Who will make more money?

[Ryan]

Daniel you run you biz your way and I'm go my way. Give me a call in 10 years.

Any profitable business that doesn't require a lot of hands on by the owner is sell able. Its interesting to hear you talking the grocery business though my dad works in corporate for Harps. I won't get into numbers on an online forum though cause they guard those carefully, I'm not sure your dad would appreciate that either...

 

[ruff]

Does it really have to be either or?

Both models can operate profitably, in accordance to the owner's temprament, suitable style, talent and personal preferences.

It is not one glove fits all.

 

[Ken Snow]

"That's assuming you can sell out.

Doing that is getting harder each day as more businesses open shop.

See I am right again."

Why do you think you are right? I could argue that the more challenging times make a profitable business more valuable as starting a business from scratch has so much more risk. There are people and investment groups always looking to buy well run, systematized businesses. I think you have a lot of good opinions Daniel, I just think you get a little hung up on being right~ which is a no win here or in the real world.

Ken
Ps Grocery stores profits are usually much less than that and those are pretax numbers.

 

[Ken Snow]

Amen kolfer

 

[daniel@procarpet]

I think we can all agree that it is harder to make money today than it was five years ago. Any dreams I had of owning a large multi truck company are gone for good.

I have everything paid for and still the cost of living and running a business is high.

When you factor your insurance (business, homeowners and for me that is three homes, personal vehicles, boat, and HEALTH INSURANCE), food, cable and phone bills, property taxes, maintenance, entertainment etc, it is just hard to get anywhere. I have to live meager as hell to save anything.

Damn I am working for insurance.

It just sucks that people work so hard to make a better life for themselves and others get everything handed to them in the form of welfare, wick, and disability.

 

[ronbeatty]

Ken, If I take $362,219.00 and divide it by 312 days (which is 6 days a week), the daily average is $1160.95. If you are cleaning four rooms for $99.00, your guys are doing 12 jobs a day. :?: I can easily do a $1200.00 dollar day, but it is with a $275.00 average ticket.

 

[Steve Toburen]

I think we can all agree that it is harder to make money today than it was five years ago. Any dreams I had of owning a large multi truck company are gone for good.

If you believe this then you are correct and your prediction will prove to be true.

Steve Toburen
http://www.SFS.JonDon.com

PS Meanwhile, I gotta tell you there are a lot of people out there building successful companies. Is it as easy as it was in the "glory years" before the recession hit? No. But some small mom and pop outfits are still growing in spite of the economy. For example, check out Meg Burdick's "dispatches" from the front lines. Meg and John own a one truck company and until recently John did all the work and was in his comfort zone. This link is for #7 in Meg's series as I think it reads better starting with her latest and then working backwards. "Meg's story" makes for some compelling reading ...

http://sfs.jondon.com/5034/reviews/succ ... ory-part-7

 

[Ken Snow]

Ken, If I take $362,219.00 and divide it by 312 days (which is 6 days a week), the daily average is $1160.95. If you are cleaning four rooms for $99.00, your guys are doing 12 jobs a day. :?: I can easily do a $1200.00 dollar day, but it is with a $275.00 average ticket.

Again, assumptions Ron. His job average was only a little lower than yours (think stairs, halls, upholstery, scotchgard, etc.) and he also did a lot of evening commercial work at a much higher average. We also offer 7 day a week service and he and his assistant chose to work a number of Sundays. We do not so 12 jobs a day.

Well said Steve!

 

[Greg Cole]

Congrats Mark. You have things figured out.

I would put money Mark is netting more than this Big Mike guy on 1/5 the gross. If not more, then real close.

That just means less stress.

I just showed how a company with 5 portable crews grossing 50k per month will net the owner the same as a small 1.5 truck company doing a third the gross.

Yes Mark can burn out. That is why everyone should strive for 10 good years. Save, invest, and reitire young and rich.

Does this sound like a plan?

We all can't be Ken Snow and inherit a 50 year old established business.

