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john@AEC

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Posts posted by john@AEC

  3. Posted · Report reply

    G'day Ken

    Mate, those are great looking decks.

    But as for the vid.

    - lots of great pictures, needed for an emotional response (but not sure what type of music needed, apart from agreeing with others that "that ain't it") and excellent text, gives enough information to get people interested.

    - I found all the movement - panning and particularly the fancy transitions - difficult to follow and therefore a waste of time. It's an opportunity for the viewer to switch off. Remember, you are selling timber products and not video skills.

    - what product are you selling? have the names and/or packages "WoodZotic" and "Restore-A-Deck" appear more often (even as a watermark) so that the viewer is in no doubt what products they should look for (names, especially out of the ordinary ones, can be difficult to remember). The more you see and hear them the more chance of remembering. Also, same with the contact details - making me wait until the end might be too long.

    - "..you can preserve its beauty.." "its" should it be "it's" as the ' shows ownership/belonging, as in the beauty belongs to the deck - the subject/the it.

    - ditch the blonde, she won't take it personally, same for the boy with the headset. Would you consider being in the vid yourself? There is a school of thought that it will add credibility."Hi, I'm Ken and I love timber decks. When new they are full of colour and warmth, smooth to walk on, a touch of nature's beauty for the end of a long hard day. But they don't stay new for long enough. The sun and rain will strip the colour and oils from the timber. Soon your deck is grey, moisture soaks in and mould grows, it then splits, splinters and warps, nails start popping out... just not what you paid all that money for. I've been restoring decks professionally for many years and have seen all the problems and tried all the products. But I wanted a product that would protect the timber for longer as well as look great for longer...

    - "WoodZotic works well on all timbers" I'd hope it works better than "well"!; you are looking for an emotional response to kick-start the purchase action, so be brave and use something like "great", "looks great", "looks fantastic", "protects and beautifies all"...

    - some of your text has capitals and full stops, but most doesn't. Either is fine but needs to be consistent.

    ... Geez, he's a picky so and so... sorry, it's teacher in me... "and if it's not done by Monday you will be picking up rubbish at lunch time!"

  4. Posted · Report reply

    I'm not up that early, it's 8:30 here. :)

    Must be late there.... can you guys get Ben & Jerry's down under? Love that ice cream. Have not coated a deck with it tho...

    Beth

    Hi Beth, it must have been late here then (11:30pm). No Ben & Jerry, not even Tom & Jerry, but still plenty of great stuff (I bought some recently but my 9yo didn't like it - all the more for me - because it was "too creamy"). I was going to have a Nutella thick-shake, but the kids had drunk all the milk - it would have gone straight to my hips anyway. May be I could have used Woodzotic instead.

    And now back to the main topic, which was... actually I've forgotten...

  6. Posted · Report reply

    Thanks Beth

    Are you up early or am I up late? may be that's why ice-cream seems more interesting than timber finishes.

    I've just had a wander of the web and... global trade... It turns out that your Cabot is not our Cabot's. They were once, but not any more. Yours was bought by VALSPAR in 2005 and ours has been owned by ORICA since the 1990's. They have the same colour tin, but that's it.

    That's enough history, I think I'll go have that ice-cream now.

    Good night/morning.

  7. Posted · Report reply

    John, I think they used 'aussie' as the land down under is an exotic place to Americans for one and for two you guys do have some hard wood right?

    I tried looking at cabots.com but it's an icecream place - much more interesting:lglolly:

    As for hardwood, most of our trees are hardwood - slow growing and HARD, maybe not IPE but none the less great for cooking on. But for decks, there is a lot of SE Asian rainforest timber such as Yellow Balau (great for splintering) and Kwila (great for leaching red tannins for months and months and months) as it is cheap.

    cheers

  8. Posted · Report reply

    Cabot's Australian Timber Oil

    To ask what may appear a dumb question, but "what is Australian Timber Oil?" It's not something we get over here? We don't get an "American Timber Oil" either.

    Does it have something uniquely Australian in it? (Emu & Goanna oil have been used for treating muscle soreness - back in the old days, but it would leak through the glass bottle and make a mess in the cupboard, so it went out of fashion.

    May be it's "export quality" - too good for us locals.

  15. Posted · Report reply

    G'day

    As an ignorant foreigner.... amongst other things... I find it refreshing that a newcomer is standing for the highest office on the planet. There is nothing worse than old time party "faithful" who believe that it is there turn for president simply because they have been in the game the longest.

    I would like to see the president of the USA as representative of the people and not of the party, some-one who knows about grocery & utility bills instead of legal "bills", some-one who understands working/professional people because it is where s/he is from. Not some-one who has worked for the party all their life and who's horoscope is an opinion poll.

    As for religion - I'd like to see a leader who is on God's side, as opposed to the usual "God is on my side" and "might is right" rhetoric.

    While I don't know much about BO, or how your upper/lower house or party system works, the idea of a young black president, who is not a party hack controlled by the faceless party power-brokers, is appealing.

    NOBODY EVER SAID THE MAJORITY WAS RIGHT

  17. Posted · Report reply

    G'day All

    Thanks for all the comments - this place is always interesting!!!

    I've received some extra info from the seller, and examined some accounting methods recommended for valuing this type of business.

