Full time or part time?

[One Tough Pressure 580]

This pertains to all areas of washing, not just residential.

[reed 500]

Mike,

We will be in Gainesville the week of Christmas. You going to be in town?

Reed

[Mike Williamson 198]

As far as I know we don't have any plans to leave town...if so, it would only be for a day or so. We'll definitely have time to hook up, barring any unforeseen events.

Seeya then!

[Celeste 341]

How come there haven't been any husband/wife teams piping up in this thread? Are there not many of us? Seems like if both partners are working the business together with the same goals and mindset, there will be an advantage that might make a business last where another would fail??? Sure hope that frame of mind works as good as it sounded :)

Husband of this time still has full time "real job",at least until layoff early next year; wife homeschools one child with other two in elementary school and 4th in college. If that's not enough motivation to succeed somebody please shoot me now!

[John T 744]

Ok your dead.:D You sound highly motivated which is extremely important in this or any other business.

Beth(Owner of this great bb) and Rod are a wife and husband team that does well.

As for myself I do most of the physical work with one or 2 partimers working with me and my wife takes most of my calls and sets up estimates etc. So in a sense my business is becoming a husband and wife business more and more each year.

[Celeste 341]

Thanks - I think? LOL....I (the wife) would like to spend more time fielding calls and doing paperwork. I was the one on the roof this morning :) Really the only thing he does that I don't is wrestle with the extension wand. But again, with all the kids...working together like that is about our only time alone! And as long as we are enjoying what we're doing together, it doesn't seem as much like work anyway.

[joe g 14]

full time since 97 and love this business make my own schedule ,put my money in my pocket ,answer to no boss i just satisfy the customer first i sell myself then the company then the procedure hasnt failed me yet with lowballers and rain is no concern ide like to hire people but you just dont know who your hiring and if theyll take as much pride as you do ive worked very hard at a customer base and i think they would be dissapointed if they didnt see me doing the work.

[Onthespot 14]

Full time since July 2002 when I first moved to the Smoky Mountains of North Carolina.

Last year I mostly concentrated on auto detailing and pressure washed to fill in the gaps... What I discovered during that learning process was that people don't like to spend money on their vehicles... but don't even blink when you give a quote for their house. Essentially what this meant for me was: - Spend 6-8 hours doing a full detail on a Chevy Tahoe and rake in $180 OR Spend 6-8 hours pressure washing 2 houses at over $200 each... Hmmm...

So, now it seems that I'm mostly pressure washing... Although I am still detailing for some faithful customers who have been with me since I started (Have 2 BMWs scheduled for this coming Friday)... Now the detailing kinda' gives me a break from blasting houses...

I have to say that I absolutely love this business!!! I have never made this much money and been this content before.... And I have several college degrees & was a mental health therapist in Ohio with 2 private practices... Every morning I get up and actually look forward to going out and working. Years ago, I woke up and groaned at the prospect of getting to sit in a room and listen to peoples' problems all day...

It is only May and I have already exceeded all of my own expectations and goals for this year, and it just keeps getting better...

For the past two years people here have watched my company grow and prosper, and a few have made the remark, "You're lucky!"...

Well, I don't believe in luck... I believe in myself... ;)

Regards,

Tom

(On The Spot, Western NC)

[EmpirePW 14]

I was living in Michigan and afraid that the winters would make it hard for me to get this business of the ground full time. So instead I moved down south and am doing it part time now til I get enough business to quit my second job and just do this. It should be nice down here though because I've heard the dead of winter where I am at is like Michigan's spring. It's just these blazing hot days of summer that are starting to get me.

I am very surprised that no one has voted for the last option. There are folks jumping off and out all around. I would suggest that the weather has played a major factor in this year. It has wreaked havoc with scheduling for many people. This actually goes back to the winter up here in the northeast, for full-time folks, as we had a rough winter with temperatures, snow, ice, etc. There seems to be a lot of equipment that is new to nearly-new available. I stand by previous made statements, that it isn't the industry we are in that makes you successful or not. It is the individual(s) involved. Many contractors who work outside are in the same situation that we are with weather issues, lowballers, etc. Business always seems to run in cycles, you just weather the storms!

[Henry B. 4]

Years ago, I woke up and groaned at the prospect of getting to sit in a room and listen to peoples' problems all day...

Hey Tom,

I take it you don't have very many employees yet...lol If so, you would still be hearing the same thing every day.

[CCPC 26]

Henry,

Did you use to be a therepist or something?

Lance

[Mathew Johnson 123]

I started our business late last summer with the suggestion from my son. I am a full time RN in an ICU. I started the bussiness as a part time hobby. I realized several things quite quickly; there was a huge need, there was minimal competition - a few Dime Store Lowballers and one commercial painting company and there was money to be made.

This summer, my part time business generated more revenue than my nursing salary, but I could not survive on the pwing revenue all year. But we have worked to make this successful. Reading these boards, talking with experienced professionals like Henry, Beth and Doc have played an invaluable role in building our business.

