Looking to the future

[The Cleaner]

We are at a crossroads here in Florida. I dont know the situation in other states, only what i read here on the various post's. I think this has been said alot lately and we need to do something about the pricing here in florida on residential work.

Since i started this buisness almost 15 years ago down here, i have seen a steady decline in residential work by at least 5 to 10% a year in the last 5 to 7 years . I belive that this is due to the increase in new start up companies along with the price wars for work.

I wish there was a way for the legitimate companies in different areas of the state to come together on pricing. If we stick together and keep the pricing close to one another, we may be able to do the job for a fair price and in the end the consumer will get what they paid for, and everyone is happy.

I have almost stopped all my residential advertisng, i can not spend thousands of dollars each quarter to produce hundreds of dollars in revenue. This just dont make any buisness sense for me anymore. I have been in every type of advertising over the years and i am pretty much done with it.

My commercial accounts are all i depend upon these days, i have a good amount of regular work, but i do miss the cash flow and fast money of residentials. How as a smart group of proffesionals can we fix this problem? In N.Y. and other northern states they have unions which keeps every trade at the top of thier pay scales. Down here it's just the opposite, it's every man or woman for themselves.

I know we have beat this topic to death, but i do feel this industry is headed for a downward spiral and i would like to see some input from the bigger companies out here on what can be done to stop this. Together i belive something can be done about this and i for one would be open to anything that will improve how we do buisness down here in the south.

 

[Doug Dahlke]

This year I mailed out 3,000 post cards. 1,500 right before July 4th and the other 1,500 a week or two after school started up back here. I received all of four phone calls and two jobs from these. Didn't even make the cost of the cards and postage back. In the last few weeks I have given out five residential quotes with one taker. One other person went with a guy that cut my price almost in half. I don't know what to do to combat the low ballers and fools who either do lousy work or are willing to earn 50% of what they could get.

 

[The Cleaner]

This year I mailed out 3,000 post cards. 1,500 right before July 4th and the other 1,500 a week or two after school started up back here. I received all of four phone calls and two jobs from these. Didn't even make the cost of the cards and postage back. In the last few weeks I have given out five residential quotes with one taker. One other person went with a guy that cut my price almost in half. I don't know what to do to combat the low ballers and fools who either do lousy work or are willing to earn 50% of what they could get.

We are all affected buy this.I am just wondering if this is taking place everywhere or only in the south?

 

[David O'Connell Jr]

It is a no-brainer

We are on the East coast and it’s the same here.
We do mostly a lot of residential work but I'd love to increase the amount of commercial work we do.
The part that I don't understand is this:
You can charge a fair rate and make a good living - or charge $175 for a roof and barley scrape by.
I wish that the part timers would understand this. The beer money mentality is killing them. Let’s see.... work my buns off for $175 or work my buns of for $350. They could bid competitively and work less.
It is a no-brainer.

 

[AllClean/GA]

Hey Doug, I'm having the same problems. I have always had good luck in the paper but not this season. I'm wondering if the drought has had anything to do with it? I've had some big jobs this season but my resi volume has decreased. I also think my prices have kept me from getting work. People just dont want to spend the money.

 

[Russ Spence]

We are at a crossroads here in Florida. I dont know the situation in other states, only what i read here on the various post's. I think this has been said alot lately and we need to do something about the pricing here in florida on residential work.

Since i started this buisness almost 15 years ago down here, i have seen a steady decline in residential work by at least 5 to 10% a year in the last 5 to 7 years . I belive that this is due to the increase in new start up companies along with the price wars for work.

I wish there was a way for the legitimate companies in different areas of the state to come together on pricing. If we stick together and keep the pricing close to one another, we may be able to do the job for a fair price and in the end the consumer will get what they paid for, and everyone is happy.

I have almost stopped all my residential advertisng, i can not spend thousands of dollars each quarter to produce hundreds of dollars in revenue. This just dont make any buisness sense for me anymore. I have been in every type of advertising over the years and i am pretty much done with it.

