Thread: I'm ready to dominate my carpet cleaning market (Pic of the day)

Well Rob, I Love this topic!, I could type for days, I run 5 service trucks a day. Your area is a gold mine for both good cleaners and bad ones. (my wife lived in Newport News for years). With all the Military in the area it is going to be difficult to grow your business let me give you some examples of what i'm being faced with.

1. Everyone wants to work for themself, they go out and buy a cleaning machine and "Abra ka Dabra" they take out a ad in the "yellow pages" and they are now the best cleanersin Va. Beach. ( how does the customer know the diffrence at first, between your business and a "crap wet and jet job").
2. They can't out clean you, they know no other way to market; so they utter "I can clean it cheaper than they can......." If you do a lot of rental accounts you know that cheaper is the biggest factor over time. Now all this " we are the best quality business means little to number crunching upper management", We just lost the cleaning on two apartment buildings ($100,000 k annual gross) the painters were replaced as well and they had been there longer than we were. All because a new district manager came in and saw a chance to pinch nickles. ( Ill. Mexicans came in and offered to punch the units at 40% less than we were getting paid to clean them) We were charging $65 a 1 bedroom, $75 for a 2, $90 for a 3 or TH. IT TOOK ME 20 YEARS TO GET THE PRICE UP TO THAT LEVEL. Now some Mexicans are cleaning them for $35a unit . OR A New cleaner has come in here and started cleaning for $25 a unit. Does he have insurence.....no, a business licence....maybe, but the bottom line is the only way he knew to get your business was to drop the floor out of the market he has only been in business for 6 month or so, but he is now doing nine apartment complexes....all of which were mine. So that brings me to this.....
3. When and how do you say F*&@ apartments...... I'm only going to be a high end Residential Specialist. It is easy to say but, **** the cash flow from 50-60 apartments a week is great....at $75 bucks a pop (but the ride is over because the bottom line is price, when your talking property management.
4. In a Military city, a bad cleaning company can do a bad job and sgt. smith will be gone in a few years with a thousand more sgt jones to take his place. If you do a wonderful job for sgt smith and make him a client, in a few years he will be gone to another post somewhere in USA so you have to start over. So I have found it best to avoid putting much advertising dollars to the "Active Military market, be it rental or residential cleaning.
5. Do you have a store front building? The best return i have ever gotten was in the building...Not only is it an appreciating asset, but it give your business LEGITAMICY !!!! You are no longer a "shade tree" carpet cleaning company.

So the challange for all of us who dont want to own a job for the rest of our lives is how to expand past the mindset that all cleaners are just jainitors who scrub rugs for nickles. How do you get the growth you want when you have to compete with "Bubba the shade tree carpet cleaner". Are yoiu going to be able to convince everyone that quality and service is more important than price. How do you make up the great cash flow once you price yourself out of a certain customer market. So be prepared, the carpet cleaning industry is its worst enemy for growth of a business...........sorry for the rant.

The best and most profitable customers come from referral. Referral stem from an amazing cleaning experience. How I get more referral from my guys is to pay them for it. If one of my customers refers another then I give my guys a 10 cash bonus that day. Motivates them to do an amazing job every time.

Great post thomas!

That was no rant that was your real life experiences of 20 years which we can all learn from

I like the part how it took you 20 years to build your price up{reputation}and then someone is going to come and blow it up in 5 minutes.The best part is you didnt give in just found a better angle to keep your margins

remember 25% turnover in this industry people come, people go

Great post Thomas and well put. There are more factors to growing the business and being successful than just "doing a good job".

You have to have skills in many areas like Marketing, bookkeeping, management, servicing, mechanics, and many other areas.

And the most important thing people miss when they DO try to grow their business is that the EXPENSES GROW WITH IT.

When we first started we thought that if we even did $5000 a month we'd be rolling in it! All our credit cards would be paid off within a year! After all, our expenses were less than $2000 a month!

Well now we push $15000 a month in the busiest season and those credit card balances are still there. We diligently and carefully plan where every penny goes every Friday night. We dont spend frivolously or buy anything extravagant. Every penny is budgeted and planned and we still cant pay off the bills. Why? because expenses grow when gross sales grow.
I can easily sit down every Friday and put out $3000 a week on bills and not even catch up. It costs money to be a good cleaning company.

The other thing so many owners forget to look at is "net income". They are only interested in "gross sales". What good is $200000/year in "sales" if you only made $35000 net income? I'd rather have $100000/year in sales and make $60000. A perfect example of "size doesnt matter".

What I would want to know in my business model or goals for 2010; if I were Rob or anyone else who is in a military driven micro economy.....
How much of your business is based in the rental driven market, there may be more Posts in the area for the military than anywhere else in the USA. I would not grow my business with these customers........they are not good for the long run. I wish I had all the apartment complexes back I have lost to the "New Cheap Guy" BUT I am not the cheapest in my area, only the best and the two never go hand in hand.
in the late 90's I was a apartment cleaning machine, I had three trucks doing 20-30 apartment a day for about $50 bucks each over 30 complexes. I am sure glad i didnt BORROW the money to add to my busines by picking up more apartments because now some 10+ years later I may have 6 apartments left and I have lost 5 this year alone!!! all because of a district manager from out of town trying to increase the bottom line for the apartments. The local on site managers love us, but if thier boss says he is too high compared to what we pay in jacksonville, (compared to a apartment you dont clean, that they manage) then you will be replaced.



But how do you get it in the( thick headed skulls of the Carpet Cleaner) that are dropping the price floor.......I Know, BUT I dont want to start a riot!!!

