Wow, Mike, a headline that will wake a guy up first thing in the morning. I hadn't even made coffee yet!
OK. I have my coffee in hand now. So my first point is a question right back at you. Are you wanting to know how to keep more of what you charge or exactly how much to charge per square foot in your local market place?
Re: the latter I'm not sure I can be of much help. I don't know your area, the degree of competition you face (there has to be at least SOME high-end competitors there) or your market image. And based on reading your posts over the years it appears you have already conquered the average carpet cleaners two biggest problems on charging more- #1 FEAR and #2 a poor self image! (I think everyone would agree, Mike, that you don't suffer from low self esteem issues!)
So is it that a) you need to charge more per square foot or b) are hitting the wall with the amount of work you can produce with your current business model or c) just need more money sticking to your wallet?
Sooner or later every carpet cleaner (even the high priced ones that crank out great work and have lots of Cheerleaders) hit what I call the "Barber's Quandary". You yourself in a one chair barber shop can only cut so many heads of hair. Soooo the bigger question becomes what sort of business (and life) do you want to have?
Not to toot my own horn but this is where our
Strategies for Success seminar really shines, Mike. The
SFS seminar serves as a "management retreat" helping carpet cleaning entrepreneurs analyze where they want to go and then giving them the tools on how to get there.
The biggest danger is so many carpet cleaners wind up in sort of a "no man's land". What I call "too big but too small". They have all the headaches and much of the overhead of running a large business but never achieve the "critical mass" to make it into an real business instead of just a well-paying but highly stressful 24-7 JOB! (I wrote an ICS article on this subject three years ago that elicited more fan mail than any column I have ever written. If anyone would like a copy just write me at
stoburen@homefrontsuccess.com Be sure to specify you want the article called "Avoiding the Road In-between.")
I think I am rambling here Mike (you did say to make it long). How to make more money with your current set-up? Some thoughts:
1. Charge more. But eventually even an ego-maniac carpet cleaner working in a high priced area will limit out on this.
2. Upsell more so the ticket is bigger. This is an area where the average carpet cleaner owner/operator falls down big time and employees are even worse. Simply put, the single most profitable thing you can do in this business is sell and apply protector. (I like 3-M Scotchgard but Teflon is fine too.) And yes, I have a Special Report that does a pretty good job of specific tactics and scripts on how to supercharge your SG sales in the home. (Write for it if you wish. Specify the Up-selling Report.) The best "Scotchgard secret"? Just Ask For the Order! Too often we don't. (I think this up-selling subject is so important we dedicate two precious hours of the
SFS seminar just on how to promote, market and sell carpet protector in the home.)
3. Work faster/more efficiently. I assume you are already on top of this.
4. Work your business numbers. Most of us (myself included) hate dealing with the nuts and bolts of financial reports in business. I would receive my monthly P & L, flip to the back page, look at the number, "Oh, I made a profit last month!" and throw it aside. That attitude is why I hired Chuck "Every number tells a story" Violand to teach the financial part of
SFS. Chuck spends most of a day teaching our students how to dissect and analyze their financial reports AND then how to set their prices scientifically to truly make a real profit.
5. Spend less personally. This is obviously a less popular option! Especially for those of us who like toys such as quality wine, fancy scooters and high priced pistols and the bullets that feed them! But sit down some time and track how much of your income is just "frittered away" in purchases that don't provide lasting value/gratification. (Fast food comes to mind!)
6. Save more/ invest better. The saying "pay yourself first" has become popular and with good reason. But I would add, "pay your Personal Investment Plan (PIP) first". In my 70 page Special Report "Cleaning UP: Building Financial Wealth in the Cleaning Industry" (and yes, just write me for an e-mailed copy) I strongly promote the idea of "Sweeping" a percentage of business income into your personal investment. All owner/operators could sweep 5% and probably not even feel it. With a little bit of pain and financial adjusting they could hit 10%. The key here is to sweep the money on EVERY bank deposit and do it forever. Over time you will be amazed at the effect it will have on your net worth. even better, having that 'nest egg" as a cushion will change your attitude so you actually ""feel rich".
Hey Mike, I'm still not sure I answered your "how much" question. Cut to the chase. When you come to
SFS (We still have a few seats open for our first West Coast
SFS in Portland, May 14-18) Chuck will teach you how to prices using his "5 M's" technique, which is excellent. I was more seat of my pants. I always wanted my prices to be at the "POP" (Point of Pain) level. If my clients routinely winced a little bit as I gave them my proposal I know I was on the right track!
This is a good topic for many of our board members, Mike. A lot of them (due to their excellent technical work) have hit the Barber's Quandary. and there are so many different solutions. That is what makes this such a great, but at time frustrating, industry. Too many options!!!
Steve Toburen CR
Director of Training
Jon-Don's
Strategies for Success
PS Hey Mike, your financial concerns may be solved! I've never kicked in for your 5 bucks monthly request just because I never wanted to go through the Pay Pal sign up deal. But I just remembered that my daughter Megan has an account. So I'll kick in this weekend which means your financial worries are a thing of the past!
NOTE: For anyone who wants any (or all) of the special reports mentioned above please write me at
stoburen@homefrontsuccess.com instead of using the PM feature here. I've never learned how to attach my reports replying to personal messages.
Also I should mention that FINALLY my new 30 minute DVD on the management concepts behind
Strategies for Success is supposed to arrive at Jon-Don headquarters today. For those of you who have already requested this and have been waiting- you will be receiving your DVD soon. Please take the time to watch it. I think it is some of the best work I have ever done.
If anyone else would like this DVD just e-mail me your name, business name, UPS shipping address and business phone number. The DVD is free and without obligation.
