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RyanH

Competition: what gives?

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Unlike many users on this board, I am not in the situation of having an overabundance of pressure washing competition in my area. Most competition is in the form of part-timers, not full time companies. Currently, I would still consider myself to be part-time, but am quickly working to change that. I have only had a few dozen residential and a few commercial jobs, but have spent almost every dollar I have earned to put back into my setup. I have invested hundreds of hours experimenting with various pieces of equipment, reading up on other techniques, buying / building better equipment, etc. I am still using an off-the-shelf commercial pressure washer (around $1100 new), but manage quite well.

All of that for this: why does it seem that the competition I see on the streets pulling their trailers around do not use many of the tools I consider to be necessary to do a good job? For example, most cleaners I see have a fresh water tank, a pressure washer, some high pressure hoses, and not much more? In addition to these things, I carry extension lances, a ladder (rarely used, though), dedicated backpack sprayers for various purposes, extra water and pressure hose, various boxes of chemicals, an assortment of tools, stuff to clean windows (chemical, squeegee, sponges, extensions, etc.). Am I overdoing it? Are there ways of doing jobs without all of the stuff I use? My customers have been extremely impressed with my setup, and it doesn't even look as neat and professional as the competition carrying only a washer and some water, but I seem to have everything on hand to do a very good job everytime.

What gives? Are they, despite the nice washers and trailers, not as "professional" as I aspire to be?

I would appreciate in help, encouragement, opinions, etc. on this. Am I trying to reinvent the wheel with all the stuff I use, or am I just more thorough?

Thanks very much.

Ryan Holbird

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just keep up what your doing aspiring to be the best you can,and before you know it your competition will be admiring you.

most of the part timers you see without these tools your see as neccessary most likely dont know about them.

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Your on the right path. Create your own image for quality! I always clean something so when they pull in the driveway or walk around the house it pop's out. That wasn't included in the price!! they always tell about that...

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Let see you have everything that you might need. Maybe they have all that equipment, but don't bring them with them all the time. I would consentrate on the chemicals and the quality of service you do. When I deal against other businesses I find out if they are properly insured and what kind of products they use. Also if they aren't in the phone book after the first year that tells me that they are not in this business for the long haul.

For me the biggest competion is myself.

Good luck

Charlie

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Dont worry about the other guy.

Work hard. Do a good job. Show up when you say you will show up. Be nice. Keep your rig and stationary professional looking.

Do follow up call's on customer's[both the one's you did work for and the one's that got away]. Be safe and allway's send a season's greeting's card to everyone you ever did an est. for.[weather you got the job or not]. Include a fridge magnet.

If you do all this you wont ever have to even think of the compition or other guy again.;)

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You answered your own question...You have everything you need to handle whatever comes your way. I too have noticed some of the companies in this area with nothing but a Home Depot washer, a tank (maybe), some hose, and a few jugs of chlorine. Maybe they keep all their chems and other supplies in the cab of their truck, but I doubt it. As Charlie said, maybe they leave the stuff at home they don't need, but I have to wonder. At any rate, isn't it easier to have the proper tool for the job, and have it with you when you need it rather than having to figure out what you're going to need for the day? Better to be prepared at all times!

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The phone book is no barometer of who is in business from one year to the next. I know alot of contractors who think the yellow page ads are a waste of money. I tried them for a couple of years, never more than a couple of calls from them. I quit them for about three years, am trying them again this year, but so far not good results. I have the biggest block ad in two different phone books, and so far poor results. The local paper and word of mouth is my best results so far. I have even signed up with Servicemagic, will see how that goes.

Robert

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When doing advertising in the phone book. You do not have to have the biggest ad in the book or have a color ad. Maybe the way the ad may look or says doesn't attract the customers you want.

When I developed my telephone book ad I went to the library and looked in telephone books to see what other companies were doing and getting ad ideals from them. I did not copy them. Then I put the ad in categories that pertained to the kind of work I wanted to do. I stand behind phone book advertising, 35% of my business came from the phonebook this years. Also not all books are same. Find out which book has the biggest readership in the area you are looking to get in.

Good luck

Charlie

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It depends alot on your location. I use to live about 80 miles away from where I do now 5 years ago. I would say at least 75% of my work came from the yellow pages! It kept me busy year around, and was a great investment on my advertising dollars. When I moved, the first thing I did was to get in the yellow pages in the main phonebook. I had great expectations because of my previous experience with it. Was I ever disappointed! This city was 5-6 times the size, and I didn't get maybe 10-15 calls from it, the rest came from the newspaper. I made sure and ask where they had got my name, so I found out where to spend my money. This year Verizon got bought out by Centurytel, and their price was half of Verizons for the yellow pages, so I decided to try them. So far it has been poor results, but I will wait and decide after the year is up before making judgement on the results. So like everything else, it depends on your location on what works for you. I think that is the one thing stated in these postings more than anything else, location-location-location!

Robert

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I thought location is where your building is located not where you do business. Try changing your wording on your ad or try a different place where you can put your ad in the phone book. I try to place it with other wood restoration companies that have been in the business as long or longer then I have.

Charlie

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Guest rfitz

I put an ad in the other yelo book, it came out several weeks ago, it is a small ad, and the phone has rang off the hook, from that, as well as other ads I run

I am getting about the same results 50-50 yelo book-newspaper, but Im anxiuos to see what happens when my giant ad comes out in the real yelo book, Im sure the results will be extremely well, as far as competetion goes, I pay no attention to them, I have plenty of work, and as charlie said it doesnt matter,you need to focus on your business not theirs, and your business will mushroom,

Good Luck

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Merriam-Webster Dictionary defintion of location: situation, place. Where your building is located is irrelevant! Different locations have different situations, what works one place may not in another.

