timhays 14 Report post Posted January 31, 2004 looking for average annual sales figures on pressure washing service related only,and number of employees to obtain those figures. looking for companies in these brackets 250k 300k 350k 500k thank you for any info. Share this post Link to post Share on other sites
0 Ernie Greese 14 Report post Posted February 9, 2004 ".. if you can AVERAGE $600 per day, 5 days a week, 8 months a year, you can gross $103,200 for 1 person. In order to do this, you will most likely have to work an average of 6 days a week (5 days to work and 1 day for estimating). In otherwords, you are working 204 days out of 365 days in a year. If you take 35% away for yourself (gross income) that's $36,120 before taxes. .." Paul B, I enjoy reading what you have to write, you usually hit the nail right on the head. You have just demostrated why guys in this business are not rolling in the dough. $36,120 pre-taxes, no benefits, retirement, sick pay - what have you. The guys at Home Depot make that much with benies don't they. And they don't have to buy all this cotton pickin' equipment with all it's headaches. Are we masochists or what? Share this post Link to post Share on other sites
0 Paul B. 523 Report post Posted February 9, 2004 Ernie, In the 70's, I took many long walks along Lake Michigan in Chicago, wondering how all these people could afford the $100K boats in the slips and anchored to boueys. These walks led me to search for answers. I was fairly young at the time, so it took me a couple of years to figure it out. It goes something like this: - 80% of the wealthy made their wealth from investments (not from working hard). There is nothing wrong with hard work, I just happen to believe that working smart is easier and more profitable. - The value of land continues to increase every year as undeveloped land becomes scarse. (This was true in the 70's and it's still true today. Land is generally a good investment - unless it's swamp land in Louisiana.) When you buy land, don't let it sit idle. - The value of an average home has grown steadily (long term). - Refinance investment property to 100% level before you sell it - loans are not taxable but capital gains are. - The stock market (even with the blips) has averaged about 10% return on your LONG TERM investment since the end of the depression. - If you buy a new $4K car, as soon as you drive it off the lot, the value depreciates and it continues to depreciate until you get rid of it. (OK, now it's $20K or $30K cars but the principle is still the same) Buy 2 or 3 year old vehicle and invest the difference. - Discipline yourself to always save money. If you make $1,000 save at least $50. ($100 is better and $200 would be ideal.) - Invest your money long term, stop looking for the get quick rich schemes, learn about cost averaging and DRIP's. - Diversify your investments. - Keep small amount of cash in the bank (bank interest rates are always the lowest). - Always have some cash or liquid assets available for low dollar purchase opportunities (buy low and sell high). - Invest in people, not in schemes. - Giving money with the heart will always, in turn, return to you with interest. - The first $100K is the hardest to save. If you can get there, it's MOSTLY down-hill from there (as long as you don't fall asleep behind the wheel or start cashing in your chips). Remember 10% of $1000 is $100; 10% of $100,000 is $10,000 and 10% of $1,000,000 is $100,000. There are more, but these are the 1am highlights of my observations. Share this post Link to post Share on other sites
0 timhays 14 Report post Posted February 9, 2004 Paul,very good reading i always enjoy reading your post and have been subscribed to some of the business newsletters you recommended for some time now. Share this post Link to post Share on other sites
0 Mike Williamson 198 Report post Posted February 11, 2004 Ernie: You're right, $36k pre-tax without benefits isn't great for some people, and in some areas. For a guy making $10.00/hour in an area where wages aren't very high, $36k is a step up. You mention that the guy with a job doesn't have to buy equipment, but that equipment should be coming out of the other $65k in gross revenue. So should other expenses that the typical working man with a job has to pay out of his salary, such as vehicle costs, gas to/from work, insurance, cell phone bills, work uniforms/clothes, etc etc. Hell, even my lunches are a partial business expense. My computer is a business expense. My internet is a business expense. There are a lot of things that I can write off as a business expense that your typical working stiff can't. I agree with the theme of Paul's post...we need to be looking at the long-term results of our business, not whether we got rich this year. Share this post Link to post Share on other sites
