[JamesRostance]

Available to buy as a whole, or the business and equipment separately

This is a wholly owned family-run business.
Carpet cleaning business from Southampton, covering a 25 mile radius (larger part of Hampshire).

Number 1 on Google for "Carpet Cleaning Southampton" & "Carpet Cleaners Southampton".
10/10 average Checkatrade feedback rating.



We regularly are thought to be a franchise.
This is not the case yet, though we have designed it in such a way that it could be franchised out under the guidance of the right person.
It has all of the plus points of a well developed franchise, except with zero licensing costs as it's a wholly owned unique creation.

www.WOWcarpetcleaning.co.uk
Here is a link to download photos which support the listing:   http://www.wowcarpetcleaning.co.uk/forsale.zip



Marketing System:
USP: Exclusive 25 Step Cleaning Process
The cleaning process is our core USP (unique selling point), which clearly differentiates us from the competition.
This is essential in order to avoid having to compete purely based on price.

It demonstrates to the customer just how well their carpets will be cleaned and looked after.
It also adds significant perceived value to the customer by quantifying the work undertaken.


Quote Materials:
Continually developed and refined over the past 2 ½ years by James Rostance (published marketing author).
Visually appealing and very easy to read by customers.


Consumer Guide:
 A highly refined tri-fold leaflet which educates a customer on what they should look for in a carpet cleaner.
It has proven to be an incredibly effective sales tool through the teaching it does and pre-qualifying us as the ideal choice of cleaner.
2x layout versions. One for download, one for print out.


Quote Pack:
Make no mistake, our quote pack is a carefully engineered sales document.
After a tremendous amount of development, quotes can be outputted in seconds thanks to it being a spreadsheet which outputs straight to PDF.

Room dimensions can be inputted in either dimensions (feet), dimensions (metres), total area (feet), total area (metres).
Room dimensions in their input format can be mixed and matched - perfect if dealing with someone over the phone who has mixed measurements.

3x page quote document which re-caps and sells our core selling points.
Clearly and concisely up-sells carpet protection and anti-dust mite.
Customer testimonials and room dimensions on the 3rd page.



Website:
Google Number 1: "Carpet Cleaning Southampton" & "Carpet Cleaners Southampton"

A very carefully designed sales website, again, developed and continually refined over a 2 ½ year period.
The website does an extremely effective job of positioning and selling us as 'the' carpet cleaners to choose.
This positions us well ahead of the pack in terms of competition.


Easily editable Wordpress content management system.
Incredibly powerful time-lapse video on the home page which demonstrates the effectiveness of our 25 step cleaning system.

2x distinct product offerings:  
   1: Full Clean (our full 25 step cleaning process for customers who want quality carpet cleaning)
   2: Freshen Up (a scaled-down version of our full service where the numbers stack up, but we are still the more attractive option compared to other '50% off' cleaners)

Online quote request forms - most enquiries come from online.
Our quote request page has been designed in such a way that it performs incredibly well in getting a visitor (number 1 position on Google) to ask for a quote.
Once we have their details and a quote request, they are then sent our sales document / quote pack to seal the deal.



Online Client Management & Booking System:
Optimised for desktop, ipad and iphone viewing.
Our client management is linked to our website, so a customer's record is automatically created when they enquire.
All conversation notes can be logged, quotes attached and bookings made.
This is the organisational hub of the company.


Online Account & Book Keeping Service:
The client booking system is integrated into the online accounting system.
The accounting system keeps track of who's paid and who hasn't.
Receipts and invoices are inputted simply by photographing them with either the iphone or ipad app.
The system outputs customer invoices, prints or emails them directly.

Full accounts and VAT accounts are able to be outputted for verification by your accountant.


Template Emails and Letters:
A series of quote, booking and thank you letters and emails.
Each communication either helps with making the sale or re-inforcing a customer's purchase decision.
Admin time is absolutely minimal, but the personal impression to a customer throughout their experience with WOW is held in very high regard (we know this from customer feedback).


