Couple Questions

[Snow Lover 14]

My wife and I are wondering about profit margines when doing house washing.

Read chems running between $4-$8(1 story) home. Say your washing a one story using a cold water 3500@4.0 unit.Lets say your chems cost $10.

Have a bus.lic.and insurance(300K).

Your charging $150,average rate around here.

How much of that is profit,ballpark figure?

Been told $75 another person said $100.

A friend of ours is a realitor and said between him and some contacts he could keep us busy.

Anyone ever work for a realitor and if so how did it go?

They pay the same day I wash the home(s)just got to be at there office by 6pm.

Tim

[Henry B. 4]

It all depends on your overhead costs.. insurance and licenses vary everywhere.

One guy could make a profit of 40 an hour another could make 135 an hour.

[Snow Lover 14]

Ok I see what your talking about.

Sorry about that,should have added the information below to it.

The truck(2005 plow truck)and equipment will be paid for,the insurance and biz.lic.will be paid in one lump payment before we get started.

Want to make sure this is the right thing to do.

Will be no employees,I will be doing it all.

My wife works(RN)so not worried about this being the only income.

Hope this helps on my question little better.

[Henry B. 4]

If there are no overhead costs you would make about $135 in profit. The question is, how long would it take you to do it? Judging by your information one of my crews could do that job in under an hour easily. But your equipment and experiance will make a huge difference. I've got a two gun 8 gallon per minute rig on the job with two guys to operate it and your not paying anyone but yourself and it may take you a few hours if you don't have the right tools.

There are so many variables in this I wish I could give you a better idea than that. I would be happy to explain the fastest process for doing it also and so will many others on the boards. Do a search on house washing to learn the techniques, or give me a call if you like I'm sure I can give you quite a few tips.

[newlook 265]

Tim,

Another way to look at this is this way. You say the average rate where you are at is $150.00 for a single story. Start you number and work the equation backwards...meaning $150.00 minus chemicals and etc.

You may have a general idea of how long it will take you to finish the job but I would recommend doing a few homes ~ track the time it takes to do them and then average the time out. This average will help you with your equation. If you go below what you want to make...then you need to make adjustments. Those adjustments are usually done with your hourly rate. You don't want to adjust cost for chemicals because you are now comprimising the quality of work that you will be doing.

As henry said, there are so many variable that play into scenarios such as yours. Get a handle on what you will be comfortable with and work it from there.

[Snow Lover 14]

Thank you,you answered our questions.

Looking forward to starting in 2-3 months.

You have been a great help to us.

Thanks Again

Tim

[PressurePros 248]

I'm sort of a numbers freak so bare with me here, Tim. You say your insurance and truck are paid for. Not trying to be a smart ass, but by whom? You need to factor in the cost of these items as business expenses and amortize those costs over a fiscal period. The same goes for gas, chemicals, labor (yes, your labor should be billed) taxes, equipment, and advertising. Your friend may help you out but what if he is unable to come through? You have to be realistic and that means advertising if you want to work.

Here is my breakdown: Fiscal period, one year (150 jobs)

Gross profit $18,000

-Truck cost $2,400 Gas, depreciation, insurance

(some of your expense is lessened because you use it for alternate business)

-Insurance $1,100

-Equipment $1,500

(Figure about three thousand dollars worth of gear that will have a residual value of $1500 after a year)

Advertising $1,200

Chemicals $1,500

That leaves you $10,300 profit. Don't forget Uncle Sam, if you are going through a realtor all money has to be above board. Subtract another $2,400

OK the real net profit is $7,900

Your new to this so you time will probably average out to about 1.75 hours per job(conservative) 260 hours.

$30 an hour is a semi realistic profit for you. But thats working hours. The real question has to be is the expense and wear and tear you doing all the labor (no helper), bookeeping, scheduling and mareting worth $7,900 for a full year? It very well could be, I am not trying to sway you, but there are many guys that think they are making $75 to $100 an hour and it just isn't realistic.

One final note, most guys don't do 150 jobs in the first year. If they do their advertising expense is probably higher.