Recession impact?

Mr Brightside

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For you experienced guys (old) what gave you seen during recessions in your business?

What percentages does your yearly jobs drop?

Job avg?

Now let’s talk as most business stop advertising and contract how can you turn it into an opportunity to grab some market share ect?
 

encapman

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I started out in business in 1982 so I've been through a few of these economic roller coaster rides. Quite honestly, my business (commercial only) was resilient to all of it. It seems like we felt little, or no, impact to our actual bottom line.

I feel the key is to be resourceful / and hustle! I love this quote from The Office... I think it depicts the scrappy attitude it requires to be an entrepreneur who can weather any storm. 😉

screenshot_283.png
 

Mr Brightside

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I started out in business in 1982 so I've been through a few of these economic roller coaster rides. Quite honestly, my business (commercial only) was resilient to all of it. It seems like we felt little, or no, impact to our actual bottom line.

I feel the key is to be resourceful / and hustle! I love this quote from The Office... I think it depicts the scrappy attitude it requires to be an entrepreneur who can weather any storm. 😉

View attachment 116158
Ya I have never worried much about things slowing down until this year I have four full time guys and 2 family members working for me. I want to keep everything flowing. I feel responsible to do my best
 

Numero Uno

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Encap said it best. He saw a need an made it into a carpet supply firm. True business men are constantly improving and using insight to advance...Many are just stagnant and get wealthy and forget what needs to be done (lazy). Con-grats Rick on 40 yrs of working your ass off and constantly improving and innovating... A true legend in the field of Carpet Cleaning .An inspiration to many...Your Like Lee P,The Doyle Family ,Bill Bane ,etc you went a step further .Sure you promote your own line of products but you do it so others can succeed...Most do it for name -trade journal legendhood or forum bragging...But we see the difference .There are Legends then there are wannabee's ...You get the ultimate respect from this old Man here...
 

steve_64

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I raised my prices and nobody blinked.
$50 a room to $75.
I don't have numbers for furniture but I'm charging more there too.
I'm a one man show again.
 

Numero Uno

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Your Legend bro -since 76 .I seen people and companies come and go. I don't use that word unless its a fact !!! You help the poor get wealthy -you help the rich get richer ,your just solid in all aspects.I have your old articles still and watched you grow ... Shorty loved ya and so do we !!! You brought us all a new type of cleaning when we all thought one direction ... You took Ed Yorks cimex and made it into a crown jewel as well !!! My newest goal is the Mission 22 (2200) push up challenge to help Vets. No problem have whole month to get it done at 30 per hour 8 times a day .I intend to double it...Cancer is not taking me . Ran my 4th 5k today as well ... I'm dedicated to health and exercise now !!! After seeing Shorty go with same crap I have ---No fkn way...I am fighting it for him and Me now ...118lbs it had me at . 205 now ! Any one that reads this get your self checked ... Look it took him our Buddy and emaciated me as well ...But for the grace of God . I still stand defiant ...
 
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sassyotto

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For you experienced guys (old) what gave you seen during recessions in your business?
Yep, turning 65 next month and started in 1981. Residential mainly but high end clients not as affected to the economy as the customers that go to the $15/per room guys. So Id say the type of client is the key. Kinda like Commercial cleaning where its not affected by the economy too much.

What percentages does your yearly jobs drop? not much if at all. The only thing that I notice is how far in advance I schedule. Usually its two weeks. Sometimes its three weeks, then I call it busy. Last year was four to five weeks and was CRAZY busy. But when its all said and done, Im working ever day I want to.

Job avg? Staying pretty steady the last couple years. This year will increase due to a price increase put into effect. Pretty much will be offset by inflation tho.

Now let’s talk as most business stop advertising and contract how can you turn it into an opportunity to grab some market share ect?

Thats how most cleaners think. But remember you are in the marketing business, not the carpet cleaning business. without some type of marketing, your company will die. Even mine that hasnt spent any money on advertising for years (at least 25 years) I still market though by sending reminder cards, making sure my customers tell others, expand retail contacts, etc.
Some people think advertising and marketing are the same, they are not.
 