Overcoming the fear of bid rejection or hearing "No" was difficult. The first bid that a client rejected shocked me... I was ready to cut my prices by 1/2. Getting over that fear made me some money. I picked up 7 projects by walking in to a business and pointing out how dirty thier exterior was... I left a brochure and businss card. PS: Cody, thanks for the great post on "How much do I charge?"

Sure, the actual dollar/hour made on the jobsite exceeded 50.00 per hour, It has increased steadily as I have gained experience and equipment. But I have found that It isn't just the onsite cleaning project results that create success or failure. Its the preparation, research, networking and follow up that create the framework and prepared me for the success on the jobsite and success with the business.

It is an exciting profession. I have found that It's all about customer service and having the knowledge base and equipment to provide my cleints with excellent customer service.

After all.... If I dont provide excellent service to my customers - my competition will.

Mathew Johnson

Pressure Washing Services

Leaving the World a Little Cleaner Than We Found It

WWW.PWSCLEANING.COM

[Beth n Rod 1,279]

Hi Mathew,

Many years ago, early on in my sales day I too hated the word "no", but then I learned that each "no" gets you closer to a "yes". Here's what (in my opinion as a sales professional) I would do it I were you, to get more yes's...

First, listen. Ask questions. Don't try to overcome objections or close people. What? Is she NUTS? She's not trying to close them? Nope. Make a list of things you want to be sure to cover with folks when you meet them, and if you don't have the answer to somethiing, tell them you will get back to them with it. Ask the prospect questions. Learn what they want, learn about the last time someone did work. Then you'll know everything you need to know.

I have an article I wrote that appeared in BlastMaster years back on Consultative Selling. I think I put it in the Library forum here... Go surfing...Enjoy!

Beth

[Mathew Johnson 123]

Hi Beth,

Thanks for the reply and for the time on the phone to answer some chemical questions.

I think I may have sent a mixed message regarding hearing "no" from the customer. The point I wanted to convey for the newbies (like myself) was dont lower your pricing based on the first or second bid rejection. It is easy to sell the service... You make an excellent point with your post.

I do employ the therapeutic communication techniques that you have mentioned in your post (My nursing education has served me well) and I have a bid success rate in the mid 90th percentile and I agree with you. active listening is the starting point to selling a job. You can't even start to sell the service until you have identified thier needs and expectations

Here is an excerpt from a post that is quite dynamic that can be found at the following link called "How much do I charge?" A must read article for all newbies. The author has some statistical background with an unbelievable business sense.

http://www.powerwashnetwork.com/showthread.php?t=6352

Here's a little Selling breakdown for you to gnaw on. Say you can do 20 jobs a week. Say the jobs are $100 each with a closing ratio of 1 in 3. This means you need your phone to ring 60 times to get the 20 customers say at a marketing cost of $15 ($5 for the ring, $10 to do the estimate) per ring. It will gross you $2,000. Figure your actual job cost to be $50 a piece so you will net $1,000 after job cost less the $15 a ring for the 60 rings = $100 that week.

Now increase your price %40 to $140, your closing ratio WILL drop, to say 1 in 5. Now you have to get your phone to ring 100 times for the 20 jobs, but now it will cost you more marketing dollars to get the phone to ring more times, but it is still just $15 a ring. Now, the same 20 jobs will gross you $2,800 at the same job cost of $50 each so you will now net $1,800 that week less the $15 a ring for 100 rings, which means you now made $300 that week. 200% more than with the 1 in 3 closing ratio. The Moral of the story here is, "It's pays to get no's!"

Thanks

Mathew Johnson

Pressure Washing Services

Leaving the World a Little Cleaner than We Found It!

www.pwscleaning.com

[One Tough Pressure 580]

For those that do not go to or want to go to PWN, here is Pricing Defined by Cody

Cody[/color]

Pricing Defined!

I have written this primarily For those of you who come as ask "How much should I charge" & for those who would answer that question. Also for those with the delima of Hourly or Sqft rate. And for anyone else that might wonder what goes into a price. My info here is in no way complete but I hope it can serve as a starting point for some & general enlightenment for others. It's long but there's no way to get around it & get a message across.

And sorry, there are no Cliff Notes for this.

HOW MUCH SHOULD I CHARGE?

Hopefully if you read all of this you will realize that very few people if anyone can give you an accurate figure & that if someone did give you a figure it would probably be incorrect & it would be pretty dumb to use a rate that anyone would tell you. Following is an example:

What if I asked you to tell me how much to charge to clean 75,000 sqft of sidewalks at a strip mall? How much should I charge? Get a price in your head before you read on.........................

Ok, now the variables on the job..

The area where the property is has a population of 400,000 in 30 sq miles with an average household income of $70k

Average tradesman employee salary is $12.00 per hr.

