Clean It Up

UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: TomCrowther on December 04, 2011, 01:39:51 pm

Title: van cost in terms of turnover percentage
Post by: TomCrowther on December 04, 2011, 01:39:51 pm

Hi Guys
Sorry for the rubbish subject title but I am interested in buying a new van and system next year and wanted an idea what others pay for their kit in terms of % of their turnover.
I started off a couple of years ago and while the van and system still work fine I want to invest in the business a bit more and don't want to wait until the van becomes unreliable.
I am considering around 15 percent of my monthly income a fair amount to spend. How does this compare with you?

Title: Re: van cost in terms of turnover percentage
Post by: easy clean on December 04, 2011, 01:53:54 pm

You need to say what the amount is in £'s, 15% of turnover could make you run at a loss depending on your circumstances!

Title: Re: van cost in terms of turnover percentage
Post by: TomCrowther on December 04, 2011, 01:56:20 pm

OK, my turnover fluctuates a bit, from £3k to £4.5k depending.

Title: Re: van cost in terms of turnover percentage
Post by: easy clean on December 04, 2011, 02:05:29 pm

Going on the lower figure, you'll be spending £450 a month on a van, can the business afford that? Do you have any other costs?

Title: Re: van cost in terms of turnover percentage
Post by: www.com on December 04, 2011, 02:18:14 pm

Surely your profit not turnover, is a better gauge on whether you can afford it or not?

How much do you have left after wage, expenses, etc?

Title: Re: van cost in terms of turnover percentage
Post by: easy clean on December 04, 2011, 02:32:18 pm

That's what I was getting at! You should really work backwards.....calculate how much you need to live, then take away all your costs from turnover and there's your figure!

Title: Re: van cost in terms of turnover percentage
Post by: TomCrowther on December 04, 2011, 02:49:33 pm

I am quite lucky in so far as my living costs aren't too bad. I will double check the figures and make sure it's affordable. Cheers, Tom

Title: Re: van cost in terms of turnover percentage
Post by: Davo on December 04, 2011, 04:24:09 pm

Save 15% of your turnover for a few months and then buy a good quality used van for cash.