[Shaun_Ashmore]

IMO if you are turning over £75k then approximately £12k will be vat, and what about holidays and slower periods?

You earn what you think you are worth and what you can get, a mentor of mine once said to me that you need to be grossing what you think you need in 6 months as the other 6 months you won't. In an essence make hay while the sun shines.

When Next (a good example as they sell their own brand of clothing so you can't compare apples for apples with other retailers) sell you a pair of shoes or a shirt what profit margin do you think they make? probably about 400-500% do you feel ripped off? No because your focus is on the good times you are going to have when you wear these items when you are out.

High hourly rates and profit margins are the way of the world.

Shaun

[Mike Osbourne]

Hi David,

I still get caught out sometimes especially when you are getting all the positive signals.

All I would say is I have retrieved a job or two with an engrained formula that I learned years ago.

1. First of all do what you did. Say something like 'That's fine, if someone's quoted cheaper I can understand' But don't walk!

2. Try and make some small talk then start asking questions as if you are just interested or curious (you probably are anyway!) in how this person cleans a carpet and makes a profit. pre vac, insurance, etc Must be done as if you are curious or it won't work, they will clam up and kick you out.

3.Ease into finding what she really WANTS. You probably didn't get it first time because you thought you knew this but you didn't. It may well be she wants it dirt cheap, in which case you don't want it anyway. Or it  could be that she needs to feel she's getting a better deal from you. That could mean you will not ruin her carpet or maybe you could do slightly more work for your original quote.

4. Change something that makes them make a new decision.

This is very brief and misses out loads of stuff but a good start for CC and is 100x better than just walking.

The key though is not getting in this situation in the first place. My theory is it's all about RAPPORT-this is what really gets you the business. Easy with people like you, a real skill with those who aren't.



Mike

[David_Annable]

Thanks Mike

To be honest we were getting on fine untill i gave her the price.

Then it was " I'll get me coat ".

She did ask on the phone originally how much will it be, but i just dodged it.

Dave

[carpetguy]

The Next analogy is an interesting one as their performance in recent years has been dramatically affected by the emergence and more recent market dominance of Primark, Matallan and T K Max.

Similarly the growth of Macdonalds, B K, Kentucky Fried, etc has taken a heavy toll on the typical restuarants of beyond 20 years ago, almost extinct.

Motor vehicle retailing , Furniture retailing, Hardware retailing are a few others affected by changing buying patterns.

Programs like the one fronted by Dom Littlewood are increasing the consumers resolve to seek " best value " which is perceived as lowest price.

I think the retail mark up is more like 80%

[Ian Gourlay]

I still retail blinds and make 45%  mark up 100%  but you do  loose a little due to Mr Littlewood.

In North Blind market is very competitive so to make money you need to sell on quality.

[carpetguy]

Ian I have a friend who manufactures and retails blinds and is finding it's becoming impossible to compete with the likes of Tesco, Asda, etc, getting greedier by the day.
We found ready made blinds - various widths you just reduce the length to suit - for as little as £5 guess where they came from ? The biggest threat to manufacturing in not only the U K but the whole of Europe

[John Kelly]

Off track from carpet cleaning a little, anyway, The yanks are starting to get a bit concerned about China. The Chineese are upping there military spending by 15% of GDP per year. This is a massive amount. They have recently purchased a load of submarines from the Russians, and are building naval ships like theres no tomorrow. They say it is to protect there trade routes, however the Yanks are starting to worry that they have a different agenda. Don't forget they are still communists.
I think Hoover have now switched all their manufacturing away from China and other multi-nationals are looking to do the same.

[Mike Osbourne]

You can't really compare MD, Walmart etc with what we do because they work on economies of scale and can deliver far more through QUANTITY.

The only way around that in cc is to employ lots of staff and pay them peanuts.

Quality is still sought for and people will always pay for it.

[carpetguy]

Mike
Any market is driven by the same forces -  products or services which consumers want or need M & S started as - pile em high sell em cheap and moved on to providing Value for Money, ie decent quality at competetive prices.

J K

Interesting comment John and I hope our puppets I mean MP'S take heed unfortunately the U K has a history of crisis management only acting after the event

Incidentally the current threshhold for VAT is £64000 and anyone working for themself earning around that amount is doing pretty well in my opinion.
Provided of course they don't try to be too flash and buy machinery they don't need or waste money on poor marketing efforts.
It's been mentioned on here that the best and most cost effective marketing is to deliver a very high standard of work, get the customer to agree then ask for testimonial / referraliness.
If you measure up you will grow your business and get additional and repeat business through proving yourself, if you don't produce the goods you will need to spend a great deal on advertising and promotion for years to come.

[matt jones]

i know the guy that did it, truck mounted in exeter, has no work ,so he really needed the money...............sad but true, its guys like this who spoil it for everyone else..........

Hi Melanie,
Who's comment were you replying to?
Was it mine?
Matt

[Bennie25]

Not every one buys on price, do you buy Gillette razor blades, i do and it cant be for the price thats for sure! lol

[Dave_Lee]

Shaun,
In answer to your question, how long would it take me - about one and a half hours to two hours.
Dave.

[Shaun_Ashmore]

I usually take 15 minutes and leave them a bottle of spotter for the bits I've missed.

The real point I am making is that for £130 for 2 hours is shall we say industry standard for a good experienced cleaner, if you charge less you then have to make your money up elsewhere therfore you end up rushing the job.

Shaun

[Dave_Lee]

Exactly Shaun. The other point is - some cheaper end CCs might say, that is charging too much for 2 hours work, wrongly thinking that the customer will think that too. However the truth is that in the vast majority of cases, customers have a tolerence time limit. In other words, once you have started to clean those carpets, the custy just wants you finished and gone asap. If you are charging the £130.., then obviously the job has to be right, but if the job is right and done within their personal tolerence limit, they are very happy to pay that sort of money.
Dave.

[Shaun_Ashmore]

Yep you can actually be there too long irrelivant of what you have charged, they see you as a hinderance on their day and want to go out but feel as though they should be in the house with you to make you tea and help you move things etc.

Shaun

[David_Annable]

Hi Dave & Shaun

Has it not occured to either of you, that it is only you 2 that customers are glad to see the back of.

Could it be something to do with your sparkling personas.

Dave

PS coudn't spell personallities !

PPS Mabel i'm glad to see the back off that roobin B***ard.

[Kinver_Clean]

Talking of markups, I worked in the 80s for a clothing factory, now long closed due to imports, where we made clothing for a major fairly upmarket chain store. They were fairly simple to make and cost about £2 a dozen inc immediate overhead labour costs. We added £3 company overheads. The chainstore set their prices (and inspected our factory including the canteen ) which were £14 a dozen. They charged £4.50 EACH in the store. I also was involved with a company that made replica football shirts, they cost about £1 each including printing the logos etc. They sold for £30-40 each. Talk about a ripoff.

I have no worries for charging a decent rate or a bit more if I can

Trevor

[Bennie25]

Theres some idoits on here, there are two people who KNOW what they are talking about, have been and are successful in the most important thing earning money, have vast experience, oh and importantly have been where most of you are (the cheap end) so have seen both sides, giving free advice, and not only is it not taken but its critised.

Those in the know will agree with me in saying, you aint got a clue.

[David_Annable]

Hi

I was only joking !

Dave