out of businesses..

Mikey P

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Oct 6, 2006
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112,312
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The High Chapperal
To have weathered this financial storm that started almost four years ago it has taken some real effort and innovation for even the most veteran of businessmen to stay afloat.

Most would be happy to stay even with prior years. All would be ecstatic with a slight gain..

But in reality most every one has taken a loss (unless your on stage on a round table lying your ass off) and many I'm afraid have taken down the tent and are looking for work..

Right?

How are you pulling it off? and more to the point, how is your competition doing?




I personally started running the second truck to complete jobs we use to give or then away. That cost more in labor but the profit and a healthier back has made it worth the effort. We've also been more negotiable on pricing and methods .

But we really are blessed by the almighty Trinity in the sky to live in a bubble made of Silicon here in Santa Cruz..
 
Joined
Oct 7, 2006
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18,834
Location
Benton KY USA
Name
Lee Stockwell
It's been tough.

We bought out a local competitor (bought his truck) who had been here 7+ years.

He quit to install satellite dishes, said he couldn't handle the stress. He came in from Atlanta and gobbled up the apartments at $35 a pop running a new WM with the dual blower set up.

I tried to help him, from freeze proofing in the winter, to minor fixes on his machine. He wasn't cut out for the business.
 

Desk Jockey

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Oct 9, 2006
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64,833
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A planet far far away
Name
Rico Suave
It's been a steady decline over the last several years but we are hanging in there. Topeka has a lot of State & Federal jobs so we are some what insulated from drastic changes in the economy. We are cleaning a lot more commercial carpet then ever before.


We've probably hurt ourselves more than the economy has hurt us. We became complacent and figured work would pour in as it always has in the past. But someone moved our cheese and we didn't recognize it soon enough. So we are starting to spend a little more on marketing than in the past, both in time and money.

For now we are just hanging in there an waiting for better times.
 

Jack May

That Kiwi
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Oct 7, 2006
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Palmerston North, New Zealand
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John
We've probably hurt ourselves more than the economy has hurt us. We became complacent and figured work would pour in as it always has in the past. But someone moved our cheese and we didn't recognize it soon enough. So we are starting to spend a little more on marketing than in the past, both in time and money.

bang on Richard!! And I'm guilty of exactly the same :(
John
 

Shorty

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Nov 8, 2006
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Cairns
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Shorty Glanville
It's been a steady decline over the last several years but we are hanging in there.

We've probably hurt ourselves more than the economy has hurt us. We became complacent and figured work would pour in as it always has in the past. But someone moved our cheese and we didn't recognize it soon enough. So we are starting to spend a little more on marketing than in the past, both in time and money.

For now we are just hanging in there an waiting for better times.


So that's what happened !!!!:icon_rolleyes:

I knew things were getting tougher, and many more cheap cleaners were coming into town, many of them also didn't stay long, but they had an impact on the rental market.

My move-outs dropped dramatically which I mistakenly put down to several builders and large property owners going bankrupt.

New managers in large complexes always want to show how good they are at saving money for their bosses, so cheaper carpet cleaners get the work.

I didn't adjust and meet their demands.

Recently I've been called in to clean some of these apartments, OMG !!! & they call themselves carpet cleaners !!!!!!!!!! :errf:

On the flip side, like Richard, my commercial work has also picked up along with my leather work.

I also have been thinking about more advertising which I have been against for sooooo long.

Guess it's time for another read about my cheese.

An amazing way to deal with change in your work and in your life. :winky:
 
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Willy P

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Oct 2, 2007
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Vancouver
Name
Willy P
Up 24%, 32%, 22% and 24% profit over the last 4 years. I'm working at it a little too hard, but I've managed to get my son to come on board for a month or two so I can get myself slowed down a little. He's a really diligent cleaner and came with me when he was quite young.
 

Ken Snow

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Oct 7, 2006
Messages
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Bingham Farms MI
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Ken Snow
Rock on willy! Not sure why the doom and gloom post happened. Service is where it's at in a down economy.

Sent from my DROID RAZR using Tapatalk 2
 

Vivers

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Feb 20, 2012
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833
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Aliso Viejo
Name
Bill
What I noticed is not only did the economy take a punch in the ball bag but also the way to advertise as well, right at the same time. All print ads really slowed or stopped entirely working, like yellow pages, etc.. So then we became dependent on our repeats and their referrals, however many of them cleaned much less often as they lost there jobs, were downsized, etc...

