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.
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
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Mountain Valley Landscape & Property Maintenance, LLP
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!
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.
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!
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.
.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.
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
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Spray Wash Exterior Cleaning, LLC.
Cleaning North Florida, South Georgia, and Tallahassee!!!
Soft washing, pressure cleaning, and Safe roof cleaning!
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
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!
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Spray Wash Exterior Cleaning, LLC.
Cleaning North Florida, South Georgia, and Tallahassee!!!
Soft washing, pressure cleaning, and Safe roof cleaning!
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.
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?
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.
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Mountain Valley Landscape & Property Maintenance, LLP
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.
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.
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!
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The WashCrew Exterior Cleaning Company LLC
Roof &Exterior Cleaning Serving The Rio Grande Valley
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.
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.
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
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
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Spray Wash Exterior Cleaning, LLC.
Cleaning North Florida, South Georgia, and Tallahassee!!!
Soft washing, pressure cleaning, and Safe roof cleaning!
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.
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Brandon Vaughn
All-Clean! SoftWash Gresham, OR brandon@allcleansoftwash.com www.allcleansoftwash.com 503.887.6404
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"
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Spray Wash Exterior Cleaning, LLC.
Cleaning North Florida, South Georgia, and Tallahassee!!!
Soft washing, pressure cleaning, and Safe roof cleaning!
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
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Mountain Valley Landscape & Property Maintenance, LLP
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...
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...
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.