End of the year

[Don M. 14]

Well, the season has basically wrapped up for me. This was my first year washing part time. I grossed a little over $7k and spent $1k in advertising. I have a few questions for everyone.

1. Next year I really want to "play ball". Yes, I have one of those Lowes machines, but it did me very well. From talking to different ones and reading this board, my guess is I am looking at about 15k for trailer set up with hot water. Did most of you guys get a loan to buy everything or did you save up and pay cash?

2. Where can I read everything there is about chemicals? I met a guy at a roundtable once and I was so impressed that he knew everything. I would like that knowledge as well.

Thanks for everything. I hope everyone had a good holiday.

[steve r 14]

go to sunbritesupply.com and look at chemicals .1-877-5-supply they will help you on chemicals.they have a web site that explains in brief detail about chemicals

[Jeff 232]

Hey 2 of my machines I used for 4 years are from Lowes, they did the job & still do, but I have to admit the hot water & more GPM are real nice

15K you should be able to do less money than that and still get a great set up,

Check out leasing the equipment with a $1.00 buy out at end of lease.

Check out Sunbrite, & Steve Rowlett can give you some good info and all these guys & ladies on the board Im sure will explain chems to you, pick a chem and ask a question

Congrats on your first year mine was in 2000 and I made 6K

Good luck to you

JL

[squirtgun 122]

Don,

You can build a rig with hotwater for much less than 15K. Give us an idea of what you want in a rig and some or most of us can tell you where to buy it and how to set it up in a working rig.

[Exterior Solutions 14]

Check out leasing the equipment with a $1.00 buy out at end of lease.

JL

Jeff,

Where, pray tell, does one lease equipment like this?

Thanks,

Jon

"Jon's Exterior Solutions"

[squirtgun 122]

http://www.gemleasing.com/delco/

This is one place that leases equipment.I'm sure there are others.

[Exterior Solutions 14]

Thanks Squirtgun. I'll have to do some research. I want to do as much out of pocket as possible. I have some capital to work with, but having options is alway's nice.

Jon

[JFife 14]

....I think the guy said 15K for a "trailer set-up", which is reasonable. Obviuosly, you can get a machine for less, but for reels, traler, etc., 15K is reasonable. As a newbie, buy local for support.

[Jim Carroll 14]

I think 15k is high. You can get a 5.6 gpm 20 hp honda hot water from water cannon for $4200 plus freight maybe $300 hose reels 300 each big guy for $750 3 hoses $300 couple of guns $100 xjet $110 Decent open trailer for $1500 or $3000 for enclosed. lets add it up. with open trailer $7860 or enclosed for $9360. You did say you already had some equipment so all of this might not be necessary. I would set this all up for anyone for $15,000 and use the vaseline.

[Jim Carroll 14]

Marlin leasing also leases equipment. From what I understand with some you pick out the equipment from whomever and they send them the check. One thing about leasing is (not 100% sure) it is tax deductible to 100%. Maybe some of the others on the board that lease can tell you more.

[Don M. 14]

2 of my main concerns for this coming year are as follows.

1. I want to upgrade to a hotwater machine. If I want to get serious in concrete cleaning for banks than from what I gather is I need hot water.

2. I want an enclosed trailer. I would sure hate to put a 4K rig on a open trailer out in the elements since I dont have a garage.

I am also running an ad in both phone books. What kind of business jump can I expect?

Thanks for all your help

[PressurePros 249]

I am also running an ad in both phone books. What kind of business jump can I expect?

Thanks for all your help

I just did my percentages of where new customer work came from in '05 and here was my breakdown.

Phone book: 48%

Direct Mail: 24%

Referals: 18% (includes what I call "nosy neighbor syndrome")

Newspaper ad (contractor section): 10%

Always ask where people got your name so you can track your advertisement. We did 168 residential jobs this season increasing advertising budget by about 40%. We did 88 residential jobs in 2004.

[Henry B. 4]

I've seen hot water skid units at Sun Brite Supply for around $4,000. Big gas tanks on them too which I like.

[Jeff 232]

Steve Rowlett, of RPC in Tenn. uses Chesterfield Finacial for leasing company

I like enclosed trailer in just the few months since Ive had mine, Ive had several people ask for estimates and comment on my trailler. Just today I was doing a high end house and someone stopped for an estimate and said they saw us working and my trailer and they said I looked professional, I got that job nd another in same neighborhood

As for Yellow pages I pay about $3700 a year total for 2 books and Ive done about 40K-45K worth of work from YP calls.

I think some of the best ways to get work is hustling the work, start a campaign targetting what kind of work you want, I like the condo work so every 2-4 months I send letters, faxes, call property managers. Ive been doing it for over 3 years and Id say at least half of the companies I target have called me to give bids and a few of them call me for all or alot of there work. Up until this year I also targetted alot of residential, with ads, newsletter advertising, post cards etc. Any type of work you want you have to be persistant. You have to send them things several times and keep sending, I figure more than one time someones called because they were sick of me writing them.

Go after the work and dont give up even if you dont get a great response at 1st. I also ask all the property managers to tell others about my company. As soon as you get one job and complete it ask for more work, I believe Quality work , Great rates and On time service can and will make me a one of the most used PW contractors in my area.

Just this month Ive mailed & faxed over 3 dozen different property managers fliers for gutter cleaning & concrete cleaning, Ive already have gotten over 5K worth of work for what 5 hours of sending letters & faxes & calls. I have doubled what I did in biz last year so I must be doing somethings right

Hustle hustle sell sell sell

I love this biz and just getting the work from my targetting is exciting and fun. I really believe that with in 5-7 years i wont have to pick up a wand and I project Ill be doing at least 350K to 500K+ a year at least worth of biz. Im no great business man, very little schooling, not all that machanical, learned and did alot of things the hard way at first, but I am persistant and now as I see what I can do, I keep doing it and more.

I think anyone or most who have a good work ethic, the drive and the time can become successful in the PW biz, its a little easier in and area like mine where everything has to be cleaned becuase of climate , but any area always has room for a great contractor.

Well enough of that good luck and go get it:lgjump:

JL

[Pete Marentay 14]

The key to leasing for most equipment is 1) Value of the equipment (Name brands have value and home-made units have no value); 2) Personal credit-worthiness and business credit-worthiness (in business for more than a few months is mandatory); and 3) The dealer you buy from (dealers must be approved by the leasing company before they will consider your purchase).

Ultimately, there are some minor differences between leasing companies. Some will only consider packages up to $20K, while others won't consider anything smaller than $50K, for example.

The $1 buy-out clause does not hold up well with the IRS. They have concluded that this is simply a finance plan and won't let you deduct the full monthly cost of the lease. Better for most is a 10% residual lease, or a "fair market value" buyout at the end of the lease. My favorite is a fair-market-value buyout guaranteed not to exceed 10% of the purchase price. That leaves you some negotiating room at the end of the lease.

If you have any leasing question, feel free to call and talk. No pressure.

BTW, we are offering a December 'tax deal' equipment price break of 5% for purchases over $4000.

[timbertramp 14]

Don, I am also a part-timer and I got my setup off ebay. I got a Landa hotwater machine(with only 90 hours) trailer, 300 gal. water tank, 100ft. high pressure hose, 150ft supply hose 20gal. assorted landa chem., fuel tanks,and a steel eagle surface cleaner. Assorted tips and other things on a 8ft trailer set up with hose reels for $6200. It was used but it saved me lots of money. I got a personal loan for the amount. It is really a summer job for me and it has worked out very well.

Check with the local Landa rep as they sometimes have good used machines for sale. I am looking at a larger machine to reduce time spent on jobs. Kem