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John Kelly

  • Posts: 4461
Re: Commercial advice needed
« Reply #60 on: March 17, 2007, 09:58:33 pm »
I haven't read all the posts on this thread (got better things to do :)) But I guess the just of it is about pricing.
As a supplier I get to know a little more about the people and businesses that make up this little industry of ours.
I think you can spread it into about 4 categories. By far the largest group I would say are the one man bands who make a resonable living and sometimes charge far too low a price. These make a wage which is probably around average but have the freedom that self employment brings.
Then there are the one man bands who charge medium to high prices and have an excellent image, marketing etc. They probably make an above average wage in excess of what they could earn in a job, with a few making exceptional money.
Next there are the multi van operations, including carpet cleaning franchises. Working by yourself, unless you are very lucky, you are restricted by the amount you can earn. By having staff and more capacity the opportunity to earn increased profits is available.
I have customers in this bracket earning 150-250k (turnover).
Lastly are the franchises such as Chem-Dry and Rainbow etc who really depend a lot on the fire & flood work this brings with it. I have a customer who needs to earn 38k per month to break even.
I would say this is probably the same across most industries.People have different expectations, skills and living expenses.
Good business men make good money. Thats how they manage to buy villas in Spain and new 4 x 4's. They aren't nescessarily the most expensive but don't work for peanuts.
Thats my personal take on it, I may be wrong.

matt jones

  • Posts: 411
Re: Commercial advice needed
« Reply #61 on: March 17, 2007, 10:15:47 pm »
Thanks jimmy. I didnt relise you were so close to me that you see me as a competitor? I thought i knew who my local competitors were not that it makes any difference to me.
Matt

Re: Commercial advice needed
« Reply #62 on: March 17, 2007, 10:30:01 pm »
Matt i do not see you as a competitor, maybe if you get it right, as my words say, i see you as a POTENTIAL competitor, with respect, there is a huge difference, as yet you are still merely another contender, to be in with a fighting chance you must firstly choose the right path! but thats what this thread is all about , isn't it.

good luck

carpetguy

Re: Commercial advice needed
« Reply #63 on: March 17, 2007, 11:52:13 pm »
The calm voice of reason John, which is what I usually aspire to, but on this occasion it seems I've fallen into a hole !

rob

Liahona

Re: Commercial advice needed
« Reply #64 on: March 18, 2007, 09:14:02 am »
John is always calm.  Rob, with what John has said kind of puts you farther into the hole that you dug for yourself.  Which again is very unusual for you.  Just this time not only did you end up in a hole  you supplied the shovel to do so.  John has emphasised (excuse the spelling) everything that I was saying.  Kind of blows your theory of 90% of cleaners charging as little as you have suggested.

With regards cfr.  I have never said they were "bad" machines the discussion was about bigger is better and as cfr have changed and rightly so to bigger and better machines proved again that I was right.  I know you seam to struggle with what I say but if I argue a point it is because I am right.  I argued and the other gentlemen and yourself proved me right by your own comments.

I love discussions and opinions as a lot can be learned from them, both the right way and maybe wrong way to do things.  This is how we all learn, you and me both.  You have again, always given such good advice on here especially to the new people starting up.  I just feel on this occasion you were extremely guiding them the wrong way to have a profitable business.  Best, Dave.

Liahona

Re: Commercial advice needed
« Reply #65 on: March 18, 2007, 09:20:38 am »
Rob, P.S. you ever going to get your web site done?  Or is it my computer that cant get it to come up?  When I click on your web thingy nothing happens, best, Dave.

carpetguy

Re: Commercial advice needed
« Reply #66 on: March 18, 2007, 10:15:45 am »
Good morning Dave

Other than to say, we clearly take a different translation from the written word, on occasions, or possibly think we have communicated something clearly and expressed ourselves the way we meant, only to find, it's not being received by the reader in the expected way.

This is not to say that some people are always correct and others are always wrong, but sometimes, particularly on a forum, where it can be difficult to express yourself clearly

What John Kelly has written is much the same, as what I was, or thought I was communicating clearly, but obviously, not.

The subject of pricing will continue to be raised, regularly and will always result in a huge gulf, between the top and the bottom, my only contention and this has always been my contention, is that anyone starting up a service business, should expect a transition period, while  they develop their skills and gain experience.

During this period, when they are novices, they should not expect to earn at the highest level, but if they have exceptional abilities, they may ascend to the higher level of earnings, fairly rapidly, but.....they will only represent around 5%  of the total.