Regular gas is at $2 per gallon

The Property Manager requires a $5m $10m business insurance policy & a $2m $4m vechicle policy.

The property is in a low income / high crime area of this population.

It is neglected with approximately 3 pieces of gum per sqft & heavy walkup stains & heavy mildew throughout the property.

I have to clean columns as well which are aggregate block 16" x 16" 12 tall, with heavy algea build up some areas. There are columns every 12 feet for a total of 156

I also have to clean under canopy which is 1875ft long by a 15ft overhang 12ft high with a 16ft high peak.

The sidewalks dimensions are 1875ft x 40ft

There are 15 storm drains which will need to be capped & water pumped away from.

There is only one water supply & it is 20ft back on the side at the north end of the property & only had a 5gpm flow at the spigot.

There is an 8" curb face along the entire 1875ft that must be cleaned too & there is a 1" gap between the face & the curb.

The property is under renovation & the parking lot has been freshly sealcoated jet black. Along the 1875ft of sidewalks is the driving area which is approx 30 wide. (MUST BE RINSED)

There is a bar on one end & a movie theater at the other & are late night restaurant in the middle. Thus I probably cannot start the job until perhaps 1am. There is also a gym at one end & a supermarket at the other which open at 5am & 6am. Which means that those areas I will to navigate around at off hour times.

The sidewalks are standard 4000 lb concrete but are apparently chalky

I'm a fairly new pressure washer. 2 years experience

My pressure washer is an 11hp 3000 4gpm

My heater is a little hotbox only capable of giving the incoming water a 40 degree rise in temperature.

I have a 225g tank, 200ft of pressure hose & can attain as much garden hose as needed.

I use Purple Stuff as my soap

Now that you know some of the variables, how much do you think I should charge. Is it even close to what you initially thought. I describe this this way in an effort to get people to understand that prices are very different for many different variables. You can forget trying to price this job by the hour, unless of course you were selling it by the hour after the job was completed but that isn't going to fly too often. This job must be done by Square footage pricing along with piece-rate, piecce-rate being $X per column, $X for the drains. Now in the Square footage assessment of this property $0.01 cent goes along way. $0.01 = $750. So a cent to little & you may lose money, a cent too much & you may lose the job. And that's only a cent, what if you bid it 2 - 3 cents to little, 3 cents & were now talking about $2,250, that isn't chump change. It all depends on your particular market, the property, & the contractor. So when someone ask "How much to clean a strip mall with 75000 sqft" How on earth can anyone give a correct answer. I've seen many many people ask "How much should I charge" But NEVER have I seen anyone give even a quarter of a description of the property as I did above. I many many times when I have seen that question I have seen people blurting out answers, answers that are more than likely incorrect for the contractor seeking a price.

Asking someone here for a DOLLAR amount to charge & using what they say would be like asking someone you don't know for investment advice & then using it. It'd be dumb. I could tell you to dump all your money into XYZ company, when I don't know jack about XYZ company & they may go under anyday, thus you'd lose your money.

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CHARGE BY THE SQUARE FOOT NOT BY THE HOUR

ALWAYS price by the SQUARE FOOT &/OR PIECE-RATE, NOT BY THE HOUR - Some people use an hourly rate to figure pricing, this is simply wrong. If you have experience in doing the jobs then you will know how many square feet you can clean per hour. If you know how many square feet you can do per hour under what conditions then YOU WILL NEVER GO WRONG WITH CHARGING BY THE SQUARE FOOT. Once you find your rate, NEVER drop it to accommodate your increased speed. You will eventually get faster, Starting out you may get 700ft an hour, one day you will get to 3000ft an hour, this speed increase is your RAISE & your compensation for the equipment & it's tailoring to your profession. It really pains me when I see guys that drop their rate because they increased their speed, that increased speed is my gravy!

When you start out in this business it may take you 2hrs to do a driveway & you may get $100 for the job, so you made $50 an hour. If you charge by the hour then as you get faster you make less money than when you were a newbie. That same Driveway you can now do in 30 minutes, 1/4 of the time, would you then charge only $25 for it? I hope your answer is an astounding NO! For some people it is yes though, Why? Why in the world would you only charge $50 or $25 for a service that when you were new & stupid in the business you had gotten $100 for? Again I'll say, there are people who do it. How stupid is this, in effect they are lowering they're prices for they're superior knowledge & equipment? Mind Boggling isn't it! Our experience is where we get our raise, charging by the hour you will lose that raise.

By the way, that $100 driveway that took you 2 hours, which now only takes you 30 minutes. Well now you can still charge the same $100 for the job & you're making $200 an hour!

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BIDDING A JOB DEFINED-

Bidding any cleaning has tons of variables. Following are a few of your fixed variables there are more than this this is just to give you an idea of what goes into a price

General Business

Area Demographics This is probably the most important factor in pricing. Demographics tell you what the market will bear. A contractor in Los Angeles will get more than a contractor in backwoods Tennessee simply because cost of living is much higher thus incomes are much higher. Where it's more expensive to live there are higher incomes & the economy is self adjusted to this fact. Thus if you live in LA & get pricing help form someone in Backwoods Tennessee your probably gonna go bankrupt. Demographics include things like: Income, Property Values, Population Count, Population Density, Industry.... These are very important factors for setting prices for your area.