0 Ernie Greese 14 Report post Posted February 12, 2004 Oneness, I guess I'm pragmatist, few guys in this business really hit the 100K gross business figure. There are many fishermen who get into powerwashing and talk the talk. It's a cruel business that takes many last dollars to get started. That's why many are in and out so quickly, they can't survive on what they make and pay off what they owe. How many guys keep telling themselves this is going to be the year. Then the wife steps in and says,"get rid of that junk and get a job." Working for the man, $36K + benefits, retirement + no worries is not a bad gig for most of America. Share this post Link to post Share on other sites
0 Mike Williamson 198 Report post Posted February 12, 2004 Ernie: Many businesses are hard, and it takes a lot of hard work and dedication, as well as education and common sense, to get a business off the ground and make it successful. Some folks who have no business owning their own businesses jump into it because they see the money or the success of others, and think "how hard can it be", or they just get tired of working for someone else and want to make more than the $8.00 they're making. They spend more than they should buying all new equipment they may or may not need before they even know if they're cut out to make it in this business. They have no idea if they can handle the work physically (or if they really want to), whether they have the ability to run the business side of things, or whether they're willing to accept the pricing that their market will bear. Some of these folks will fail, some will barely make it, through sheer determination and endurance, and others will do very well. All this doesn't make pressure washing a horrible business, or a business in which it is impossible to make a great living. I think you'd probably find a similar failure rate in any similar industry that is fairly easy to become a part of. Share this post Link to post Share on other sites
0 Ernie Greese 14 Report post Posted February 12, 2004 Mike, It is a cruel business! We have been at it over ten years. I can name only 8 companies "successful" enough to reward their owners from pressure washing. Many have diversified into retail sales, mechanicals and non PW service businesses. In the past 2 years - I've noticed over 50 companies vaporize. The burnout factor is extremely high, the business savvy is extremely low, as you pointed out and the return on investment is not as good as other service businesses. Share this post Link to post Share on other sites
0 Mike Williamson 198 Report post Posted February 12, 2004 I'd agree that there may be other service businesses that have a greater return. What do you mean "reward their owners from pressure washing". Do you mean that you only know 8 companies who are making enough money for the owner to stick strictly with PW'ing, or do you mean you only know 8 companies where the owner doesn't have to actually pressure wash? Either statement is true for many service industries. I know many contractors in various trades who have been working quite a few years and who are still small operations where the owner is doing part of the work. Others are still one-man shows. They're making good money for themselves, but they aren't growing larger than that. You've been at it ten years, and you're still here. Maybe you've had to diversify, I really don't know. But you're still here, still apparently making enough money to stick with it....Ten years ago, what was your goal? Where did you plan to be in ten years? I still fail to see where it is a cruel industry...It may be a misunderstood industry by those who think they can jump in and make huge money easily, but that's true for most industries. That's not cruelty on the part of the industry, that's stupidity (or, to be PC, that's a lack of education). To make it work you have to have what it takes to run a business, and you have to be willing to put the level of effort into it that you expect to get back. And you have to be willing to diversify if the business isn't sufficient in your particular industry. Personally, I'm not looking to work 60+ hours/week, hire employees, and gross $200+K/year. My goal when I started this was to get away from the 8-6 Monday-Friday grind, and to be able to pay myself a better salary than I was making at my job. Thus far it has worked out great, I'm working less and making more. I'm satisfied with where I am at the end of my first year. Share this post Link to post Share on other sites
