What % do pay your subs

[ErikG]

What Are paying your subs , or Subs what are you recieving And what is the add you working off of?

 

[renegade_cowboy]

50%

 

[dealtimeman]

if kp works for you then it cant be more than fiddy-pa-cent! :mrgreen: :mrgreen: :mrgreen:

 

[joe harper]

Erik,

IMHO...The only FAIR # is 70%/30%............. :!:

I don't know how Brian's deal with K.P. is structured...........50% is a LOW #

However.... if Brian's prices are 30% higher than KP's standard Prices..."It's a FAIR DEAL"

If Brian does all the Leg work & KP....Just has to clean.....It is a WIN /WIN....
























Sooooooo.KMA "MaRy"..................

 

[Brian R]

Erik,

IMHO...The only FAIR # is 70%/30%............. :!:

I don't know how Brian's deal with K.P. is structured...........50% is a LOW #

However.... if Brian's prices are 30% higher than KP's standard Prices..."It's a FAIR DEAL"If Brian does all the Leg work & KP....Just has to clean.....It is a WIN /WIN....



Sooooooo.KMA "MaRy"..................

Oh my God, it's the big one Elizabeth...I comin to join you!!

 

[Ron Werner]

I was paid 40% on some porty jobs years ago. His job, my equip/chem/fuel etc. I take it I was "used".

I'd be interested to know what is a fair rate to either collect for doing the cleaning for someone esle or pay if I have them clean for me. What's a good base line?

 

[Brian R]

After costs on both sides, 50/50 is as fair as it gets.

It can change as costs change
IE: travel costs, protectant costs, sealant costs...etc.

How much do you pay to get a customer?
How much do you pay to clean a customer?

 

[joe harper]

I am in the process Splitting my company up........

I am opening a Sister company with my Son......
Selling him one of my units & Sub-contracting him work....

With the new INCOME TAX laws that OBAMA has proposed...
Anyone making than $250,000.00 will be SLAMMED...........

I have done all the LEGAL reaserch...&... have concluded this is our best move....

 

[GeneMiller]

I'm safe from Obama then cause me and my little truck won't be making that much any time soon.

Gene

 

[joe harper]

COME-ON .........Gene.....

You are in BOCA.....You make that in 6mths....Hang-In down at the MARINA... :wink:



By the time "THE CHOSEN ONE"...is done ....The # will MOVE to $50,000.00...... :roll:

 

[Ron Werner]

After costs on both sides, 50/50 is as fair as it gets.

It can change as costs change
IE: travel costs, protectant costs, sealant costs...etc.

How much do you pay to get a customer?
How much do you pay to clean a customer?

You do have to take into acount the physical work done by one person, plus their expenses and equipment costs/wear and tear. I would think it more fair for the guy actually doing the work to make a higher percentage. The advertising costs wouldn't be that high, or perhaps from referral which costs nothing.

 

[dealtimeman]

ron i think your right on that i also do not think advertising and scheduling is worth 50% maybe 30% at most.

 

[Fred Homan]

The guy doing the work should be making the higher % like 70% and 30% for the guy setting it up. ALL he is doing is setting it up! Find a bunch of people for this % and all you have to do is answer the phone.

 

[Brian R]

[quote="Brian Robison":2aec39dq]After costs on both sides, 50/50 is as fair as it gets.

It can change as costs change
IE: travel costs, protectant costs, sealant costs...etc.

How much do you pay to get a customer?
How much do you pay to clean a customer?

You do have to take into acount the physical work done by one person, plus their expenses and equipment costs/wear and tear. I would think it more fair for the guy actually doing the work to make a higher percentage. The advertising costs wouldn't be that high, or perhaps from referral which costs nothing.[/quote:2aec39dq]


I love how you guys say "actually doing the work". Like this part is all fun and games? Crazy.
Yea, no body in an office actually does any work. :roll:
It's more than advertising.
The 2 hours spent by the tech "doing all the work" is equal to me spending 10 hours in the office just so that job doesn't slip by.
If I get $10,000.00 worth of work and split that down the middle with the tech we both get $5000.00
I spent $2000.00 in ads to get that...and referrals are NOT free...good god.
I work all day answering phones, going through all the price shoppers, qualifying jobs for a better price, dealing with ads, websites, phones (and bills)...not too mention weeding through all the telemarketers trying to sell me more ads.
I have to set up payroll for all vendors, Pay for my "personal" vehicle that I work out of to go to the printer, Letip (+dues), CPA....Hell, I even go help sometimes with bigger jobs and still spit it 50/50.

I can go on and on. There is plenty more that I haven't mentioned.

Just because you "feel" like you are doing "all the work"...you are not.

So KMA. :mrgreen:

 

[Willy P]

Sure. And pull my finger and you'll hear a melody. :roll:

 

[joe harper]

hEY mary......

Does it kinda-look like this............... :?: .... ($100.00) JOB..


Hard Cost for Brian to BOOK job....................$20.00.......(20%)

Hard Cost for Kevin to Service the job............$20.00.......(20%)

Brian's GROSS for the job is..........................$30.00.......(30%)

Kevin"s GROSS for the job is.........................$30.00.......(30%)


IT IS JUST CALLED....."SPLITTING THE BABY".......



"REFERALS are not FREE"...If either party FAILS to do there JOB..? The REFERAL will not COME!




















Use the "BROKE-DICK"....... LiNgO......Now KMA ....aGAin..

 

[Brian R]

Yes dear

 

[Ron Werner]

Joe Polish posed the question , where is the money made, in the marketing or the cleaning?
One without the other is inefficient, but until that wand hits the floor, you can book 1000 jobs and no money is made.