Professionally Written Direct Marketing Pack:
Bespoke, direct marketing pack written for us by Drayton Bird - one of the world's greatest (still living) copywriters (Google him).
The letter is specifically for targeting high-end homes. Ideally, from a purchased direct marketing list.


Newsletter:
Professionally designed and branded A4 newsletter.
Available for print or PDF delivery.
Easy to follow fill-in-the-blanks monthly content production guide.


Telephone System:
Entirely portable and highly configurable, web-based VOIP telephone system.

0800 862 0065
02380 007 123
01962 600 192
01202 835 255

VOIP stands for Voice Over Internet Protocol.
It runs over broadband, and unlike BT - if you move house/sell a business.
Then it's as simple as physically unplugging the telephone and changing some settings in the online control panel.
 
For example, a landline can ring at the same time as your mobile.
Or it can be configured to ring for a set time on a landline first then the mobile.
Voice messages are emailed to your email inbox.

Cost per month for all the telephone numbers is £8+vat.
Call charges are 9p per minute to any UK mobile, landline 1.25p.
It costs 3p minute to receive calls on the 0800 number.



Health & Safety:
Professionally produced Health & Safety and COSHH assessments
Branded, templated method and risk statements for corporate work.



Care Home Carpet Cleaning - Side Business:
Specially re-worked entire product offering of WOW Carpet Cleaning.

All materials as mentioned above, re-worked and re-purposed entirely for the benefit of servicing the care home industry.
www.CareHomeCarpetCleaning.co.uk

Please check the website and see for your self how you could leverage it to market and sell your services to care homes.
Large Hampshire based care home cleaned in July, £1,395 two day's work with an assistant. Very happy client.


Debt Collecting Letters:
Professionally produced series of debt collecting letters.






Professional Accreditations:
NCCA
Woolsafe (1 of only 7 approved cleaners in Hampshire)
Checkatrade (10/10 average feedback rating - 124 reports)
Federation of Small Business



Financials:
118 Quote requests from 25th July - 25th Oct
Average 29 per month with zero advertising expenditure (entirely from natural Google listing and Checkatrade)


241 Customers with contact details as of March 2012




Equipment:
Mercedes Sprinter Van MWB Hi Top
2003 3.5T with 2 keys. Dual cab seat. MOT
2.2 Diesel engine.
155k FSH, recent private service.

Phoenix 450 Truckmount machine with temp adj, soloution line plus fresh water line, twin 2" vac inlet
Hose reel with two solution hose reels and water filter. 398hours, warranty until mid December 2012.

300ft of 2" vac hose with cool cuffs
300ft of blue fresh water line
300ft of orange rinse line
Mini portable detailer machine
2" Y piece
1.5" wand
1.5" hand tool
3 pre spray bottles
Injection sprayer with 1:4, 1:8, 1:12, 1:16, 1:24, 1:32
Sebo 370 vacuum
Sebo duo
360 air mover
Ramp to put hoses through
2 Prochem buckets
Shelving
Grandi groomer
Carpet rake
Tamping brush
3 tarps

Electric heater in back of van (frost protection)
20l petrol can
Variety of chemicals £600
25l containers for chemical mixed (3)
Funnel
20m rope
3 corner guards
3 slippery floor warning signs
Wow jacket
Sponge
Carpet sliders




Truckmount: £9,000 (£15,000 new, 1 Year Old)
Equipment £3,000 (£5,256 new)
Van £2,000
Number 1 Google Ranking, 10/10 Checkatrade Profile, Woolsafe Accreditation £4,000
Previous customer database / goodwill £2,000
Drayton Bird, high-end customer direct marketing pack £6,000 (Google him, we have the invoice to verify)
Marketing system/materials, Website, Online technologies £8,000
Care Home Carpet Cleaning side-business £3,000



Total: £37,000

Sell for £24,000 Job Lot



Will consider selling the business without the equipment. Offers invited.


