cost of doing biz ???

Discussion in 'General Carpet Cleaning & Upholstery Discussion' started by mr.cleansalot, Apr 16, 2012.

  1. mr.cleansalot

    mr.cleansalot Active Member

    Joined:
    Jun 19, 2011
    Messages:
    800
    Likes Received:
    51
    Trophy Points:
    28
    Location:
    Reno, Nevada, United States
    Ratings:
    +142 / 1 / -0
    Real Name:
    fisher james
    Business Location:
    United States
    how can i find out my cost of doing biz. wher do i start? i have always just gone with the 100$ a hr i was taught by an old boss. but i would really like to find out what it cost me to clean.
  2. Scott W

    Scott W Preferred Vendor Premium VIP

    Joined:
    Feb 14, 2006
    Messages:
    10,660
    Likes Received:
    1,743
    Trophy Points:
    113
    Location:
    West Jordan, UT
    Ratings:
    +4,781 / 7 / -1
    I have a spreadsheet that helps with this. It is part of a complete training manual we sell on determining your costs and setting your price to be sure you are profitable. It usually sells for $99.95. I have 3 I can sell for $50 for anyone interested in the whole package.

    I will send the spreadsheet for figuring your costs to anyone who asks at no charge. I just need your email address. scottw[MENTION=9622]bri[/MENTION]dgewatercorp.net
  3. TheEyeball

    TheEyeball Guest

    Ratings:
    +3,143 / 17 / -43
    What a great question. The fact you are even asking it proves you are better off than 90% of the cleaners out there.

    If you list out all your monthly expenses including payroll for yourself you can back your way out from there. Based off your average monthly gross and number of jobs.
  4. emeraldclean

    emeraldclean Premium VIP

    Joined:
    Feb 20, 2012
    Messages:
    3,375
    Likes Received:
    1,498
    Trophy Points:
    113
    Location:
    Beausejour Manitoba Canada
    Ratings:
    +2,911 / 3 / -0
    Real Name:
    Grant Schmidt
    Business Location:
    Canada
    I agree with eyeball, that's exactly what I do. Take gross earnings in the month and divide the number of jobs completed. Example 10k a month 50 completed jobs. Total expenses for that month 8k, divide by 50= $160 cost to complete one job. Hopefully your expenses don't exceed your gross or you will be bankrupt before you know it lol. If I do 10k that month I run a $200 job average wow I'm surviving in business.
  5. kineard

    kineard Member

    Joined:
    Oct 8, 2010
    Messages:
    515
    Likes Received:
    25
    Trophy Points:
    18
    Location:
    Florida
    Ratings:
    +44 / 1 / -2
    Real Name:
    Arthur Kineard
    Business Location:
    United States
    This is one of the hardest things for me to do. Not because it is hard because it is difficult to record all the information you need on consistent basis. I forget, am tired or in a hurry, I can come up when ten more excuses without even trying. Kind of like people bad with their check books. I recommend KISS, Keep It Simple Stupid, method for book keeping.
    You do need to track everything.
    Millage on vehicle. Yes I forget this all the time.
    Hours on equipment. My hour meter on the truck mount doesn't even work and the portable doesn't have one either.
    Time in and time out of job. Pretty good about recording this.
    Cost of everything. This is recorded with out fail. I only buy items related to this business with one card and never cash. So if I put off recording the information in my ledger for a few days it is still there.
    Now comes the hard part analogizing more than the total of your income and expenses. We are kind of hacks at this.

    Unfortunately software has been made for only fortune 500 companies that require a degree in astrophysics to use I.E. Quickbooks.
    Obviously I am exaggerating that but very basic leadgers are really all you need. A few simple reports are nice also.
    Basically it comes down to income and expenses and finding the difference. Taking the hours you tracked for each job and a little diversion.

    If you do things different than company a, b, or c that is fine. For example time on each job people record differently and this is up to you, but many will start the time from the time they leave a job to the time they leave the next job. I chalk travel time up to the cost of doing business and do not really track it but I also never travel more than about 15 minutes in between jobs. If you are more than a little annual you can even track how much chemicals cost you per job on average.

    The more records and more time in business will allow you to follow trends. I try to buy my chemicals in bulk. Since I have started I have bought 4 50lb pails of powerburst. And you thought those word problems in school were a waste of time. After this pail is done I could very easily find out how much PowerBurst cost on average per job in the past and this would likely be enough information to predict future cost of powerburst per job. I am not that annual. My weekly, monthly and annual reports give me a view that I am happy with. If we were to ever get really busy I would likely have daily reports. You can reasonably predict how well a given week is going to be by the way your business has performed in the past. I recommend erring on the side of annul as it can not hurt.
  6. Will Reed

    Will Reed Well-Known Member

    Joined:
    Jun 3, 2010
    Messages:
    3,770
    Likes Received:
    1,229
    Trophy Points:
    113
    Location:
    Missoula, Montana, United States
    Ratings:
    +2,536 / 14 / -0
    Real Name:
    Will Reed
    Business Location:
    United States
    It is pretty simple math when you think about it. Its the book keeping in order to do the math that is a little more difficult.