If I thought I could make more by investing in more trucks, equipment, hiring and training personel, and advertising more, I would. That business model imo is dead because the high price of fuel, increased competition, and not being able to charge enough to make a real profit on a large scale. You either have to upsell hard or loose out to a lot of price shoppers.

Can SS make a profit doing three area jobs for 99 dollars?

Greg Cole makes money because his guys work for nothing. Thirty five percent and they provide the transportation, fuel,equipment, and chems. He is robbing them blind.

There is a guy here with a similar business model but most of his clients are repeats. They do five rooms, a hallway, and sofa/lovseat combo for 99 dollars. They don't bait and switch. They just work cheap as hell. He pays his contractors 45 percent. He provides the mahcine and basic chems. They provide the labor, truck, and fuel.

I say there is more money in running a professional low overhead 1.5 truck operation. The owner needs to do most of the work. All this get off the truck crap just means three times the work to make the same net.

Get off your ass and make it happen.

Based on your warped view of seeing things I am sure that you feel the Walmart is ripping people off because they pay them minimum wage? Surely there is a competitor of theirs that pays people more? Surely that is grounds for Walmart to pay their people more? Wake up and smell the shit you are shoveling.
I make money because I closely monitor my expense and work daily to increase my profit margin.

Could I pay people more? SURE - Would that cost me profits and ultimately prevent me from increasing my business? Yes
Why on earth would I do that? Charity? LMAO

 

[Greg Cole]

Let's analyze three business models.

First is the tm carpet cleaner that decides to invest in a few more trucks, hires employees, advertises through direct mail, yp, online, print ads, and possibly some tv or radio. The trucks are busy with modest pricing. Repeats are decent not great and a few referrals every now and then.

Second is the tm cleaner that is owner operated either solo or an assistant, has everything paid for or pays cash for everything, has a decent customer base, grosses 200k per year, gets all business from referrals or repeats with some advertising to database but nothing major, and is able to save money easy and has a good income.

The third is the cleaner that buys portables, does mass coupon advertising, upsells every job hard, has very low repeat and referral rates, but has five crews out doing a hundred jobs per week with a 125 average. The tech provides the transportation and gets 45 percent of the gross. If the company averages 50k per month and the owner gets 27,500 minus lets say 10k per month in advertising, that leaves 17k which is great, but still a lot of work.

You left a model off here:
The business person who is not a cleaner but a business person who buys a franchise operation.

 

[Brian R]

Or as I mentioned, the person who builds his brand and sells franchises.

That's Chem, Stanley, Coit, Service Master etc etc etc...the companies we bitch about taking all our business.

If you can't beat em...join em.

 

[green gurl]

Ya know who will make the most money... the guy who does a hack job for little ol' black lady's!!! :shock: :shock: shiteatinggrin shiteatinggrin shiteatinggrin shiteatinggrin shiteatinggrin

I'm sorry... I'm getting bored, lets see if I can stir anyone up....

 

[Greg Cole]

Ya know who will make the most money... the guy who does a hack job for little ol' black lady's!!! :shock: :shock: shiteatinggrin shiteatinggrin shiteatinggrin shiteatinggrin shiteatinggrin

I'm sorry... I'm getting bored, lets see if I can stir anyone up....

Sorry, when race comes into it I check out...............

 

[green gurl]

Ya know who will make the most money... the guy who does a hack job for little ol' black lady's!!! :shock: :shock: shiteatinggrin shiteatinggrin shiteatinggrin shiteatinggrin shiteatinggrin

I'm sorry... I'm getting bored, lets see if I can stir anyone up....

Sorry, when race comes into it I check out...............

I was referring to Bawb... that was his customer base. It was just a joke!

 

[Brian R]

Hey Greg, Just because she's Green doesn't make her a bad person.

Green people are equal just like the others.

Shame on you Mr. Greg. :shock: !gotcha!

 

[Greg Cole]

Hey Greg, Just because she's Green doesn't make her a bad person.

Green people are equal just like the others.

Shame on you Mr. Greg. :shock: !gotcha!

lol :mrgreen:

 

[Lee Stockwell]

I'm eternally grateful to the "little old black ladies" who helped me start my business 40 years ago. I was a 19 year old transplanted yankee from Michigan who knew almost no one in Murray KY. It was a more racially prejudiced era then, and I was repulsed by the undercurrent of racism (which still exists to a lesser degree).