------
Addition to original post:

The extras we had fitted which is why the truckmount cost was more than the standard list price are:

The machine had a heat diverter which allows you adjust the temperature at the machine, which saves on water (reduces water dumping).
And an extra fresh water solution line which can be used for an in-line sprayer (such as pre-spray which means no need for manual pump up spray bottles)
Plus an extra 2" vac inlet, which totals 2x 2" vac inlets.
Plus a water softener

All fitted at source by  Hydramaster.




Accounts have been prepared for Year Ended 30 June 2011.

Our accountant is setting about preparing our accounts.

This from our online accounting system:

Period: 01/07/2011 to 01/07/2012
Total Turnover:    £54,234.72

[Hilton]

Can you give us an example of the kind sales you are achieving 2011-2012

[jon barnes]

How come your Phoenix cost so much more than the list price?

[JamesRostance]

Hi,  earnings around £45 - 50k for the year.


If you download the zip file on the listing there are pictures in there.
http://www.wowcarpetcleaning.co.uk/forsale.zip


The extras we had fitted which is why the cost was more than the standard list price are:

The machine had a heat diverter which allows you adjust the temperature at the machine, which saves on water (reduces water dumping).
And an extra fresh water solution line which can be used for an in-line sprayer (such as pre-spray which means no need for manual pump up spray bottles)
Plus an extra 2" vac inlet, which totals 2x 2" vac inlets.

All fitted at source by  Hydramaster.

[Hilton]

Hi

You say earnings, so what were/are the actual sales

[JamesRostance]

Apologies, I meant turnover.
We don't have formalised accounts, though the CRM (client management / booking system) in calendar format does who each days' job value.

[Hilton]

Have you not been trading for 12 months yet then...

[JamesRostance]

Accounts have been prepared for Year Ended 30 June 2011.

Our accountant is setting about preparing our accounts.

This from our online accounting system:

Period: 01/07/2011 to 01/07/2012
Total Turnover:    £54,234.72

[Simon Gerrard]

James,
I may be interested in this business but there are a number of things that don’t make sense.
You make much of your marketing approach, materials and USP, along with the technology of it all, but then you only have sales of £54,000?
You say you’ve had 128 quote requests between 25/7 and 25/10, a mere 29 per month when we get 120 a month in the same area. I make that point because much of what you are selling is the notion of a highly effective and successful marketing system, which in reality it clearly is not, given your own figures and having compared them with ours.

You only have 241 customers on your books; I assume that is for the lifetime of the business?

You appear to be selling someone else’s high end direct marketing pack for £6,000, what has this to do with the business?

You have put a value of £4,000 on No1 Google ranking when you’re only number 1 in Google Places (which you could lose at any time and have no control over) and your main site doesn’t rank until page 7. As you know most people do not search past page 2, some up to page 5 and very few past page 5. What worries me in this respect is whoever buys this business is totally and utterly reliant on what little web presence the business has. Being able to not only sustain the business on a day-to-day basis but repay the £24k asking price and I think that is a tall order given the reliance on Google Places for page one exposure and if that were to be lost where would that leave the business?

Surely a Checkatrade and Woolsafe memberships are non-transferable, so how can they have a value?

£8,000 for you marketing system, website and other technologies, I don’t think you have enough of an online presence to justify that kind of figure?

You’re asking £3,000 for the Care Home side business but tell us little about it other than you did a job for £1395.00, so where does the £3k value come from?

You say you don’t have formalised accounts but you are a limited company and have to have accounts, could you email me the last three years? simon@gerrardscarpetcleaners.co.uk

I think you’re trying to sell this business on the back of it being a huge marketing success, when in fact with sales of only £54k it seems to be a marketing failure! Is that why you are selling it?


Simon

[JamesRostance]

Simon,

£54k on a one-man operation, Tom was at capacity (no assistant).
Calling that a failure is just inaccurate, and if anything, rude.


Between 25/7 and 25/10 those enquires were simply as a result of our Google placed listing, Checkatrade and some repeat clients.
I was not doing anything to generate business, that was simply on free-flow.

241 records of contactable, actual customers.

