Here is what I am looking at, there is a neighbor hood that has over 300 homes in it, all are ranch style 1500 sq foot homes, easy roofs to walk. I can do a whole roof in an hour (pull up to pull out) can wash 4 without moving truck. Most are black streaks only.
150 seems to be the point at which I can land a majority of these homes, over that and they will not have the service done. (lots of door knocking to get the breaking point) This area is within 5 miles of the shop so not much travel time.
Worth putting a truck in the area?
Jesse Bracken said
Apr 20, 2014
What is 300*$150? $45,000 right? Does that number fall into your goal hourly rate? Will you loose out on any higher paying jobs during that period? If you complete 8 in a day that's $1200 and project will take approx. 38 days non stop. Lots of hustle and motivation will be needed.
Call it bulk pricing discount or something so people know this is not the norm. They will tell their friends how much they paid. Let them feel special and tell them they are a part of an awesome once in a life time deal or something. They get this price break as long as they produce 3 referrals. Name, phone number and address. Have them let their referrals know that you will be contacting them at some point within the month.
Chalk up the deep discount to advertising and claim it as such.
Oh and up sell up sell up sell. Some of them are bound to bite once they see how professional you are and how well soft washing works.
I'd say go for it but do something along the lines like I said above.
My thoughts anyway...
Jess
Lee Kendall said
Apr 20, 2014
yeah if you have an extra truck go for it.. or it may be the perfect way to add a new truck to your roof cleaning empire!!
Doug G said
Apr 20, 2014
I personally would hit them with a special mailer. Spell out the price in the mailer as a whole area discount and "one time only". You know you wont get them all but be sure to have a ton of signs ready. Be sure your "sale" expires....it MUST expire and don't drag it out. "Two weeks only" or something to that nature "To get this ONE TIME ONLY SPECIAL RATE call our office and book your cleaning now! We will be in your neighborhood from May 15th - May 30th and the one time special rate of $150 will ONLY be good during this time"
Then hope to get 10 homes, place your signs and spray away. Maybe even have someone who can walk door to door while you're spraying "Hello Ma'am, we're just across the street and the special expires in three days. Look at the awesome job and for only $150.00"
I'm not into low balling but this would not be low balling it would be like offering a discount for a large job!
Bob Riddick said
Apr 20, 2014
Dan, you're one of the smartest guys I know, but I don't believe you're thinking straight on this one.
Not only do the #s not add up very well, the thought of an entire community telling their friends( in other communities) that you treat roofs for $150 each.
If you think this is a good decision for YOU, then by all means go for it.
Barry Landis said
Apr 20, 2014
I offer a 50% discount on a lot of 10 homes in a single area. This way I'm not locked into offering their friends and family the same low price as I did the original customer. It avoids the issue of what Bob stated above. If you go in at $150/roof and only get a small percentage of the roofs then you're not getting the payday you hoped for. If you offer them a neighborhood discount like I stated, you're only discounting a quantity of homes - as long as you have quantity, you should be able to make a good profit at a discounted rate.
With all that said, it sounds good on paper, but it's tough to get 10 homeowners together for a deal like this!
Tim Teed said
Apr 20, 2014
Barry is 100% on. Price each house at your normal price and discount. Put an end date on the offering. Try to find the HOA president to put offer in their newsletter or maybe do one sample home at front of development.
John Aloisio said
Apr 20, 2014
.10/sf does not leave much margin for error. My base roof cleaning price is $300, even for small houses. Can you couple the roof cleaning with a house wash or gutter cleaning or driveway cleaning, or something to boost your hourly rate? Can you do ten in eight hours? I would be careful letting the homeowners dictate price.
Eric Owen said
Apr 20, 2014
Dan
I get this kind of group thing with dryer vent cleaning but in order to get a group rate 10 or more need to sign up no am or pm appointments same day or a series of days while on the property or same street.
But 150.00 for a roof seems like a lot of (cat herding) and not the right demographic.
Ray Burke said
Apr 20, 2014
Dam, i'd do it, but only on a contract basis. they would all have to agree and allow me to perform services... no exceptions or hold-outs for that rate
Lee Kendall said
Apr 20, 2014
i think i misunderstood... I thought you were getting EVERY roof through the association
Jesse Bracken said
Apr 20, 2014
Lee Kendall wrote:
i think i misunderstood... I thought you were getting EVERY roof through the association
Me too...
