Trying to find a new direction. Mikey told me to use you, here I am!

Ross Buettner

Member
Joined
Nov 21, 2010
Messages
638
Location
Green Bay, WI
Name
Ross Buettner
Many of you have known me awhile. Hi again, and great to be back. The people who I've not talked with, I'm looking forward to it.

My life has gone through the wringer over the last two years. Some on my own physical health, and the rest on the franchised business I own.

I've lived through a major surgery that had a 85% mortality rate. Recovery was bad. I was financially ruined, and my credit was destroyed. At the moment I am in process of filing bankruptcy for 1.2 million in health care collections. (I'd rather not have this post go in the direction of Obamacare, please...)

There are two entities of my business. One is a janitorial franchise I own. The other, obviously, a carpet cleaning service. The purpose of getting the truck was from a close friend of mine who was in the same franchise as I. He left, and closed down. In order for myself to avoid paying another carpet cleaner for contracts that has a built in price of floor work, I had to get a truck and hard floor equipment to do it myself and save a lot of money. My freind mentored me well, and within a 100 hours or so (with the help of some seminars, and help from here) I had it down.

The franchise is the primary source of income for me. In the last few years, other franchises who did not have a truckmount were faced with having an outside source coming in and doing it for them. I was that person. Aside of that for the last 8 years I've had several accounts for cleaning and still do. The last two years have been a drop of over 15K a year in income from the franchise for carpet cleaning. They bought four portables, and let them use them for nothing. While it's doing so-so work, apprarently it's enough to keep their customer happy.

So, I have contracts for janitorial services. Some expire and they don't renew. Some rebid and get it cheaper. Some are so fricken miserable you get tossed out (and they go through a handful of companies a year). A large goverment account was lost to another bidder. The blow dealt a 3800.00 per month loss to me. The franchise company claims they try to get you more business. Sometimes they do, and sometimes they don't. When they do, there's a 300% finder's fee stacked with the normal 20% commission. That being said, your ROI is 50% on the first year. You need to pray you can keep them aboard to make a 80% profit the next year.

After all that explanation... I am seeking a goal.

I want to stay with the janitorial franchise. If anything they can float me through the winter months.

I want to expand my carpet cleaning into residential. I live in a metro with roughly a million people within a 15 mile radius.

Together, I want to bring my son on full time. If things get busier, I can always hire more.
Getting there however, seems to be the challenge.

I did have an hour long conversation with Mr. Snow a few months before he passed. There was lots to talk about, but not enough time to really go over it. By the time I planned to visit him, his health was bad.

Right before heart surgery Yoakum told me getting in the Yellow Pages was a stupid mistake. I am here now, two plus years later to say he is dead right. All I got was calls from telemarketers, pissed off tenants and landlords looking for "advice", and a few real calls, which produced less than 1200.00 in one year.

I listed myself on Google. That produced about 6 jobs in one year.

There are several carpet cleaning companies here. 1/2 of them are rug spinners. A few run Beneclean units. And a about a dozen run a normal truck mount. My next door neighbors insist on getting 3 rug spins for 69.95 a year, and won't even let me do a freebie for them to show them what the real difference would be.

I'm getting close to the end here....

I run a Prochem Bruin II. 500ft of hose. I use matrix and prochem chemicals, and the truck runs well. The van is a 2009 1 ton Chevy with 39K miles on it. Bottom line, I am equipped with just about everything from footies to corner guards, and even a turbo tile scrubber.

I need to know HOW to get in this market. My credit is shot, once again.

Any input would be greatly appreciated. I want to be the guy that's "eating out of the other dog's bowl". With 14 years of management and sales, I can verbaly do that job. Getting TO them is the issue.

Thanks!

Ross - Titletown Carpet Cleaning
Green Bay, WI
 
Joined
Oct 7, 2006
Messages
18,838
Location
Benton KY USA
Name
Lee Stockwell
Wow Ross, thanks for sharing. I got burned out on janitorial, do less than $1500 a month now to keep the CC and vct work those accounts have.

My last big YP year was 1979, downsized every year since, yet overspent every year since. Just a bold line now.
 

