Wal-Mart anyone else get the Letter?

apple said:
Why would anyone want to?
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Got to agree there Chris, easier ways to make More money out there than wasting time trying to convince a SM, RM, or DM the benefits in regularly scheduled cleanings.....why??? Because it comes out of their bottom line come bonus time.

I would love to service them but calling only when a big wig visits, or once every blue moon is not a good fit for us.
 
We have one scheduled in the am. We do mowing, landscaping, lot sweeping, washing and snow removal for them. One of our top 5 clients. The GM does have a bonus tied to budget. We had a landscape clean up get bumped bc it was going to put one of the GM,s over budget - but I certainly understand - I wouldn't want to loose money either.
 
DJ and respectfully guy, ill bet at the end of day there's more net in a commercial than nearly any residual account.

On a repeat service commercial kills the residential in the long haul.

Residential costs to run a couple 100,000 annual are more than my entire business has to spend in marketing.

Scott Stone as another example is also proof. Ask Scott if he ever ran or paid for any advertisement this year or even will? I bet the answer is zero!!

This is not even true but I will use this as and example.

DJ you think because someone does a job for more money they make more. I know your going to refute that statement.

I'm on a phone so later today ill throw a spread sheet together. Just because someone charges more does not mean they are making more net profit.

Volume has little to do with it.

What really matters is the accounts are very low cost and they are placed within your model correct and the operations part of you business runs flawless.

This mentality of water squirting if you want to make millions should leave your head.

If your happy just being a water squirting guy then that's awesome. I'm not and never will.

Respectfully DJ I seen you posted a work order last month.

Have you got the bathrooms, cart , meat lockers, produce, bakery, rear loading , tire center and all the other regular Maint that happens.

DJ wall Mart works volume. My margins dwarf yours and yes my volume does also. In my case one has nothing to do with the other.

Here's why scientifically math mathematically I have chosen a margin. My customers do not dictate prices to me. I learned long ago because a group has 120 locations strategically I cannot offer volume discounts in my model. Hear to tell you that even national companies in our business can't do it. I've watched one failure after another.


In short this means I'm not star gazed when a regional says give me a 120 unit price. I don't drop my shorts down. You may find this hard to believe or maybe even stupid in your business head. My price for one unit is the same price for 120 units.

Corporate America loves my model. I have won more work not buckling on that alone. Margins are mine, I own them. Taking volume lower price will not increase your bottom line. Again your going to tell me I'm not a fool and understand that.

Great then stop associating volume contractors as lower margin people.

And Djwhen your understand a PandL reads high on the side of profit you maybe didn't win. You might want to find another tax person. Showing 35% margins will help us pay that debt faster which I respectfully do appreciate.

With that said DJ I still like your hustle and ambition. Always have, that why I've tried to help you. Keep learning but stop the I know Everything all the time. You have filed taxes five or six years now. I remember you making statements your close to 100,000 annual was goal. You bought Rick out ill assume that took you over the top. Accusation are a great way to grow. We all have our own struggles faults strengths and weaknesses.

I guess what I meant to say is stop talking about volume , you don't have it and are a long way from it. In ten years when I'm retired you can call me and say your right. Until then please respectfully don't talk about something you have no clue.

I will post spread sheet to give a better real world on margin


Text me anytime for question 480-522-5227
 
Ron you clearly did not understand my post .... thanks for jumping down my throat as usual .... geez

I was actually taking the side of commercial. And I would like to know where in the above post i acted like I know everything.

Get the hell of my back dude!


This is what I meant in my post:

Guy said he would rather have margins in HW vs doing walmarts.
-My statement said what if the margins doing commercial could get you more volume than a hw.
--- ie. you make $100 per house wash NET but the market only can bare 3 house washes a week.
$100 x 3 = $300

-If I only make $50 per commercial account but the market will support 10 per week.
$50 x 10 = $500

Add in the x factor of the residual on commercial vs every other year at best on residential and the commercial is a sure fire win.


-- The only time this doesn't make sense is if it doesn't fit your business model.
IE ---- Guy hates cold calling there for he would be better off trying to get residential clients vs commercial.
Commercial fits our structure better there for that was we do .... like guy said different strokes different folks. . .


I was simply trying to start a discussion and Ron you felt it upon your self to try and rip my ass.
Again get the hell of my back dude!
 
DJ Carroll said:
This is what I meant in my post:

Guy said he would rather have margins in HW vs doing walmarts.
-My statement said what if the margins doing commercial could get you more volume than a hw.
--- ie. you make $100 per house wash NET but the market only can bare 3 house washes a week.
$100 x 3 = $300

-If I only make $50 per commercial account but the market will support 10 per week.
$50 x 10 = $500

Add in the x factor of the residual on commercial vs every other year at best on residential and the commercial is a sure fire win.


