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Ian Lancaster

  • Posts: 2811
JRDEasiReach How many custies....
« on: November 13, 2009, 07:15:38 pm »
If you're serious about growing a healthy profitable and successful business, you're asking the wrong question.

Up to a point, the number of customers is irrelevant.  The important statistic you should bear in mind is how much profit you are making.

Don't make the mistake of thinking that the money you 'earn' in a day is all profit, it isn't.

You must allow for all overheads, vehicle costs, loan repayments, fuel, insurance, advertising, stationery, telephone, uniform, tools, repairs renewals and replacements etc etc.

Remember the (very true) adage: "Turnover is vanity, profit is sanity"  If you don't make a good profit you will fail.  It may take a few months or even a few years, but to avoid it you must have a realistic plan with clear goals.

I believe that to be sure of real success you should aim for an hourly turnover of at least £30 and achieve this for a minimum of 35 hours a week.  This figure will increase in line with inflation as time goes on.

This will give you a good wage with enough left over to invest in your business so that you can weather the ups and downs that will come.

£18 per hour may seem brilliant after a factory or other 'employed' position, but running your own business is a different thing altogether.

Don't make the mistake of undervaluing your time, make sure you can turn over enough money to sustain your business and grow year on year.

bobplum

  • Posts: 5602
Re: JRDEasiReach How many custies....
« Reply #1 on: November 13, 2009, 07:32:17 pm »
ill go along with that ;D
bob

dazmond

  • Posts: 24433
Re: JRDEasiReach How many custies....
« Reply #2 on: November 13, 2009, 07:40:12 pm »
i dont think its realistic to expect to do 35 hrs work a week on the glass so to speak.what about really bad weather days?early finishes in winter etc?i think ur right ian about the £30 an hour though.im based in the north west and still trad so £25 an hr is ok for now for me although i do earn £40 an hour sometimes but not hour after hour!im all domestic and a sole trader.i do expect 30 to 40pound an hour next year when i switch to wfp.im pricing much better for new work but wouldnt get some of the prices being quoted on here!like ive just said depends on area as well.its alot cheaper to live up here.£66 a week rent for my flat! ;D ;D

best wishes to everyone

dazmond
price higher/work harder!

Murdie window cleaning

  • Posts: 654
Re: JRDEasiReach How many custies....
« Reply #3 on: November 13, 2009, 08:35:46 pm »
Now i'm also a newbie but I think if you get your pricing correct from day 1 then it shouldn't matter greatly if it's 1 bedroom flat or a 5 bed detached. I base mine on estimated time to clean(once up to speed)  divided by my target hourly turnover.

mci services

Re: JRDEasiReach How many custies....
« Reply #4 on: November 13, 2009, 10:07:25 pm »
i dont think its realistic to expect to do 35 hrs work a week on the glass so to speak.what about really bad weather days?early finishes in winter etc?i think ur right ian about the £30 an hour though.im based in the north west and still trad so £25 an hr is ok for now for me although i do earn £40 an hour sometimes but not hour after hour!im all domestic and a sole trader.i do expect 30 to 40pound an hour next year when i switch to wfp.im pricing much better for new work but wouldnt get some of the prices being quoted on here!like ive just said depends on area as well.its alot cheaper to live up here.£66 a week rent for my flat! ;D ;D

best wishes to everyone

35 hrs isnt unrealistic thats only 7 hours a day on the glass over 5 days, yes you have bad days and admin. but thats why its important to follow the advice given and price accordinally

dazmond

dazmond

  • Posts: 24433
Re: JRDEasiReach How many custies....
« Reply #5 on: November 13, 2009, 10:25:41 pm »
it is unrealistic to work 35 hrs EVERY week!by the time uv took bad weather days/holidays/sick days/poor motivation days.u will NOT average that in a year.9am til 5pm?u wont work 8 hrs?maybe 7 at a push!winter?cant work after 4 sometimes 330 on the shortest days.if i was living down south and was WFP think i would want to earn 35pound at least!what with higher overheads with equipment and the astronomical cost of living!
 ;D ;D
price higher/work harder!