PrimaDonna

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Joined
Jan 2, 2008
Messages
2,865
Location
NorthEast, USA
Name
MB
Have you looked into professional networking groups like BNI or LeTip?

Best clients and ROI come from referrals and having a good system for referral work in place. If you aren't good at or don't know how to do referral marketing, the group will give you the skills to do it.

Not to mention the groups are a wealth of knowledge in other ways. And you can find many great mentors in other business owners.

If it were me, I'd start there.
 
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Shane Deubell

Supportive Member
Joined
Jun 30, 2011
Messages
4,052
If you dont have any money to spend on advertising and have a background in sales...
Then cold calling commercial (carpet/tile) and referral sources for residential sounds like a good fit.

But you gotta do the work plain and simple.
 

Mikey P

Administrator
Joined
Oct 6, 2006
Messages
114,121
Location
The High Chapperal
Have you looked into professional networking groups like BNI or LeTip?

Best clients and ROI come from referrals and having a good system for referral work in place. If you aren't good at or don't know how to do referral marketing, the group will give you the skills to do it.

Not to mention the groups are a wealth of knowledge in other ways. And you can find many great mentors in other business owners.

If it were me, I'd start there.



Totally agree..
 
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jcooper

Member
Joined
Oct 7, 2006
Messages
3,232
Location
IL
Name
Jerry Cooper
I listed myself on Google. That produced about 6 jobs in one year.

That's the FIRST thing I'd work on! 6 jobs from google a year is not good! Work on your listing, add photos, get reviews... Do some research about google local listings, check youtube. Sign up for yahoo, yelp, bing, all of them. Anything people above you are doing, you need to do. Slowly you will move up if you work at it.
 
Joined
Apr 9, 2014
Messages
550
Location
Covert
Name
Marcus
Ross sorry about your ups and downs in the business.
Never done much of the janitorial but I have seen a lot of guys do it and it can be a lot of headaches as you have described. I would encourage you to get a game plan not to be too spread out with to many irons inthe fire.
Look at your profit margin on the franchise???
Most guys focus on carpet cleaning or janitorial.
Advantage of carpet cleaning is you can do most of it yourself or with one worker and make a high profit margin with not as many headaches or night work.
 
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dealtimeman

Everyday is Saturday.
Joined
Sep 20, 2008
Messages
10,878
Location
Fort Worth , Texas
Name
Michael
My family has been doing janitorial for over 30 years but we're never profitable as they were franchises just turning big checks but hardly keeping much of it.

With all the finders fees and "contract buy ins" there not much fat left on the bone unless you are screwing your laborers and Slaving them.

Try to get janitorial accounts direct by any means you can. Cold calling works for some and door to door works for others.

Try to do less worrying and more business building. You will know when you are doing the whole business building when you see that, that the business building is a full time job in and of itself.

Never give up! Never surrender!
 

Bryan S. Bennett

Supportive Member
Joined
Feb 6, 2007
Messages
358
Location
Philipsburg Pennsylvania
Name
Central Steamer Professional Carpet & Upholstery Cleaning
It sounds as if you are trying to spread yourself too wide and it is too much and not profitable. Mentally and physically exhausting with no hope. Consider avoiding the franchise concept.

Focus on the work you enjoy best, and pour your energy into being the best, identifying the ideal target customer as well as creating a great company image that is adequate for the market you want, ie clean van with great ad to service middle and upper income homes in a 25 mile radius etc.

Develop a pricing structure that will ensure happiness for you plus a good business profit, once the customers arrive.

Market, market market. Spend your free time marketing to these customers. Be creative reaching these folks. The work will come.

Final suggestion, just keep marketing if I haven't mentioned it before!
 
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Papa John

Lifetime Supportive Member
Joined
Aug 19, 2013
Messages
6,881
Location
San Francisco, CA.
Name
John Stewart
You need to do something that Sets you apart from the rest of The CC in your area.

For Me-- it was buying a Vortex.--- ok so you cant do That right now-- understood.

You are going to have to take drastic measures and do something That Most Sane people are incapable of doing-- myself included!

You need to get OCD (Obsessive compulsive disorder) And Strive to Get IT as Severe as Mark Saiger has It! ;) you my hero Mark!

