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RCBill

Forecasting costs

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Greetings from the Cape Fear,

I am planning for much more revenue from washing operations. As I am begining to plan for next year, I need data that I do not have. The data that I need includes direct labor/revenue and direct materials/revenue as they apply to house washing, roof washing, and deck restoration. An aggregate of these disciplines would also be helpful.

Please note; all that I need are the ratios, and that you helped this poor boy in the backwaters of NC shall be our secret. Unless you want me to tell the internet what a great guy or gal that you are.

TIA

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These are difficult at best to even begin to conceive considering we know nothing about how you operate, how many employees, equipment capabilities, your speed/rate of work...etc.

Ex:1 man can wash a colonial sized home (no garage add-on) 2 story vinyl, 3 stories in back in 2-1/2 to 3 hours. Amount of chems used depends on what you are using and how much in the solution prepared.

Given an arbitrary figure of 350 to wash the house and pay rate of 15/hr this would be a starting point for your consideration.

Ratio would be about 7:1

Wood restoration Ex: one man washing a ground level deck measuring 12X15=180sqft + rails @ 3X39=117sqft grandtotalling 297sqft.

Wash rate @ 150sqft hour = 2 hours to wash

15/hr X 2 = 30

Seal rate for 1 man including prep, sanding, nailpops and cleanup = 125sqft/hr for a total job time of 2:30 (rounded)

Given an arbitrary figure of 1.45/sqft wash and seal = 430.65

15/hr pay rate X 2.5 = 37.50

37.50 + 30 = 67.50

Ratio approx. 7:1

Materials is a bit tougher. These are a bit more difficult to nail down due to circumstances that change per job. Wind, heat and cold can factor into the amount of chemicals necessary and how well they work.

I hope this gives you some headway.

Rod!~

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hmmm......

I can see how it is difficult to be on the same sheet of music. And I certainly would not ask for sensitive data.

I have met contractors that share financial data. A contractor, Dial One in Calif., was very generous in reveling to a private group, what his operation looked like in financials. Most of us would love to have his Marketing budget as Revenue. This is not what I asked for here.

I am putting together a marketing budget and cash flow projection for 2007 when I will be crashing through performance ceilings. I would like to project the direct costs of an average house wash, roof wash, and deck restoration. And the numbers need not be precise. If I knew that Rod, Larry, and Ken came in at about 35% to45% of Revenue in labor and materials, then I would be able to calculate; what my costs should be, how many jobs that I need to meet my goals, how many sales, leads, etc.

I understand that owners don't put this stuff out to the universe. In posting this subject I hoped that I would catch the eye of a manager or two that would want to confer with me privately. I have had some success in this.

I would like to talk to owners that write (even partial) business and marketing plans, people that like to count the money, and those with crazy ambitions. I have some very cool tools.

RC

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