Mr Brightside

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For you experienced guys (old) what gave you seen during recessions in your business?
Yep, turning 65 next month and started in 1981. Residential mainly but high end clients not as affected to the economy as the customers that go to the $15/per room guys. So Id say the type of client is the key. Kinda like Commercial cleaning where its not affected by the economy too much.

What percentages does your yearly jobs drop? not much if at all. The only thing that I notice is how far in advance I schedule. Usually its two weeks. Sometimes its three weeks, then I call it busy. Last year was four to five weeks and was CRAZY busy. But when its all said and done, Im working ever day I want to.

Job avg? Staying pretty steady the last couple years. This year will increase due to a price increase put into effect. Pretty much will be offset by inflation tho.

Now let’s talk as most business stop advertising and contract how can you turn it into an opportunity to grab some market share ect?

Thats how most cleaners think. But remember you are in the marketing business, not the carpet cleaning business. without some type of marketing, your company will die. Even mine that hasnt spent any money on advertising for years (at least 25 years) I still market though by sending reminder cards, making sure my customers tell others, expand retail contacts, etc.
Some people think advertising and marketing are the same, they are not.
thanks for the reply I always try to stay in contact with my customers by email and text and occasionally post cards.

I am saying if other companies are contracting does that open up some more aggressive marketing or do you think most families aren't going to be receptive to it because of the lack of extra money to spend on services?

The last few years my commercial side has grown a lot and I hope the economy doesn't change that too much
 

steve_64

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For you experienced guys (old) what gave you seen during recessions in your business?
Yep, turning 65 next month and started in 1981. Residential mainly but high end clients not as affected to the economy as the customers that go to the $15/per room guys. So Id say the type of client is the key. Kinda like Commercial cleaning where its not affected by the economy too much.

What percentages does your yearly jobs drop? not much if at all. The only thing that I notice is how far in advance I schedule. Usually its two weeks. Sometimes its three weeks, then I call it busy. Last year was four to five weeks and was CRAZY busy. But when its all said and done, Im working ever day I want to.

Job avg? Staying pretty steady the last couple years. This year will increase due to a price increase put into effect. Pretty much will be offset by inflation tho.

Now let’s talk as most business stop advertising and contract how can you turn it into an opportunity to grab some market share ect?

Thats how most cleaners think. But remember you are in the marketing business, not the carpet cleaning business. without some type of marketing, your company will die. Even mine that hasnt spent any money on advertising for years (at least 25 years) I still market though by sending reminder cards, making sure my customers tell others, expand retail contacts, etc.
Some people think advertising and marketing are the same, they are not.
I'm 58 and finding out I'm pretty ill. Have been all my life. Autoimmune disease.
Started in 06. Advertised just a little and had more work than I could do. Was hacking em out for years.
Working slower now and doing a better job. Weeded out the cheap skates.
I'm happiest as a one man show now.
My wife has 3 or 4 part timers she deals with. Always coming and going. She makes more than me but I work a lot less now.
 

Boyle

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If you are an established company , then external financial conditions will not negatively effect you

It can be a bit of headwind but the work is still there … if you’re good and you ask the money will come

Recessions have a way of flushing out some of the loser , fringe companies
 

steve_64

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If you are an established company , then external financial conditions will not negatively effect you

It can be a bit of headwind but the work is still there … if you’re good and you ask the money will come

Recessions have a way of flushing out some of the loser , fringe companies
And a lot of new start ups due to the recession. I survived 08 but didn't start because of it I actually quite my full time job that year and was growing fast.
 

The Great Oz

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bryan
One recession we sat on our hands. Shrank by five trucks and idled a delivery truck. Lost some good people. Remaining employees had to cover parts of jobs they weren't suited for and productivity and morale dropped.

Another recession we were aggressive. Bought more stuff because everything was "on sale." Hired the best because they were available. Had an energized team that all watched the numbers and recognized how much control each of them had in growing our business. Grew by three cleaning trucks and added a delivery truck.

Guess what course was more fun?