So even though we did have a website, we were not setup to get jobs from it via search engines results. Now we are and it has really helped with more new clients for our company. Also the review sites I must say are wonderful as well if you run the type of company people are searching for on those.

Much more informed consumers now with review sites, and I for one am thrilled with them. All the hacks, low ballers, big boys, etc.. Are going down because of these. People are tired of being ripped off, poor quality work/ techs and now know where to go. So all & all things are looking up!
 

Able 1

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Apr 12, 2008
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6,469
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Wi
Name
Keith
I have noticed nothing as far as income... 2nd year 10% growth,3rd 10%growth,4th 10% growth,5th10% growth,6th 20% growth, 7th year 20% growth... I have noticed a drop in residential cleaning though. I am very goal orientated and get pissed when a month the previous year is better then the current one.. I think it's important in this business to evolve to our current circumstances.
 

floorguy

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Nov 7, 2006
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Utah
Name
Doug
from even to 10% up fluctuation in those 4 years... I have maintained pretty much all of my accts over that time....also bought someone out 3 years ago now, mostly for the machine...but his accts have avg around $1000 a mth, not to mention the shoot offs from that...

Plus the fact I am diversified in so many things related to cleaning that it helps as well....

this last year when i added the web site has generated about $300-$700 a mth...not a ton, but for little to no SEO type stuff. Other then what hoodles did.. Makes me VERY happy..

The key through it all though DO KICK ASS WORK THAT MAKES PEOPLE WANT TO STAY WITH YOU!!!

Picked up a few smallish property owners work this way
 

ACE

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Joined
Aug 22, 2008
Messages
2,513
Location
Lawrence, KS
Name
Mike Hughes
I would have felt the bite if I were better established. I think the down economy helped me more then it hurt. The competition is downsizing and I was able to buy vehicles and equipment at fire sale prices. It’s a buyer’s market for employees. People seem more willing to pay for restorative cleaning when faced with replacement cost.
A good owner op can do well in this economy. I’m trying to take the company to a multi Truck operation and I know it will be an uphill battle. I didn’t come this far to be a wand jock forever.
 

Ron Werner

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Nov 25, 2006
Messages
8,725
Location
Sooke BC, Lower Vancouver Island
Name
Ron Werner
phone hasn't been ringing over here, and yes, I've dropped the marketing ball.
done about the same number of jobs but not as high a job average.
I've been working with another cleaner, work has been slow enough that I can help him on his work and still do my own without missing out.

I started doing more work without vacuuming (influenced by too many guys on here :winky: ) the trick was how to explain it. So I'm offering 3 levels of cleaning to meet people's budgets so that when they DO call I am not losing work. Work has picked up this past month. Economy must be better in Vancouver for Willy. Other cleaners have been slow over here, and some have been busy. It hasn't been price that has deterred work, people just haven't been calling. Its been the same for other industries as well here. I've heard the same story from guys in other busns.
 

Chris A

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Sep 25, 2007
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5,475
Location
OH
Name
Chris
We've had some slow, and even some super slow periods over the past 4 years, but for the most part, we've had steady growth. We will end this year down probably about 15% from last year, mostly due to the complete lack of work from our 3 restoration contractors. We depended too much on that last year. Still be 8-10% above 2010's numbers though, so I'm good with that. (sorta)
 

Ken Snow

RIP
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Oct 7, 2006
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Bingham Farms MI
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Ken Snow
Chris- consider segregating that type of work in your analysis so that you have a true picture of your different segments of business. Some to consider

Residential- non restoration
Commercial- non restoration
Rug Cleaning- In Shop/Plant
Rug Repair- In Shop or Subcontracted

Restoration (can break down by res/commercial if you have enough to make it worthwhile.

Each of the above categories can also have numerous subcategories i.e. carpet, furniture, tile, etc. if you wan to get really anal.

Also for yourself and your 2nd truck techs have analysis of what they go out with vs what they came back with to get an add-on rate.
 

floorguy

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Nov 7, 2006
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6,948
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Utah
Name
Doug
Did he make the format switch? I wonder if the switch got a few guys.

