What effect has the economy had on your cleaning business?

[Desk Jockey]

We noticed a slight dip in carpet cleaning and area rugs, but nothing significant.

However it has me wondering if we should look at making some changes to not only gain on the losses but possibly gain market share?

Ride it out? Increase your marketing?

Can you stimulate people to spend when they don't want to?

 

[ACE]

I think my business is better than a few years ago I used to get this line allot: “We should have the carpets cleaned but, we are going to replace them or put in hardwood soon.” I don’t hear that anymore

 

[Joel D]

I just hit my second year with a tm, low moisture before that. Late spring early summer was great, better than last year. Sept. was horrible. Getting better now.

Cutting back on yellow pages and some other advertising and just doing reminders, cold calling and work the refferals and try to get in with people with more money.

Sept was bad for retail I see on the business news.

 

[Shorty]

In Cairns, it's been a very turbulent 12 months.

Unemployment is the highest in Australia, running at 12.5%

http://www.skill360.com.au/MediaCentre/ ... 3797a3.pdf

Townsville, (Brownsville, Clownsville, Downsville etc, just down the road by 200 miles, the unemployment is only 3%, they also have a lot of guv-urn-mint offices down there. :wink:

Last December we diversified our work load into 3 separate businesses.

Residential work, commercial work & leather & small rug cleaning.

In April, we started to notice a decline in residential cleaning, this got steadily worse.

However, our leather clothing and rug cleaning picked up substantially, due I think, to the cold weather setting in.

About two months ago, our commercial business has really started to grow and that future is now looking very strong with a lot of new business coming in, especially in the last two weeks.

We have also changed our tactics to suit each individual business in regards to getting more business for each, by using different means of advertising, which is also saving us more money in the long term.

Our data base is also playing a major role in this area.

One of the ploys we put into place for residential work about two months ago, is now starting to pay off with a big increase in that area.

We targeted specific properties and worked them, and the results are pleasing.

Taking a leaf out of my favourite manual has paid me back many times over :wink: I decided to once more to take a look at my business through my customers eyes.

For this, I can only thank Steve, Chuck & Bill, plus the chef extraodinaire, Nick.

Ooroo,

:roll:

 

[Out of Character - 0]

-Residential carpet cleaning has seen a little change
-Commercial carpets have been consistent with new customers but suffered many "cutbacks" from existing accounts
-Janitorial has been severely impacted but not harmed. We've had many accounts go out of business, cutback, or hire their unemployed relatives. At the same time we have gotten many new accounts from companies who's current janitors went out of business, as well as the usual people who aren't happy and looking to change.
-Floor care has been affected but not harmed. Lots of cutbacks happening but new business still comes in
-Commercial window cleaning is strong, were getting a fair amount of 2-4 story window jobs.

 

[cu]

been very good for me in my market 2nd truck will be on the road in a week and making plans for #3 . Wd is up over last year ,trauma is down ,and apts went way up. i dont do res ....pain in the ass for me..... but will make truck 3 get into that market

 

[Brian R]

Where I stand right now, I am up 30% across the board from last year total income.

I was doing some reports on quickbooks and I thought It would be better than that.

Some of that money was straight income from out of the area subs (they paid me) so not all of that 30% was cut in half so really I am up more than I think......I think.

I will see what my accountant says.

 

[Brian R]

Ok so I got curious about my last post and looked into my invoice total for year to date.

I am up 64.7% from last year on my invoice totals. :shock:
It feels like it....although it's hard to believe that I have created that much more work.
No wonder I feel like I never sleep.

You are saying yea, but 50% of that is paid out...that's right.
But...
I am not paying out any on vans and gas etc.
Where I lose 50% of the new business...I am paying out 30% less on the above things.
So by my calculations...I should be up 44.7% this year? Hell I think that's right. :shock:

I could be wrong.

"I'm a business owner not an accountant Jim!"

 

[Bruce Humphrey]

Business is up for us, but a lot of hard work has gone into that up swing. Had we kept on the same path from two years ago things would be tuff right now. When the economy comes back around we will be near the top. :-)

 

[Brian R]

Yea if this "bad economy" turns around, I may have more work than I can handle

But I will love trying to handle it.

 

[daniel@procarpet]

I see Stanley Steemer has dropped their minimum to 68 dollars for 2 rooms. Thats cheap.

 

[Jeremy]

Make a grab for market share!

 

[Able 1]

I was down about 3%, but this month might even things up.. Oct. looks like it might be the best month this year :shock: ... I dropped the ball this year, and I'm going back to what works, and SMonster...

