Clean It Up
UK Floor Cleaning Forum => Carpet Cleaning Forum => Topic started by: ian harper on September 01, 2013, 12:25:43 pm
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Has anyone seen any quoted numbers on what our sector should expect when it comes to the profit - operating costs ratios?
example: operating costs 60% profit 40%
its hard to know if you have a good one or not when you only have your own numbers to go by.
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Good Topic.
I recall Robert Saunders teaching us about the cost of carpet cleaning, of course we all thinks it's free to us as it's our time a few pence on chems..
The best way to work it out is say your yearly espenses were £15k divide that by lets say you do 350 jobs a year.
= £42 per job.
So £42 is you break even on every job, with that information I would say min order should be around £75 +
I know that does not quite answer your question.. but it's all I have :D
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PS I think you should be looking at more like 20% expenses 80% profit (pre tax)
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Craig I think expenses would be more than 20% I realize with the internet many guys are not spending on advertising , but I still think it makes sense to spend £20 to get £100 back. So that's 20% to start with, then in an ideal world we should all replace are vans and equipment on a regular basis
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Think the bloke (mr 10% he was called) who ran rentokil look at 10% profit and growth of 20% pa ???
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The fast track approch was make as little profit as you can get by on because you put as much as possible into marketing so your business grows like cancer.
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Year on year costs are around 30% of turnover.
I could easily lessen this but then Id have to work harder.
Mark
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this number has what i call some magic to it. Microsoft lost a massive part of the operation systems market but trebled their profit. Or like the supermarkets they need to keep expanding to maintain profits
I found this example
http://smbtn.com/bizratios/