[stains-away]

I posted this on another thread, just thought I'd bring it out on its own to see what if any reaction it gets with there being a lot of mentions on the forum on how hard things are at the moment,

I think that a lot of the British public have been living in financial fairy land for the last few years, they borrowed up to the hilt and then just remortgaged to pay for it, the property market in my area is slowing down and has been for several months, many people are just starting to wake up from their financial fairy tail dreams and are seeing a grim reality, they cant dump much if any more on their mortgage, the credit cards are maxxed and the loans need paying, when it gets to this stage people have a choice, either tighten their belts or disappear into an ever expanding cloud of debt, given the options most will start sorting the essentials from the luxuries.

Burst pipe?
They need a plumber,fact.

Carpets dirty?
Well, it needs doing so I'll call someone when I get paid, payday comes and so do the bills, maybe next month then.

Talking to several trades that I know and having a lot of retailers in my family all I hear is how tight things are, as a relative newcomer I'm at a disadvantage to cc's that have been established for years,or am I?
They've got a customer base to work on (if they can be bothered to stay in touch, some dont), but the chances are many of them have bigger overheads than me, some may have brought equipment on lease when the going was easier, they may have commited to big annual advertising costs or have wages to find for employee's, some may have got complacent about their position in the marketplace and could get their rs bitten, so swings and roundabouts it is, may the best man win! , Andy

[steve01]

Hi there folks.Have been registered with this site for some months,but this is my first reply.Yes i do think people have borrowed to much,and mortgaged on vastly over inflated house prices.I found talking to people around my town,that nobody is doing well at the moment,so its not just cc's.People have been lead into a false sense of security,over borrowing and debt,and now its payback time.
Would also like to thank everyone for the info and advice given on this site.
Its been very usefull,thanks

.

[andy roberts]

In times of financial hardship & restraint carpet cleaning is not a priority for most households, it is one of things that can wait. Many wives usually attempt a temporary visual clean up with a bucket, soapy water & cloth to make do.

Someones gonna say diversify then, but again if you stay within the cleaning industry its the same situation, things can wait (Im talking about your average domestic market here).

If I was struggling I would offer discount vouchers, monthly specials, or clean 3 for price of 2, or have your suite cleaned and we'll 'protect' it free, or have your carpets cleaned introduce a friend & receive 25% off your next clean, or have your carpets cleaned and receive free stain/spot kit.

Save in the good times ready for the bad!

Regards,  Andy

[Paul Brennan]

Having previously been part of a Franchise, I have always tried to maintain my prices since becoming independent. I am finding that I have to be a lot more flexible and more prepared to negotiate on price and am ending up doing a lot of work for people I would not have bothered with before ( i.e. they couldn't afford my prices). I am also offering a lot of specials like the ones mentioned by Andy in the previous post.
 It seems to me that the mid to higher end of the market has contracted but there is still plenty of work if you are prepared to price with the times.
The bonus with the slightly cheaper end of the market is that you often get paid in cash, all declared of course!

Paul

[andy roberts]

The trouble is Paul, by offering specials or reducing your prices you are obviously effecting your gross turn over and your net profit.

I dont condone the 'splash & dash' brigade as its known, but I would rather not do a job if they were ummming and rrrrrring about the cost. We have set our carpet cleaning price per sq mtr and I will not reduce that figure under any circumstances for domestic clients. People can pay or use someone else, but I do tell them the usual, we have good machinery, training, chemicals etc etc and that all costs money to buy and maintain. However I have an extra sales pitch that I normally put in to secure the deal, I tell them that we are fitters too and we will have a general tidy up/ re stretch where required if ness. before we commence free of charge. That normally works, I think they feel abit more safer knowing that we do the whole package should anything (hopefully not) go wrong.

Also with commercial work, Im not just sending out sales letters to them offering one off cleans, Im putting together a cleaning/maintenace package for them over a period of time that will allow them to have their carpets maintained on a regular basis, which again includes fitting, restetching, tidy ups, re seaming if ness & the important cleaning. If they go for the package they will receive a substantial discount overall.

In 2 weeks Ive written to 28 companies (various) and sold 6 packages.

You gotta keep thinking of new ways to attract business specific to your area.

Regards,  Andy

[Paul Brennan]

Re-reading my post, I realise it was not quite what I meant. When I say cheaper end of the market I mean that I used to do a lot of jobs that were multiples, i.e. 3 piece suite, curtains and carpets that would be a half day or full day job. Now I find that I am doing more lounge carpet only type jobs which is often what the lower end of the market  is.

I would have steered away from these in the past because you have to do several a day to make up the money, but as long as that is all I can get from some of the more well heeled clients at the moment I may as well fill the day up with slightly lower paying jobs in areas I would not normally work.

I am fortunate to pick up most of my work within 5 miles of my house and having a good knowledge of the area allows me to decide whether to qoute on the phone or in person so I can sometimes ofset a reduced price against a reduced cost through not visiting twice.

