day it was.

My mini rug plant with a 12 pole rack takes up a 20 x 24 space in my own 1000 sf garage. I have quadrupled the pricing over the last 4 years and now I kind of break even. I keep it on as a needed service for my customer base.
 

Desk Jockey

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Oct 9, 2006
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64,833
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A planet far far away
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Rico Suave
Sometimes I hate rug cleaning sometimes I love it, most of the time I'm just indifferent towards the service.

Our customers love the cleaning but I think they just like that we are cheap compared to the rug washers.
 

Desk Jockey

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A planet far far away
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Rico Suave
It can be if you charge enough and are setup to process them efficently. We are all hand cleaning, rug badger, clean with inplant TM hang in small 12-pole dry room. We make a little money off it but sales for the year are only $40,000.00 total. To be a big player at it we would have to setup in the KC metro area, an hour 15-minutes away and that's not going to happen. If we were going to go to KC it would be for restoration work and they are already saturated with enough of them now.
 

Desk Jockey

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Oct 9, 2006
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64,833
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A planet far far away
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Rico Suave
You'll this Porkchop, one of the twins works at JC Penny's.

She complains that "the Mexican's" always pay with $100.00 bills and it makes her work harder. She said "I hate the Mexican's, they pay with $100.00 and can never understand a thing I say". :eekk:

I told her "ummm your dad is Mexican!" :hopeless:

I HOPE she enjoys living at the mission.....I'll miss her but fortunately I HAVE ANOTHER one that looks just like her. :p
 

Jack May

That Kiwi
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Oct 7, 2006
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2,423
Location
Palmerston North, New Zealand
Name
John
Not necessarily stupid, just didn't work out well enough financially to keep them going.

Lather cleaning and repairs.
A couple of years in, once it was showing good numbers, we got hit from a main centre 2 hours away undercutting us.

Tile cleaning and colour sealing.
Again, our main competition was general cleaners mopping floors for 1/4 of our charges. Colour sealing, we found the general public didn't want to pay for it, but the insurers loved it after smoke damage to save re grouting. Our marketing name for years was Tile Pro, and soon after we stopped, a group started up with the brand name Grout Pro.

Pest control.
I employed a staff member who was experienced in this area and we tried it for a year or so to see if it was a good fit but we found the call back rate was hire than our cleaning services which was ptty rare so it wasn't a good experience for our own clientele who we were marketing to.

Rug cleaning.
Not so much a waste of time, more a case of not enough work flow at reasonable rates to make a big deal over. We will always offer it as its a good fill in at the shop for a quiet day, a last minute cancellation etc.

The best for us has been the addition of carpet and colour repairs. This expanded into warranty fault rectification, complaint resolution and carpet inspections.

John
 

Vivers

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Joined
Feb 20, 2012
Messages
833
Location
Aliso Viejo
Name
Bill
I have really fought getting into air duct cleaning but I am wondering if I will end up on this list?
 

pinosan

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Joined
Oct 10, 2012
Messages
132
Location
Sanchez
Name
Martin
I have really fought getting into air duct cleaning but I am wondering if I will end up on this list?

It will be all up to you. Joe Polish said if you see successful people making tones of mon ey doing what you do or want to do, then there is nothing wreong with the industry
there is obviously something wrong with they way you are doing it.
 

Shane Deubell

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Joined
Jun 30, 2011
Messages
4,052
I have really fought getting into air duct cleaning but I am wondering if I will end up on this list?

Not if you buy a negative air vacuum, if you go busch league with a rotovac or whatever... Then yes

When our website ranked for duct cleaning we used to receive calls all the time.
 

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