Yes, there is a lot of work to marketing and in the office. If I applied 20% more effort into that area of my busn I'd prob get a 40% return.

Your "busn" is marketing Brian. I would imagine that 80% or more can be done from the seated position. Nothing against that, just the nature of the work.
So, if you land the job, there is always someone else that can clean it, the "cleaner" is replaceable. In that busn set up I can see justifying the 50%.

What I was thinking more of was another cleaner that gets a referral from a client to do a portable job and he doesn't want to do it, or he has a night job he doesn't want to do, so he hires someone else to do it. In this scenario I believe the cleaner should get more than 50%.

If a guys truck breaks down and he needs help, 50% is fair.

I help a friend out with porty work, we both go in together, he owns the portable. He pays me 40% of the job. If its my portable job, we split it 50-50.

It would all depend on how busy the cleaner is. If he can fill his slots with jobs paying him 100%, for him to sub himself out at 50% is counter productive. If he's not working, then 50% is a bonus, somewhat.
Ellen Rohr pointed out that there are a lot of behind the scene expenses in running a busn. Part of it is marketing, but just in the operation of a TM, as the owner/operator, I've got 5 insurances to be payed, licences, equipment payments, repair and maintenance costs, chem costs, fuel, plus I need to keep myself physically able to do the work. It costs me less than $20 to do any one job, but overall, its a lot more.

 

[joe harper]

Ron,

I believed mAry suffered an injury...& was unable to do the PHYSICAL WORK...

I have had my BACK-FUSED,,,& cannot to the PHSYCAL WORK......


With that being said...I am BLESSED that i have a SON that is taking over the BIZ.

You just LAYED out a LOT of EXPENSES that have to be PAID.......
If & ,,,,,,,WHEN ......You cannot do the WORK......"How will those bills get PAID"

The only thing that is WORTH a "DIME" in this business is Your phone #..& your CLEINT LIST..
If you are GROSSING $250,000.00 a year.....You would be HARD PRESSED to sell it for $50,000.00...(that includes all equipment)..

However if you had a GOOD sub-contractor.....You could work well into your 70's....Keeping
30% of the gross. Giving you a GREAT retirement PLAN...for years to come. That is $75,000.00
a Year to SIT ON YOUR ARSE. 8)

 

[Ron Werner]

You just LAYED out a LOT of EXPENSES that have to be PAID.......
If & ,,,,,,,WHEN ......You cannot do the WORK......"How will those bills get PAID"

The only thing that is WORTH a "DIME" in this business is Your phone #..& your CLEINT LIST..
If you are GROSSING $250,000.00 a year.....You would be HARD PRESSED to sell it for $50,000.00...(that includes all equipment)..

There are some guys that have cleaned into their 60's. Not everyone incurs an injury, though they will happen from time to time. Some are self inflicted :roll:

I would agree the most valuable thing in this busn is your client list and phone #, however it should be worth a lot more than 20%. After all, all someone has to do is go clean the jobs that are calling in, and if its transferred properly, the clients will be looking forward to seeing the new owner, and all he has to do is keep marketing and do good work.
Carpet cleaners are some of the cheapest bastards out there!! Their worse than the worst custy.

 

[Brian R]

When I got injured, It just made me think a bit more.
I am healthy as all hell now, so I am able to work when needed...I went out today with a sub and worked about 8 hours...we did $1000.00 almost on the nose and I still paid him his 50%.
We were talking about it as well.
He runs his own company...just not that much and appreciates the business.
He can also apprectiate the split because he has been on both ends.


When I started doing this, I did it for just a couple of real reasons.
1. Working a van and working a business is counter productive and employees suck in CA.
2. I would be able to help myself with limitless business to be produced and I could help others by filling their schedule so they wouldn't have to do the business part.


If you are running your truck...who is running your business? If it's you, then you don't do enough work on either side.
If it's someone else...what are you paying them? Even if it's our wife, you are paying her because she is not getting paid from another job.

 

[carpetsweeper]

50% is not a quite fair split it can take you 10 seconds to book the job

 

[joe harper]

Ron,
I hope that my post did not offend you. I agree with almost all of your post's. My
post was point out that NONE of us think we will be Injured. I took the time to go
to your website & reveiw your Videos.You do have good Technique and most of all
very good proper posture.

This should extend your cleaning years.This post was about what is a FAIR % for a sub ?
IMO you are the only CLEANER ...I would never consider as a sub on one of my jobs.
"I mean that as a Complement.." I would loose the cleint...Because we just cannot spend
that much time vacuuming..THERE IS NO DOUBT,YOU TAKE PRIDE IN YOUR WORK.

I have purchased 4 failing carpet cleaning companys...All had different reasons for selling.
Some were worth more than others...But a good rule of thumb,has been...that they were
worth 10% of there last years GROSS + market value of the equipment....

I has been my experiance...that most CC companys Fail in there there first 3 to5 years..
This is SAD , but it seems to be a pattern...It is usually the 2nd truck that brings their DEMISE.

I feel that you have a GREAT business modle & obiously a Loyal cleint base...
Your business should be passed down from generation to generation and NEVER be SOLD...

 

[joey895]

50% is not a quite fair split it can take you 10 seconds to book the job

The great thing about Free market capitalism is, whatever two parties agree on, is what is fair. For some that 50% may seem like a gift from God for others anything less than 70% may not make sense but either way no one is forced to accept anything they don't agree with as being "fair".

Besides how long you spend on the phone is not really what matters it's everything you did to get the phone to ring in the first place and then having someone there to answer the phone. As far as this business goes the cleaning is the EASY part getting the phone to ring is the hard part.

 

[Ron Werner]

As far as this business goes the cleaning is the EASY part getting the phone to ring is the hard part.

Now there's a true statement