Daily Profits

High Pressure

New Member
I'm looking for some opinions on how much you all consider a good profit at the end of the day for a one man operation. For example, when giving a bid on a job cleaning a huge vinyl sided house that will take a full 8-10 hour day, how much are you looking to walk away with? This type of job would probably cost less than $75 for cleaning products, diesel and gas.

It's been suggested to base it on $75/hour which would be $600-$750 which I think sounds kind of pricey. And since there's a lot of competition in this area, I'm in a toss up as to how high or low to go without selling myself short or being too high and losing the job.

How much would you charge for this type of job?
 

Andy Wheatley

New Member
This may not be the answer you're looking for and I'm sure your question will generate alot of different responses. I like to keep things simple and this can get really complicated depending on who you talk to. I like to look at averages and not just the profitability in one or two jobs.

Simplified Example:

Lets say you are a one man operation and wanted to see a $500 profit in your business each month; you wanted to pay yourself a salary of $5000 per month; and had monthly expenses totaling $2000 per month; (and) your total billable hours per month was 120.

$500 profit + $5000 salary + $2000 expenses = $7500/month
$7500 divided by 120 billable hours = $62.50 per billable hour you would have to charge to meet your goal listed above for that month.

This should also be calculated on an annual basis by substituting monthly data for annual data so you can see the big picture and account for slower and non-seasonal months. This will allow you to be more precise in setting financial goals. As you can see there are certain factors you must know to put this to work for you (expenses, billable hours etc...). Just a note about billable hours - that is actual time billed to specific jobs, not running after parts, chemicals, answering the cell phone, lunches or anything besides work on site. Really KNOW your billable hours and expenses!

It may cost alot more or alot less for you to do business than you what you're current rates are. If it is LESS, please don't take this post as a reason to undercut others or drive the VALUE of contract cleaning down in your area. Just my 2 cents...
Good luck!
 
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JR Wood

New Member
If the house is really going to take 8-10 hours then charge the price you said.I suspect that someone else could probably do it a lot faster and cheaper,but hard to say without seeing house.
As for profits...I make $500,$600,$700 per day depending on how long I stay out...BUT I AM STILL BROKE!
 

Richard R.

New Member
High Pressure,
It would be better knowing who you are, but I guess for this question, it probably doesn't matter.

I agree that $75.00 an hour is a little pricey, but only in certain situations.
If housewash is the example, $75.00 per hour is a bit pricey for someone like myself who I consider a novice for at least the first year. This is why the Journeyman on this network have set different pricing guidelines and methods to choose from.
I use the $1.00 per linear foot for one story and $2.00 per linear foot for two stories. This way the customer doesn't pay for my training and the Journeyman of this profession are not embarrassed to be associated with me.
If I were to do a home of about 300 linear ft with about $65 in chemicals and fuel, I would charge the customer about $365 or somewhere there about. This is a fairly reasonable price I think for that size of house. In the beginning this house would have taken me about 8 hours to do, depending on how much prep was involved. If I were to charge $75.00 an hour this would be about $665.00 give or take. Do I think it would be worth that price, yes I do, but I probably wouldn't get the job in this area because the people here are simply not educated as to how much I may be saving them.
If you think $75.00 per hour is to pricey think about this.
Many times I get a call to wash a house where the customer was told by their painter that they needed to have their house washed first with a mildecide product before they paint their home. If you know what it cost to have your house painted by a professional painter, then you will know what I'm leading up to. In a lot of cases I wash the house and guess what? The customer comes out during the process and says, " I didn't know powerwashing a house made this much difference. The next thing I know, the customer has called the painter and canceled the house painting. Many of my customer are totally flabbergasted.
Now when you think about it, you have saved this customer hundreds of dollars. I have actually drove off leaving the customer starring at their house shaking their heads smiling and waving back at me. Now if I would have charged the customer $665.00 would I feel guilty? Probably not.
This may be a poor way of looking at it, but when you add it all up, you come up with your answer. $75.00 per hour is not always pricey.
For a Journeyman, $75.00 per hour is probably a little low in many cases.
If your a novice and want to stay on the safe side, use the linear foot method and I think you will find it will work OK for you.
If you feel that the linear foot method is to pricey...well...you probably won't make it in washing houses for long before you start to suffer from burnout.
If your customers are not as astonished as mine are, chances are your not using the right chemical mix. This alone makes the cost seem to the customer, worth every penny.
To top it off, I know my pricing is probably to low because many of my customers are giving me $25 to $50.00 tips when I'm finished.

