How long do you have before it's too late...

[Mikey P]

I think most carpet cleaning companies establish their reputation in a community after five years or so. I could be wrong on that number but that is my take on it.


After five years the established long term home owners will know something about your company. Your reputation will have leaked to the point where most folks who have their carpets cleaned on a regular basis will know if you are take your time, are a one man show, send out drug addicts, charge too much, are the bargain of the century, do a good enough job but the price is worth the few left over stains, use that floor buffer thing and not the big vacuum in the truck like most others, have employed a convicted pedophile and so on and so forth..


My question is, after your reputation is set, can you change it? At what point is it too late? Assuming one has the savings to hold out or can survive on just new unknowing transient type clientele? ( Like bait and switch coupon companies do so well)

Can you raise or lower your prices, can you start doing a better job? Can you start wearing clean clothes and brush your teefs? Can you buy a real truckmount and expect the community to slowing figure out that you are worth calling, either again or given a first try aside from what they've heard from their neighbors or on Yelp?


Have YOU changed your evOl ways and prospered?

Your opinions please..​

 

[Mikey P]

Ron Lippold has the need to drastically change his way of doing business.

Calls are on a steady decline for the last 18 months.

So why is that?

Ron's a very personable, normal looking clean cut guy so we'll rule out the Creep factor.

Based on his posts I'm going to guess he charges to much for his community and his availability was not timely enough to keep people from shopping around.

Large stone/tile jobs (and the Ft Knox fiasco) take too long and customers needed their carpets cleaned asap wont wait. Chances are some of those home owners found someone else who does as good, for less.

I think running around giving estimates could cause to less actual cleaning getting done. (and quit rolling around on the carpet showing them how soft the fibers are, that's weird...)

So Ron I think you have have a reputation of a expensive company that is had to get an appointment with.

Am I close?

How do you fix that?

I know you need to room for your hard floor stuff but consider a smaller truck, especially since you'll be single wanding it. The BIG truck could be part of the problem.

If lower prices, quicker cleaning is going to be your answer you might want to cut down that 24 flow thing. No way are those carpets drying quick in the colder months and now you don't have time to use fans or 5 dry passes.

Your website will need to be revamped to get the point across about your new ways..

Price shop your better competitors to see what their charging.

Work on getting online reviews that talk ab out how easy it was to book you and how affordable you are.

Put some fake ones on the front page of you site if you have to.





Please don't think Im picking on you Ron, I really hope you pull it off.


and make damn sure you come to MF, I think you can learn plenty there from cleaners who have prospered during the financial storm, especially Cole.

 

[FB7777]

Well, if its a price issue , thats nothing that a % off mailing campaign to your entire customer base on a reg basis won't help solve

Arrogance when your too busy can be our worst enemy as well... One man shows often let calls go to VM, don't return them for a few days or at all.

Customers will only chase " the worlds driest in one hour cleaner " for so long

We all run suck mops, some guys think we're more important than purchasing any home service

Not saying this is Ron's situation, cause I know nothing about his operation, other than him occasional coming on here saying he is smoking busy and runs a monster mount

The thing that has saved me the last few years has been holding prices for regulars and an already very fairly priced service experience

Free car mat cleaning, scotchgard an extra room for free , and other small gimmes go along way for customer loyalty and retention

 

[Ron Lippold]

Mike I'm at .33 a foot for the full meal deal pretty much what ever it takes. The people that do call don't ask about price, I think some of it is with no re soiling they can go longer in between cleanings.

Post cards have not been working door hangers or even 5 arounds. Probably passed out 7500 business cards last year.

People seem to be scared, not knowing what's happening.


without lance it will cut my expenses dramitically. Things will be ok. It just sucks to loose your right hand.

 

[Mikey P]

Are you using service monster?

Fill My Schedule certainly works.

Maybe you just need to do a shittier job...

 

[Shane Deubell]

Its never too late, you can change tomorrow if you want.
People are pretty open to giving a company a second chance.

Like losing weight or quit smoking... just do it
That being said i swear to start tomorrow!

 

[Desk Jockey]

I think most carpet cleaning companies establish their reputation in a community after five years or so. I could be wrong on that number but that is my take on it.