Micheal Pumphrey said
Apr 20, 2014
I'd do it. That's easy money there. $150 an hour. No drive time. Roughly 10 a day
$300 a roof minimum is fine. But when you have 10 together that is not the same as having to drive to 10.
Dan Dykstra said
Apr 20, 2014
It is for every roof. 300 total roofs, but only if I allow the 150 per roof. Have not decided to go forward with this as of yet.
Micheal Pumphrey said
Apr 20, 2014
I would do it and not think twice. If someone questions you're price in the future simple tell them if you can get me 299 more houses I will match it. Lol
Doug G said
Apr 20, 2014
Dan Dykstra wrote:
It is for every roof. 300 total roofs, but only if I allow the 150 per roof. Have not decided to go forward with this as of yet.
Not a question in my mind.....I'd take it.
Ray Burke said
Apr 21, 2014
If it's for all, then I'd do it in a heartbeat. For example, next week I'm doing townhouses for 45 bucks each. Seems cheap. Well, they are rows of 8. So 6 of those 8 are only 18 foot fromt and back walls. 2 of those 8 are end units. I can do 4 buildings at a time without having to move the rigs.
I've got 4 days scheduled for the project, it comes in just north of 12k. Two two man crews plus a project manger keeping everyone on task. Minimal cost, spraying everything at 1%.
When it comes down to it, bottom line is what really matters. Our non productive time in the day come when the hoses aren't pushing water...set-up, travel time, breakdown, etc. With a neighborhood deal like you are describing, you are removing a lot of that nonproductive time out of the day.
Good luck with it Dan. Sounds like a winner in my book!
John Aloisio said
Apr 21, 2014
I thought it was a single, one time deal for a few people. If you can sign all 300, I would o it.
Lee Kendall said
Apr 21, 2014
stop thinking and do it!!!!
John Smith said
Apr 21, 2014
Work is work, I'm still working on getting my first one this season. All the ambition in the world doesn't make a salesman
AC Lockyer said
Apr 21, 2014
Dan Dykstra wrote:
It is for every roof. 300 total roofs, but only if I allow the 150 per roof. Have not decided to go forward with this as of yet.
Dan,
1. Make sure you have a contract for all 300!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Id build in a rate in the contract that the $$ per roof goes up if not all 300 go.
2. You will certainly get faster as you go along! I bet you will do better than one an hour when your rolling.
3. WATCH OUT FOR THE PLANTS! Make sure you photo document every house and use lots of Plant Wash.
4. Get paid after each round of 50 homes. This way you can see if they are going to be a tough collect. Also if they are you can leave the project till they pay and restart once you have collected on the last round.
I think you could do well on this if you protect your self contract wise.
AC
Micheal Pumphrey said
Apr 21, 2014
Service contracts aren't worth the paper they are written on. If the customer doesn't want to pay then they aren't going to. You'll spend more money trying to collect you're money from a deadbeat than what it is worth.
Is each homeowner paying or is it from the hoa dues?
Jesse Bracken said
Apr 21, 2014
I have same question. If home owner is paying get paid that day. It will be worth it to drive around at the end of the day and collect payment. If home owner association paying then like AC said maybe let it go to 50 units and collect.
Jump at it before the chance goes away.
Michael Derose said
Apr 21, 2014
I would put a separate crew and truck just for that job and take on the regular residential work as well with the other crew. Make sure its for all 300 roofs as others have stated above.
Dan Dykstra said
Apr 22, 2014
A 2nd crew and truck would be ideal, problem here is that there are no workers. I have been running ads on craigslist working with state program for finding workers, the local college and telling everyone I know that I need a worker. Not 1 person has sent a resume yet. I have about a dozen lawncare companies that I network with and everyone of them are in the same boat, no workers to be found.
Doug G said
Apr 22, 2014
Money motivates........
Dan Dykstra said
Apr 22, 2014
Even at 15.00 an hour, workers are hard to find in my area.
Ray Burke said
Apr 22, 2014
amazing.....i guess it pays better to be on govt. assistance
Doug G said
Apr 22, 2014
Ray Burke wrote:
amazing.....i guess it pays better to be on govt. assistance
Darn......Is it too late for me to try that?
Jesse Bracken said
Apr 22, 2014
Doug it wouldn't work out for you anyway. They smell drive and ambition from a mile away.
