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jonah

commercial work going rate ?
« on: January 17, 2008, 06:36:42 pm »
Have been looking for some extra work when i noticed a commercial round for sale. It is taking £2,230 per month is worked in around 24-36 hrs a week . He is asking £22,000 ! Am i out of touch or does this sound epensive ?

JSMC

  • Posts: 3511
Re: commercial work going rate ?
« Reply #1 on: January 17, 2008, 07:18:40 pm »
at the end of the day all you are buying is custom.

Re: commercial work going rate ?
« Reply #2 on: January 17, 2008, 07:22:12 pm »
Have been looking for some extra work when i noticed a commercial round for sale. It is taking £2,230 per month is worked in around 24-36 hrs a week . He is asking £22,000 ! Am i out of touch or does this sound epensive ?
that IMO is a gamble unless them contracts are water tight for at least 3 years, which I am guessing they are not.


jonah

Re: commercial work going rate ?
« Reply #3 on: January 17, 2008, 08:05:46 pm »
Very true I suppose when you have built up a business you are quite sentimental about its worth .

ronnie paton

  • Posts: 3245
Re: commercial work going rate ?
« Reply #4 on: January 17, 2008, 08:19:04 pm »
at the end of the day all you are buying is custom.


Well this is the same for most businesses cafes shops ect ect

is the per week its earning £2230 if so i think its very good

jonah

Re: commercial work going rate ?
« Reply #5 on: January 17, 2008, 08:19:56 pm »
No thats the monthly earnings

matt

Re: commercial work going rate ?
« Reply #6 on: January 17, 2008, 11:03:00 pm »
10 X the monthly take then

i wouldnt pay it myself


Dale Smith

  • Posts: 491
Re: commercial work going rate ?
« Reply #7 on: January 17, 2008, 11:05:10 pm »
This price should be near £4,500 to £5,000 I reckon
Swindon, Wiltshire.

david-maunder

  • Posts: 70
Re: commercial work going rate ?
« Reply #8 on: January 18, 2008, 10:03:14 am »
if you can do it in 24 hours thats £100 an hour, thats what your paying for...

Paul Coleman

Re: commercial work going rate ?
« Reply #9 on: January 18, 2008, 10:16:14 am »
This price should be near £4,500 to £5,000 I reckon

Although it's true that window cleaning businesses are traditionally valued at 2 - 4 times the monthly take, I can't help thinking that they are seriously undervalued.  Assuming that my own business turned over, for instance, 2 and a half grand a month, I wouldn't dream of selling it even for 10 grand - unless I was retiring or moving away in which case I would have to take the best offer.  My particular round probably isn't the greatest in terms of turnover (though it's certainly OK) but it's an almost entirely hassle free round which also allows me some time off too.  It's not just turnover and hourly rate that need to be taken into account but how much or how little hassle there is (I only need to phone 3 or 4 customers to pre-arrange access in my entire business).  If I was selling my entire income, I wouldn't even listen to an offer below one years turnover.
As has been said though, maybe we all tend to value our own rounds highly because we know what has gone into making them what they are.

poleman

  • Posts: 2854
Re: commercial work going rate ?
« Reply #10 on: January 18, 2008, 10:16:55 am »
I have to agree, commercial is so different to domestic work when it comes to selling up, I know a company local to me (AquaPole) and he sold his business for 90k (profit was high)

Andy

Small but perfectley formed

  • Posts: 1747
Re: commercial work going rate ?
« Reply #11 on: January 18, 2008, 03:41:34 pm »
its all town centre work ie shops and offices  so10 x clean is going rate
Spit and polish

robbie14000

  • Posts: 314
Re: commercial work going rate ?
« Reply #12 on: January 18, 2008, 03:55:43 pm »
Jonah- if you employ 1 guy to do the above work at £8.00 per hour taking 36 hours you are going to take at least 2 years to pay back the 22k  before you start making profit.

We have lots of shops-commercial and to this day I have not met the owners of several good paying clients.
Bought some of it over 3 years ago and still got them.
Do a good job and they don,t mind who they are paying.

You might be able to fit the round into more early mornings also to boost daily takings without having to employ someone else.
Personally would not pay that much for the work though.
Robbie - Clearshine Ltd

sair

  • Posts: 682
Re: commercial work going rate ?
« Reply #13 on: January 18, 2008, 04:04:08 pm »
i bought a commercial round several years ago, i paid 7 months its face value, and worked it off over the  months did it around my other work, didnt earn a penny from it for all that time.

it was not my work until all paid for

its now worth 100 k a year,

sometimes you just have to go for it.



Essentially Pure Ltd