    Gross Income - Expenses = Net profit before taxes. Net/# of jobs = average profit per job. OR Net/Hours worked for the month = average proft per hour. Biggest expenses will likely be advertising and gas. Labor if you are not a one man operation. There are other more complicated calculations like depreciation of equipment for those with expensive TMs and vehicles.
  7. shane deubell

    shane deubell Premium VIP

    Joined:
    May 8, 2006
    Messages:
    16,735
    Likes Received:
    2,814
    Trophy Points:
    113
    Ratings:
    +9,936 / 66 / -5
    Real Name:
    .....
    Business Location:
    United States
    Start with your COS, whatever you need to physically deliver the service

    1.Labor
    2.Detergents
    3. Van
    4.Cleaning equipment

    Next is your fixed monthly costs regardless the # of jobs
    1. rent
    2.telephone
    3.advertising
    4.health insurance
    5. supplemental disability ins
    6.Liability insurance
    Etc., Etc.
  8. Tron

    Tron Well-Known Member

    Joined:
    Aug 3, 2010
    Messages:
    14,886
    Likes Received:
    21
    Trophy Points:
    113
    Ratings:
    +5,669 / 53 / -14
    Business Location:
    United States
    This is where I've always glazed over and never figured it out, sfs helped allot, but I still just try to make every dollar possible and not waste money were I don't have to. Then see where I'm at at the end of the month.

    So far 4 years running I've made profit, and always growing. Just not as fast or easily as I thought it would be.
    Patience..
  9. braddaddy

    braddaddy Member

    Joined:
    Dec 8, 2009
    Messages:
    613
    Likes Received:
    4
    Trophy Points:
    16
    Location:
    Illinois
    Ratings:
    +89 / 0 / -0
    Real Name:
    Br@d Bl@ckwell
    Business Location:
    United States
    Its easy when you look at it with the 'job' eyes...

    $$paycheck / hours worked = $$ per hour.... (when its always 40hrs or whatever.....)

    But when the "jobs per day" are not consistent....its always a different number.....your $$ per job can be different daily....
  10. shane deubell

    shane deubell Premium VIP

    Joined:
    May 8, 2006
    Messages:
    16,735
    Likes Received:
    2,814
    Trophy Points:
    113
    Ratings:
    +9,936 / 66 / -5
    Real Name:
    .....
    Business Location:
    United States
    Just make it up like everyone else does!
  11. RyansCarpetCleaning

    RyansCarpetCleaning Member

    Joined:
    Feb 15, 2012
    Messages:
    222
    Likes Received:
    0
    Trophy Points:
    16
    Location:
    CA
    Ratings:
    +20 / 0 / -0
    Real Name:
    ryan edelstein
    Business Location:
    United States
    I figure out what I need per day not job. I feel its easier and possibly more accurate. Take all monthly bills and multiply by 12 then divide by amount of days worked in the year. I work 264 on average. Mon-fri and every other saturday. So if you need 2400 a month you need 28,800 a year divided by 264 is 109.09 a day. after that its profit and misc bills.

    solution price per job: 64/oz per gallon= A Price of gallon/ A=price per gallon
    So: 64/4=16 or A 36.28/16=2.27 so its 4.54 for a 2 gallon jug.
  12. jaymark1

    jaymark1 Premium VIP

    Joined:
    Feb 8, 2011
    Messages:
    5,995
    Likes Received:
    1,357
    Trophy Points:
    113
    Location:
    PA
    Ratings:
    +3,524 / 24 / -0
    Real Name:
    Jay
    Business Location:
    United States
    The sad truth is that most O/O business owners would actually make more if they just worked a mid level job and very few understand this.

    Plumber. Average salary 50K. Benefits 15K. Most in my area have a match retirement account, in Philly all are union and have a pension.

    Carpet Cleaning O/O. Earnings 100K working way more then 40 hours a week. Minus benefits. Minus massive amounts of insurance as mentioned above. Minus self funding retirement. Minus all the cost of doing business.

    Very important you learn how much your earning, life might be easier for you just flipping burgers
  13. Tron

    Tron Well-Known Member

    Joined:
    Aug 3, 2010
    Messages:
    14,886
    Likes Received:
    21
    Trophy Points:
    113
    Ratings:
    +5,669 / 53 / -14
    Business Location:
    United States
    Even though your so negative about stuff anymore I can feel static electricity from your computer, I think you are pretty spot on..