Hope this helps.

Richard R.
 
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JR Wood

New Member
Hi Richard,
A word of caution,If your customers give you a tip than they think you undercharged them.I used to get tips all the time and I realized after a while(from actual customers telling me I was too cheap).I still get an occasional tip.Sometimes I refuse.
 

Richard R.

New Member
Hi JR.
I just wish I knew which ones were going to think I was to cheap.
I guess that's business.
I'm afraid if I go up I will loose the jobs.
I suppose the best thing to do is hold it at this price until my business becomes more popular, maybe in a year, and then creep my prices up a little.

This is one of thoughs times that I wish someone else was making the decisions.

Richard R.
 

JR Wood

New Member
Richard,
Start with the jobs that you don't really want to do.Give them a higher price and see what happens.You don't want to get every job because that means you are too cheap.When I first started I got almost every single job that I estimated.I am down to about 60% or so and that's only because I try to get to an estimate almost immediately.A lot of people will hire the first guy and sometimes if they like you and you can answer every question they have they won't even get another estimate.After you are done with a job that came out good and the customers is happy,ask them if they got another estimate and how much it was for.Customers will tell you.
Also your post called "lesson learned"
My motto is ,when in doubt: strip, strip, strip.If you see old finish on the spindles.It is on the floor too,even if it appears to absorb water that doesn't mean anything.Ordinary cleaner won't get it off.
 

klean_freak

New Member
OMG YOU CLEANING never never land man 8 HOURS???
you doin the roof, concrete, and are you using a PRESSURE CLEANER??
SORRY TO BE HARSH but 8 hours on one house what is the SQ Footage??
I CHARGE .05 CENTS A SQ depending on what i gotta move and cover vegetation. but then again i dont know the circumstance so sorry.
 
O

OrangeCrest

Guest
Interesting Klean... I wonder if these guys even remember posting these post....

Some of them I don't even remember, LOL!!!

No more drinks for you kid... You are cut off!!
 

klean_freak

New Member
Originally posted by OrangeCrest
Interesting Klean... I wonder if these guys even remember posting these post....

Some of them I don't even remember, LOL!!!

No more drinks for you kid... You are cut off!!

lol so what yoiu think bout site well you have a good night and yes im cut off right now.:D
 

john orr

New Member
6 to 8 hours to wash ONE house?! How big is it? How are you washing it? Are you also washing the drive/deck/fence?

Unfortunately, figuring an hourly rate when you are stating out is difficult as you are learning better/faster techniques all the time. Realistically, you can only charge a reasonable amount, no matter how long it takes you.

For me, $1 sq ft works well. Most people know their homes' approx sq footage and after a awhile, you can pretty much guess for yourself. An average house in my area is between 2000 and 2500 sq ft - so my average price is $200 to $250.

When I started 5 years ago, a 2000 sq ft house would have taken me all day - it now takes me about 1 1/2 to 2 hours. So I used to make about $30/hr and now make about $100 hour for the same work.

Hope that helps.
 

Tom Richter

New Member
1.00 a foot

john orr said:
6 to 8 hours to wash ONE house?! How big is it? How are you washing it? Are you also washing the drive/deck/fence?

Unfortunately, figuring an hourly rate when you are stating out is difficult as you are learning better/faster techniques all the time. Realistically, you can only charge a reasonable amount, no matter how long it takes you.

For me, $1 sq ft works well. Most people know their homes' approx sq footage and after a awhile, you can pretty much guess for yourself. An average house in my area is between 2000 and 2500 sq ft - so my average price is $200 to $250.

When I started 5 years ago, a 2000 sq ft house would have taken me all day - it now takes me about 1 1/2 to 2 hours. So I used to make about $30/hr and now make about $100 hour for the same work.

Hope that helps.
Hey John, that's .10 a square foot
 

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