Competition What your competitors are charging is an important factor. You can only charge so much more than your competitors before your prices become astronomical to customers this goes the opposite way too, charge to little & many customers will think you are too cheap.

Water Recovery issues In some area it is mandatory to always recover water from any project, thus adding to the cost of the job.

Overhead Expenses:

Payroll differs with areas, standard pay in backwoods Tennessee is not going to be the same as LA thus payroll reflects greatly on the end price. I may be able to hire competent help for $10 an hour but for you it may be $20 an hour. Thus my pricing will not be adequate for you.

Real Estate prices, Rent Real Estate differs from city to city, county to county & state to state. What you "HAVE" to pay for a location is another expense that reflects in your price & it's a variable that changes from town to town. Thus, how can anyone give you pricing unless they are in the same exact demographic area as you.

Workers Comp Workers comp can differ from state to state. It's a real expense that directly affects the cost of you services. For some it is mandatory for others it's not.

Insurance Again a variable that is not carved in stone. What requirements one contractor has may differ from another.

Fuel Prices Can be a significant difference. I'm in Florida, on average fuel here is $.15 a gal cheaper than in California. A busy company can easily burn through 200 gallons a week on one rig. Yeah, that's only $30 bucks a week per rig but add that to other cost differences & it adds up.

Marketing & Advertising Cost Again, varies from place to place. Greatly in some cases. Yellow page add in Backwoods Tenn. may only cost you $150 a month but in LA the same add could cost you $850 a month. Add in other mediums & this gap could get pretty huge, via Coupon Circulars, Billboards, TV spots, etc... Your best high profile media’s will have significant price differences from place to place. Just for a test what are people here paying for Yellow page adds. I pay $600 a month for Dollar bill size 3 color add.

Branding Branding is incredibly important in pricing. Branding is how you have marketed your company & how it is perceived by the customer, it's about the buzz. Examples of branded companies would be like Tylenol, Caress, Irish Spring, Meineke Mufflers, Carpet Masters, etc etc.. These are examples of large companies but think about companies in your area that are small but are well known. These well known companies are branded as industry leaders in your area whether you realize it or not. A branded company will always get more $$ for their services "on average" than the unheard of companies. The more recognizable your company is the more you will get for your services. It doesn't matter than I can get a new muffler for half the price at Bob's Muffler shop, I'm going to Meineke because I can trust them because I know the name. I've never heard of Bob's shop he'll probably break my car in some way. It doesn't matter than I can get XYZ syrup for my pancakes I'm getting Aunt Jemima’s because I know that smiling head-wrapped lady on the bottle must have the best syrup.

The Contractor

Experience Experienced contractors will undoubtedly be faster than newbies.

Equipment The longer you are in the business the more you will adapt your equipment to what you do.

Business Plan / Marketing Plan Affects your pricing significantly. Reason: There are many ways to attack any business. Your Biz & marketing plan are outlined for your own strategic offense to your market. If I wanted to be a house washer for instance my Biz & marketing plan would reflect this. In this I would allot $X amount of money to this plan to brand my companies name in the House Washing market. In this effort I would expect a significant premium for my services.

Contractors “Individual” Level of Cleaning QualityDoes the contractor do a thorough cleaning on 100% of every job, or does the contractor do a good job on part & just blow off the rest. This is significant when bidding against others & in setting your prices. If you do a great job & they do a fair job why would you chase their pricing? It's comparing Apples to Oranges.

Contractor Sales Ability This one is HUGE!!! It is THE most important to setting YOUR OWN prices in YOUR area. Whether you are selling your own service or have a sales person. The ability of the seller is all the difference in the world. A seller that is dirty unshaven or unkept in any way will not sell as much as his identical knowledge couterpart who is clean & neat. This doens't mean that a shower & a shave is going to make you a good seller.

A seller must have a good working knowledge of sales, A good seller knows that a no does not mean pack your stuff & go to the next prospect. A good seller knows that the first objection is not the real objection. A good seller will close at least 5 times (i think it's 5) before giving up (that's based on customers calling you, not cold calling). A good seller builds rapport with the customer before moving in for the "Yes". A good seller gets alot of little yesses before going for the big one.

Your companies sales ability has EVERYTHING to do with the price you get for your services & the success of your business. To many companies are just order takers, laying down a low price looking for a quick signature. A little sales skill can net you an additional 25% 50% even 100% on a job.