    The business has 22 regular clients, with jobs done weekly, monthly, 2,3,6 & 12 monthly. The clients have been using this business for 1 year up to 14 years (half for over 8 years). About half the t/o comes from 3 clients (2 x weekly & 1 monthly), with the next quarter coming from 4 clients (1 weekly & 3 monthly). Most of the jobs are between 45min & 1hr 15min away (but I still need to find out the travel/timing constraints to minimise my travel and maximise the number of jobs done when I'm out). T/o is about $90,000 pa and the seller claims he works an average of 20 hours/week (though I suspect that is charge out time only and doesn't include travel, maintenance & preparation or administration). I haven't seen the Profit & Loss statements, but assume a generous Net Profit of $10,000 pa.

    The equipment includes; vehicle (14 years old), trailer, 2 x cold water pressure cleaners (3000psi @ 5gpm - Kubota 22hp diesel & 4gpm - B&S 16hp), 2 x surface cleaners (1 vacuum ports), electric vacuum, Oil Separator, Ride-on Scrubber and all the usual reels, hoses, lances etc. and has a "book value" of $20k - $25k.

    There are three methods recommended to me for valuing this type of service business with regular/repeat contracts.

    1. Capitalized Earnings or Return on Investment; this uses a percentage return (usually from 20% to 50% pa) that reflects the risk involved. The "magic" is agreeing with the seller on a rate of return that reflects the risks involved in having the same Net Profit in the future.

    2. Cash Flow; use the Net Profit to repay the Purchase Price over (usually) 3 to 5 years.

    3. Excess Earnings; the Net Profit is made up of Return on Assets (3% or 4% above business loan rate) and Excess Earnings. The value of the business is Value of Assets plus Excess Earnings multiplied by a risk factor of between 2 (higher risk) & 5 (lower risk), again the "magic" is agreeing with the seller on the risk involved in obtaining the same future Net income.

    The risks to this business are the usual; clients leave (they may close/sell/refurbish etc - 7 out of 22 clients bring in 75% on income), clients ability to afford the service, water restrictions tighten - reducing allowed frequency (we are on level 6), EPA/city council enforces "nothing down the drain but rain" & "no crap in the creek", equipment problems, vehicle problems, operators health....

    So, I says thinking out loud, I feel this is a bit riskier than average (but what would I know?). If I use method 1 and a return of 35%, or method 2 and want to repay Purchase price in 3 years, or method 3 and risk factor of 3, I get selling prices of $29k, $30k & $40k - $45k. But of course, none of this is written in stone, so these figures can only be considered as starting points for negotiation.

    That's enough thinking for now.

  18. Posted · Report reply

    G'day Ken

    The reminder to look at the actual figures, and not just the bank balance or 'fridge content, is quite timely and important. I've just done my quarterly accounts, and while t/o is up significantly and my quote/job ratio is about 70% there were quite a few jobs that could have absorbed a 10% - 30% increase (and a few I would have lost - but "so what").

    Thanks again

  19. Posted · Report reply

    Thanks Terry, Kev & Ken

    Selling a business is such an emotional thing, it's good to have some maths to get started with.

    The other thing I had forgotten to ask myself is "how long/much would it take to build up this level of income myself?"

    If I made 25% in the first year, 50% in the second and 75% in the third then 100% in the fourth year it has taken 3 years and in that time I have grossed 150% or 1 1/2 years income; so it has cost me 1 1/2 years income (that I didn't earn by not buying the business). So, is this what I should pay for the privilege of a full income? In working this out, do I use gross income or net profit? (If I was the seller I know which I would use!!!!!).

    Taking a big picture outlook - is this the best use of money? what return would I get on my investment if bought shares/bonds/property?

    Thanks again for your thoughts and wisdom.

  20. Posted · Report reply

    G'day All

    I just received a letter from a local pressure washing business, they are wanting to sell. It's a one person operation, working part time (20 hrs/wk) doing commercial & industrial concrete cleaning (long term repeat jobs). I've been wondering how to get more (regular) comm/ind work, so this appeals to me.

    But of course, the big question is "what is a business worth?"

    Equipment - sale price - as is, where is.

    Pre-paid advertising - proportion of paid amount remaining.

    Good will/booked jobs/expected jobs - a % of last years turn over. But what percentage? Consistent repeat jobs (obviously ?) make it worth more - but what guarantee is there that they will continue with me? .....

    If you were to sell, what would you want?

    The owner has no idea (that he will say) and is waiting for offers to consider - obviously hoping (gambling?) for the maximum. But of course I don't want to offer more than needed, or so little as to make him laugh/cry. I realise that it's like valuing art or real estate - it's only worth what some-one will pay for it.

    What % am I thinking?... still thinking

  22. Posted · Report reply

    Good question Ken...

    We sponsor a child in the slums (India) - so extra $ his way would help with schooling, food, water etc....

    My wife is a nurse and works with a lot of people with mental health problems and cancer and sees the effect these have on individuals and their families - there are a lot of charities providing support and funding research that could use a few more $....

    Then there is...

    It can become quite overwhelming trying to solve the problems of the world, wondering what difference can I make.

    But it really is a case of every little bit makes a difference to someone.

  25. Posted · Report reply

    Hi

    Has anyone tried an infrared heat lamp for paint stripping?

    It is supposed to heat the paint/timber so that the moisture rises and lifts the paint (same as what has happened over years of being in the sun, but in seconds/minutes) and then you scrape it off. Seems slow, but easy to collect paint.

    Here is an example http://www.paintshaver.com/heat-n-strip.html

    Cheers

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