Most likely too busy to log on and post. ????

ti busy chasing womens....or to busy looking for the next building he thinks he wants:rockon:
 

mirf

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Sep 14, 2008
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New jersey
Name
David Mirfin
The market is changing all the time. Not only the disposable income factor but the choice of flooring and where it is located. We continue to do more tile with limited marketing other than letting our clients know it is available. Less carpet every return on first floor or so it seems. Also upholstery is so much leather or micro fiber. Change it never going to stop so we must adapt or ???
 

Chris A

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Sep 25, 2007
Messages
5,475
Location
OH
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Chris
Chris- consider segregating that type of work in your analysis so that you have a true picture of your different segments of business. Some to consider

Residential- non restoration
Commercial- non restoration
Rug Cleaning- In Shop/Plant
Rug Repair- In Shop or Subcontracted

Restoration (can break down by res/commercial if you have enough to make it worthwhile.

Each of the above categories can also have numerous subcategories i.e. carpet, furniture, tile, etc. if you wan to get really anal.

Also for yourself and your 2nd truck techs have analysis of what they go out with vs what they came back with to get an add-on rate.

Yup, your absolutelying right. Stephs been kicking ass with commercial sales but because all the restoration is lumped into commercial the growth isn't showing. Resi is up a couple ticks...
 

Ken Snow

RIP
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Oct 7, 2006
Messages
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Bingham Farms MI
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Ken Snow
Move it out of comm sales - it is different and the ups and downs distort true commercial.

Sent from my DROID RAZR using Tapatalk 2
 

Shane Deubell

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Joined
Jun 30, 2011
Messages
4,052
Being super careful of adding fixed costs, dont mind taking chances sometimes but do not want to get stuck either.

Keeping personal luxuries to a minimum.
 

XTREME1

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Joined
Nov 13, 2006
Messages
9,681
Location
Ma
Name
Greg Crowley
Busier than ever. Keeps growing every year. Cut some customers who were pains in the ass
 
Joined
May 7, 2008
Messages
8,180
Location
PA
Name
I'm Rick James
We are pretty lucky here in WA state.. We have Boeing, Microsoft, Starbucks and a ton of large business that keeps the cash flowing through the area. I started my biz during the great second depression, so it only went up for me. This year was really a break out year, went to SFS and learned a lot.. bought a couple of TM's and just trying to live the American Dream. The company is going good, finally hired someone to take care of the phone and other admin work. I am in the process of an image make over so next year is really going to be great.
 

Derek

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Oct 7, 2006
Messages
2,165
Location
NY
Name
Derek
we've been fortunate. about 4% increase every year for past 6 years. i am on the phone a lot making sales calls to each of the 1200-1400 marketing envelopes i've dropped off to various businesses when i've gone out canvassing since 2005. i've canvassed a radius of about 50-90 miles (50 miles NW - 90 miles SE.) i call each until they tell me they're not interested or are happy with who they have. then i give them a few years break and call them again to see if things have changed for them (new decision maker, unhappy with provider.)

fortunate enough to be in a decent area ...that's definitely helped!!
 

Doug Cox

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Dec 17, 2006
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4,726
Location
Delavan, WI
Name
Doug Cox
Like Keith, we've seen awesome revenue increases this year. Actually this will by far be my best year ever. For the first half of the year, we were up almost 20%. Alot of the companies in my area are gone for various reasons.
 

Newman

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Aug 1, 2008
Messages
1,062
Location
St. Charles, IL USA
Name
Chris Newman
To have weathered this financial storm that started almost four years ago it has taken some real effort and innovation for even the most veteran of businessmen to stay afloat.

Sorry guys, it was all my fault. I caused the financial and housing markets to crash by merely entering the world of small business. I am a newb who purchased an existing CC biz mid December of 2007. The blue dot at the top of the nearly vertical line on the chart below is the day I made the commitment. I quit an excellent, stable, secure, and well paying corporate Facilities Management career to strike it out on my own and chase that American dream of independence.

I am committed to success. It has been quite a learning curve but alas I am still here. Forever the optimist, I move forward every day with the certainty that when the economic climate of our great country takes a turn for the better, all of us who survived will be well staged to reap the rewards!
 
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