I find it funny & pathetic when I see guys out there that are flat out busy as hell & still lowballing. The busier I am the more I charge. I maintain a 1 in 5 closing ratio on call in's most of the time, it's not because I am a bad salesman, it's because I charge high & 1 in 5 is where I want to be, I have adjusted my pricing to get 1 out of 5. If I want 1 out of 3 I would just lower my price accordingly (which would still be more that most of my competition, I sell well!). If I get my phone to ring 100 times I am gauranteed 20 new jobs.

Here's a little Selling breakdown for you to gnaw on. Say you can do 20 jobs a week. Say the jobs are $100 each with a closing ratio of 1 in 3. This means you need your phone to ring 60 times to get the 20 customers say at a marketing cost of $15 ($5 for the ring, $10 to do the estimate) per ring. It will gross you $2,000. Figure your actual job cost to be $50 a piece so you will net $1,000 after job cost less the $15 a ring for the 60 rings = $100 that week.

Now increase your price %40 to $140, your closing ratio WILL drop, to say 1 in 5. Now you have to get your phone to ring 100 times for the 20 jobs, but now it will cost you more marketing dollars to get the phone to ring more times, but it is still just $15 a ring. Now, the same 20 jobs will gross you $2,800 at the same job cost of $50 each so you will now net $1,800 that week less the $15 a ring for 100 rings, which means you now made $300 that week. 200% more than with the 1 in 3 closing ratio. The Moral of the story here is, "It's pays to get no's!"

These are just a "FEW" of the items that go into a price. Grant it, some are seems less of than issue than others but when added to the other lesser issues they tend to add up.

Job Variables

When pricing there are several critical job variables to consider. These are all dramatic when considering the price since these variables change from job to job. This is focused on commercial flatwork but it should give anyone in anyfield an idea of what goes into a price

Gum? Lots of gum = lots of time

Mildew? Heavy mildew can take more time to clean

Estimate last time cleaned? The longer it’s been since it was last cleaned, the longer it’s going to take to clean it this time.

Obstacles? Columns, Planters ((Plants can really hurt buy causing you to try & not blow out all the bark ground covering & when you do you have to clean that too)) Columns can significantly increase your time on the job even though you may not have to clean them, merely from the fact that you will have to work around them threading your hose in & out, & in & out. A job 2000 ft long with a column every 20 feet may take a few hours more time to complete than one with no columns. This can have a greater impact when it's a job that you "should" complete in one day but will now require a 2nd day because now an extra 3 hours of working around columns becomes an additional 5 - ... hours because of breakdown, setup & driving time.

Water availability? You need water & lots of it. If you are cleaning a property that's 2000 ft long & only has 1 water supply on one end it's going to be tough going especially if it's a spigot with a low rate of flow. 5 gpm at the spigot will only be maybe 3 or 4gpm at the end of 400 ft of garden hose thus in most cases you will require a significant tank. In addition you will only be able to run one machine at a time or you will beat the tank too often. (unless you have a really really big tank)

Hours of operation? Movie theaters, restaurants, & bars can inhibit your working hours. Working around these places can be time consuming & sometimes this needs to be calculated into your pricing since it can add up several hours to a job trying to work around these open & often busy establishments. Hours of operation are also affected by what's near your property, for instance if the property (or part of it) is next to a residential area you will probably not be able to work in the wee hours of the morning due to noise ordinances.

Location of property? Is the property near a residential area. If so you could find your hours of operation even more limited. I was run off by the cops more than once in my early days for breaking noise ordinances near residential areas, and was levied a $250 fine for it once.

Concrete type / condition? Fibermesh can be slower to clean than standard crete. Reason is that fibermesh is softer than standard thus you will need to drop pressure &/or increase technique or you'll stripe the it. In addition gum removal takes more finesse since the concrete is softer. Rookie gum removal can cause divots, so cleaning & gum removal takes more time & time = $$. There are other concrete variables too general hardness, age the older the pour the harder the crete usually, porousness,

Curb FaceWill you need to clean it? 9,800 lft of curb face cleaning could add hours to the job if it's bad. Can make rinse harder too if where the curb face hits the tarmack there is a space. In that space is a boatload of dirt dying to come out & into your face. This dirt may need to be rinsed away across the driving area (especially if it's sealcoated)

Is the parking lot Sealcoated? If the parking lot has a nice fresh looking "super" BLACK sealcoating on it, it can add on half again the time it takes to do the job for you will need to fully rinse AT LEAST the driving lane across to the parking area or it will leave a nasty white residue on the area. And if you do not do this you will quite possibly find yourself back at the place using your surface cleaner on the entire drive thru area & possibly more!!