I would clean for these ladies, treating them like gold, and they opened many doors for me in the "other" part of town. Their families are still my clients...and I'm still grateful.

Thanks,
Lee

 

[Loren Egland]

I started in 1970 at 20 years old and I am still a one man truck operation, so I guess it can be done.

I have thought about expanding, but have not regretted my decision to stay simple. I have little stress, and plenty of time since I can make decent money for short hours of work. Just depends on what you want out of life and if the sacrifices are worth it in the end.

I sold a Powermatic to a fellow who started a business in my area many years ago. He expanded to 6 trucks. He once told me that I was likely making more money than he was. I think he is back to one truck doing the work, but I have not talked with him for a while. I just assume he is still around but I don't see the truck running around town.

If I remember right, someone once said that their large mutli truck operation made about 5% to 7% net profit per truck.

 

[Steve Toburen]

I have thought about expanding, but have not regretted my decision to stay simple. I have little stress, and plenty of time since I can make decent money for short hours of work. Just depends on what you want out of life and if the sacrifices are worth it in the end.

Well there you go ... a successful man- if only because Loren has avoided the trap of letting others define his success for him.

Steve Toburen
www.SFS.JonDon.com

PS This meeting "others definition of success" is especially dangerous over the Internet because may I say that all is not as it seems sometimes. (As in all the strutting and bragging that goes on.)

 

[Brian R]

I figured this thread was a pretty good candidate to get moved. shiteatinggrin

 

[joe harper]

F....U...put it back..... :x

This was a great thread ..that DANIEL ...started... :!: :!: :!:


Start your OWN ...threads TARD-BOY.... :mrgreen:


ps..This is NOT considered posting in your shIt-HolE..."Move it BACK.."... :!: :!: :!:

This is a REAL thread..."Not vIrtuAl"... :shock:

 

[bob vawter]

Ya know who will make the most money... the guy who does a hack job for little ol' black lady's!!! :shock: :shock: shiteatinggrin shiteatinggrin shiteatinggrin shiteatinggrin shiteatinggrin

I'm sorry... I'm getting bored, lets see if I can stir anyone up....

BINGO-BANGO...
perfect answer

 

[Brian R]

F....U...put it back..... :x

This was a great thread ..that DANIEL ...started... :!: :!: :!:


Start your OWN ...threads TARD-BOY.... :mrgreen:


ps..This is NOT considered posting in your shIt-HolE..."Move it BACK.."... :!: :!: :!:

This is a REAL thread..."Not vIrtuAl"... :shock:

If Daniel wants me to put it back I will.
Or if Mikey or some other Mod thinks it should be.

Other than that....Go F yourself Harper...you're not allowed in here....anymore.

 

[joe harper]

F....U...put it back..... :x

This was a great thread ..that DANIEL ...started... :!: :!: :!:


Start your OWN ...threads TARD-BOY.... :mrgreen:


ps..This is NOT considered posting in your shIt-HolE..."Move it BACK.."... :!: :!: :!:

This is a REAL thread..."Not vIrtuAl"... :shock:

If Daniel wants me to put it back I will.
Or if Mikey or some other Mod thinks it should be.

Other than that....Go F yourself Harper...you're not allowed in here....anymore.

GEEEZE...BaRnEy FiFe... :roll:

Call ANDY...Ask him if you can use your bUllEt...

You got the ButtOn....Pull the trigger... :!: :!: :!:

Hope you Don't..."shOooT youself in the FooT..."

ps I asked you to bann me from your room 2 days ago... :roll:
I would NOT be posting NOW...but this is NOT YOUR THREAD... :x

 

[Brian R]

You really need new material.

Get Daniel on the horn and I'll move it back if he tells me to. How hard is that to understand?

I'm not going to ban anyone from this room. If you screw up enough I'm sure they'll ban you from the board first.

Look little buddy, you'll never get off the island so quit humping my leg.