Do You Want To Learn How To Price YOUR Services? | TruckMount Forums #1 Carpet Cleaning Forums

Do You Want To Learn How To Price YOUR Services?

Mrs.SpeedySteamer

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NO not based on what the idiot across the street charges...
Based on YOUR Cost Of Service and gross profit you want to achieve

Pay no attention to actual numbers, the formula is what is important

Cost Of Service- direct costs to physically clean a carpet
2000 sqr ft

Labor- moving at 350 sqr ft hour = 6 hours This includes everything
6 hours x $25 hour = $150
Labor- $150

Materials- 2/3 Gallon of prespray and misc spotters $30
Materials- $30

Equipment- truckmount costs $25k divided by 6000 hours= $4.20 hour
Maintenance $2k divided by 6000= .35
1.5 gallons gas per hour x 6000 hours= 9000 gallons x $3.50 gallon= $31500 / 6000 hours= $5.25
Round it up to $10 hour
Equipment- $10 hour x 4 hours running time = $40
Equipment= $40

Van- $20k divided by 100k miles = .20
$3k in maintenance / by 100k = .03
Gas- 100k miles / by 15 miles gallon = 6666 gallons x $3.50 gal= $23,333
$23333/ 100k miles = .23 mile
Total cost $.46 per mile

Total Cost= Labor $150 + detergents 30 + equipment 40 + 20 miles $9.2
$230 Cost

This is a 1x service, we really want a gross profit of 60% or more

$230 cost /divided by 40% {the cost % we want to be at} = $575

Price for 2000 sqr ft = $575
$575 divided by/ 2000 sqr ft = $.28 per sqr ft
This is why you rock! Great view. I printed it up and showed it to my husband. Although I had to change a few prices for my area and cost of the van. But he got the picture.
 
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vicsin

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This is why you rock! Great view. I printed it up and showed it to my husband. Although I had to change a few prices for my area and cost of the van. But he got the picture.
I appreciate very much your assessment of cost, etc. 2 points worth making for me are: 1st, I clean 2000 sq/ft of carpet in about 2 hours, 2.5 max by myself, not 6. Although if I could get your prices I would certainly take more time. 2nd, do people pay those prices where you live? I live in a fairly affluent area and I think based on what my friends the in business around here charge I would not get the vast majority of the work, if any. We're all on the 1st page of google for our area and the people are talking to us everyday. All my friends do good work and charge much less than what you stated. So how do I get those prices in the face of other companies doing good work and presenting a good image? As I've many times stated I'd rather be working for a little less than sitting around talking about how much I charge, but I sure would like to make more. Thx again.
 
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Nov 24, 2012
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I just snoop around for who's the most expensive and somewhat know and charge slightly higher.

come april my solo act will be more expensive than the local SS, & Zero Rez Franchises that run 2 man crews :cool:
 

rob allen

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This is now a sticky.
 

MRD Cleaning Solutions

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NO not based on what the idiot across the street charges...
Based on YOUR Cost Of Service and gross profit you want to achieve

Pay no attention to actual numbers, the formula is what is important

Cost Of Service- direct costs to physically clean a carpet
2000 sqr ft

Labor- moving at 350 sqr ft hour = 6 hours This includes everything
6 hours x $25 hour = $150
Labor- $150

Materials- 2/3 Gallon of prespray and misc spotters $30
Materials- $30

Equipment- truckmount costs $25k divided by 6000 hours= $4.20 hour
Maintenance $2k divided by 6000= .35
1.5 gallons gas per hour x 6000 hours= 9000 gallons x $3.50 gallon= $31500 / 6000 hours= $5.25
Round it up to $10 hour
Equipment- $10 hour x 4 hours running time = $40
Equipment= $40

Van- $20k divided by 100k miles = .20
$3k in maintenance / by 100k = .03
Gas- 100k miles / by 15 miles gallon = 6666 gallons x $3.50 gal= $23,333
$23333/ 100k miles = .23 mile
Total cost $.46 per mile

Total Cost= Labor $150 + detergents 30 + equipment 40 + 20 miles $9.2
$230 Cost

This is a 1x service, we really want a gross profit of 60% or more

$230 cost /divided by 40% {the cost % we want to be at} = $575

Price for 2000 sqr ft = $575
$575 divided by/ 2000 sqr ft = $.28 per sqr ft
Great post...one question to the 6000 hours for equipment?