The dimensions of the property? If a property is 75,000 sqft the amount of time will differ depending on how that 75k is laid out. If it's 5000 ft long by 15 feet wide, you will move quicker than if it's 1875 by 40. The reason lies in the rinsing issues, in most cased you cannot allow a surface to dry before rinsing since many types of stains will re-adhere. In addition you will have more solids to push off the cleaning surface at longer distances which will also slow you down. you might think it's the same difference either way but it isn't. The wider it is, the further it is to push the water off the more you will have to push, plus it will reduce the span which you can clean at one time this will cause you to actually have to rince even more since you will find that you need to rinse the solids off the area where you will resume with your surface cleaner. Example: If you can only clean 800sqft before you begin to dry, on a 10'wide sidewalk you can span 80' prior to needing to rinse. But on a 40' wide walk you can only span 20'. If you have to rinse off 3 feet of your new work area then you will be rinsing several hundred extra feet on the 40' walk. Plus, as I said the rinse will contain a heavier load to push off across the 40ft.

Parking areas can be the worse. Huge square areas say 200 by 200' can be fairly brutal to deal with especially if you have no way to pick up the water & are forced to push all the messy water to certain locations.

The above is tailored for the flat washers. If your trade is something else just sit & think for a few of what your variables are &/or will be. Most things will have significant variables. Whether it's just a matter of how dirty they are compared to others. Or things like the pitch of a roof, age of the shingles. Type of soot going up a venthood, type of cargo a truck is carrying, where the truck routes to, these are just to name a few. Think about it, look at your target market & see where things are going to change from job to job or place to place. Water issues, incomes, hours of operation (in some neighbor hoods you are limited to the hours you can work, this may affect you in more ways that you realize. For instance a job in an area like this you would not want to start after a certain time thus it may need to be a 1st job of the day) Hours of operation can nip anyone in the bum too, if a trucking company wants trucks washed after hours & they are next to a residential area then you will need to cease operations around 10pm, maybe earlier.

When I bid a job I take all of the above into consideration & bid accordingly. I don't have a price sheet, I have a Price Book. I charge differently for up to 1000sqft, 1k - 3k sqft, 3k - 5k sqft, 5k - 10k sqft, 10k - 20k, 20k - 50k, 50k - 100k & then I have different multipliers I use for each of the "Job Variables" above if they exist & I have variables for those variables. For instance Light Gum, Medium Gum, Heavy Gum.. All set forth a different rate because the different conditions effect the overall time I will have in the job.

There it is in a nutshell, nearly all you need to know to price a job!

Now however you are still wondering, What the hell do I charge & how do I figure it out. Well, that's pretty easy to answer. Do Research! See what others are charging in similar fields. Similar fields are not necessarily pressure washing people or painters. Similar fields are nearly any blue collar profession. Auto Mechanics, Masons, Electricians, Fabricators, Framers, Roofers, etc etc... All these companies will be similar in $$$. An auto shop will charge $X per hour for labor depending on the area,, remember DEMOGRAPHICS Auto Shops are actually a prime example of it too. They refer to their book & see a job takes 4 hours, their labor rate is say $65 an hour but the job, for an experienced mechanic, only takes 2 hours to complete. They still however charge you for 4 hrs @ $65 an hour, in reality they are making $130 an hour! This touches on what I mentioned above about charging a rate & not lowering it due to your increased speed.

Those trades mentioned in the paragraph above will also provide you with a base of reference for your eventual payrole as well, if you want good employees that is. In my area helpers in those fields will make around $8 - $12 an hour, thus I have to pay my helpers the same. Leads will make $12 to $16 an hour thus if I want competetent leads I need to pay the same. I have several times seen on the boards where people say they charge, or tell others to charge $25 - $35 an hour for their services. If I took this advice where would I make money having to pay say $15 an hour to a lead & $10 to a helper. That $25 an hour that some suggest would not even cover my labor. Even at $35 an hour I would still lose money. Yes I realize that that $25 - $35 may be meant as "man hours" but- 1. They don't say it that way so some WILL misinterpet it & 2. Even at $35 per man hour I still won't be able to get the latest reeboks for my kid!

Anyway, Look around at the trades in your area. You are worth at least what they are. If your green with no experience then you'll need to charge more. Once you have a figure in mind you need to have an idea of what you can do. Divide the hourly rate you decided on by how many square feet you can clean per hour & that will give you a starting point for a square footage rate. From there you can tweak the price for the variables of the job. Small jobs you tweak it up, huge jobs you might tweak it down. As you get faster you will see your hourly income increase with the same square footage rate, just as a Auto Shop charges $65 an hour for a job but really gets $130.

Another way to price small jobs & items is by "PIECE-RATE". I have set piece-rate for many things that I clean. Saves time on small stuff. For instance I charge $XX.XX for average driveways. I don't care that they may be a couple hundred sqft bigger sometimes. My flat rate takes that into account, it's set to clean "up to" 1000 sqft & make good money, anything smaller is better money. I do this because it's more cost effective. Anytime it takes me to measure the job it time lost. On my rate though, I do add for the variables, with driveways the most common is simply level of dirtyness/mildew. If it's really bad I'll add in a few bucks. I use rate for things like Driveways, columns, heavy equipment, screen enclosures (for these I have a rate sheet for variables like uprites, purlins, chairrails wall height etc..) columns, patios etc... For the most part I use it for all the little stuff, with exception on screen enclosures - however for these my rate sheet is better than square footage pricing since it allows for more structual distintions)

The math to figure out a price structure is the same no matter what you do. Figure out a starting Hourly rate, based on your local trade businesses & divide that into your projects math. Math being, How many trucks can you clean an hour, how many linear feet of home (different for 1 story & 2, etc...), how many backhoes per hour, how much roof space per hour, etc etc etc... Once you get a rate NEVER lower it unless you can't compete.