Mark's attention to the most minute detail is amazing!--- I think I may even noticed protective covers on Male quick connects?? in a video he shot!?-- who does that!? -- and Now a new custom Blue ZIPPER!!??

There are some guys on this broad who believe in the "Sizzle Method"--- That's where you do the burn test on each fiber and you do a whole song and dance about how much you know about carpet cleaning and What Not..

Where as Mark Saiger SHOWS them how much he knows and More importantly how much he CARES. Mark has mastered the Softer Subliminal Sell.

People DONT care how much you Know, Until They know how much you Care.

Strive to make every customer a cheerleader...
 
F

FB7777

Guest
Ouch, thanks for sharing Ross

Early on, I investigated a ServiceMaster franchise. The royalties and commissions seemed high to me , coupled with the fact that I would have to roll in my existing company sales ( $150,000 at the time ) and pay around 9% commission on that, I decided it wasn't for me.

Like Lockhart said, it's tough to make a buck when there is that much cash syphoned off the top.

And paying an ongoing commission on JanSan seems ridiculous considering the competitive low ball environment that exists. Best place to shine I. That market when you are a small shop is the small accounts that most franchise marketers tend to stay away from .

Doesn't really sound like your franchise is providing you with what you are paying for, you should be able to do a lot better severing the bondage and using your sales and marketing skills for your own benefit
 

TomKing

Supportive Member
Joined
Sep 18, 2012
Messages
1,125
Location
Indianapolis
Name
Tom
Many of you have known me awhile. Hi again, and great to be back. The people who I've not talked with, I'm looking forward to it.

My life has gone through the wringer over the last two years. Some on my own physical health, and the rest on the franchised business I own.

I've lived through a major surgery that had a 85% mortality rate. Recovery was bad. I was financially ruined, and my credit was destroyed. At the moment I am in process of filing bankruptcy for 1.2 million in health care collections. (I'd rather not have this post go in the direction of Obamacare, please...)

There are two entities of my business. One is a janitorial franchise I own. The other, obviously, a carpet cleaning service. The purpose of getting the truck was from a close friend of mine who was in the same franchise as I. He left, and closed down. In order for myself to avoid paying another carpet cleaner for contracts that has a built in price of floor work, I had to get a truck and hard floor equipment to do it myself and save a lot of money. My freind mentored me well, and within a 100 hours or so (with the help of some seminars, and help from here) I had it down.

The franchise is the primary source of income for me. In the last few years, other franchises who did not have a truckmount were faced with having an outside source coming in and doing it for them. I was that person. Aside of that for the last 8 years I've had several accounts for cleaning and still do. The last two years have been a drop of over 15K a year in income from the franchise for carpet cleaning. They bought four portables, and let them use them for nothing. While it's doing so-so work, apprarently it's enough to keep their customer happy.

So, I have contracts for janitorial services. Some expire and they don't renew. Some rebid and get it cheaper. Some are so fricken miserable you get tossed out (and they go through a handful of companies a year). A large goverment account was lost to another bidder. The blow dealt a 3800.00 per month loss to me. The franchise company claims they try to get you more business. Sometimes they do, and sometimes they don't. When they do, there's a 300% finder's fee stacked with the normal 20% commission. That being said, your ROI is 50% on the first year. You need to pray you can keep them aboard to make a 80% profit the next year.

After all that explanation... I am seeking a goal.

I want to stay with the janitorial franchise. If anything they can float me through the winter months.

I want to expand my carpet cleaning into residential. I live in a metro with roughly a million people within a 15 mile radius.

Together, I want to bring my son on full time. If things get busier, I can always hire more.
Getting there however, seems to be the challenge.

I did have an hour long conversation with Mr. Snow a few months before he passed. There was lots to talk about, but not enough time to really go over it. By the time I planned to visit him, his health was bad.

Right before heart surgery Yoakum told me getting in the Yellow Pages was a stupid mistake. I am here now, two plus years later to say he is dead right. All I got was calls from telemarketers, pissed off tenants and landlords looking for "advice", and a few real calls, which produced less than 1200.00 in one year.

I listed myself on Google. That produced about 6 jobs in one year.