After five years the established long term home owners will know something about your company. Your reputation will have leaked to the point where most folks who have their carpets cleaned on a regular basis will know if you are take your time, are a one man show, send out drug addicts, charge too much, are the bargain of the century, do a good enough job but the price is worth the few left over stains, use that floor buffer thing and not the big vacuum in the truck like most others, have employed a convicted pedophile and so on and so forth..


My question is, after your reputation is set, can you change it? At what point is it too late? Assuming one has the savings to hold out or can survive on just new unknowing transient type clientele? ( Like bait and switch coupon companies do so well)

Can you raise or lower your prices, can you start doing a better job? Can you start wearing clean clothes and brush your teefs? Can you buy a real truckmount and expect the community to slowing figure out that you are worth calling, either again or given a first try aside from what they've heard from their neighbors or on Yelp?


Have YOU changed your evOl ways and prospered?

Your opinions please..​

I don't think it's ever too late, it might be expensive to buy your way back in but I think it could easily be done.
But it would be extreme make over time, just like an average looking women, new haircut, new make up new clothes and she looks like a million bucks.
For this company you’ll have to change its image. That could require a new van or a new wrap on your current one. Uniformed technicians or a upgrade of uniforms if they already wear them, follow it all the down way to everything you bring into the home.
Here is the hard part, you have let everyone know of the change.
Promote “New & Improved” use a Hoss, 360 or T-Rex as the new and improved system, show pictures and explain why it cleans better. Spend the bucks, cable TV, Radio, direct mail data base, handout to commercial.

Here is my question to you, why? Is the current data base priced in the market you’re comfortable with price wise? If not, don’t buy the company, you’ll most likely lose the data base as you attempt to raise the price.

 

[Desk Jockey]

Ron that's not too high a price, what is your local economy like, is it that or is it you? Sounds like you are trying to keep you name out there, could you afford to do more? Are you only mining your data base or have you done some prospecting in like markets in other parts of your city?

I know for ourselves we fell asleep at the wheel are as much to blame as the economy, something we have to get straightened out in 2013.

 

[steve_64]

every job your reputation is on the line. some will love you some wont.

more importantly is how you market imo.

under sell and over deliver. its easier to impress that way.

and doc, im guilty of the same thing. been on cruise control for a couple years getting my head straight after to much success to fast.

 

[Desk Jockey]

It's easy to do, just cruising along with sunny skies then you look down and the fuel gauge is running low, then the plane begins to lose altitude.

We need to refuel this jet to keep flying for at least 10-more years, by then I can parachute out with all I can grab.

Psstt don't tell my brother Dan, he will figure it out eventually!

 

[GCCLee]

It's easy to do, just cruising along with sunny skies then you look down and the fuel gauge is running low, then the plane begins to lose altitude.

We need to refuel this jet to keep flying for at least 10-more years, by then I can parachute out with all I can grab.

Psstt don't tell my brother Dan, he will figure it out eventually!

I Got my Chute on at all times right now. Scary ride out there for a start up!

 

[Desk Jockey]

Just a little turbulance, keep fueling the plane and you'll be good!

 

[Chris A]

We've gone through this scenario almost exactly. My business was a high price "take it or leave it" type with very little emphasis on why we were better and little to no marketing for new clients. It worked in the 90s and things went really well until people started looking elsewhere. The biz peaked in 01 at 200k. In 08 the first year I owned the biz we did about half that. Since then we've been able to grow substantially in new business but its been a big transformation and a lot of internet, referral group and past customer marketing to get to the point were at now (and its still a battle). Our biggest game changer was adding a consistant post card regimen to our past customers with a big emphasis on new customer referrals.

 

[Shane Deubell]

Can't be a milkman in this economy, have to keep that machine going even when you are busy and feel it is a waste. Everything seems to happen fast now.

 

[Royal Man]

I think most carpet cleaning companies establish their reputation in a community after five years or so. I could be wrong on that number but that is my take on it.