My commercial accounts are all i depend upon these days, i have a good amount of regular work, but i do miss the cash flow and fast money of residentials. How as a smart group of proffesionals can we fix this problem? In N.Y. and other northern states they have unions which keeps every trade at the top of thier pay scales. Down here it's just the opposite, it's every man or woman for themselves.

I know we have beat this topic to death, but i do feel this industry is headed for a downward spiral and i would like to see some input from the bigger companies out here on what can be done to stop this. Together i belive something can be done about this and i for one would be open to anything that will improve how we do buisness down here in the south.

I understand you completely and I am in total agreement with every word , I love doing the residential if only for the interaction with customers , its a pleasure seeing someone smile and appreciate you and your efforts , my business is much like your in that we do a ton of work at night ( all commercial ) , I am open for discussion on any ideas , maybe this could be a timre for us to look into a non profit org. just for folks like us that have been around a while .

 

[DOG]

i guess since i have not been around so long my opinion means nothing but....
i dont care i am free to speak here so i will.
i posted on a thread about lowballers and many had negative comments about a formula or bus. model to drive lowballers out of business. i now offer house cleanings for homes 2500 sq. ft. or less for $150.. i pay a helper 10-15$ plus a conservative amount goes to overhead 15 -35$ takes around an hour and i pocket roughly 100$. i usually upsell gutter cleaning and flushing and sometimes concrete and roofs... maybe the problem is not with the lowballers but with the high ballers??? many folks in this economy cant see paying 300$+ to wash they're house? give the people what they want.. then sell more

 

[Russ Spence]

i guess since i have not been around so long my opinion means nothing but....
i dont care i am free to speak here so i will.
i posted on a thread about lowballers and many had negative comments about a formula or bus. model to drive lowballers out of business. i now offer house cleanings for homes 2500 sq. ft. or less for $150.. i pay a helper 10-15$ plus a conservative amount goes to overhead 15 -35$ takes around an hour and i pocket roughly 100$. i usually upsell gutter cleaning and flushing and sometimes concrete and roofs... maybe the problem is not with the lowballers but with the high ballers??? many folks in this economy cant see paying 300$+ to wash they're house? give the people what they want.. then sell more

no way , all oponions are valuable

 

[greg/sd]

i have seen the same decline in my area. i hardly do any resi anymore because of it.

 

[DustinC]

i guess since i have not been around so long my opinion means nothing but....
i dont care i am free to speak here so i will.
i posted on a thread about lowballers and many had negative comments about a formula or bus. model to drive lowballers out of business. i now offer house cleanings for homes 2500 sq. ft. or less for $150.. i pay a helper 10-15$ plus a conservative amount goes to overhead 15 -35$ takes around an hour and i pocket roughly 100$. i usually upsell gutter cleaning and flushing and sometimes concrete and roofs... maybe the problem is not with the lowballers but with the high ballers??? many folks in this economy cant see paying 300$+ to wash they're house? give the people what they want.. then sell more

Dog,If your happy with that then thats great.My customers don't shop on price and I don't wash many vinyl houses, what I don't understand about your any house 2500 and under for $150 is, is every house in Charlotte exactly the same? My house is is under 2500 square feet, painted, 2 story with a large wrap around`porch (I do the ceiling,do you?)hundreds of painted spindles lots of spider webs and crap gets trapped in the screens (over 2 dozen of them), and you will have to get on the roof or ladder top to reach some second floor areas. I'm set up to wash very efficiently and I know it takes two machines two hours to do my house.Do you bite the bullet or does the price reflect the quality? I've seen alot lower but it surprises me that you want to build your company this way.Its been done before.But like I said its none of my business it dose'nt effect me, plenty washers lower here.Even though I'm a "high baller" tips are not uncommon.