So I say, Why did you revamp your business in the first place, what was it that you felt like needed a change???

And....How much of your customer base is driven in the rental economy the in Tidewater area???

I would write a letter to the district manager and explain how I save him money in the long run. For me I give priority scheduling to rentals. If I get the carpet done one day sooner that is an average of 15 bucks saved in lost rent. Second If I save one carpet a year that would have been replaced that would cover my higher price, better service rates. I then go on to mention that in my state the tenants are responsible for the cleaning so he is only saving a tenant a few dollars and costing himself maybe thousands. I go on to say that I believe he must be intelligent to be in the position he is in but to keep me in mind if the quality of the new carpet cleaners is subpar or if they need a unit cleaned last minute.

Why dominate? I'd rather be 2nd, 3rd, 4th... When you are #1 then you spend unnecessary time worrying about other 'up and comers'. Then you make bad decisions too fast to stay #1. while the guys at your heels are smiling and have their feet up watching you dance....IMO

Originally Posted by idreadnought

I would write a letter to the district manager and explain how I save him money in the long run. For me I give......ing himself maybe thousands. I go on to say that I believe he must be intelligent to be in the position he is in but to keep me in mind if the quality of the new carpet cleaners is subpar or if they need a unit cleaned last minute.

Let me give you some great insight into this of many of my rants about what is wrong with the cleaning industry that I love and at times hate. The properties have been customers for 10-20 years, but the last two we lost in October we were replaced by a Mexicans with no cards. I checked in with the on site manager last week who loves us..(now we were prevacing , spots, kool-aid, rinsed, and raked these units. We were selling protector for 35$ for the ones in good shape, no other cleaner could touch us....service wise $90 a TH. for the cleaning.) Now the manager told me shad had a problem with the painter..... (same new mexican crew, put in by the district manager who has only been there 3 months! )....to complain about overspray on everything, now the painter had been there for 15 years and his daddy painted there before him and he was painting before I started,,,,,20 years now. The district manager told her that they were only concerned with the bottom line and she has them painted for $110 each....basicly telling the on site manager she didnt care.)
Now this customer may come back, but in 20 years of cleaning carpet near fort campbell, KY. I have visited my old accounts to say high and drop off something....and when i ask about the cleaning it is rare that they are using who they left us for they tell me "I use XXXX carpet cleaning service they are really cheap $25 bucks a apt" NO loyality to you , unless you are cheap. WE have about six apartment left...MY Residental customers and othe business moves have replaced that lost income 5x from that 10 years go but when your expenses rise, your price rises. I have given the best service , sales pitch, and cleaning a apartment complex can have for 20 years....yada yada yada

This is about targeting your customers and not growing your business with bad customers....AND STILL BEING THE LARGEST CLEANER IN YOUR AREA.. I make more money now, then I ever did 10 years ago.....one of many rants....BUT NOT ALL RENTALS ARE BAD CUSTOMERS but some of the ones you were doing the business for 20 years are going to leave you if you raise your price!!!! I raised my prices every few years to reflect the cost of doing business the right way, but there are guys on this board, and all over, cleaning for less per unit than I did in 1989 when I started!!!!! How do you keep a customer and increse your prices over 20 Years????? We were cleaning th for $48 When i started 20 years ago...2 bucks cheaper than the largest guy at the time..

property managers are the same everywhere, my experience has been more in multi tennant office buildings but its same racket

your right some of those prices are 10-20 years old, sheesh

Originally Posted by braddaddy

Why dominate? I'd rather be 2nd, 3rd, 4th... When you are #1 then you spend unnecessary time worrying about other 'up and comers'. Then you make bad decisions too fast to stay #1. while the guys at your heels are smiling and have their feet up watching you dance....IMO

I disagree with the "Worrying" part. I NEVER worry....about anything....EVER! When someone can prove to me that worrying SOLVES problems, then I'll worry. Until then, fuggitaboudit! Waste of time and energy.

I tell all young cleaners starting out to NOT worry about what your competitors are doing. Instead, take that energy and concentrate your efforts on YOUR business. You'll be better off.

Originally Posted by OldCarpetVet

I disagree with the "Worrying" part. I NEVER worry....about anything....EVER! When someone can prove to me that worrying SOLVES problems, then I'll worry. Until then, fuggitaboudit! Waste of time and energy.

I tell all young cleaners starting out to NOT worry about what your competitors are doing. Instead, take that energy and concentrate your efforts on YOUR business. You'll be better off.

Indeed! I have always believed my single greatest competitor is me. The bait & switch guys come and go, always will. The guys who truly work cheap just throw in the towel after a couple years of busting their butt for nothing. It's what I do that matters to my biz.

being "Dominate" in your area is a state of resolution and can be measured by your obtaining your every goal that you set.
be sure to go back and adjust your goals and make sure they are set realilistically, yet high enough to promote hard work, and the sanctity of growth personally, professionally and spiritually.

Good points matt

The difference in the responses is a guy with truck/tools and professional small business owner/investor

If your an investor you take long term view and over time increase value of your business and create monthly unearned income. How is just a learning process.Just like investing win some loss some but always learn from your mistakes

I can see already in your pic that you have a massive giganta house with a massive giganta truck and a beautiful family. Reaching for more may not be the best way to go. When I saw you describe your goals, all I could think is I hope you have a good supply of Tylonol because you will need it.

I think i found people who set goals for themselves are the happiest people you will meet. What goal is not important you can start new business,volunteer, go back school, career,church activities etc.

Who wouldnt want to start a business and work with their son everyday? Sounds like a dream come true to me