After five years the established long term home owners will know something about your company. Your reputation will have leaked to the point where most folks who have their carpets cleaned on a regular basis will know if you are take your time, are a one man show, send out drug addicts, charge too much, are the bargain of the century, do a good enough job but the price is worth the few left over stains, use that floor buffer thing and not the big vacuum in the truck like most others, have employed a convicted pedophile and so on and so forth..


My question is, after your reputation is set, can you change it? At what point is it too late? Assuming one has the savings to hold out or can survive on just new unknowing transient type clientele? ( Like bait and switch coupon companies do so well)

Can you raise or lower your prices, can you start doing a better job? Can you start wearing clean clothes and brush your teefs? Can you buy a real truckmount and expect the community to slowing figure out that you are worth calling, either again or given a first try aside from what they've heard from their neighbors or on Yelp?


Have YOU changed your evOl ways and prospered?

Your opinions please..​

The five year thing just doesn't fly. There are 70 companies here and I don't even know which ones are good or not. So, the prospects would have even less of a clue. Mainly they go by the looks of your website, other marketing pieces, the looks of your van and the biggie, Reviews from your clients. Prospects are always moving in and out of a community. improving the visabilaty of your business and putting in a complete service scrip, 1st class uniforms, Service checks and the on job extras can be done in 30 days or less. It's not about price. That is wayyyyy down the list for residential.

 

[GCCLee]

. There are 70 companies here and I don't even know which ones are good or not.

Are they all actually an operating business?

 

[Royal Man]

Are they all actually an operating business?

Yep. Our population is not really that big. But, this area is a magnet for carpet cleaning companies. Some come and others go. The number usually hovers around 70. http://www.yellowpages.com/lincoln-ne/carpet-rug-cleaners

 

[Chris A]

There's a few double entries in there and a few miscatagorized so probably more like 65

 

[Royal Man]

The main thing is. (Not to lose the point of this thread.) That there are a lot of carpet cleaners. Client can't keep track or follow which ones are better that others.5 years 2 years,15 years it doesn't matter. This is why a USP is so important and also seeing your material and actions through the eyes of the client. Presentation is far more important that cleaning, prices and most other crap. Select your bait wisely to reel the prospects in.

 

[ruff]

The short answer to Mike's question is: Absolutely yes, it can be done.
However...........

It requires a very honest assesment of why the business is not doing well. And with most of us-owner operators, what is even harder- a very honest self assesment.

Easier said than done.

Once the reasons for what is happening are understood, the solution will be clear and straight forward.

 

[FredC]

I have about 30 days every 90 days to completely change the way I do things....


Most times I hit a home run............sometimes not

 

[KevinL]

I agree with Yoakum completely.Most of the population doesn't have a clue who to call when they finally give up doing it themselves. We'd all be surprised at how many people own machines and think they can do just as good a job. And I'm sure like most of Arizona, where Ron is probably has hundreds of cleaners. The last few years it has become more about price. Everyone wants a deal. Want new customers, advertise a low price.

 

[Ron Lippold]

Here in NM the economy is bad it seems on the low end it's drug dealers and hookers that have the cash, higher end customers are waiting a lot longer to get it cleaned.

Albuquerque has probably 300 carpet cleaners, I see new vans- companies everyday, apt complexes are down to a starting price of 35.00 for a 1 bed room a 3 br will get ya 60-65.

Its not been bad with out lance, I do hate the pre vac and grooming, much more cash in my pocket.

 

[steve_64]

Here in NM the economy is bad it seems on the low end it's drug dealers and hookers that have the cash, higher end customers are waiting a lot longer to get it cleaned.

Albuquerque has probably 300 carpet cleaners, I see new vans- companies everyday, apt complexes are down to a starting price of 35.00 for a 1 bed room a 3 br will get ya 60-65.

Its not been bad with out lance, I do hate the pre vac and grooming, much more cash in my pocket.

i feel better now ron thank you. i get $50 for a one bed and $65 for a two and $75 for a three except for a couple complexes that tried others and came back. there its $65 for a one and $75 for a two. if they are actually dirty or stinky i get another $25 to $100 and more sometimes. a one bed takes about 20 minutes total unless its dirty. buti dont walk i run and i make each movement productive, no wasted steps or i try anyway. long strides and take 2 or three stairs at a time running lol. yes seriously. i approach it as a work out. helpers get in my way usually.