 

[bigchaz]

I started with no business name and created a company that within 3 months had my schedule booked for the season. I charge the most for deck restoration in my area, and do only residential. And I spend less than 5 percent on advertising. The future looks da** good to me! Hope things work out. Glass is half full on my side, industry or no industry.

Sounds like some of yall need some new approaches and new ventures/services. Times change over 14 years, and you got to keep up with the money.

Just my opinion for what its worth

 

[Doug Dahlke]

Dog. Every house is different. I agree with Dustin 100%. I would charge around twice as much as you for a 2500 sf home. I would also be on property 3 hours to do it. My price includes brushing the gutter exteriors, ladder work when required, moving things out of the way and usually putting them back, I rinse extensively to protect plants and make sure the windows dry clean and streak free. You may have some great techniques that I could learn but I can't see any way you can do a house that size, even with a helper, and do a quality job in an hour. Even if I learn new ways to do the work faster and still do a good job I would be insane to drop my price. I have never had a call back to fix a problem and I have cleaned homes that others have done for much less than me previously. One customer piad me $300 for a cleaning this year when he had paid $170 the year before. Less than a year later the house was covered in mold, the guy said he would come back to clean the gutters and never did and the homeowner had to hire a window cleaner to clean all the streaks the other guy left on the windows. The sad thing is that most homeowners don't know what a good cleaning job looks like and are willing to settle for less.

 

[Doug Dahlke]

Hey Doug, I'm having the same problems. I have always had good luck in the paper but not this season. I'm wondering if the drought has had anything to do with it? I've had some big jobs this season but my resi volume has decreased. I also think my prices have kept me from getting work. People just dont want to spend the money.

I think the drought is part of the problem. I do believe we are heading into a recession and people are not spending money for home maintenance. There are houses all around that need washing and exterior paint and homeowners just let them go. I don't understand why people will let the largest investment they have deteriorate.

My wife and I looked at a house yesterday that we thought would make a good rental. The previous owners had it rented and have totally neglected it. It needs a roof, exterior paint, new flooring, interior paint, new appliances, etc. It also has a pool which is full of stagnant water and insects. Now the house is worth much less and they won't get a decent price for it without spending a ton to fix it up. I wish I could figure out a way to make people understand that maintaining their property is less expensive than repairing it.

 

[DOG]

ok
yea no spindles ... no ladders .... no gutter cleaning ... no flushing of gutters... completley rinsed yes.. quality is based on what customer wants to spend..2500 sq.ft washed pristine >>> spotless =350+.... cheap bastard whose HOA requires green "stuff" removed 150$ whats so hard about it ? what ever the customer wants i provide

 

[DOG]

Dog. Every house is different. I agree with Dustin 100%. I would charge around twice as much as you for a 2500 sf home. I would also be on property 3 hours to do it. My price includes brushing the gutter exteriors, ladder work when required, moving things out of the way and usually putting them back, I rinse extensively to protect plants and make sure the windows dry clean and streak free. You may have some great techniques that I could learn but I can't see any way you can do a house that size, even with a helper, and do a quality job in an hour. Even if I learn new ways to do the work faster and still do a good job I would be insane to drop my price. I have never had a call back to fix a problem and I have cleaned homes that others have done for much less than me previously. One customer piad me $300 for a cleaning this year when he had paid $170 the year before. Less than a year later the house was covered in mold, the guy said he would come back to clean the gutters and never did and the homeowner had to hire a window cleaner to clean all the streaks the other guy left on the windows. The sad thing is that most homeowners don't know what a good cleaning job looks like and are willing to settle for less.

doug i agree i am meticulous about this sheeat.. but a lott of people just dont care about streaks on windows or the black streaks on gutters etc.. they are cheap bastards and are happy that theyre house got wet for 150$ am i supposed to tell them NO your standards are below my guidelines for a house cleaning? the guy he paid a year before for 170$ is not a true business/salesman if the customer was inclined to do more to maintain his property he should have sold him.......................