I didn't realize MI had that low of an unemployment rate. Lol
Good luck ending help Dan
Jess
Alejandro Riojas said
Apr 22, 2014
Wow dan I pay my helper 10 an hour and he has yet to show me that 10 isn't enough! Then again all the workers here are either at the oil field or living of gov assistance. Oil field here pays around 20 to 50 an hour with excellent benefits and usually the ones I find are the ones that left the oil field due to not wanting to pay a high child support!
Alejandro Riojas said
Apr 22, 2014
Then again if I found somebody that is willing to except the responsibilities of a Formen then I would gladly pay 15 to 20!
Micheal Pumphrey said
Apr 23, 2014
Pay the position not the person
I don't blame people not wanting to work for $10. Obama pays more than that lol
Ask yourself. Can you live off what you are paying someone?
John Aloisio said
Apr 23, 2014
i am a firm believer you get what you pay for, but I know certain regions have lower labor costs. We tout our services as a step above the rest, so I need to pay my help accordingly. My assistant techs make 16-18 an hour nd my leads make 20-22 hour. A happy employee and happy employees wife, make for great quality workmanship and company loyalty. Also makes for less turnover. Might cost me a few extra bucks in labor, but I can sleep better at night.
Doug G said
Apr 23, 2014
Micheal Pumphrey wrote:
Pay the position not the person
I don't blame people not wanting to work for $10. Obama pays more than that lol
Ask yourself. Can you live off what you are paying someone?
Micheal.....I am so sorry brother but I am so not in favor of that statement. Yes, you need to have a starting point and so therefor you pay the position as a starting point but then you pay the person and NOT the position. I believe in paying my people very well but they need to show me they are worth what I pay.
John Aloisio wrote:
i am a firm believer you get what you pay for, but I know certain regions have lower labor costs. We tout our services as a step above the rest, so I need to pay my help accordingly. My assistant techs make 16-18 an hour and my leads make 20-22 hour. A happy employee and happy employees wife, make for great quality workmanship and company loyalty. Also makes for less turnover. Might cost me a few extra bucks in labor, but I can sleep better at night.
++++++++1. It's obvious your employees know you pay well and the loyalty/lack of turnover are well worth it. Happy employees are also noticed by our clients.
Micheal Pumphrey said
Apr 23, 2014
No that is how you put yourself out of business.
For instance
A helper rinsing $12
Applicator $15
Account manage $20+
I'm not paying my helper $12 and expecting him to do the work of an applicator. Now am I paying an apicator to do what a helper does.
When you get emotionally attached to an employee and give raises just because they do what they're supposed to. That's when you have problems. As there pay rises so should their responsibilities.
If guy wants more money but all he wants to do is rinse? That's fine find another job. But it he wants more responsibilities and to move up. That's fine as we'll.
You'll get yourself in a world of hurt paying the person and not position. Between the 25k systems, god knows how much green wash plant wash etc, and other chemicals. You need to watch your over head. Pouring money into the fire doesn't help anything. That's how you be a million dollar company but only net 100k.
Ray Burke said
Apr 23, 2014
We are loosing about $75 per job, it's cool...making it up in volume! ;)
Jim Prom said
Apr 23, 2014
I always say that Ray. We loose money on every job, but make it up in volume! LOL
John Aloisio said
Apr 23, 2014
All my guys do everything. We switch on each job and let everyone spray and rinse to give guYs a break. Well paid employees are worth every penny....end of story
Ray Burke said
Apr 23, 2014
John Aloisio wrote:
All my guys do everything. We switch on each job and let everyone spray and rinse to give guYs a break. Well paid employees are worth every penny....end of story
Agreed..nothing lasts forever...guys who are ground guys need to be getting trained as potential lead techs....if nothing else to separate the wheat format the chaff. Lets you see who has potential to move on up. What you don't want is for a lead tech to leave and then you are stuck doing his job, since no one else has a clue what he does. Then it really gets into your pocket book!
-- Edited by Ray Burke on Wednesday 23rd of April 2014 09:32:47 PM
Brandon Vaughn said
Apr 25, 2014
Ray Burke wrote:
John Aloisio wrote:
All my guys do everything. We switch on each job and let everyone spray and rinse to give guYs a break. Well paid employees are worth every penny....end of story
Agreed..nothing lasts forever...guys who are ground guys need to be getting trained as potential lead techs....if nothing else to separate the wheat format the chaff. Lets you see who has potential to move on up. What you don't want is for a lead tech to leave and then you are stuck doing his job, since no one else has a clue what he does. Then it really gets into your pocket book!
