Figuring CODB (Cost of doing business)

rob allen

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#1
Put your thinking caps on.

Here is a job I did. It was 5 empty areas. I charged 50 an area. I sold him on deodorization at 1/2 price cleaning. I used Bio Pro at 44 a container using 8oz in a 4-1 HF sprayer and it covered all 5 areas. I added 8oz of super concentrate Beachy Peachy @ 60 gallon. My van, equipment is paid in full. I ran my truckmount for 1.5 hours and it uses 1.25gph. Excluding My labor (1.75 hrs), insurance, taxes, repairs and other incidentals what was my CODB and my net profit for this job? (Round off close is fine)


Carpets gross-
Deod gross-
Bio Pro cost-
Beachy cost-
Gas cost-
Net profit before incidentals-
5 star review I got-

Client wrote a 5 star review and the super concentrated Beachy Peachy smelled divine and will smell like light peach for about a week till his realtor walkthough in a couple days easily. I left a magnet (.50 cost each) on fridge for property manager to see and when they see the carpet and smell the Beachy Peachy I should get more work.








 
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Mama Fen

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#3
Put your thinking caps on.

Here is a job I did. It was 5 empty areas. I charged 50 an area. I sold him on deodorization at 1/2 price cleaning. I used Bio Pro at 44 a container using 8oz in a 4-1 HF sprayer and it covered all 5 areas. I added 8oz of super concentrate Beachy Peachy @ 60 gallon. My van, equipment is paid in full. I ran my truckmount for 1.5 hours and it uses 1.25gph. Excluding My labor (1.75 hrs), insurance, taxes, repairs and other incidentals what was my CODB and my net profit for this job? (Round off close is fine)


Carpets gross-
Deod gross-
Bio Pro cost-
Beachy cost-
Gas cost-
Net profit before incidentals-
5 star review I got-

Client wrote a 5 star review and the super concentrated Beachy Peachy smelled divine and will smell like light peach for about a week till his realtor walkthough in a couple days easily. I left a magnet (.50 cost each) on fridge for property manager to see and when they see the carpet and smell the Beachy Peachy I should get more work.









I'm assuming that the "5 star review I got" line item = PRICELESS, so my guess is the cost of the job is incidental. The ROI is not measured by dollars, but by future clients and reviews.
 
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rob allen

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#4
I'm assuming that the "5 star review I got" line item = PRICELESS, so my guess is the cost of the job is incidental. The ROI is not measured by dollars, but by future clients and reviews.
Yes you are correct but like fill in the line items so others can see how inexpensive it is to do a job.
 
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Mama Fen

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#5
If my maths are correct, doing that $250 job cost just a bit over $10... and almost $5 of that is gasoline. So practically half of the ~4% total cost of doing business for the job was fuel.

That's assuming the deo was included in the $50 per area. If not, your CODB drops to 2.6%.
 
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Jim Davisson

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#6
If you want to get down to brass tacks you have to factor in the intangibles, insurance, marketing, tax, rent, risk (I add this in to the quote if necessary), etc...

However, I do see the tangible point of view for the conversation as well. I'm $1 per cleaning hour prorated life of components and chems, portable and $2.50-3 TM.
 
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longkenn

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#7
I generally use total expenses divided by number of tickets that will give you an average cost per job. I don't get down to splitting hairs over costs on a particular job. Some cost more to do, some less. I do look at trends in spending by category. That is more informative than anything.
 
Sep 4, 2015
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#8
Put your thinking caps on.

Here is a job I did. It was 5 empty areas. I charged 50 an area. I sold him on deodorization at 1/2 price cleaning. I used Bio Pro at 44 a container using 8oz in a 4-1 HF sprayer and it covered all 5 areas. I added 8oz of super concentrate Beachy Peachy @ 60 gallon. My van, equipment is paid in full. I ran my truckmount for 1.5 hours and it uses 1.25gph. Excluding My labor (1.75 hrs), insurance, taxes, repairs and other incidentals what was my CODB and my net profit for this job? (Round off close is fine)


Carpets gross-
Deod gross-
Bio Pro cost-
Beachy cost-
Gas cost-
Net profit before incidentals-
5 star review I got-

Client wrote a 5 star review and the super concentrated Beachy Peachy smelled divine and will smell like light peach for about a week till his realtor walkthough in a couple days easily. I left a magnet (.50 cost each) on fridge for property manager to see and when they see the carpet and smell the Beachy Peachy I should get more work.








The cost doesn't matter, as long as you got a 5 star review !!
 

Luky

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#9
I'm not opposing your thoughts and portraying numbers under ideal circumstances. I had plenty of business ventures, in many cases intertwined and feeding of each other, still experienced unexpected historic events and dearly paid my price.
I would like to encourage less than "mainstream" members who didn't allocated their resources wisely as you did, to be vigilant and pursue their cause, regardless of CODB. To accentuate my observation, by browsing trough hundreds of posts during many years, I learned that no matter what guidance is out there, decision making process is unique to each and every individual. To put dent in your theory I came up with a " living" example.
I've seen that you used CRB. Let's pretend this is my Brush Pro 17 I've shed $3000 for. Even though brand new, it broke down. My Chevy needs new transmission even though odometer is showing only 40 K miles. Although hypothetically, this can happen and it happened before. You might counter that these situations are not permissible under your case trial and they fall in different category, perhaps emergency expenditures, but inadvertently will affect your CODB. I mentioned all that intentionally as I"m reading every day about problems with pumps, solenoids, blowers, heat exchangers, even with a whole setups. I just thought, I'll bring slightly different perspective to this matter, so members with less than scientific approach and not so ideal business plan don't get an idea of becoming millionaires within six months of hard work...
Go Rob...