Same Old Story

[cchs nc]

I need to start off by saying what you charge is your own business….But when it starts to affect my bottom line I feel I have a right to get wound up. So excuse me if this is an unfriendly post.

I have been in the PW biz since 1999 and yes like most I started out part time. I know for a fact that most people’s taxes, insurance (workman’s comp., liability and health), fuel, maintenance, chemicals, equipment, food bill, electric, cell & office phone and a slew more all went up in cost since 1999.

So here comes my statement: Why in the Heck are there companies in my area
(Raleigh, Clayton, Apex, Cary, Garner, Fuquay, Cleveland, Holly Springs NC)
Charging
$125.00 (1800sqft and up)
$135.00 (Up to 3000 sqft)
$150.00 (2200 sqft & up)
for a House Wash? I mean come on I know income & real estate rates vary but lets get real guys your KILLING the industry! I don’t see why a minimum amount for a 2 story HW should be less than $175.00. I know a lot of these companies are part time and don’t do anything other than the siding for those prices but lets wake up if you ever want to do this full time you need to run it like a full time business. If your in the same area as me and agree or disagree post a reply.

 

[Harold Brantley]

cchs,nc -- Yours is not an unfriendly post, it is a frustrated post. You will always see lo-ballers no matter where you live. The good news is that these lo-ballers want be in business long, but the bad news is that there will always be others to take their place.

Concentrate on your business, be professional, be the industry leader in your area. You have to set standards for your business, such as no estimates over the phone. Meet with the caller at there home. Never go by yourself and do the proposal, why?

Several reasons. 1) This is your time, one on one, to sell yourself and your companies abilities as the premier company to do their cleaning. 2) If they aren't serious enough to meet with you, I tell them that is the only way I give proposals and stick to it. 3) If they are price shopping, most of there prices are over the phone or a dollar amount on the back of a business card. 4) Wear a nice solid shirt with your company name and logo on it. 5) Have a printed proposal form that you fill (hand written) out in detail the work to be done. 6) Listening to you talk about how you clean each surface ads crediability to you and your company. 7) Have a printed flier with a few photos that explains your services. They read the flier while I measure and write out the proposal. All of this will set you apart from the lo-baller and will get you the type of customer you want. Don't back off on your prices, if anything raise them.

Over time, your core business will be repeat customers (because of your quality of work), so stay in touch with them (yearly post card & phone call) so that next year they don't answer a lo-ballers $99.00 whole house wash classified ad. This takes time (many years) to get a core business that will support you and your family. Hang in there and good luck.

 

[Dan S]

Well said Harold.

 

[Larry L.]

I think they are differents in part timers,one they are just that part timers and the other is trying to start a business.The ones that are just that are the ones that lowball the prices and never will get their moneys worth.You will never teach them any better but the ones trying to start a business will listen.The part timers I know that are just part time for extra money I will never give them any business,the other ones I give to all time.

Then you have professionals that lowball prices too,these are the ones that make my hindend want a dip of snuff.

 

[Aplus]

I agree with Harold 100%, and use all the techniques he suggested.

The only thing is.....I can't figure out Larry's mention of his hindend wanting a dip of snuff???

 

[WashWagon]

cchs, I feel you. I live at the coast of NC. Land and home values here are in the high price range also and those type of guys are here too. I shake my head when I see a pick-up truck with a Lowes power washer and a water hose in the back. (I take that back, even Lowes has a nicer powerwasher for sale than some I have seen!!) I saw a crew the other day that did not look as if they could understand english, much less speak it. Sometimes it does seem like the cost of everything else goes up and the cost of powerwashing goes down(or at least the market tries to force it down). Stick by YOUR prices though. Only you know how much you need to make and still be fair to the customer.

John

 

[oneness]

Its just like any other industry that is fairly easy to get into, isn't regulated, and takes little to no training to trick owners into thinking you know what you're doing. It probably won't get any better, and may get worse. The problem is, many of these guys have no overhead...they have the gas for their truck, the gas for their washer, and a few gallons of bleach...they're ecstatic to make $25.00/hour washing. Figure a guy works 6 hours, does two housewashes for $100.00 each and collects his $200.00, spends $20 of that on gasoline and chems, and he's got $180.00 left over. Even IF he has insurance, it isn't that much, and he figures he'd have to pay his truck insurance and cell phone bill anyway..so that's not really overhead.....He just made $180.00 for 6 hours work, probably tax free. That's WAY more than he'd have made at his $10.00/hour laborer job or whatever.

The only thing I see that will change it is education...for both the owner and the lowballer. I mean, if you can show a guy how he can make $350-$500.00/day, rather than $200.00/day, and do a better job at the same time, who wouldn't jump at that? That's one reason I love these boards...the more of these guys who find them, the more their eyes will be opened to proper pricing AND proper procedures.

 

[Harold Brantley]

Mike, you mentioned educating the (home) owner and the lo-baller. I agree with educating the home owner and I actively do this in my sales calls. On the other hand, I do have a problem educating someone who could and would turn around and hurt me in the future.

I know that without any help or hinderance on my part the lo-baller will be gone soon enough. If he was truly wanting to be a professional he would seek out the information needed to make him a responsible competitor.

I know this may not be the right attitude for me to have, but I'm always open to someone who can change my mind. I do help out others that live close by but are not in my imediate work area. I am still building my business and therefore need each and every customer I can get. When my repeat business completely fills up my time, then maybe I'll help other power washers in my work area. But even then I don't think I could help the lo-baller.

Just my opinion.

 

[B.E YOUNG Sr]

Low ballers follow the seasons. In the spring they pop up and in the winter they fold.

They will always be there.

Educating your customers and yourself are ways to promote growth .

A customer needs to feel that you are very knowledgable once you have given them a proposal.

We also need to have our costs and profits clearly defined. You have to know what you make per job. What you think you make does not count!!!!!!!!!!!!!!!!!!!!

I have been working on a spread sheet in excell.

I enter in the hours I estimate the job at, the gallons of differant chems to be used.



At this point my diesel for the burner and gas for my machines is calculated and my total fuel cost is gven. You also enter in the currant cost per gallon before the calculations are made.

Chems costs are calculated for each item used

Mileage to the job is also calculated to give me the trucks expense for this job.

My helps labor and my labor are also calculated.

A % for maintenance is also calculated and deducted from job profit.

Business profit is also calculated.

I can immediatley see on the spread sheet if I am hitting my goals or if I am to low.

What this should do is help insure my future jobs fall in line with my goals. Everything is calculated and the picture is clear.
No assumptions are made.

I am also always looking for ways to be more efficent and to learn more. Time is money!

I forgot to mention that I am what I call a full time part timer!

 

[Harold Brantley]

B.E., good post. A reality check is important to make sure you are as profitable as you think you are. The check you are handed at the end of a good job is certainly not all profit. I write on all my finished job tickets, how many hours the job took this year. This way I know next year if the same price is good for another year or if I need to adjust to keep the profits I desire. I have never had a customer complain if I have to raise their price 3% to 6% from last year.

The lo-baller understands none of this and I am certainly not going to waste my time explaining it to him. Besides, he will be doing yard work or pool cleaning in a few weeks or months. Think about, plan and execute your business success, not his.