-- Edited by Ray Burke on Wednesday 23rd of April 2014 09:32:47 PM
I amen this 100%. The cost of training new employees and the time spent finding them is much, MUCH higher than the extra few bucks you spend to keep them around.
We actually offer seasonal adjustment benefit and pay all our employees in the winter months (Jan-Feb) whether they work a full 40 or not.
Ray Burke said
Apr 25, 2014
I explained it like this today to a couple of my main guys... " we always need more Indians than Chiefs, but as leadership, we need to be aware of what Indians among us would make good future Chiefs"
Jesse Bracken said
Apr 25, 2014
Great way to put it Ray. Another key is to remember that RESPECT goes a long way... Treat your employees with respect and you will in return reap 10 fold. Show no respect and it will cost you. What you are paying out in paychecks and respect IS your investment for the future...
Jess
Doug G said
Apr 25, 2014
Jesse Bracken wrote:
Great way to put it Ray. Another key is to remember that RESPECT goes a long way... Treat your employees with respect and you will in return reap 10 fold. Show no respect and it will cost you. What you are paying out in paychecks and respect IS your investment for the future...
Jess
Bingo! That is the winning formula.
John Aloisio said
Apr 26, 2014
+11111
just like you said respect. We invite them and their kids to my sons birthday parties for kids, take them out for a really nice Christmas dinner. We don't forget their birthdays. If I am around the job site during lunch, I will buy it for them, etc...
John Aloisio said
Apr 26, 2014
Sorry Dan, this thread has been hijacked.
How did you make out with the 30oh roof cleanings?
Dan Dykstra said
Apr 26, 2014
We have decided to pass on this opportunity, even though the over all price would be good we decided that our minimum price was put in place for a reason. If we were to take this job we would've been tied up for a good part of the season and would be having to pass on other jobs. As of right now I am booked out 3 weeks and we have not started any advertising yet, so I am pretty confident that I will come out ahead by turning this down.
Even though I may not get the whole area, I know I will be doing a few of the homes in there even with my higher price. Sometimes in business you have to turn jobs down.
Doug G said
Apr 26, 2014
Dan, it certainly appears you put thought into it and made a very wise and sound business decision.....congrats my friend.
$150 for a complete roof cleaning.
Here is what I am looking at, there is a neighbor hood that has over 300 homes in it, all are ranch style 1500 sq foot homes, easy roofs to walk. I can do a whole roof in an hour (pull up to pull out) can wash 4 without moving truck. Most are black streaks only.
150 seems to be the point at which I can land a majority of these homes, over that and they will not have the service done. (lots of door knocking to get the breaking point) This area is within 5 miles of the shop so not much travel time.
Worth putting a truck in the area?
Call it bulk pricing discount or something so people know this is not the norm. They will tell their friends how much they paid. Let them feel special and tell them they are a part of an awesome once in a life time deal or something. They get this price break as long as they produce 3 referrals. Name, phone number and address. Have them let their referrals know that you will be contacting them at some point within the month.
Chalk up the deep discount to advertising and claim it as such.
Oh and up sell up sell up sell. Some of them are bound to bite once they see how professional you are and how well soft washing works.
I'd say go for it but do something along the lines like I said above.
My thoughts anyway...
Jess
Then hope to get 10 homes, place your signs and spray away. Maybe even have someone who can walk door to door while you're spraying "Hello Ma'am, we're just across the street and the special expires in three days. Look at the awesome job and for only $150.00"
I'm not into low balling but this would not be low balling it would be like offering a discount for a large job!
Dan, you're one of the smartest guys I know, but I don't believe you're thinking straight on this one.
Not only do the #s not add up very well, the thought of an entire community telling their friends( in other communities) that you treat roofs for $150 each.
If you think this is a good decision for YOU, then by all means go for it.
With all that said, it sounds good on paper, but it's tough to get 10 homeowners together for a deal like this!
.10/sf does not leave much margin for error. My base roof cleaning price is $300, even for small houses. Can you couple the roof cleaning with a house wash or gutter cleaning or driveway cleaning, or something to boost your hourly rate? Can you do ten in eight hours? I would be careful letting the homeowners dictate price.