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shane deubell

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Great post...one question to the 6000 hours for equipment?




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Made up number, you will have to talk to your manufacturer and people who own your equipment to find out an average.
 

MRD Cleaning Solutions

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Made up number, you will have to talk to your manufacturer and people who own your equipment to find out an average.
Just want to say again...thanks!
I created my spreadsheet with my numbers...though I'm not charging enough to be where I want to be, I am charging enough for a good profit margin. Also figured out a way to price jobs and eliminate the actual need to visit sites when there's a time restraint.


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MRD Cleaning Solutions

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Just want to say again...thank!
I created my spreadsheet with my numbers...though I'm not charging enough to be where I want to be, I am charging enough for a good profit margin. Also figured out a way to price jobs and eliminate the actual need to visit sites when there's a time restraint.


Sent from my iPad using TMF Forums mobile app
Thanks!


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shane deubell

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Just want to say again...thanks!
I created my spreadsheet with my numbers...though I'm not charging enough to be where I want to be, I am charging enough for a good profit margin. Also figured out a way to price jobs and eliminate the actual need to visit sites when there's a time restraint.


Sent from my iPad using TMF Forums mobile app
Its overkill admittedly, the point is to have reserves for equipment/van repairs and replacement. Its not a 1x cost.

If i was an o/o would also separate my salary from the company profit also.
 

Ford Dude

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I have been in business full time for abut 10 months. I started with a porty and I just got my first truck mount about a week ago. Of course not having been in business last year at this time I didn't realize how much business drops of in January. Great timing. All my cost have just went way up and business went way down.... I'm stressing out.
 

shane deubell

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I have been in business full time for abut 10 months. I started with a porty and I just got my first truck mount about a week ago. Of course not having been in business last year at this time I didn't realize how much business drops of in January. Great timing. All my cost have just went way up and business went way down.... I'm stressing out.
Definitely ugly this time of year.
 

Ford Dude

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Definitely ugly this time of year.
Live and learn I guess, now I might have some time to work on my website and marketing.

I'm working on a flyer for my neighborhood with some of my down time this week. I plan on doing a 3 room $89 deal and offer a free bottle of my Home Pro Spotter. Does anyone have any suggestions or comments?
 

Pinosan

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Live and learn I guess, now I might have some time to work on my website and marketing.

I'm working on a flyer for my neighborhood with some of my down time this week. I plan on doing a 3 room $89 deal and offer a free bottle of my Home Pro Spotter. Does anyone have any suggestions or comments?
Is it snowing in your area??
 

Ford Dude

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Is it snowing in your area??
Thank God no. We had 2 weeks of snow and it was horrible. We don't get a whole lot of snow and ice (again, thank God.) but when it does, it really messes my world up.
 

aloha one

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Thank God no. We had 2 weeks of snow and it was horrible. We don't get a whole lot of snow and ice (again, thank God.) but when it does, it really messes my world up.
But a Memory now Soldier...Carry on my Freind!
 

Ford Dude

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Thanks for the support, I'm really glad I found this forum. It means a lot to find a community of people who know what it's like to be a small ( Someday hopefully medium sized) business.

Anyone have any feedback on the flyer yet?
 
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aloha one

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Thanks for the support, I'm really glad I found this forum. It means a lot to find a community of people who know what it's like to be a small ( Someday hopefully medium sized) business.

Anyone have any feedback on the flyer yet?
Stick around Brother.. Lots to learn here and have Fun Doing So!
 

Scott W

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I have been in business full time for abut 10 months. I started with a porty and I just got my first truck mount about a week ago. Of course not having been in business last year at this time I didn't realize how much business drops of in January. Great timing. All my cost have just went way up and business went way down.... I'm stressing out.
The slow months are when you can stress upholstery cleaning or other services that can be done with the doors closed (using your portable). Depending upon what portable you had, maybe also some tile and grout cleaning and services. Promote your advantage that you can clean without letting the heat out and the cold air in.

Also a good time to look for business accounts. These have to be cleaned regularly all year around, maybe even more during bad weather. Get accounts that you schedule every 3 months or every month and have something steady for next year.
 

mary

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The best way to estimate was to itemize everything. Janitorial work becomes more complicated, because you have more variables. You have the square footage of the building, the type of floor coverings etc. Charts are there to guide you.