 

[Greg Cole]

Things are about to get worse with the ss tax rate going back to 6.2%. This is quite a bit of money to the lower middle class. if your target customer is in the demographic, I strongly suggest making changes to your marketing and pricing model. Otherwise, you are likely to see a moderate drop in the # of jobs you perform this year as well as your job average.

 

[Steve Toburen]

Here in NM the economy is bad it seems on the low end it's drug dealers and hookers that have the cash...

So Ron, I don't understand. Drug dealer's and hooker's cash is no good?

Steve

PS Actually Ron's struggles point up a sea change in the American economy in the last six years. Most of your customers are making the same (or more) salary. BUT due to a)the drop in their home's value ( I just read that 21% of all homes in America are "under water"- worth less than the mortgage) and b) the relentless drumbeat of bad economic news from the media your clients FEEL poorer than they did 5-6 years ago.

This is bad news for the average residential cleaner since carpet cleaning is both a discretionary income service and an "emotionally motivated" purchase. So as many of you have posted above the smart entrepreneur has had to make "adjustments" to survive/prosper. The key is to develop regular cash flow from routine/loyal clients AND to have a marketing calendar to replace the ones that "fall away". (Even the best business suffers "customer erosion".)

Ron, one thought. Think where you would be today if you had implemented the pre-paid residential "Stay Beautiful" program way back after your February, 2008 SFS seminar. For example, if you have been averaging 600 jobs per year at a 250.00 average and you had been signing up just 5% of these houses per year on a S/B plan you would currently have a "guaranteed cash flow" (more or less) of over 45,000.00 per year as a base. (Plus these people that you are doing the "automatic withdrawal' thing require no marketing expense to keep them as clients. They are "locked in".)

 

[ruff]

I'd be curious to know how many have done the "Stay Beautiful" program for a prolonged time?

My unsubstantiated concern about such a program, is that in the long term it will actually alienate clients. And that they will be quite happy to get rid of 'one more not totally necessary' expense that regularly drains the budget.

 

[Shane Deubell]

I'd be curious to know how many have done the "Stay Beautiful" program for a prolonged time?

My unsubstantiated concern about such a program, is that in the long term it will actually alienate clients. And that they will be quite happy to get rid of 'one more not totally unnecessary' expense that regularly drains the budget.

Me also, my thoughts are it would require a pretty good, consistent advertising campaign. Maybe start off with a basic package for $10 month, low enough where people do not pay attention.
Then you can still sell more at time of service.

 

[Desk Jockey]

I'm one of those losers, built 5-years ago and every year it loses value. Just fortunate not to be upside down but still not one of the wisest moves I've made.

 

[Steve Toburen]

I'd be curious to know how many have done the "Stay Beautiful" program for a prolonged time?

My unsubstantiated concern about such a program, is that in the long term it will actually alienate clients. And that they will be quite happy to get rid of 'one more not totally unnecessary' expense that regularly drains the budget.

Good questions, Ofer. Quite a few of our SFS attendees offer it.

We've found zero negative feedback from offering this option. We stress that the program should never be high-pressure sold. Just explain what it does and home owners will either love it or say "no thanks". Which is fine. It literally is a two minute "up sell" that starts out, "Have you heard about our Stay Beautiful program?"

Re: your "'one more not totally unnecessary' expense that regularly drains the budget" concern, Ofer, it is a small (and painless) amount. (Usually 20.00 to 40.00 per month which includes a yearly- or more often- free spotting call.) Plus the homeowner can cancel the program any time. In fact, the contract we include with the SFS materials specifically states that all "unused funds" will be refunded at any time- no questions asked.

Steve

PS I'm not pushing this concept on anybody. Even though I developed it I don't make a nickel on the Stay Beautiful idea. (Jeff Bishop actually gave me the idea way back in the late '70's.) The S/B forms and contracts are included free in the SFS seminar. Or someone can download my free Special Report on how to set it up and do it on their own. The S/B program isn't a Silver Bullet but it can be a pretty good option to offer in these confusing times.