The direct marketing pack which Drayton Bird produced was a bespoke creation.
It's to sell carpet cleaning to owners of high-end homes.
You really do need to research him and what he does, to appreciate it fully. (and I don't intend that to sound flippant either).


No.1 Google ranking... we've been at number 1 continually for over a year.
If you're a local user looking for carpet cleaning, we are the first result which Google serves in the area.
We've spent good money in making that happen, and that was done using solid SEO techniques.
(that's why our site hasn't budged from number 1, including after the infamous Google Panda update).


I've put realistic second hand values next to each item.
The new price is in brackets.
The truckmount was £15k, brand new last year.

That is how I got:

Truckmount: £9,000 (£15,000 new, 1 Year Old)
Equipment £3,000 (£5,256 new)
Van £2,000

So of that £24k all-in-one price: £14k is in machinery, and only £10k is attributed to the non-tanglaibles.


Care Home Carpet Cleaning: Care homes have a legal responsibility to maintain and prove their establishment's cleanliness.
Essential standards of quality and safety - The Health and Social Care Act 2008.

Our specially adapted carpet cleaning service for care homes fully helps them meet that requirement.
The process, sales material and website in the right hands (a motivated person) would allow an operator to sell into care homes much better than a run-of-the-mill domestic/commercial cleaner.

Take a look at the website, and see for yourself (if you were a care home manager) how our service better caters to 'their' need than say your own.

In short, its an opportunity, and it's for someone who's got the motivation to take what's produced and put it into action.


Memberships - I would need to check with woolsafe, and I would expect the new owner to have to undertake and complete their course.
The other accreditations, they are for the business.
I've always found Woolsafe to be a very pro-active/positive organisation. They like what we do, and so long as our 25-step cleaning process is followed, subject to the owner passing the course - I see no reason why they wouldn't allow the transfer.


Marketing System: I think you might be confusing the Google listing with this, it's very different.

Whilst most cleaners are out there competing on price, our client education (marketing) materials educate a customer over a course of time and ultimately they appreciate the value of what we do and are happy to pay good money for it.

Our marketing materials keep you out of the lowest price game.
It also create customers who understand appreciate what you do, which in turn helps keep them as future clients.

There's also a distinct trust bond that's created - as you are the one who took the trouble to explain to them all that goes into a good clean.
You see proof of all this in our Checkatrade reviews.

Happy, educated customers who understand and appreciate what we do.

These material have all been produced and refined.
The hard work's done.


Open to offers for the business without the equipment.

I'm happy to show our marketing system and sales materials to serious potential buyers under a signed NDA (Non Disclosure Agreement).

[Hilton]

Hi James
What margins are you working to at present

You say its a family business, where are the other members of the family and could they not have taken given your  brother some help to keep it going.

You see it looks like you have set the business up to sell, which is fine by the way,
But I guess you did have, intentions to franchise it out but some where along the line this did not pan out.

Are all your enquires coming from Web site,I think that is what your response above said.Are you doing any other marketing  ?

[Simon Gerrard]

James,
Apologies if my point seemed rude, it was not intended to be, but if you expect to sell this business as a going concern you had better prepare yourself for some pretty searching questions.
I think you need to look at this from the perspective of a potential buyer’s point of view.
On the face of it you have some second hand equipment, albeit relatively new, an old van, all of which can quite rightly have a valued placed on them.
You then have 241 customers, nothing like enough to sustain the business going forward, or more importantly make a return on the investment.
You also have a marketing posture that is by no means unique to WOW (no disrespect intended) and if it has only yielded 241 in two and half years, even within the aid of a £6,000 direct marketing package then hence my question as to the effectiveness of your marketing.
The lynch pin of the entire business is your No1 spot on Google Places, which you could lose without notice if Google decided to cancel that facility without notice. That point alone has to be a major concern to anyone considering buying the business because it is reliant on something that is beyond their control.
Your main website, www.wowcarpetcleaning.co.uk does not rank highly on Google and is in effect useless languishing well down the pages. Had it been on page one then that would be different and would make the business a far more attractive proposition, especially as the entire marketing of the business is web based.
With only 241 customers on your books I don’t see how anyone can be comfortable spending £10K on the business side of the business when much of that valuation are on the administrative side of things and while you’re only asking £2k for the goodwill, the 241 customers, that’s one hefty £8k price tag for things I certainly wouldn’t be interested in paying for, especially as they are nothing more than a marketing posture and an administrative system, which although of some value to you, not necassarily to someone else.
The real conundrum is that with 241 customers acquired or 2.5 years but generating £54k in sales this year means that your average sale must be in the region of £500, is that the case?