-- The only time this doesn't make sense is if it doesn't fit your business model.
IE ---- Guy hates cold calling there for he would be better off trying to get residential clients vs commercial.
Commercial fits our structure better there for that was we do .... like guy said different strokes different folks. . .
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Which would be true if those numbers were accurate. I was using the example of the profit margins in house washing, which is not all we do. If you take the actual cost of what it takes to wash a house verses what you charge for the house wash you're looking at a few hundred %. Factor that it only takes (for us) 1-1.5 hrs. Per wash and paid same day verses 30-45 day net for commercial and the scrip is flipped...low volume, high margin.

Guy loves cold calling, that why we have doubled our Multi-Family properties and added 3 new PM companies.

I like your business model DJ because its diversified with multiple cash flow streams. I just like to concentrate and be the best we can be at 1 thing, all my eggs in one basket thing.

If Walmart called I wouldn't turn them down, but they would have to meet my number. The "we're only paying this much" doesn't fit my business model.

Can't wait to hear you speak in Huntsville DJ.
 
Guy Blackmon said:
Which would be true if those numbers were accurate. I was using the example of the profit margins in house washing, which is not all we do. If you take the actual cost of what it takes to wash a house verses what you charge for the house wash you're looking at a few hundred %. Factor that it only takes (for us) 1-1.5 hrs. Per wash and paid same day verses 30-45 day net for commercial and the scrip is flipped...low volume, high margin.

Guy loves cold calling, that why we have doubled our Multi-Family properties and added 3 new PM companies.

I like your business model DJ because its diversified with multiple cash flow streams. I just like to concentrate and be the best we can be at 1 thing, all my eggs in one basket thing.

If Walmart called I wouldn't turn them down, but they would have to meet my number. The "we're only paying this much" doesn't fit my business model.

Can't wait to hear you speak in Huntsville DJ.
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Guy Are you coming to Roberts in atlanta ?


Text me anytime for question 480-522-5227
 
DJ Carroll said:
Ron you clearly did not understand my post .... thanks for jumping down my throat as usual .... geez

I was actually taking the side of commercial. And I would like to know where in the above post i acted like I know everything.

Get the hell of my back dude!


This is what I meant in my post:

Guy said he would rather have margins in HW vs doing walmarts.
-My statement said what if the margins doing commercial could get you more volume than a hw.
--- ie. you make $100 per house wash NET but the market only can bare 3 house washes a week.
$100 x 3 = $300

-If I only make $50 per commercial account but the market will support 10 per week.
$50 x 10 = $500

Add in the x factor of the residual on commercial vs every other year at best on residential and the commercial is a sure fire win.


-- The only time this doesn't make sense is if it doesn't fit your business model.
IE ---- Guy hates cold calling there for he would be better off trying to get residential clients vs commercial.
Commercial fits our structure better there for that was we do .... like guy said different strokes different folks. . .


I was simply trying to start a discussion and Ron you felt it upon your self to try and rip my ass.
Again get the hell of my back dude!
Click to expand...

I dunno where your gettting those numbers from but i washed 3 houses last month and grossed over a grand.
I'm getting 180.00 to 240.00 per house wash. And the real estate developer i'm working for is buying, flipping & selling
10-14 houses per month and wants to get to 25 per month asap. That's the up side.
the down side is that i may work one week and have squat for 2 weeks. then they call again. I've got 5 on the board for this week.
My problem is finding fill work inbetween. And unlike other areas of the country i can work year round here. No Snow, so i'll gladly
forgo a white Christmas in order to have a GREEN one.

But i get what your saying commercial is the way to go...i think that the exception to that though is if you can get volume
in HW on a regular basis like i'm into now. I realize that @ some point that may come to an end rather abruptly, but for now it's paying the bills here @ HQ.

On the Wallmart aspect....my GF spent her entire working life with that company untill this year. So she has freinds that are in managment. One of them asked about me,
for his store and would have given us the work...but then there's that flaming hoop you have to jump through to get in the system. And sadly we're just not there yet.
So my Question is this: IS IT REALLY WORTH IT?

Addtionally, is it possible to backdoor your way into walmart work with a company like Eco? I did one gig for them last week on a Walgreens. Sure they will make money off the deal but if they are willing to pay my price then i'm willing to go that route in letting them skim off the top in order to get volume commcerial work. They are basically just ascting as a booking agency. There is the no compeate in their vendor pack, but i'm not signing that untill i hear from some members here that have worked for them before. In the 1st year everything is crucial, it's make or break, and i can't afford to let any work get by us. no matter how small. That being said i'll agree with Ron that your price is your price. And if they aren't willing to pay what you think your worth...then let them walk.

I bid a hotel here 3 months ago. i cut my neck 3 times on the price to get the work. they have never called back. So it's just not worth it IMO to cut your rate to try and get volume. in the end your out the income you could have made, and then the volume won't matter much at all.

My 2 cents.
 
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