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Prices don’t seem out of line to me – but I believe customers won’t care too much about price if they are happy with the service. In the fast food business we used to have these discussions about “leaving money on the table”i.e., if your customer loves your sandwiches, will they notice your drinks are $1.29? In our business a “minimum” charge for services should exist. In our market I believe even one room, minimum, should be $89.95. I explain to customers that once I get in the door it is much cheaper to do more work! My prices currently are $109.95 for three areas; each addit’l area $24.95; stain protector for $19.95 per area. Remember, it’s always about packaging – how do we package our deals. Sometimes, in fact usually, I am too nice to customers – ha! So, I’ll cut a little off the price for a small hallway, or offer to apply protector on all areas but give at least one area “free”. Customers love to feel like they are getting a “deal”!
Yup – and I still believe in Roma! Everyone makes mistakes from time to time. No one is perfect! Go Cowboys!
Dave,
What do you usually charge per sq ft? For furniture? Just curious in the hotel setting! Thanks!Last summer I was able to get an annual bid on church pews with seat & back @ $1.50 per linear ft w/protector applied. (If my memory serves me correct! ha) I know they want me to do it again in July – a big job! These pews also have a very simple upholstery – no buttons, etc.
When I researched franchises – that was exactly what I found out about Chem-Dry also! We are VERY fortunate in Heaven’s Best! I am proud to be a part!
I’m definitely not an accountant… but the answer to some of this depends on how your business is set up. You can be set up as either on a “cash” basis or an “accrual” basis. As I understand it, being on a cash basis (which is what most service businesses are on) means you count income when it is actually received. This means if I choose this method of accounting, then I clean for a client on account in November but he doesn’t actually pay til January – then it is not counted as income until January. If you are on an ‘accrual’ basis (which I don’t know why you would be), then it would be counted as income when services are rendered.
I also have not done a great deal of commercial – but when I do, I always include protector & I explain this to the clients. I also let them know upfront that I will more than likely not be the lowest bid – then I explain why. I also always use the Conquest. I have seen many homes pre-vacuumed, and then noted the almost FULL dirtcup after using our machine!! It is a key step in the HB process – and it has to be done with a powerful machine!!
Hey thanks for the input Ron! And a thank you to Gordon also who shared some ideas with me over the phone! I love the rationale of commission-based, because it makes the employee feel like they have control over their job – and income. There’s incentive to sell the protector, rakes, spotter bottles, add upholstery, etc. The higher the ticket – the higher the pay! Given this scenario @ 35%, with daily sales at a minimum of $250 – the employee would earn $437.50 gross for a five day week. That’s more than if he had worked 40hrs for 10$ an hour. And that’s for a low sales volume. Using an idea from Gordon, base pay could be say 20% and the other 15% earned from 95% customer satisfaction rate based upon follow-up calls by me. These numbers are just for example! Anyone else have anything else to add?
I think you are right & I would like to help in any way I can! This is an excellent tool. I have learned a lot by reading this board & it has been fun to share thoughts & ideas too! The problem sometimes with electronic communication is that we don’t get the benefit of things like tone of voice, body language,etc, and so sometimes people interpret comments negatively. I myself have felt at times ‘attacked’ for expressing an opinion because it may seem “anti-company”. Well, the way I see it is I AM the company!!! So I am going to question, critique constructively, and ask questions at times which may seem uncomfortable. Within the Subway franchise I served for Texas as a member of SFOAC (which is an advisory council of owners), and as a board member and president of the central texas FAF ( advertising board). These outlets allowed input from owners – and encouraged ALL input. And I was elected by other owners to serve because I wasn’t afraid to speak. That’s how you improve. I believe this board needs to serve the franchissees as a “brain-storming” forum as well as “nuts and bolts” ideas. I hope others are not afraid to participate because they are worried about criticism or worse… a scolding. All owners should be allowed a private constructive outlet to help everyone to grow. It is important that everyone learn to be tolerant and open-minded. I HIGHLY respect Cody and his staff and never doubt my investment. But I may ask some hard questions from time-to-time. We need to be proactive in encouraging all thoughts, questions, and reactions!!!!!
Only one question – what happened to the old one? Did it actually break? Just curious, as of yet I haven’t had any repair issues!
Nice pic Mike – is this ya’ll’s first? Watch out they grow up fast!! We actually lived in McAllen when our first was born. I taught band at Memorial High School for 7 years – my wife graduated from McAllen HS. Still have many friends in the area – we’ll tell ’em to give you a call! That has got to be one of the fastest growing areas in the US. Figure McAllen is almost connected to Edinburg by now!! Take care!
Right on Gordon! Our business is primarily through personal references – and in a smaller, contained area if you do a great job – everyone will know about it. In a larger Metro area, you have to pay to get over the ‘buzz’ of all the advertising. Also, people tend to not be as loyal and there is a faster turnover of homeowners. There are good sides to both rural and metro – it’s a matter of what each person is more comfortable with. Having done both – I’ll stay right here in the Hill Country!!! Thanks too Gordon for the phone message the other day – appreciate it!!!
Yup – here’s another one! Make sure you pull the van IN far enough before closing the door! I was backing my car out of the garage & hit the button to close the door, and through the early morning darkness began to think – hey is that door gonna hit my van?? Well, it didn’t hit it exactly, but scratched 1/2 way down the back door before I hit the button to stop it!! Figured the sensitivity of the door should have reversed it before that would have happened!!! Oh well, I’m hoping the new logo wrap will cover up the scratch!!! Ouch!!!