The above method is more for the newbie contractor than the veteran. For veteran contractors I'd suggest you find the average rates for service in your area as suggested above & then multiply that times 1.5 or 2 for what you should be making.

Adjust down from there to find your price. Remember that a major part of getting the contract signed is SELLING! If you're not selling you're not going to get the money! I once had a guy tell me that I wouldn't get any new business around here because he had already gone to everyone & tried. I chuckled at this for many reasons. There are many many reasons this could happen. The first that came to mind for me was that the guy desprately needed a shower & a shave. People buy the sales person as much if not more than they buy the service. An average salesperson with a respectable understanding of "sales", closing the sale, writting the sale, building rapport, delivering the pitch, has an average 1 in 3 closing ratio in America. So, if you train yourself in sales you should be able to do the same. If you're closing 3 outta 3 your asking too little. If you're closing 1 outta 6 you may either be a bad sales person or asking too much, or perhaps you are busy all the time & selling just right to attain a premium price for your service. When I get swamped I've jacked up my price %100 percent before, I've lead my closing ratio to as high as 1 in 10 on call in's. 1 in 10 ain't bad for double the money!

On the surface many of us make similar money. But in reality it's quite different.

Just a Note;

"IF you can't price it you shouldn't be doing it"

Start small, small jobs are easy to bid, there is plenty of room to screw up. From small jobs, work your way up, you'll learn as you go what to watch out for & how long what takes. In time you will acquire the knowledge to bid larger jobs, it will be when you have gained the necessary experience & are ready for it. Don't be in too much of a hurry to get to the big jobs as enticing as they may be because doom lurks in them in more ways than you can imagine. When you underbid a job you lose money & your competitors lose money, the only one who makes money is the customer & there the ones that are supposed to be paying for it.

Cody

PS Anyone that make it through this that has anything to add to it please yell. I know this is still very lacking in painting the big picture or pricing. I've had this on my system in works for a pretty long time now & it's not done by a ways, hopefully one day I will finish it & post it on it's own little webpage. Then whenever someone ask "How much should I charge" you can clobber them over the head with a hyperlink to it & say there ya go!

[Mathew Johnson 123]

Deleted Post

[charlie 14]

Matt

Just because you don't go the PWNA convention doesn't mean that they can't better there business. The convention is only one tool you can use.

Have I gone to a convention no. Would I, maybe if it wasn't on one of home shows that I do.

Charlie

[charlie 14]

I thought this was good to share

Top Seven Traits That Lead to Success

Kate Lorenz, CareerBuilder.com Editor

What does it take to become successful? How can you become accomplished in business today? Would you believe that a 17-year-old has the answer?

High Schooler Douglas Barry asked more than 150 top executives, "What does it take to become a CEO?" The result: sincere, heartfelt and personal responses from some of the most accomplished and influential business leaders today. Barry collected the letters in Wisdom for a Young CEO (Running Press).

Despite the varied backgrounds of those CEOs, an insightful and inspirational pattern emerged. Barry found there's no secret ingredient to success and there's no prerequisite. You don't need wealth; you don't need to be a great student. It just takes a dream, the desire and some common characteristics.

Whether you are just getting your foot in the door or have spent several years climbing the corporate ladder, Barry says there are seven attributes needed to succeed.

Passion -- Do What You Love; Love What You Do.

"The people who have the greatest chance of being successful are those who work hard and are excited about what they are doing. There is no substitute for energy and enthusiasm," Jacques Nasser of Ford Motor Company says. If you follow your passion, success, whether material or abstract, will be an added bonus to doing what you love.

Respect -- Make People Your Priority

Leaders agree it's all about the people. You're only as good as those who work for you. A great CEO listens to others, feels their concerns, delegates authority, and nurtures the company's talent, writes Barry. Respect is a two-way street – give respect and you will earn it. "Always treat people with dignity and respect, particularly those who work for you," Merck and Company's Raymond Gilmartin advises. "Not only is this appropriate behavior – if you follow this principle, you will attract and retain talented people, which you will find is essential to your success."

Vision -- Clearly Communicate the Future

"One of the key qualities that any CEO (or successful person) needs – a willingness to stretch yourself and go after goals that others think are too visionary, too hard, or too ambitious to accomplish," Richard McGinn of Lucent Technologies says. Leaders don't have to be visionaries, writes Barry, but they do have to have vision. In order to accomplish something, you need to know how you are going to go about doing it. A good leader sets a definite course of action with a vision that is attainable and inspiring.