 

[Desk Jockey]

If you decide to discount your prices you have to be aware of what you're actually doing.

If for example your average sale is $100.00:

Average Job $100.00
Cost of Sale $60.00
Profit Margin $40.00
20-Jobs a week
Extended Margin $800.00

You want to stimulate business you have a sale
And offer a 20% Holiday discount

Discounted Job $80.00
Cost of Sale $60.00
Profit margin $20.00
30-Jobs a week
(10 increase)
Extended Margin $600.00

You are getting great response to the sale, you got 10 more jobs a week but are now you are working harder and making less. :shock:

 

[Steve Toburen]

If you decide to discount your prices you have to be aware of what you're actually doing.

If for example your average sale is $100.00:

Average Job $100.00
Cost of Sale $60.00
Profit Margin $40.00
20-Jobs a week
Extended Margin $800.00

You want to stimulate business you have a sale
And offer a 20% Holiday discount

Discounted Job $80.00
Cost of Sale $60.00
Profit margin $20.00
30-Jobs a week
(10 increase)
Extended Margin $600.00

You are getting great response to the sale, you got 10 more jobs a week but are now you are working harder and making less. :shock:

Careful, Chavez. A few more surprisingly analytical and intelligent posts like that and you will blow your cover here as an indolent (look it up) man of leisure. However. Chuck Violand would be proud of you!

Island Boy
www.StrategiesForSuccess

PS BTW, I am in agreement with both your numbers and the basic philosophy of your post.

 

[Brian R]

in?do?lent??/??ndl?nt/ Show Spelled Pronunciation [in-dl-uhnt] Show IPA
Use indolent in a Sentence
See web results for indolent
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–adjective 1. having or showing a disposition to avoid exertion; slothful: an indolent person.
2. Pathology. causing little or no pain; inactive or relatively benign: an indolent ulcer that is not painful and is slow to heal.



That's about right. :mrgreen:

 

[Desk Jockey]

LOL

That's not nice.........but may be true! :wink:

 

[Brian R]

Get to work Chavez..it's Saturday for crying out loud.

 

[Desk Jockey]

Hey I am at work, you guys just keep interrupting me!

It's ok I'm just paying bills....interrupt as much as you want, it might save me some money. :wink:


Seriously, back to the discounts, we give them at times, nothing wrong with doing it as long as you know what the true impact of giving them is.

 

[Brian R]

Wanna pay some of mine while you're at it?


Discounts work sometimes, you just have to make your money. (Funny I accidentally wrote "our" money and then fixed it...funny..well funny to me.)

If you give a discount and you lose money, what the point? You are just working to get more customers to screw you.

I will give a discount if I am making more money than I "need" to on a job. We have minimums and restrictions because some people out there just want something for as close to free as possible...no matter who it hurts.

 

[Desk Jockey]

No man, I hate paying my own. Do know how much money I'd have if I didn't pay anyone. :roll:

Sometimes we will work for the lower margins, just to keep tech's busy.

It's not ideal and you wouldn't want to do it for an extended length of time, but it's better than paying your labor to perform non profit generating tasks.

 

[Brian R]

Lower margins and losing money are two different things...sometimes you have to do what you have to do.

If I get slow, I will call good customers and offer them screamin deals because "we are in their area for one day" or whatever.
I was surprised how well that worked.

I offered about 7 people half off of their carpet cleaning price if they could do it on a certain day and work with us on time. (they paid full price the time before so we made our money already)

every one of them did it :shock: and we were slammed for a day (one tech) but we made money that day...where we didn't have anything scheduled at all.

Haven't had to do that one again...Thank you God...but the idea is there if I get slow.

 

[Desk Jockey]

Everyone is looking for a deal now days, even those with money.

We did the air ducts at a large home they had 6-HVAC units. The homeowner asked for a discount for that many units. Which we gave him.

Then when we finished up sooner than the estimated days, he asked again if he was due a discount be cause we finished 6-hours sooner than we estimated. We did give him a little more off.

Then when it was time to pay he whipped our a roll of $100.00 bills and said is their a cash discount? Which we said no and he wrote us a check.

He has the money, that house is huge, but he knows in this economy all you have to do is press, and you'll get a better price.
:roll:

 

[Brian R]

Damn, Chavez...you caved...Just kidding. :wink:

People make and save money in times like these. People like that are leaches...or at least they are acting like leaches.

I hope you made money on the deal.