Incidently, although I know you did not mean me when you referred to splash and dash, I always carry out the same level of service regardless of the price. Whatever I charge is my decision and not the customers and I would not penalise them if I was prepared to do it for less than normal rather than walk away.
My prices are still not cheap as I have reduced them compared to the Franchise price which was over £70 for a modest lounge carpet and £140 plus for a three piece suite (clean only)

You are quite right about gross turnover and net profit but frankly at the moment I take the view that each enquiry I get is worth trying for as it costs a lot of time and effort to get.

As always it is a compromise between obtaining a good price for your work and obtaining enough work. At the moment I am having to adjust that balance. I think that if you are really busy you can afford to stick to your guns on price, if you are not you may well need to assess the individual job on each occasion.

paul 

[andy roberts]

Paul

As a matter of interest, why did you give up the franchise business and decide to go it alone?

Regards  Andy

[craigp]

*****As always it is a compromise between obtaining a good price for your work and obtaining enough work. At the moment I am having to adjust that balance. I think that if you are really busy you can afford to stick to your guns on price, if you are not you may well need to assess the individual job on each occasion.*****


i think you got that spot on Paul, its very irritating when customers want to haggle you down £10, when your busy walk away, but when its slow somtimes its better to take the work than have none.

[Kev Loomes]

Paul

Please let me have your e mail address, I need to ask you something (not for forum!).

[Paul Brennan]

I was with a certain Franchise that promised what it could not deliver. I joined after having been made redundant and decided to try a business myself. I was taken in by all their hype and was seduced by all the "facts and figures" regarding the earnings and success of people in the network.

It turned out to be very very very very inaccurate. At first i thought it was me. It was only after I went to the annual meeting and they called out the names of the Franchisees that had joined that year that I realised all was not as it seemed. When they had got to about the 30 mark I realised that out of a network of 120 or so, 30 plus new starters in a year meant that a massive expansion was underway due to unprecedented success,  .......... or they were replacing 30 or so failed businesses.

Guess which it was? 


Paul
paul@pcbcleaning.co.uk

[Doug Holloway]

Hi Guys,

Just had a quick check and found my figures are about 10% up on this time last year, when there was no world cup.

It does feel quieter but its not , probably because I've put my prices up and commercial is busy.

I think less established cc's just have to work harder on sales and marketing .

CC is a tough business because anyone can start with a  relatively small amount of money.

The hard bit is getting regular work but there is no short cut, you just have to hang in there and it will get easier.

Cheers

Doug

[andy roberts]

Paul

Bet you lost a few quid.

Ive been hounded by Rainbow & Chem dry after I made an initial enquiry. Both sent all the sales books down, took one look and threw them in the bin. For weeks and weeks I was phoned, sent letters until finanlly they got the message (I hope)

One of them expected you to start with a full time telephonist/receptionist which would have killed any new business off straight away.

Those blokes are slogging their guts off for the franchiser. No thank you.

Regards,  Andy

[cleaning co]

 although i am stoping cleaning in couple weeks i would like to say this has been my slowest 6 months ever in carpet cleaning i had more work when i first started over 10 years ago  how are u all managing i dont no !!
gary
(ps unless u are all lucky like me an u missus has a very good job)

[andy roberts]

Gary

Whatever your doing in the future good luck to you.

As a matter of interest, if it weren't for the fact that I already have an existing carpet business and have simply 'added on' carpet cleaning I would not have embarked on a business purely doing carpet cleaning. I can see now that margins are tight and its very competitive and initial start up costs are high.

Regards Andy.

[John Kelly]

Both Rainbow and Chem Dry are the main players in the flood and fire restoration market. It is this work which provides the franchisees the bulk of their turnover. However this is a volatile market and things can change.

[the red carpet]

Well were not all slow iv just finished my busiest day ever, and this has been my busiest week ever
and this month will be my best ever for turnover, ammount of jobs done, and profit made.

And i have more jobs booked in than ever before 18 all booked up ready to go.

Im thinking of upgrading equipment to fit more in, and even considering taking on a extra pair of hands to help out.

So there is people out there with money to spend its just a case of finding them

[colin thomas]

blind me paul, you pick up most of your work 5 miles from your house!!!  that's a dream of mine, i often travel miles between jobs,

colin

[stevegunn]

It has been quiet but picking up now fully booked up next week.Having to go upto Morpeth next week Northumberland :

[BRSL]

Hi Daniel

im glad to see your busy, we started the same time and seem to be progressing in a simalar curve, ive just had my busiest week and also booked up next week im realy starting to enjoy myself, but maybee as newbe's our slow but steady success is due to the pressure we keep on, i slacked for a week and didnt i notice the difference and took me a while to recover, how you guys take holidays is beyond me

James

[Paul Brennan]

Perhaps I am not busy enough because of mostly working within 5 miles!

It is a long term strategy based on advertising consistently in a small area and capitalising on the "local" aspect. It is starting to pay off but maybe I will need to review it and cast my net wider for the time being.

Paul