I get this kind of group thing with dryer vent cleaning but in order to get a group rate 10 or more need to sign up no am or pm appointments same day or a series of days while on the property or same street.
But 150.00 for a roof seems like a lot of (cat herding) and not the right demographic.
Me too...
$300 a roof minimum is fine. But when you have 10 together that is not the same as having to drive to 10.
Not a question in my mind.....I'd take it.
I've got 4 days scheduled for the project, it comes in just north of 12k. Two two man crews plus a project manger keeping everyone on task. Minimal cost, spraying everything at 1%.
When it comes down to it, bottom line is what really matters. Our non productive time in the day come when the hoses aren't pushing water...set-up, travel time, breakdown, etc. With a neighborhood deal like you are describing, you are removing a lot of that nonproductive time out of the day.
Good luck with it Dan. Sounds like a winner in my book!
I thought it was a single, one time deal for a few people. If you can sign all 300, I would o it.
Dan,
1. Make sure you have a contract for all 300!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Id build in a rate in the contract that the $$ per roof goes up if not all 300 go.
2. You will certainly get faster as you go along! I bet you will do better than one an hour when your rolling.
3. WATCH OUT FOR THE PLANTS! Make sure you photo document every house and use lots of Plant Wash.
4. Get paid after each round of 50 homes. This way you can see if they are going to be a tough collect. Also if they are you can leave the project till they pay and restart once you have collected on the last round.
I think you could do well on this if you protect your self contract wise.
AC
Is each homeowner paying or is it from the hoa dues?
Jump at it before the chance goes away.
Money motivates........
Darn......Is it too late for me to try that?
I didn't realize MI had that low of an unemployment rate. Lol
Good luck ending help Dan
Jess
I don't blame people not wanting to work for $10. Obama pays more than that lol
Ask yourself. Can you live off what you are paying someone?
i am a firm believer you get what you pay for, but I know certain regions have lower labor costs. We tout our services as a step above the rest, so I need to pay my help accordingly. My assistant techs make 16-18 an hour nd my leads make 20-22 hour. A happy employee and happy employees wife, make for great quality workmanship and company loyalty. Also makes for less turnover. Might cost me a few extra bucks in labor, but I can sleep better at night.
++++++++1. It's obvious your employees know you pay well and the loyalty/lack of turnover are well worth it. Happy employees are also noticed by our clients.
For instance
A helper rinsing $12
Applicator $15
Account manage $20+
I'm not paying my helper $12 and expecting him to do the work of an applicator. Now am I paying an apicator to do what a helper does.
When you get emotionally attached to an employee and give raises just because they do what they're supposed to. That's when you have problems. As there pay rises so should their responsibilities.
If guy wants more money but all he wants to do is rinse? That's fine find another job. But it he wants more responsibilities and to move up. That's fine as we'll.
You'll get yourself in a world of hurt paying the person and not position. Between the 25k systems, god knows how much green wash plant wash etc, and other chemicals. You need to watch your over head. Pouring money into the fire doesn't help anything. That's how you be a million dollar company but only net 100k.
All my guys do everything. We switch on each job and let everyone spray and rinse to give guYs a break. Well paid employees are worth every penny....end of story
Agreed..nothing lasts forever...guys who are ground guys need to be getting trained as potential lead techs....if nothing else to separate the wheat format the chaff. Lets you see who has potential to move on up. What you don't want is for a lead tech to leave and then you are stuck doing his job, since no one else has a clue what he does. Then it really gets into your pocket book!
-- Edited by Ray Burke on Wednesday 23rd of April 2014 09:32:47 PM
I amen this 100%. The cost of training new employees and the time spent finding them is much, MUCH higher than the extra few bucks you spend to keep them around.
We actually offer seasonal adjustment benefit and pay all our employees in the winter months (Jan-Feb) whether they work a full 40 or not.
Jess
Bingo! That is the winning formula.
+11111
just like you said respect. We invite them and their kids to my sons birthday parties for kids, take them out for a really nice Christmas dinner. We don't forget their birthdays. If I am around the job site during lunch, I will buy it for them, etc...
Sorry Dan, this thread has been hijacked.
How did you make out with the 30oh roof cleanings?
Even though I may not get the whole area, I know I will be doing a few of the homes in there even with my higher price. Sometimes in business you have to turn jobs down.
Dan, it certainly appears you put thought into it and made a very wise and sound business decision.....congrats my friend.