[mike1986]

How much pre tax profit, percentage wise do you make from one man, one van. I'm trying to work out figures and after all the costs, Vat, employers N.I etc the profit margin seems so low it would hardly be worth the hassle. Thanks, Mike.

[paulben]

Holidays then when they take a sickie

[SeanK]

I found it to be the same Mike, if I wanted to pay a half decent wage then there wasn't enough left to make it
worth while.
I sort of worked it out that I would have to employ about 4 guys to make the same as I get working on my own.

[Rich Wilts]

I found it to be the same Mike, if I wanted to pay a half decent wage then there wasn't enough left to make it
worth while.
I sort of worked it out that I would have to employ about 4 guys to make the same as I get working on my own.

So if you employ one guy you get a 25% pay rise.

[Matt.]

It's not straight forward, I employ lads but, a lot of bother comes with it.

I wouldn't send a van out on the road to make £50 a day, I just don't see that enough profit to justify the problems.

If you going to think this way tho, you need to have a set amount earned per day to make sure all costs and profit margins are maintained.

[8weekly]

If you did the sums and it wasn't worth the hassle, your prices are too low.

[mike1986]

£50 a day is roughly the pre-tax profit figure i came to...that was based on one guy working 28hrs per week at £10.00 ph. Is this pretty much the amount you can expect to achieve?

I have looked into the franchise option but im very skeptical about it. Im not sure i would trust someone to pay 20% of their income in  royalties to me.  I mean whats to stop them from just backing out of the franchise arrangement one day, and taking all your customers with them? They will have built up more of  a rapport with the customers than me, and as all window cleaning is based on good will, i couldn't really do much about it even if i took them to court i imagine.

Don't really know the best way to go with this 

[mike1986]

If you did the sums and it wasn't worth the hassle, your prices are too low.

I based it on one man doing about £200 a day. I think any more than that they would have to be working their butt off day in day out which would mean they probably wouldn't stick around.

[Rich Wilts]

I think that £250 a week profit is the starting point. Anything less and it probably isnt worth the hassle.

I emply a fella but the benefits arent only financial, I like the fact that theres someone else there to share the harder and heavier work with. Ladders arent for me anymore if I can help it. It makes ladder work a lot safer too having someone foot the ladder when needs be. I like the fact that the reels are reeled in whilst I write out the ticket.

Saying that I dont know what profit I get from emplying but today we did £485 between us. He'll get £90.00 of that.

[Scrimble]

If you did the sums and it wasn't worth the hassle, your prices are too low.

I based it on one man doing about £200 a day. I think any more than that they would have to be working their butt off day in day out which would mean they probably wouldn't stick around.

should be doing £300 not £200,

[Ian101]

£50 a day over a year ...... I would take that no problem ... but much better with a few more vans so the £12k a year from the 1 van becomes much more .... putting the 1st second van on (if that makes sense) not perhaps a great money spinner but get a few more on then life becomes much better ........... how many have I got on ?? just the one for now but I do know 3 different companies that run multiple vans (2 on here) 2 franchise and other employs ... don't think any of them are struggling to pay their bills 

[Mick Kent]

£50 a day is roughly the pre-tax profit figure i came to...that was based on one guy working 28hrs per week at £10.00 ph. Is this pretty much the amount you can expect to achieve?

I have looked into the franchise option but im very skeptical about it. Im not sure i would trust someone to pay 20% of their income in  royalties to me.  I mean whats to stop them from just backing out of the franchise arrangement one day, and taking all your customers with them? They will have built up more of  a rapport with the customers than me, and as all window cleaning is based on good will, i couldn't really do much about it even if i took them to court i imagine.

Don't really know the best way to go with this 

Dont blame you for not trusting the franchisee's! To date i have had 3 contact me do gain them canvassed work from 2 companies which are on here saying they want there own work as sick of paying the royalties and feel trapped. Before that i was considering the franchise route but now its a defo no no!.