Humanity -- It's Not Just About the Paycheck

Successful people need to have compassion. "The bottom line about success in life isn't about whether you are financially successful, but whether you have given of yourself in some way to help others less fortunate than you and to serve your community and your country," P. Anthony Ridder, CEO of Knight Ridder says. You should have a desire to make your community a better place and to live and embrace diversity and bigger ideas. You should work so that others, not just you, are happy, inspired and productive.

Curiosity -- Look, Listen, Learn

Learn for learning's sake, not just to make grades and to win academic honors. By doing this even those students who aren't at the head of the class can go far. Learning takes place everywhere, not just in the classroom and if you ignore this, you'll be missing out. Continue pushing the limits, climbing to new heights and acquiring new knowledge. Try everything and don't be afraid to fail. "The more you know, the better equipped you will be to tackle all the obstacles you meet on your way to reaching your objectives," Ivan Seidenberg of Bell Atlantic Corporation says.

Integrity -- Honesty Above All, to All

"Live each day as if your actions would be the headlines the next day in your local newspaper," advises Jon A. Boscia, CEO of Lincoln Financial Group. Personal integrity and ethics reflects not just on the leader, but the company as a whole. Making integrity a priority is crucial to the bottom line. Lying is never acceptable. If you're dishonest, then dishonesty becomes your mode of thinking.

Pragmatism -- Know What You Don't Know

Be humble. Concentrate on the things that matter most and get better. Don't take yourself too seriously and learn to laugh at yourself. You need to have failures and learn from them. A leader needs to be humble and confident – confidence shows you believe in what you're doing and humility lets you recognize other ideas and opinions. "An important mark of a good leader [is] to know you don't know it all and never will," Anne M. Mulcahy of Xerox Corporation says.

Copyright 2004 CareerBuilder.com. All rights reserved. The information contained in this article may not be published, broadcast or otherwise distributed without prior written authority.

01/01/00 12:00

[Celeste 341]

Great article Charlie :)

Celeste

[Henry B. 4]

Copyright 2004 CareerBuilder.com. All rights reserved. The information contained in this article may not be published, broadcast or otherwise distributed without prior written authority.

01/01/00 12:00

Hmmm... I hope ya have a letter laying around somewhere Charlie..LOL

It is a good article though.

[One Tough Pressure 580]

Sorry, I could have posted the entire quote... I didn't realize that some people wouldn't go to PWN to get info to better thier profession

Matt

Matt

Just because you don't go the PWNA convention doesn't mean that they can't better there business. The convention is only one tool you can use.

Have I gone to a convention no. Would I, maybe if it wasn't on one of home shows that I do.

Charlie

Charlie,

PWN is not the same as the PWNA, it is another bulletin board. Some people choose not to visit all the boards, just a few of the many.

Henry,

Quit stirring the pot.

[Henry B. 4]

Hey Alan,

Even though it's true, my comment was meant as a joke...

Notice the LOL (laugh out loud) part

[Beth n Rod 1,279]

But let's not assume Charlie broke any laws...

For all we know he did contact them and get an OK to post. I would think that it's as simple as an email from the author.

Thanks......

Beth :groovy3:

[Henry B. 4]

Nah, I wasn't assuming he broke the law or anything.. I just thought it was kinda funny that the last line I read stated that.

I guess I just have a sick sense of humor.. At least I'm not as bad as my wife. She can't stop laughing when one of my kids trips over something..

I started out as a part timer about 15 years ago with a budget of around $50 to start my company.

Now, I'm a full time home improvement contractor and we currently provide numerous services to over 10,600 commercial and residential clients in Montgomery County Maryland.

Anyone else?

[Beth n Rod 1,279]

Actually, when you use something like what Charlie used, you are required to add the source materials and copyright protection info. Otherwise, you end up plagarizing someone's work. It's far better to list the infomration he did, than to not list it and lead others to think it is yours.

Beth

p.s. Maryland is pretty big considering it's size.

Population, 2003 estimate

Allegany County 73,668

Anne Arundel County 506,620

Baltimore County 777,184

Calvert County 84,110

Caroline County 30,861

Carroll County 163,207

Cecil County 92,746

Charles County 133,049

Dorchester County 30,612

Frederick County 213,662

Garrett County 30,049

Harford County 232,175

Howard County 264,265

Kent County 19,680

Montgomery County 918,881

Prince George's County 838,716

Queen Anne's County 44,108

St. Mary's County 92,754

Somerset County 25,447

Talbot County 34,670

Washington County 136,796

Wicomico County 87,375

Worcester County 49,604

Baltimore City 628,670

Maryland Total 5,508,909

[Henry B. 4]

Thanks for the stats Beth, People have asked me quite a few times how many homes were in Montgomery county... It's much bigger than most people realize. I prefer limiting myself to montgomery county just to save on gas and travel time.