0 Henry B. 4 Report post Posted February 12, 2004 Henry when you make money,example profit, you reinvest the money into your business, to create more value for your customers and become more competitive for your competitors and invest in tax deprecative investments,401k,increase your overhead ie new 400k house for home office,you dont stop working because you dont want to pay uncle sam. define what you think is plenty of money. LOL, you sound a lot like I did 10 years ago. Do you ever drive by a dirty house and NOT think, Hey, I should give them an estimate!!!! Okay I guess I should back up my comments a bit. I started in business in 1989 after getting out of the Navy. Now I'm 35 years old, I have over 10,000 commercial and residential clients. Out of the other companies in my area, only 4 I can think of have been around more than 5 years and many of their owners still work every day. I live in a 400k house I drive a minivan (kids) I have 2-3 crews on the road and will start another full time one this spring. I have a $11,000 dual gun hot water rig 8gpm 4 small pull around 4gpm rigs I take about 4 vacations a year. Cruises, beach and just traveling. I own a boat, (small one for fishing in the Chesapeake bay. My guys make about $3 an hour more than any other PW company in the area. They have health benefits, 5 paid off days a year. They also receive commissions on pick up work They can work all year round, not just PW season. We do more than just PW. They have company trucks to take home, if they want. They have company cell phones to take home. They take turns on being on call each week, they usually argue over who "gets" to be on call each week since they make 50% of all emergency service calls. They are well trained professionals that are allowed to manage their own schedules. Me, I work maybe two days a month on special jobs if needed. After paying for all that, my company bills and personal bills, I still have enough money left over to save or play some more. How much is enough? I don't think it's necessary for me to state. As for retirement? My company will always be around and possibly bigger than it is so I can always sell it or just let my kids run it if they want. Either way, the way I believe in running my business I won't have to worry about paying my bills when I'm 95. Lately, I have found myself looking for something else to do since I'm bored. I'm going to volunteer some time for pwna along with all the other volunteer stuff I do now. I go to almost every competition my daughter is in. (she's listed in the top ten in the nation in competitive baton twirling, ages 7-9 I also have a grandchild. (yeh, I know I'm only 35) Den leader/asst cub master for my sons pack. Volunteer as many hours as I want to local stuff. Help other guys out in business all over the place since I put up my web page. Volunteer my companies services to non profit groups or community services. Volunteer at my kids school. Help teach the junior Olympic shooting team. I didn't stop working or growing my business so I would not have to pay uncle Sam. (even though he has proven how well he can spend it on 10,000 hammers and such. I stopped working and expanding because I found that the more I made the more I spent on bills and problems with employees and schedules and all the other problems with being self employed. Sooner or later, most people realize that no matter how much you may you just end up paying more in bills. Most peoples debt income ratios stay the same their whole life. I can afford anything I want I just have to work for it like I have been. Lately, there just isn't anything I really want anymore I already have it all. (Except for one of those plasma TV's. I'm buying one of them in the spring) I know my views Arnet real popular with a lot of other companies out there but let me put it this way. When you have been in business for 15 years, married with kids. Give me a call and tell me a bit about your kids growing up, the travels you have taken and how much you have enjoyed your life. (not how much money you make or how much your company does) Then you may agree that there are other ways to be rich, not just money. I think I've kicked enough butt on my way to where I am now so I'm stepping back out of the rat race and letting others have their turn at it. Run that maze little rats then off to your cage! LOL just kidding. Personally, I think Trump is nothing more than a rich guy that is so wrapped up in making more money that he lives for his company alone. What kind of life is that? Can he spend the billions he has? Can he travel or take time off without some kind of business problem or someone wanting his money following him around all the time? Sometimes I think the best way for people to enjoy life and realize what's passing them by is to Join the navy for a while and get shot at like I did. Maybe that will enable you to see things the way I do. If not, keep kicking butt as long as you want, I just prefer to enjoy all that I have worked for instead. I refuse to hold off enjoying life until I'm 65, too tired to go anywhere and in diapers like many others. There are a lot of dirty houses out there and eventually my company may wash them. I don't have to do it today though! The house will still be there tomorrow. Henry Share this post Link to post Share on other sites