During a recession lots of customers keep their money in their pockets even when they have plenty, and company owners will lower prices until they go out of business. Your plan should be to differentiate, and work every connection and angle you can think of to bring in higher-profit work. Even if you're busy, start now.
 

Mr Brightside

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One recession we sat on our hands. Shrank by five trucks and idled a delivery truck. Lost some good people. Remaining employees had to cover parts of jobs they weren't suited for and productivity and morale dropped.

Another recession we were aggressive. Bought more stuff because everything was "on sale." Hired the best because they were available. Had an energized team that all watched the numbers and recognized how much control each of them had in growing our business. Grew by three cleaning trucks and added a delivery truck.

Guess what course was more fun?

During a recession lots of customers keep their money in their pockets even when they have plenty, and company owners will lower prices until they go out of business. Your plan should be to differentiate, and work every connection and angle you can think of to bring in higher-profit work. Even if you're busy, start now.
Wow thank you! I respect you guys and these forums are a huge benefit.

So we need to focus on asking every customer about their other surfaces while we are there.

Leaving a quote for them and following up.

Asking for referrals

Marketing existing customers


What else can you add
 
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sassyotto

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if you work with any Realtors, ask if you can talk to their office. They have regular meetings and usually have businesses in to give a talk. If you have a good handful of Realtors to work with and the above stated list, your good to go.

BUT KEEP CONSISTENT!

Problem is, once it gets busy, its easy to taper off on the marketing. No matter how busy you are, keep marketing consistently!!! Marketing#1, cleaning #2
 
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Cleanworks

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Wow thank you! I respect you guys and these forums are a huge benefit.

So we need to focus on asking every customer about their other surfaces while we are there.

Leaving a quote for them and following up.

Asking for referrals

Marketing existing customers


What else can you add
Looks for additional types of cleaning you can offer. I got into low moisture cleaning about 5 years ago. It's the most profitable thing I do. Today for example I cleaned a high-rise tower, 36 floors in 6 hours. Tomorrow I do the adjoining building, one 5 story, the other 9 story. Job total $3600. Did a building last week, 18 hallways and amenity room in 4 hours for $1200. Did one last month for $2000 in 4 hours, another one next week for $1300 and will take four hours. I have a few more coming up this summer. These are all glue down commercial carpet. The majority of the time, I am able to get their janitorial staff to vacuum for me. Equipment is cheap compared to a truck mount and the results are great.
 

Mr Brightside

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if you work with any Realtors, ask if you can talk to their office. They have regular meetings and usually have businesses in to give a talk. If you have a good handful of Realtors to work with and the above stated list, your good to go.

BUT KEEP CONSISTENT!

Problem is, once it gets busy, its easy to taper off on the marketing. No matter how busy you are, keep marketing consistently!!! Marketing#1, cleaning #2
Thanks yes if you’re not growing you’re dying
 

Mr Brightside

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Looks for additional types of cleaning you can offer. I got into low moisture cleaning about 5 years ago. It's the most profitable thing I do. Today for example I cleaned a high-rise tower, 36 floors in 6 hours. Tomorrow I do the adjoining building, one 5 story, the other 9 story. Job total $3600. Did a building last week, 18 hallways and amenity room in 4 hours for $1200. Did one last month for $2000 in 4 hours, another one next week for $1300 and will take four hours. I have a few more coming up this summer. These are all glue down commercial carpet. The majority of the time, I am able to get their janitorial staff to vacuum for me. Equipment is cheap compared to a truck mount and the results are great.
I know I’m wrong but I hate it lol I love truckmount cleaning and vlm is something I just don’t feel like I do a good job with but I know it’s lack of experience

Thanks I’ll look back into the dark side
 
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Cleanworks

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I know I’m wrong but I hate it lol I love truckmount cleaning and vlm is something I just don’t feel like I do a good job with but I know it’s lack of experience

Thanks I’ll look back into the dark side
Most of is feel the same way until we do it. The majority of jobs I use it on are not accessible to a truck mount so it's not a matter of either or. I wouldn't use it on residential.
 
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