mci services

Re: JRDEasiReach How many custies....
« Reply #6 on: November 13, 2009, 11:02:16 pm »
it is unrealistic to work 35 hrs EVERY week!by the time uv took bad weather days/holidays/sick days/poor motivation days.u will NOT average that in a year.9am til 5pm?u wont work 8 hrs?maybe 7 at a push!winter?cant work after 4 sometimes 330 on the shortest days.if i was living down south and was WFP think i would want to earn 35pound at least!what with higher overheads with equipment and the astronomical cost of living!
 ;D ;D

i wasnt disagreeing

i will try explain here goes

if you want to work a 40 hour week you will probably only do 24 hrs max earning so when working out your rate, you use the 24 hrs, then you dont multiple by 52 as you will never do it so you take say 48weeks, and thats probably to much. in reality it could be 40 weeks

so an example would be you want to pull in 25k a year so divide by 40= 625 a week then divide by 24hrs= £26 ish an hour would be your target hourly rate

but remember thats only turnover not profit

ronnie paton

  • Posts: 3245
Re: JRDEasiReach How many custies....
« Reply #7 on: November 13, 2009, 11:23:44 pm »
i work on £25 a hour i got more sometimes but very rarely less, but even though some days my actual cleaning time is 5 hours i stil include all travelling in my hourly wage, for example 5 hours work 3 hours cleaning =£200 =£25 per hour but you could say £40 perworking hour but i would say that is cheating!!

dazmond

  • Posts: 24433
Re: JRDEasiReach How many custies....
« Reply #8 on: November 13, 2009, 11:34:11 pm »
my hourly rate means "on the glass".travel time is v.minimal on my round.lunch and talking to custys is not included! ;D ;D
price higher/work harder!

ronnie paton

  • Posts: 3245
Re: JRDEasiReach How many custies....
« Reply #9 on: November 13, 2009, 11:39:47 pm »
i include the full day from leaving house to getting back but that is the same for he employees

cozy

Re: JRDEasiReach How many custies....
« Reply #10 on: November 14, 2009, 11:25:53 am »
If you really want to upset people, just tell 'em that they're "WRONG", works a treat. Just like to give an example here. I'll talk about just my Brit custies. I have just short of 300 of 'em. All six weekly. We work in two's and do on average 20 to 25 a day in about a 4/5 hour day. The average price is 14 Euros/12-13 quid. So with travel and work, we do about a 30 hour week. So are my prices and round structure "WRONG"?. Who cares? I don't.
If I worked alone I would have to work 6 days a week for about an 8 hour day. Is that still "Wrong"? Shall I drop 100 and charge the rest 20 quid?

All rounds are different and areas are different. People want different things from their business and some are ambitious. Some make more money than others and some just want to get by.

Funny old world isn't it. :D But nobody is "Wrong".

lee_dewing

  • Posts: 3124
Re: JRDEasiReach How many custies....
« Reply #11 on: November 14, 2009, 11:29:54 am »
good points everyone and some intresting maths lessons.

I have phathomed some of these out myself i think the 40 weeks a yr is pretty honest.

As you have hols, sick days, bad weather days, shorter days in winter, van need servicing, repairs, I had to wait in for the repair man the other day for the washing machine :D

Dosen't seem worth going a work ;D

I average £20 an hour which I thought was great but when hit a very rough patch with van problems, it made me realise, a run of bad luck and i'm in real trouble, still haven't forgot feb snow, lost a week's work.

Will work on getting hourly rate up, i have a must have target  but go for more; i think it should be upping the bar.

Will work on compacting my round in spring and hopefully when i've got too much at 6 week frequency, sell off some.  Also some price rises for custy's.
Work on building up some savings.
Think i'm in a hand to mouth situation :(

Lee
Pleasure in the job puts perfection in the work.     - Aristotle

dazmond

  • Posts: 24433
Re: JRDEasiReach How many custies....
« Reply #12 on: November 14, 2009, 11:34:10 am »
i agree craig b!u should know what ewans like by now! ;Djust cos uv not got 200 custys at 20 to 30pound a pop doesnt mean ur not doing ok!v compact work u can hit £30+an hour.ive got some granny flats in a poor area that i clean for £2 a pop.30 flats-2 hrs 30quid and so on.im trad as well.WFP i would be faster again.i also have 2 estates with 90+houses on each estate.most 5 or 6 quid standard 3 bedders and  i do ok.wfp would be faster but higher overheads.i have 350 custys.some £3,£4,£5,£6,£7,£8,£9,£10,£11,£12,£15,£20 but a lot are v.compact which cuts out travel time,petrol etc.most are in the same area.i do price better for new work and small rise every april for the underpriced work.onward and upward.also with having more custys if u lose the odd one its no big loss and u get more tips at xmas ;)
price higher/work harder!

dazmond

  • Posts: 24433
Re: JRDEasiReach How many custies....
« Reply #13 on: November 14, 2009, 11:56:31 am »
lee dewing are u trad or wfp?if ur wfp and living down south thats poor to be only making £20 an hr on the glass so to speak.is ur round v.scattered?by the time uv forked out for poles,resin etc and paid the rent or morgage,tax,insurance and do u work in the rain or shy off on the first drop?my prices are quite low compared to some but im in the north west/trad and make 25+an hr.my works mainly v.compact but i hope to average 30+ an hour next year when i switch to wfp.get them prices up!ur worth it!

best wishes lee and build up an emergency fund in a seperate bank account for van repairs,bad weather days etc! ;D ;D

dazmond
price higher/work harder!