There are several carpet cleaning companies here. 1/2 of them are rug spinners. A few run Beneclean units. And a about a dozen run a normal truck mount. My next door neighbors insist on getting 3 rug spins for 69.95 a year, and won't even let me do a freebie for them to show them what the real difference would be.

I'm getting close to the end here....

I run a Prochem Bruin II. 500ft of hose. I use matrix and prochem chemicals, and the truck runs well. The van is a 2009 1 ton Chevy with 39K miles on it. Bottom line, I am equipped with just about everything from footies to corner guards, and even a turbo tile scrubber.

I need to know HOW to get in this market. My credit is shot, once again.

Any input would be greatly appreciated. I want to be the guy that's "eating out of the other dog's bowl". With 14 years of management and sales, I can verbaly do that job. Getting TO them is the issue.

Thanks!

Ross - Titletown Carpet Cleaning
Green Bay, WI
Sorry to hear all this has happen to you.

The best part you are alive!

Colonel Sanders started Kentucky fried chicken at the age of 60. You are never to old to change your stars.

You are in a great town even though you have a longer winter than most.

I have two thoughts
1. Stop focusing on equipment you have ok stuff to start.
2. Start focusing on What you want your company to become and develop a sales and leadership plan to get you there.

Do you have a mentor?
you are in a place that this can change quickly. you just need the right plan and execution of that plan.

Lots of goods ideas has been mentioned here. Don't just go trying random stuff. Get a written plan to what you are going to do.

Last thought stop talking about what lesser companies will do or are doing. They will always exist. I guarantee you someone is cleaning high end homes in Greenbay. Those guys just quietly watch these boards and laugh all the way to the bank.
 
Last edited:

Shane Deubell

Supportive Member
Joined
Jun 30, 2011
Messages
4,052
Many of you have known me awhile. Hi again, and great to be back. The people who I've not talked with, I'm looking forward to it.

My life has gone through the wringer over the last two years. Some on my own physical health, and the rest on the franchised business I own.

I've lived through a major surgery that had a 85% mortality rate. Recovery was bad. I was financially ruined, and my credit was destroyed. At the moment I am in process of filing bankruptcy for 1.2 million in health care collections. (I'd rather not have this post go in the direction of Obamacare, please...)

There are two entities of my business. One is a janitorial franchise I own. The other, obviously, a carpet cleaning service. The purpose of getting the truck was from a close friend of mine who was in the same franchise as I. He left, and closed down. In order for myself to avoid paying another carpet cleaner for contracts that has a built in price of floor work, I had to get a truck and hard floor equipment to do it myself and save a lot of money. My freind mentored me well, and within a 100 hours or so (with the help of some seminars, and help from here) I had it down.

The franchise is the primary source of income for me. In the last few years, other franchises who did not have a truckmount were faced with having an outside source coming in and doing it for them. I was that person. Aside of that for the last 8 years I've had several accounts for cleaning and still do. The last two years have been a drop of over 15K a year in income from the franchise for carpet cleaning. They bought four portables, and let them use them for nothing. While it's doing so-so work, apprarently it's enough to keep their customer happy.

So, I have contracts for janitorial services. Some expire and they don't renew. Some rebid and get it cheaper. Some are so fricken miserable you get tossed out (and they go through a handful of companies a year). A large goverment account was lost to another bidder. The blow dealt a 3800.00 per month loss to me. The franchise company claims they try to get you more business. Sometimes they do, and sometimes they don't. When they do, there's a 300% finder's fee stacked with the normal 20% commission. That being said, your ROI is 50% on the first year. You need to pray you can keep them aboard to make a 80% profit the next year.

After all that explanation... I am seeking a goal.

I want to stay with the janitorial franchise. If anything they can float me through the winter months.

I want to expand my carpet cleaning into residential. I live in a metro with roughly a million people within a 15 mile radius.

Together, I want to bring my son on full time. If things get busier, I can always hire more.
Getting there however, seems to be the challenge.

I did have an hour long conversation with Mr. Snow a few months before he passed. There was lots to talk about, but not enough time to really go over it. By the time I planned to visit him, his health was bad.