Simon

[JamesRostance]

The 241 customers which to which I refer are locally based previous customers, who are happy with our work (as they all very much are), their details are up to date, and available to have their carpets re-cleaned when it's wanted by them.

That number excludes End of Tenancy cleans for customers who moved away.
A database should never be judged on size. It's the cleanliness (fitting I know) and accuracy of it what counts.


There's no one else in the family to take this up, Tom is/was the cleaner and he quite simply doesn't want to continue it.   As his brother, I did everything else.

Yes, it has been set up to work as a franchise.  Everything from the image of the company to packaging the service into products.
We're not going to fulfil that mission as it were, but that's now available for someone else to take up and run with.

Personally, I've always been quite proud of the image side of things.  Especially when customers comment that they thought we were a franchise.

 
In fairness I would say that this is only being partly sold as a going concern.
The reason for that is we don't have fully accurate financials to provide, to the level which a professional investor would demand.
That's why we've put a reasoned price tag on it instead

If it were being sold as a full going concern through an agent, then the business would be sold at 2-3 times the annual turn over. (which I believe is the standard model for a business sale price).



I have to clear up about the Google placing....
By the way, I don't consider it be the 'lynch-pin' of the business.
It's just one of many features of the business that we're selling.

I don't quite see how you consider our website as 'languishing' in the rankings though... especially when Gerrards is second from the bottom of the first page.

If you live in or around Southampton.... we are the number 1 search result (at the very top) for "carpet cleaning southampton" and carpet cleaners southampton".
We're also in the top of the first page for "carpet cleaning winchester" and "carpet cleaners winchester".
Out of everyone locally, we have the best search positioning there is.


Still, Google isn't some evil grand master that changes what it does on a whim.

It has always followed the mantra of seeking to provide users with the most relevant search details first.
When Google 'changes' its search settings (such as with the Panda update), what it generally is doing filtering out all of the crap from the web, of websites that have sought to 'trick' it in ranking them higher than they should be.

Play nasty, and life/Google will find you out and punish you.
Do things properly, and everyone wins.

Our search engine optimisation has been built on 100% ethical and solid search marketing practices.
And we've spent good money on that.

Whilst anything is possible with regard to change of position.
It would take a solid investment of cash to knock us off the top spot (in the thousands).
The proof is in the pudding, which is why that's not happened because no-one's invested that kind of cash.



One way of looking at it all is to set a price on what you would pay for the element(s) you're interested it.
And find out how much it would cost to re-create it to the same standard, if not better yourself.

Then see what extras you get with that, if you bought our option.
At the same time, remembering that there is no wait-time with what we're offering.
If you had a design/marketing agency working flat-out to produce what we have, it would take months.

In fact.... I would highly recommend any serious bidders to contact a few marketing agencies (full service city agencies) and get a price on how much it would cost to re-create everything that we have.
Marketing materials, websites, Number 1 SEO, video, branding.

[Simon Gerrard]

James,
Where I'm struggling to see the value in this business is the 241 customer which are in effect the business and the only source of revenue an investor would have to sustain the business in its present form and make a return on the investment.
I also don't understand how you don't have any end of year p&l accounts which you must surely have as you are a limited company and for tax purposes.
You claim sales of £54k from your 241 customers acquired during the lifetime of the business, so given that people have their carpets cleaned at varying intervals, how many of those 241 contributed to the £54k in the year your claiming those sales on?
This is a fundamental question where any investor would need to know what sales to expect per year from the existing customer base, as it is upon that and only that they could make a decision about the viability of the business.

