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Carpet Cleaning:Average net profit for single truck should be what?

rob allen

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Anyone want to make an educated guess of what the net profit should be on single truck operations? I feel some have a distorted view of actual profit levels.

Rob
 

Jason Whaley

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If you have 8 hours of work per day which I do not including driving times......

7 hours X $100.00 an hour minimum. $700.00 per day. Leaving an hour of drive time per day.

$700.00 per day X 48 weeks leaving off 4 weeks for vacation, sick time and holidays.

240 days X $700.00 per day $168,000 per year and possibly more if you do restoration, weekend work and so forth......
 
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Dave Rampage

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I can tell you for me it is about 60%. I have a shop so it may be a little higher for those working out of their homes.

Dave
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Dave Y

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I think that Jason's estimates are extremely generous.

It is a best world example.

I would think that about 1/2 that amount might be a more realistic amount for most cleaners.

Remember a single truck operator still has to do marketing, estimates etc...

After that it depend on overhead.

Which could run from 30-70%

would net $27K-$60K

A lot of operators find that they get upside down from low preforming marketing or from equipment purchases and the may have no net profit.

I have talked to tons of cleaners through the years that have been busy and broke. It's very common in this industry.

Many fail every year. Others find ways to get leaner, cut wasted expences and find better ways to market.
 

PeteH

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If you have 8 hours of work per day which I do not including driving times......

7 hours X $100.00 an hour minimum. $700.00 per day. Leaving an hour of drive time per day.

$700.00 per day X 48 weeks leaving off 4 weeks for vacation, sick time and holidays.

240 days X $700.00 per day $168,000 per year and possibly more if you do restoration, weekend work and so forth......

Not trying to be disrespectful, but concerned because you list gross not net. Net is what you have left after all expenses. Now the question I have next is are you as an O/O just paying yourself out of the profit before or after you figure net? Or are you paying yourself a salary?

Dave 60% net profit? Surely that is before you pay your self. The cleaning industry is a labor intensive. Generally labor is the single largest expense.

I would say somewhere around 10% of gross if you are good at running your business.

Pete
 

Jason Whaley

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I was giving a gross estimate of what I know I could do on a truck at my prices working cleaning only carpet 7 hours per day 240 days per year. That is a minimum too. Most of the time I am doing close to $125.00 to $150.00 an hour cleaning carpets before expenses.

Of course you will not net that much I responded on a gross amount. It would be around a 50% to 60% net before I pay myself. I pay myself well though too. Not as much as I would pay the tech so it depends who is running the truck and how many, 1 tech or 2. Different variables.....

Worst case would be 20% - 30 % of gross I guess or whats the point of the hassle?

A single owner/operator should walk away with 40% - 50% of gross easy if he does not throw money at marketing that doesn't work or make dumb decisions.
 

PeteH

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I've seen this question asked many times and people leave out this expense or that. You will spend money on things that don't work and you will make dumb choices...ask any guru that has been around. You should run like a business. Paying yourself a salary or wage and consider all expenses. Then you can build a budget around your numbers. If you just take money out as you want or need things get confusing and I believe you loose the "true" picture.
 

shane deubell

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I think this is a good topic for the newer contractors especially.

Most owner operators should expect $30,000- $60,000 range net. Now after 5 or 10 years you build a huge client list, raise prices, become efficient with your time and jobs you can be in the $70,000 - $110,000 range.

Most owner operators dont work too much in the winter so the 240 days a year is academic, you may, i may, but the average contractor does not stay book solid in winter.

Distorted view is good, I might add living in Fantasy land. You also have to pay 32% taxes on that also
 
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Jason Whaley

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That is why in semi-colder climates adding WD to your business is a good idea. I make more in Jan. and Feb. sometimes doing WD over June and July cleaning carpets with less hours.

Notice in my first post I said I do not work 7 hours a day 240 days a year. Hypothetical answer with a full schedule of what one can do after time. A new CC would never reach these numbers the first year but after ten years of being in business this is not a # that is out of reach. You just have to get the work.

Just my .02
 
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That is why in semi-colder climates adding WD to your business is a good idea. I make more in Jan. and Feb. sometimes doing WD over June and July cleaning carpets with less hours.

Notice in my first post I said I do not work 7 hours a day 240 days a year. Hypothetical answer with a full schedule of what one can do after time. A new CC would never reach these numbers the first year but after ten years of being in business this is not a # that is out of reach. You just have to get the work.

Just my .02
What is "WD"? Waste Disposal, or Water Damage?
 

Jim Davisson

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Factoring in all auto expenses, chems, expendable materials in the due course of business and full coverage with inland marine insurance on completely paid off equipment we have averaged $2300 a month for 2 vans over the last 3 years. We do all repairs and accounting in house with zero advertising. It's not terrible numbers overall.
 
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brian3180

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Factoring in all auto expenses, chems, expendable materials in the due course of business and full coverage with inland marine insurance on completely paid off equipment we have averaged $2300 a month for 2 vans over the last 3 years. We do all repairs and accounting in house with zero advertising. It's not terrible numbers overall.
You net $2300 per month on each van?
 

Kipp

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For my 2.5 yrs in the biz I ran about 80% NET...my second yr I did 235k off one truck
 
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