How Does Stanley, Coit, and Others Do it?

KNOCKOUT

Moderator
Dec 29, 2009
1,393
0
36
Sales. I wish we can get a plain spoken expert in here, to tell us how the $99 whole house specials work. If you look at it and just say "bait n switch" or "splash n dash" etc.. your wrong. Sure, those slobs are out there, but the big boys must have it all figured out with charts, numbers, and loss leader numbers. Anyone ever been a territory manager, or have a little insight into how effective those $99 whole house specials are? I know it scares the crap out of owner operators, who just look at it as number, and freak that they can't compete. I also know, that they do a decent job, if they have to do it for that amount (loss leader).
 

Pat Carroll 1

Supporting Member
Nov 10, 2010
453
2
0
Minneapolis, MN
When I worked for a franchise, they ran $13/room coupons in the paper for weeks. Later they did $19/room coupons. The only way we made money was high pressure extras because we were paid a commission not by the hour. We would have 15 jobs on the ticket for each truck nearly every day until winter. You would think they would run the coupons during the slow season but they would never do it.
 

GreenTechAgain

Well-Known Member
Dec 12, 2009
2,734
632
113
Holiday, FL
www.GreenTechCarpetCleaning.com
Real Name
Ross Martin
Business Location
United States
Sales. I wish we can get a plain spoken expert in here, to tell us how the $99 whole house specials work. If you look at it and just say "bait n switch" or "splash n dash" etc.. your wrong. Sure, those slobs are out there, but the big boys must have it all figured out with charts, numbers, and loss leader numbers. Anyone ever been a territory manager, or have a little insight into how effective those $99 whole house specials are? I know it scares the crap out of owner operators, who just look at it as number, and freak that they can't compete. I also know, that they do a decent job, if they have to do it for that amount (loss leader).

If you look at what their $99.00 special is, it is really $50.00 an area.

Nothing too special. Again, just marketing. If I told people my price was $50.00 per area, they would balk.

But they see the TV ad, $99.00 "Special" and call. We all know what they do after that.

I'm sure that "special" is $350.00 in the end.
 

AdmiralClean

Poster
Premium VIP
Mar 13, 2007
6,824
1,053
113
Alabama
Very few posters have any real knowlege of that marketing plan. A few around these boards have WORKED for one of those companies as technicians, but that does nothing to give them real insight into how that marketing plan works. I only know of one BB poster that actually runs a company like that and that is Ken Snow. You won't find him here ... probably never will ... so I suspect he will be denigrated by most of the pack leaders here. But, if you really want to "know" about that marketing plan ... he's the guy you need to talk to.

I have talked to him, off and on over the years, and have come to my own conclusions regarding that business model, but having not practiced that plan, I prefer to listen while the rest of you make fools of yourselves trying to answer the question.

This should get very interesting ...
 

Jeff Ellis 1

New Member
Dec 25, 2009
1,030
1
0
There are a multitude of "owner operators" who offer that type of pricing structure and do well with it. They are not "bait n switch" or "splash and dash" companies. In fact I think the owner operator is in a better position to offer this type of pricing structure because of their overhead is so much lower than the big companies.

Who here could not do three $99 specials a day and make good profit? Not to mention the add on sales. I dont mean the high pressure add ons or "B & S" but legitimate add ons like the extra room or the protector or the sofa and etc...
 

AdmiralClean

Poster
Premium VIP
Mar 13, 2007
6,824
1,053
113
Alabama
This topic really requires an in-depth answer to properly explore all the variables involved. It is much too complicated to properly address in a post or two. Without going into detail, and thus boring you to tears, let me simply say that the first factor you need to understand is that an owner operator, working by himself can not make this business approach work.

Doing multi-step cleaning is just not profitable at that price ... even if you are only doing one room. It just takes an owner operator too long to properly prevacuum, pretreat, spot, extract and post groom ... and if you add in moving furniture ... well then it's just poverty wages. So, you have to hire help.

With a properly trained helper, you can probably do ok at $99 for four rooms ... although I doubt you can at five rooms anymore ... however, as you all know, adding that helper really increases the operating costs.

So ... it might not be as profitable as you may think.

Consider this ... there is a reason the long lasting price point companies are multitruck. It's because the true breakeven point is higher than ours is.
 

kingjoelking

Well-Known Member
Mar 26, 2008
3,493
469
83
AZ
www.whatsinyourcarpets.com
Real Name
Joel Riggs
Business Location
United States
I could do a $99 for 3 room special and make money. it's $20 off my normal price. Stanley does it with the expectation of upsells but include the fact that they run a 2 man crew. Dont dry Stroke and upsell the hell out of the jobs they make quite a bit more. Additionally the techs are expected to do between 5-8 jobs a day. So with no upsells at all. You are looking at $500 - $800 a day and each job takes them 45 minutes.

Owner operators charge more because we are a "boutique" cleaning service. Are jobs generally take more effort and get better results. Which is exactly why for the most part the coupon/craiglist/val pac customers are not the customer I am after.

Part of me says I should find the happy medium inbetween my business model and theres.
 

Priceless

User
Dec 9, 2009
2,299
6
0
California
Real Name
Kevin Price
Business Location
United States
This topic really requires an in-depth answer to properly explore all the variables involved. It is much too complicated to properly address in a post or two. Without going into detail, and thus boring you to tears, let me simply say that the first factor you need to understand is that an owner operator, working by himself can not make this business approach work.

Doing multi-step cleaning is just not profitable at that price ... even if you are only doing one room. It just takes an owner operator too long to properly prevacuum, pretreat, spot, extract and post groom ... and if you add in moving furniture ... well then it's just poverty wages. So, you have to hire help.

With a properly trained helper, you can probably do ok at $99 for four rooms ... although I doubt you can at five rooms anymore ... however, as you all know, adding that helper really increases the operating costs.

So ... it might not be as profitable as you may think.

Consider this ... there is a reason the long lasting price point companies are multitruck. It's because the true breakeven point is higher than ours is.

For starters you need to quit enabling your custy and spreading Gawd knows what with that same vacuum you drag around.The bigger guys just swoop in,maybe prespray,maybe not,try and sell you some things and then move on out.If you do that as an owner/op,you can very easily make good money.If you want to be a crabby old broke man..then use Merty's method.
 

bill

Well-Known Member
Jun 29, 2008
1,928
451
83
Southern California
freshcleanhome.com
Real Name
Bill Vivers
Business Location
United States
First I worked for them 18 years ago and there $99 special here in Cali is for something like a room and a hall. Not so special huh. Most
techs back then did speed clean, no dry pass, no Pre vac, no pre treat, had a large box on board with pre made cleaning solution similar
to dry slurry I would assume. I sold massive amounts of maintenance programs and upholstery ad ons. No tile & grout back then.


Carpet cleaning mission viejo
 

James Cooper

Premium VIP
Jun 22, 2008
7,024
32
48
55
Brunswick, Georgia
www.jnccarpetsystems.com
Real Name
James Cooper
Business Location
United States
there are plenty of opportunities to make money at low priced specials . Making money comes down to the walk through on the job. I Think 1 K a day discussed this in an earlier post. When you do a walk through, you basically list all the problem areas and price them accordingly. By doing this you address issues that wont come out with a normal cleaning, but you cover your butt and increase the opportunity to turn a run of the mill job into something special.