Simon

[JamesRostance]

£54k are sales over the past 12 month period.

That name/database is only part of what we're selling,

However, you'll notice that I've only put a price tag of £2,000 on the name's goodwill/customer database, when totalled up to £37k for the sum of the constituent parts.

Remembering that we're selling at £24k for the job-lot, not the full £37k
In effect, the name/database is being sold for £1,280.

Can you make back £,1280 in a year and a half from a solid list of 241 customers is that question.

Everything else in the listing has been broken down separately.

[Simon Gerrard]

Can you make back £,1280 in a year and a half from a solid list of 241 customers is that question.

James,
No, that isn't the question, the question is could an investor get back an investment of £24k from a mere 241 customers? The answer is almost certainly not.

I think you are confusing the business, the equipment and customer base, with the peripheries and placing a much value on that as the business elements.
No disrespect, but if the marketing of this business were that good you would have many more customers than 241 and many more quote requests than 29 per month.
An investor has got to be able to see where he is going to get his money back, you appear to be trying to sell this business on what it could be, but that is not saleable as it is down to whoever takes it over to make that happen, so it is a bit of a stretch to be charging a premium for that as yet unfulfilled promise.

Do you have p&l accounts for past years available?

Simon

[JamesRostance]

Simon,

For what ever reason you don't like what's on offer, and that's fine.
I know there's value in what we're offering, and I look forward to passing it onto someone who sees that too.


To the questions, yes we do have prepared accounts.
However, earlier accounts which have been prepared will have been for when the limited company was engaged in different business to carpet cleaning.

The only relevant prepared accounts cover the setup period of the business.
We do not have a current accurate financial picture, this was supposed to be reflected in the price.

[Simon Gerrard]

James,
I don't think you understand that without proper accounts you will never sell this business as you are selling it on the basis of existing business. Without knowing what your costs and nett profit are how can anyone judge whether the business is viable or not? The majority would have to borrow the money to buy this business and a bank manager wouldn't even consider it if you cannot back up your sales figure with proper accounts.
You say you're getting 29 quote requests per month, that's 348 per year and on the basis of only having 241 clients on your books your conversion rate from quote to customer is less than a third as the business is only gaining 100 customers a year, therefore you've served 100 clients at an average job ticket of £540?That is the only way your figures stack up. What is your average job ticket ?
I think the mistake you've made is believing that if you offer the perception of higher quality through your 25 step process people will be willing to pay a premium, that's not a bad concept providing it proves to be the case, but in my experience people just want their carpets cleaned to a high standard and don't want to pay a small fortune for it, or read pages of blurb. When something doesn't work you change it and your exceptionally low conversion rate suggests you need to tune your marketing to be more in keeping with what people want, that way you're fishing in the same pond but catching more fish.
I'm not being disrespectful, but the basic flaw in what you are trying to sell is that you don't have enough customers to justify what your asking for the business.
Would you consider selling the equipment, phone numbers, customer base and website?

Simon

[JamesRostance]

I'm not saying that we get 29 requests per month.
We do, and I have all those enquiries saved in my email inbox since 11 June 2011.

We have, and we do exercise our prerogative to sift through those enquiries.

If the job is too small job, i.e under our minimum spend of £80 (no vat), or is in a tower block. We pass.
That said, quoting is easy for us to do. And if a customer likes what we do, then excellent.

I didn't say that we've only got 241 customers.
You're not reading what I have written about the details of database, which is why you're coming up with these inaccurate conclusions on conversion rates and job ticket value.


Yes we attract and service quality clients who appreciate what we do.
If anything, we're the John Lewis of carpet cleaning.

It's not for everyone, some people as you say want the cheapest thing possible regardless.

We have our niché.
However, we've still captured £54,000 worth of local business in the last year.

And it's John Lewis customers who are the type of client that we attract.

[JamesRostance]

Oh, and yes we are up for selling parts of the business individually.
Offers invited.