    Totaly agree.
  14. mr.cleansalot

    mr.cleansalot Active Member

    Joined:
    Jun 19, 2011
    Messages:
    800
    Likes Received:
    51
    Trophy Points:
    28
    Location:
    Reno, Nevada, United States
    Ratings:
    +142 / 1 / -0
    Real Name:
    fisher james
    Business Location:
    United States
    i agree aswel but i dont have to take sh!t from some a$$hole on a power trip every day and thats worth it to me i guess.
  15. mr.cleansalot

    mr.cleansalot Active Member

    Joined:
    Jun 19, 2011
    Messages:
    800
    Likes Received:
    51
    Trophy Points:
    28
    Location:
    Reno, Nevada, United States
    Ratings:
    +142 / 1 / -0
    Real Name:
    fisher james
    Business Location:
    United States
    o ya and thanks guys for the input im going to get with scott for that page. i got his odor removal work sheet and highly recomend it to anyone having trouble with urin.
  16. Tron

    Tron Well-Known Member

    Joined:
    Aug 3, 2010
    Messages:
    14,886
    Likes Received:
    21
    Trophy Points:
    113
    Ratings:
    +5,669 / 53 / -14
    Business Location:
    United States
    Haha, yea.

    I love to work, and I enjoyed making my boss happy. But I would not take the power trips.
    I would ask off for very reasonable vacation time that anyone else in his family would take and he would say no, so I'd just leave and go anyways and we would get in these week long arguments. He would go on vacation at the drop of the hat if we both wanted to go do something like boating, but noooo, if you want to do something he doesn't, it was WW2.

    Couldn't take it, I DON'T WANT TO BE TOLD WHAT TO DO!
  17. kineard

    kineard Member

    Joined:
    Oct 8, 2010
    Messages:
    515
    Likes Received:
    25
    Trophy Points:
    18
    Location:
    Florida
    Ratings:
    +44 / 1 / -2
    Real Name:
    Arthur Kineard
    Business Location:
    United States
    I have been in business for a minute or two and I can tell you for a fact you will put up with sh!t from your boss every day. Your customers. The customer is always right. Until they really piss you off anyways. Then you fire them. That can takes some balls to fire a customer. It can take even more not to fire them.
  18. Tron

    Tron Well-Known Member

    Joined:
    Aug 3, 2010
    Messages:
    14,886
    Likes Received:
    21
    Trophy Points:
    113
    Ratings:
    +5,669 / 53 / -14
    Business Location:
    United States
    Good thing all my bosses (customers) love me!
  19. Todd the Cleaner

    Todd the Cleaner Super Moderator Staff Member Moderator Premium VIP

    Joined:
    Sep 4, 2011
    Messages:
    14,088
    Likes Received:
    5,496
    Trophy Points:
    113
    Location:
    Pahrump, Nevada, United States
    Ratings:
    +13,052 / 27 / -0
    Real Name:
    Todd Cottino
    Business Location:
    United States
    Do your customers give you that hard of a time? Almost without fail my customers are very plesant to deal with and I hardly ever have a problem. In the last 9 months I only had one customer that was not happy and really there was nothing more I could do for her. She wanted her 20 year old white, trashed carpet to look like new and I had told her even before cleaning that wasn't going to happen. She had had the furniture in the same place for 20 years and then when she moved out she wanted all the worn carpet t look like the new carpet where her furniture had been for all the years.

    Here is what she was complaining about :

    pumpkin carpet 3.jpg


    As you can see there is going to be a custoomer every now and then that there is just no pleasing but I only see one or two of those per year.
  20. Nick N

    Nick N Well-Known Member

    Joined:
    May 27, 2008
    Messages:
    2,067
    Likes Received:
    111
    Trophy Points:
    63
    Location:
    Texas
    Ratings:
    +362 / 2 / -0
    Van and machines are sunk costs as are the air movers and dehumidifiers. If you maintain your stuff you will do well. I have a EZ 2045 that is about 15 years old. I replace parts as needed still on the original Onan engine and sutorbilt blower. Figure out what your cost of living expenses are this includes everything if they are 5,000 a month you need to do about 10,000. Buy rental properties when you get opportunities , I have purchased a lot over the last 4 years. Put 500.00 a month into a roth IRA or =. What I did is took a Restaurant that I did every month and put that money into IRA. When I did Water Damages I took money from that and purchased rental properties. Dont eat out all the time, buy quality shoes or you will end up with major KNEE problems like I did. Use your business to establish good business connections in your area ,that helped me grow a lot and to make money...

Share This Page