0 timhays 14 Report post Posted February 13, 2004 Henry,i have allready gotten tired of chasing the dirty houses,i realized there dirty because they wont pay to clean them regularly. i would have to say that most of us would be doing good to be in your situation and seems as though you have built a very successful business,i agree with your pay logic,the top pay for a major company in this area is $10hr i pay my help $15 and hr. its not a lot compared to what we charge but they dont ***** because they cant go anywhere else for that kind of money.and i dont have to feel guilty for taking advantage of anyone i am still hardheaded even though i am 32,i feel as though i let too many years (unprofitable) slip by and i have to race the clock to make up for it.. i am not where i want to be but by the end of this year i will be very close. this week since monday we have actually do 4k in sales and will do estimated 7k by end of sunday night just my help and myself,by far the best week since being in this business,the next 2 weeks we will be on a time and material account full time,and trying to handle all the regular incoming work orders at the same time. the time and material account is good for $4k a week alone.i have spent just about everything ive made since Sept. 2001 back into this company and it feels good to finally get to spend some of the money on things i want for a change,actually this is the first year i started paying myself an hourly wage since i started. last year we made a ton of money(seemed like) and it was not budgeted correctly,we have refined a lot of the mistakes made last year and created new budgets,and lowered our operating costs.these 2 things,coupled with new marketing approaches have single handedly turned our company around for the better. our biggest gain has come from realizing which jobs are profitable and which ones we turn down. i hope this is only the beginning of a new era. Share this post Link to post Share on other sites
0 Henry B. 4 Report post Posted February 13, 2004 our biggest gain has come from realizing which jobs are profitable and which ones we turn down. i hope this is only the beginning of a new era. Hey Tim, In my opinion this is one of the most important things to learn. We have all had our share of free or almost free jobs as we learned the biz. The best thing I can tell you is to offer as many services as you can when you first start out. Then as you grow and don't have the time for so many types of work slowly fade them out. If you have any questions let me know, I would be happy to help you out, just give me a call on my cell phone. 240 273 0300 Henry Share this post Link to post Share on other sites
0 timhays 14 Report post Posted February 14, 2004 thanks henry i will record your number. put in 15 hours today i am very tired. Share this post Link to post Share on other sites
0 Ron Musgraves 240 Report post Posted February 14, 2004 Tim, Can I change my name? Ron The KING of pressure cleaning.. maybe i'll start a new site.. the king of pressure cleaning...LOL Just kidding,,, no one take this serious,,Please Share this post Link to post Share on other sites
0 Everett Abrams 501 Report post Posted April 14, 2004 Ron, You are too late, I already took you seriously and the "Crown" is in the mail! LOL Hail to the King! Share this post Link to post Share on other sites
0 Guest rfitz Report post Posted April 18, 2004 So Far, this year has been great, I have went from a one man show last year to 2 full time and 1 part time workers, I get on average, 2 decks and 2 houses done per day, average deck job so far this year is approx. $1200 and average house wash is $350.. we work on average 50 hours a week, I work more of course with management headaches, ordering supplies, estimating, etc.. I wont come down to the competetion prices, and explain what we offer is high end quality work, and after explaining, the difference, we have more work than we can handle, I now have an answering service take my calls all day long which frees up a ton of my time, and is well worth $100 a month, we average 7-12 calls per day, If I were to answere they talk with me for 30 minutes and I get nothing done at all, my answering service just asks what they want done, address, name , phone etc.. and we will be out within 3-5 days to estimate their job, my goal is to be at 50% of sales going for labor, taxes, materials,supplies office equip. etc.. and so far so good.. It really isnt how much you bill, but rather your profit margin that matters, Hope This Helps, Share this post Link to post Share on other sites
0 timhays 14 Report post Posted April 18, 2004 $3000 a day with 3 men is definately an accomplishment,where do these 7-12 calls a day come from? Share this post Link to post Share on other sites