[Scrimble]

I dont understand it either, set up a new ltd company and take all the customers with you then ditch the franchise and ditch paying someone royalties

[ascjim]

My 1 man 1 van makes me £100 profit a day. And I work 4 days at £150 - £200 a day.

[cgh window cleaning]

£50 a day is roughly the pre-tax profit figure i came to...that was based on one guy working 28hrs per week at £10.00 ph. Is this pretty much the amount you can expect to achieve?

I have looked into the franchise option but im very skeptical about it. Im not sure i would trust someone to pay 20% of their income in  royalties to me.  I mean whats to stop them from just backing out of the franchise arrangement one day, and taking all your customers with them? They will have built up more of  a rapport with the customers than me, and as all window cleaning is based on good will, i couldn't really do much about it even if i took them to court i imagine.

Don't really know the best way to go with this 

Dont blame you for not trusting the franchisee's! To date i have had 3 contact me do gain them canvassed work from 2 companies which are on here saying they want there own work as sick of paying the royalties and feel trapped. Before that i was considering the franchise route but now its a defo no no!.

Agree with the above.now I really don't know anything about franchising  and I will probably  get slated for this and while I know a few on here have and are making a success of franchising .
I can not understand why an individual would pay to franchise a domestic window cleaning round from a local company .Once you have paid royalties,tax,n.i and running cost you would be lucky to take 55%  do all the graft for work which basically is not yours.
Most franchising in other industries are based on buying in to the brand Iike McDonald's,dominos or  subway which have a strong presence and proven formular.

[Smudger]

Expenses for man and van per day is 30% his of turnover on general window cleaning
£200 a day ? - thats between 4 to 5 hours work.

For other services it runs between 3 % and 20% of turnover

Franchising is great for the franchiser, less so for the franchisee - IMHO
Darran

[TomCrowther]

Well you say that but if your employee is getting paid let's say 90 per day. He invests in the business and then gets 80% of £250per day Then he is earning £200 per day less expenses. He is much better off even taking into account no paid holidays etc.

[mike1986]

Expenses for man and van per day is 30% his of turnover on general window cleaning
£200 a day ? - thats between 4 to 5 hours work.

For other services it runs between 3 % and 20% of turnover

Franchising is great for the franchiser, less so for the franchisee - IMHO
Darran

Thanks Smudger, i was hoping you would come in on this thread.  Do you mean 30% is the profit margin? 30% for expenses on £200 would be £60.00, that wouldn't even cover the guys wage and fuel for the day. 

[Smudger]

Hi mike,

That's correct 30% is the cost and yes on £200 it wouldn't pay a guys wages for a day,  for seven hour day the minimum figure your aiming for is £280.

It's tricky to quantify an answer because you can make the figures to almost anything you want, but basically our guys for reg window cleaning do at least £35 p/h but average £40 p/h on regular cleaning work, other work is higher ie. Conservatory cleans, gutter clears etc...

From that I can take wages and generals running costs, fuel, servicing, wages, bonuses etc..

But that doesn't mean I have 70% profit,  from this I have unit rent, advertising, vat,tax,  mine and Mrs smudges wages, new equipment, unforeseen costs, etc....

There are so many ways to analyse income, potential income, and costs.
In short, if you employ and in  six or seven hour day you can only hit £180 to £200 then the costs % wise will be  a lot higher than someone turning out £300 a day

Hope this helps

Darran

[SeanK]

As with all expenses it can be very off putting if you start trying to work them out on a daily or monthly basis
that's why most large companies do it on a five year basis.
Lets say you employ a guy who can knock out £200 a day in work.
Over 46 weeks that would be £46k
If you pay him £20k for the 52 weeks then that leaves you £26k to cover expenses and your cut from his work load.
Expenses will vary depending on how you want this employee to work, his own van and so on but even at £10k a year
you would still be left with a net profit of £80k over 5 years.