 

[DOG]

I started with no business name and created a company that within 3 months had my schedule booked for the season. I charge the most for deck restoration in my area, and do only residential. And I spend less than 5 percent on advertising. The future looks da** good to me! Hope things work out. Glass is half full on my side, industry or no industry.

Sounds like some of yall need some new approaches and new ventures/services. Times change over 14 years, and you got to keep up with the money.

Just my opinion for what its worth

gotta love those who think outside the box...

 

[The Cleaner]

gotta love those who think outside the box...

I am talking about pressure cleaning not deck's..

 

[jlpressure]

I dont want to get all political but its the times we live in. Nowadays, people want everything and everything cost money. When I was growing up all the way to the age 16 my parents didnt own a dining room set. They had a picnic table painted cranbury and a nice table cloth. Why? because they couldnt afford it and were saving for the future.

These days everyone one wants everything and will get everything and that means many many people shop on PRICE, they have to, for all they want and on top of shopping on price, many are shopping on borrowed money (credit).

I know many will say things are better than they ever were, but the past decade plus, while everybody is wanting and getting everything they want, we are slowly slipping into a crunch as a nation. We have great booms and mild recessions, but in these times employment has drastically changed. Two parents have to work, many work two jobs, just to get by. Now just getting by is different than it was 25-40 years ago. Now just getting by is to own a home that you cant afford, have a nicer vehicle than you can afford, buy your kids $90 sneakers and $75 jeans. So people price shop, The Walmart factor. The NAFTA factor,Jobs have gone over seas, good paying jobs, now people dont have the security of a long term good paying job, they have to pay part or all of their health insurance, no pensions. Now the economy has slowed some so some are out of work or need more than their job pays, so they do things on the side like Pressure washing. Many just need enough to make their payments, so they go and do a house wash for $75 or they are bums who just who want beer money.

The economy and the times have people scared, not as scared as when the economy is booming, but things have slowed, so more & more people will be shopping price, but this isnt anything new its been like this for many years. Every generation has bettered themselves we are in a time and it may be here to stay, were we just get by. Im not saying everybody, but the middle class is changing from what it was in the 50' 60's & 70's. Back then the middle class almost always was more conservitive with their spending and they had chances to advance, now the middle class is just trying to maintain, and its slipping ever so slowly, but it is slipping. So people who never thought they would be looking for the BEST PRICE, now are looking for that BEST PRICE. Face it most home owners in middle class homes probably wouldnt see much of a difference in a $400 house wash or a $100 house wash, their neighbor told them "hey the guy charges $100 and does a great job" They are going to go with it

Be back, I'll get to the point soon

 

[mario]

same here so now i offer 3 types of service, a wash n go, basic service for a small 1 story and small 2 story, and a full service. which one do you want lady? im no expert and still a newbie but my ice cream shop gotta sell more flavors than just choclate

 

[bigchaz]

I am talking about pressure cleaning not deck's..

My point is just that youve been in business 14 years, you obviously know what your doing, so why all the complaining? Figure out a better way to make money, if you are struggling so bad. No one has a magical answer that will automatically make all homeowners want to pay 1000 dollars for a housewash. You will never be able to combat lowballers. They will always exist.

You seem to have a niche in commercial work. If you cant get residential work for the prices you want to get, than maybe its not meant to be. Or you need to come up with a way to make it work. Be more efficient, offer more services, find better marketing, lower your costs, get it done quicker. You have some sort of attitude towards doing wood for some reason, but Im trying to tell you how much work there is. Expand your horizons and explore new services. Hood cleaning, fleet work, decks, drain jetting, windows, historic restoration. Come up with another speciality. You may have done well in the past sticking to solely pressure washing, but times change. 50 years ago it might have been nice to drive around in a truck all day and deliver milk to people, but pretty sure they had to move on eventually. Probably complained about the lowballing grocery stores and how residential deliveries were dropping off year after year.

Just saying. I can tell your a smart guy and a good businessman, but I just cant understand how people get so worked up over this stuff. Good luck to you