0 Guest rfitz Report post Posted April 18, 2004 I advertise in several local newspapers, internet, Yellow pages,church bulletins, mail-outs etc.. I have the largest ad in the yellow pages, so that helps, but honestly, I dont think I spend over $500 a month to generate this type of call response, I would say conservatively speaking, I will be billing well over $1 million a year by the 3rd year in the residential PW biz, and that would be with 2 rigs/vehicles, and 4 full time workers, along with my self, I already have 1 full time salesman starting late summer full time, and another spring of 05, and I think at least for me, that is as big as I would like to get, but you never know, and also this is only working 8 months a year, and this is not taking into consideration for commercial accounts, which Im not sure I want nor could handle at this time, I really didnt imagine this getting this big when I started, but I am on pace to bill 5 times what I billed last year.. anyway I hope by the 4th or 5th year to have 50% of my work come from maint. work and the other 50% come as new customers... We shall see... Hope this Helps.... Share this post Link to post Share on other sites
0 timhays 14 Report post Posted April 18, 2004 very impressive,keep on keepin on. Share this post Link to post Share on other sites
0 timhays 14 Report post Posted April 20, 2004 i have one yello0w page ad that is business card in a cheap book is $308 i would have to say you are very lucky to get as much advertisement as you do for $500 a month,if you know any tricks i dont send me an emai at timhays@carolina.rr.com Share this post Link to post Share on other sites
0 Guest rfitz Report post Posted April 20, 2004 Hey Tim, To be honest, this is the first year for yellow pages, I had no idea, it would be this crazy, but I did have a feeling, the biggest ad, (3X8) would bring a good amount of calls, next year I will double the ad size, and see what happens,? I only pay 200.00 a month for that ad, and I paid for the whole year, with one phone call I received in February, for a roof job, $7800.. but I am also getting a ton of calls from people I gave bids to last year, but never heard back, now they are calling like crazy, along with all these new calls, for example, I called my answering service today, at 5:30 and they said I had 16 new calls.. go figure..? and Mondays are my slow days..? Share this post Link to post Share on other sites
0 newlook 265 Report post Posted April 20, 2004 Those Yellow Pages are a "hit and miss" in my opinion and it sounds like it is "hitting" for you A+ --- I am with Tim -- email me your secret marketing recipe. I did the Yellow Pages last year and it "crashed and burned" for me. newlookpowerwash@aol.com Share this post Link to post Share on other sites
0 Guest rfitz Report post Posted April 20, 2004 I dont think all is coming from the yellow pages, but I think a little from everywhere..maybe..? church bulletins, local papers, mail outs. referrals, neighbors of decks Ive done this year and last, bids this year and last, when you add them all together, a liitle from each source adds up quick, I don't think there is 1 magic bullet, but being out there a little bit here and there adds up, say 1-2 a day from here 2-3 a day from there etc.. etc.. and before you know it, calls just start coming in, it's just a numbers game, no magic, just do what works, and do it consistently.. Try It, hopefully it will be the same for you..? Share this post Link to post Share on other sites
0 timhays 14 Report post Posted April 20, 2004 lately we havent received any calls from advertisements,and seems as though the homeowners are the one who waste my time,its alway how much and its too high,we are now only servicing business customers and make what we need to with no complaints and lots of repeat business. i wish i could advertise for the prices you are payuing and get the response you do. good luck Share this post Link to post Share on other sites
0 Guest rfitz Report post Posted April 21, 2004 Tim, Im not sure what you charge for say a deck, ? but I average between $1.25 and $1.75 a sq ft, but, not many people measure the whole deck, only the floor, ? I measure everything rails, steps, headers, post's etc.. Im not sure why, but alot of folks cut themself short when bidding decks or any wood, I couldnt stay in business long with what my competetion charges, most are almost half my bid, but I get most of the work..? Maybe, because I explain the job in detail as to what needs to be done, and what it will look like after.. I know this helps alot, with getting jobs, people really like to talk, meet you and understand exactly what is being done.. Share this post Link to post Share on other sites
0 timhays 14 Report post Posted April 21, 2004 we dont do wood restoration,we have bid several jobs at 1.50 but no one has yet to pay it,we clean new construction exclusivley,brick,concrete,and viny siding. make dammn good money too. i tried catering to homeowners but it was a pain in the ass,a builder will pay more than a homeowner and he will call you back again and again. Share this post Link to post Share on other sites
looking for average annual sales figures on pressure washing service related only,and number of employees to obtain those figures.
looking for companies in these brackets
250k
300k
350k
500k
thank you for any info.
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