Right before heart surgery Yoakum told me getting in the Yellow Pages was a stupid mistake. I am here now, two plus years later to say he is dead right. All I got was calls from telemarketers, pissed off tenants and landlords looking for "advice", and a few real calls, which produced less than 1200.00 in one year.

I listed myself on Google. That produced about 6 jobs in one year.

There are several carpet cleaning companies here. 1/2 of them are rug spinners. A few run Beneclean units. And a about a dozen run a normal truck mount. My next door neighbors insist on getting 3 rug spins for 69.95 a year, and won't even let me do a freebie for them to show them what the real difference would be.

I'm getting close to the end here....

I run a Prochem Bruin II. 500ft of hose. I use matrix and prochem chemicals, and the truck runs well. The van is a 2009 1 ton Chevy with 39K miles on it. Bottom line, I am equipped with just about everything from footies to corner guards, and even a turbo tile scrubber.

I need to know HOW to get in this market. My credit is shot, once again.

Any input would be greatly appreciated. I want to be the guy that's "eating out of the other dog's bowl". With 14 years of management and sales, I can verbaly do that job. Getting TO them is the issue.

Thanks!

Ross - Titletown Carpet Cleaning
Green Bay, WI

The fee structure sounds like janiking, who i started with in 1995 ish.

Long term you have to dump them, not necessarily picking up a couple cleaning accounts BUT them. You cant generate any cashflow or company profit with that structure, yes you can make money for doing work but no unearned profit. 20% for what they term "overhead" is more then double what you would pay as an independent, closer to triple...

In order to grow we need company profits or investment income, cashflow whatever. This is on top of your yearly salary, this is the reward for taking risk and investing money on a business. Its impossible to pull that off with a janitorial franchise. Every year you want to make X amount of money as a salary and then have X amount of investment $$.

In the short term you want to go guru and do SWAT- strengths,weaknesses, threats and opportunities.
Which means what is the best fit for YOU personally, in your market, with your budget.

I would tell ya to beak it down into reasonable numbers, 5k- 10k households and 1-2k businesses.
Then unleash all hell and reach those people any way you can monthly- quarterly.
 

Ross Buettner

Member
Joined
Nov 21, 2010
Messages
638
Location
Green Bay, WI
Name
Ross Buettner
Thanks all for what's been said so far.

Green Bay has higher end suburbs that are areas I'd like to be.

I've considered valpak for one or two zip codes targeting these areas.

No special prices or coupons. Just who we are, what we do, and what we can do for you.

There's a ton of residential work up and coming with the snow finally melting. I'd like to get in it.

Opinions?
 

TomKing

Supportive Member
Joined
Sep 18, 2012
Messages
1,125
Location
Indianapolis
Name
Tom
Write a business plan. All these are good Ideas there is no silver bullet. One thing alone won't work a comprehensive plan will.
Get a personal coach!
 
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Desk Jockey

Member
Joined
Oct 9, 2006
Messages
64,833
Location
A planet far far away
Name
Rico Suave
The best thing about EDDM is you select your targets, it not just a random shotgun approach. You can pick neighborhoods and hit them several times to let them know who you are.

It doesn't have to be a major expense, you can mail as few as 200 pieces. At total cost of printing & mailing of around .27 cents that's only $54.00 to reach 200 potential clients. :cool:

If you are not the kind of person to do it yourself or you just don't care to spend the time, I suggest you hook up with someone that can do it for you. This is a video of John Braun's but I know there are also others that offer a similar service too.

John explains it very clearly and of course if you want him to do it for you he offers that too.

 

Shane Deubell

Supportive Member
Joined
Jun 30, 2011
Messages
4,052
Agree with tom, grab a pen and paper to start the process of piecing together a plan. You can change it as you learn.

Start asking yourself questions
How much revenue in 3 years, what is profit goal
What services do i want to provide
What is my main service
What are my additional services
What neighborhoods are the best fit for these services ( affluent might not have wall to wall carpet for example)
How am i going to price? all inclusive including furniture moving and protector or options
Whats included
What profit margins do i want
Choose a target of 5-10k households, now what are 5-10 ways you can reach them
Research what are the costs for each
Do you want to market by geography (a town) or by service (pet specialist) or both
Etc..

Its problem solving, have to find the best answers for you.
 

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