Window Washers

  • Posts: 9036
Re: JRDEasiReach How many custies....
« Reply #14 on: November 14, 2009, 12:05:03 pm »
£30 per hour is right for being a “successful window cleaner”, 35 hours per week is wrong and not realistic for any individual unless you like working overtime each week.

“Real success” (as Ian describe), would be sustaining a higher hourly rate than £30 but with realistic working hours.

This can all be achieved with a customer base of any where between 50 – 200 customers. Below 50 customers the risk is, if you lose a single customer this represents a high percentage loss, more than 200 customers a month your pricing is wrong or you are working constant overtime, or both.

Obviously if you are going to take on staff, these figures change accordingly, but the pro’s & con’s for each type of outfit are easily distinguishable. Just work accordingly to your strengths.

Ewan you should write a book, you are very good with words  ;)
If your not willing to learn, No one can help you, If you are determined to learn, No one can stop you ;)

lee_dewing

  • Posts: 3124
Re: JRDEasiReach How many custies....
« Reply #15 on: November 14, 2009, 12:21:23 pm »
dazmond,

I am wfp, freedom trolley and backpack.

I live in se.    essex.

my work is a mix scattered and compact.

I use to worry i was going to slow but i'm sure i can't go much faster now i can't use a vanmount system that would be quicker i'm sure, but not that much.

I'm sure i'm under pricing also on some work still can't break out of that mould sometimes of i can't charge that.

Example i did a good sized place on thursday outside £25 which on 2nd thoughts  should be £30.

I did inside and out which included small con roof 4 panels (done everytime)

did inside con roof this time was easy as reached on tippy toes.

I was there 3 half hours charged £60,  when i went away kicked myself £75 easy.

custy's words: "£60 thats alright"

she said last w/c was useless and i think they must have been paying £30 as on first clean they tipped £5 to round upto £30. (outside)

I think i'm a good w/c.  but a poor business man :(

I do get p'd off and feel like building a brand new round and starting again,  i have made alot of mistakes and would like to go at it again.

which in spring i am making changes as it's just not good enough.
as i haven't had the guts to door knock i have just leaflet'd and this has slower results i hang on to work that is probably to cheap.

thanks lee.
Pleasure in the job puts perfection in the work.     - Aristotle

dazmond

  • Posts: 24433
Re: JRDEasiReach How many custies....
« Reply #16 on: November 14, 2009, 12:24:19 pm »
i collect while i clean,cheques and collect 2 hrs a week normally.plenty of cash flow!! ;D ;D
price higher/work harder!

dazmond

  • Posts: 24433
Re: JRDEasiReach How many custies....
« Reply #17 on: November 14, 2009, 12:41:50 pm »
thanks for ur honesty lee.ive also made many mistakes in this game and in life in general.im much better at pricing new work now though.its the underpriced ones that uv been doing for years isnt it?im putting all old underpriced work up by 50p or aquid every april for the next few yrs.and pricing new work at 30pound an hour trad.ive put a few up £5 in the last few weeks.stuff i wasnt worried about losing and not one said no!so there worth doing now! ;D ;D

best wishes dazmond
price higher/work harder!

lee_dewing

  • Posts: 3124
Re: JRDEasiReach How many custies....
« Reply #18 on: November 15, 2009, 09:53:26 am »
good for you dazmond.

hope goes well.

I think i'm across between the scarecrow and the lion in the wizard of oz.

I'm asking santa for some brains and courage for xmas.

Maybe then i will door knock and price correctly :D

thanks lee.
Pleasure in the job puts perfection in the work.     - Aristotle

JRDEasiReach

  • Posts: 481
Re: JRDEasiReach How many custies....
« Reply #19 on: November 16, 2009, 04:06:24 pm »
Thanks for the advice but do you think i came into this business with the blinkers on?  I did not, i know where i want to be, how much time i want to dedicate to cleaning in a week and how much i 'need' in the month to pay myself a wage, pay the bills and leave some left over to pay tax etc from my account.  Im switched on believe me, my heads always ticking away on how to make my business grow.  When i am at the point i want to be ill be stopping well at least for a few years, i worked this morning 9.30am-12.50am made £60 with travel time included, is that 'wrong'?  I believe there can be no wrong just differences imo.  :)
JRD Easi Reach
'The Ladderless Window Cleaning System'