Robert

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Guest rfitz

You can thinks this will happen or that will happen etc.. but just throw it out there and see what happens, I did and it worked... I went full time quit my job, and threw the dice, sometimes it just takes balls...Whats the worst thing that can happen, ?

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No work, no money, bankruptcy. But you are right, sometimes you just have to take a chance, and let the dice roll where they will. You never know what will happen until you try, but you will know if you don't try: Nothing!!! My Grandpa use to say show him someone who isn't making any mistakes, and he will show you someone who isn't doing anything! I have found out that he knew what he was talking about.

Robert

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there are many acronyms or what ever you call it, but one thing holds true, it takes big ones to start your own biz, even bigger to keep it going. But, if you have them, you will reep the benefits.

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Rob

I really didn't want to get into a battle on the phone book advertising. I hate it when someone says something might not work, makes me want to prove them wrong. I guess it is the Taurus in me.

I agree with your grandpa 100%.

I guess it is time for me to go in basketball coaching mode and teach kids that they can accomplish anything they might want to do in there life.

Charlie:)

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It may take "big ones" to start a business, but it takes more than that to continue it and to bring it success. It takes a lot of hard work, persistence, skills and luck.

Being in the right place at the right time has it's place.

The airline industry was in the wrong location when the terrorists attacked. The insurance business was in the wrong location when the hurricanes destroyed all those homes and businesses.

A store-front was in the wrong location when the community decided to close the road for a year to widen it from 1 to 2 lanes.

Morgan,

You can make big $$$ working for someone else. Look at presidents and CEO's of companies that make tens of millions a year. Also look at all the millionaires that Bill Gates has made within and outside of his company. What about all the millionaires that were made by large corporations with profit sharing, stocks, and 401K programs? Over 90% of business owners will never become millionaires and over 70% of new businesses will be out of business within 5 years of start-up.

In addition, more people are millionaires from investing than owning their own business.

Food for thought!

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Guest rfitz

Speaking of millionaires, my brother who is 18 months older than me happen to be in the right place at the right time, when he took a job over 10 years ago, instead of raises or bonuses they offered stock options every year, and today because of stock options my brother is a multi millionaire, he still works but doesnt need to, he just turned 40, owns a 3 million dollar home in San Jose Ca. owns 4 $50,000 vehicles, has 5 boys all are in very private schools

$20,000 a year each, and all from being at the right place at the right time..

I know from being in the PW biz, I will never get wealthy, but hopefully have a roof over my head and food on the table, but I know this is not nor ever be a get rich biz, sometimes you just have to realize this is all you were meant to have and be, once you accept that, you will be much happier, I believe that getting rich is mostly luck, and being at the right place at the right time is for sure luck, I have seen way too many folks get rich, not by hard work, but just being lucky...

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Paul and Rfitz, thank you for the depressing posts!

I guess it depends on what your idea of being rich is. Right now I am working a full time job, with low pay (35,000/yr), but very good benefits and I struggle from month to month to pay the bills. I am in 9 to 5 hell!

I have been doing a ton of research in the PW business and have talked to a couple of different owners of local PW businesses. They are all doing well, with some grossing upwards of 200,000 a year, with their business continuing to grow.

If after 2 years I was taking home 50,000 year after all costs, I would think that I died and went to heaven.

Can you become a a multi-miilionaire in the PW business? It's possible, but not probable.

Can you become financially secure with a fat bank account to fall back on? I think this is entirely possible in the PW industry if you do things correctly.

Now, I am a newbie, never worked in the business, so I do not have first hand experience.

However based on professionals in my area who I have talked to, PW can be a very profitable business if marketed properly and quality of service is provided.

Am I being lied to by the PW in my area or is there the opportunity to make very good money with a professional PW service?

Thank you

Lou

If you think you can, or think you can't......your right.

Henry Ford

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Lou,

Ask your sources "How many years it took them to gross $200K" and "How much money they started the business with."

It's not impossible to become comfortable or well off in this business or any other business. However, remember that I said 70% of all new small businesses fail within 5 years. That's 7 out of 10. I would have to say that the failure rate in this business is much higher as it tends to be seasonal work for most northern climate areas. Also, you have a lot of part timers and weekenders that compete with low prices in season.

You have to study your market, your techniques, your equipment, put a business plan together (it doesn't have to be fancy or complicated) and have some back-up money for the first year to two, and money when things get slow due to external sources such as a monsoon season, slow economy, etc.

Most folks start out part time and build their knowledge, tool inventory and business clients at least one to two years before going full time. This reduces the risk of failure and provides a financial parachute in harder times.

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It is very difficult to get to and maintain those types of numbers for most service business, not just pressure cleaning, in my opinion. I don’t think it has to do with the type of business, it has to do with the type of person behind that business. My suggestion to anyone trying to start a PW bizz is to learn more about sales, marketing, making contacts, referrals, profit/loss, etc, than learning about pressure cleaning. (obviously you still need to know your trade) You can be the best there ever was at pressure cleaning but if you can’t sell and run a business than you WILL NOT make it. Period. I see it all the time. How many people do you here about "going into" pressure cleaning? Where are they now? This industry is a revolving door. The ones that make it aren’t pressure cleaners, their businessmen and women, who happen to pressure clean. Just one mans opinion. Rick G

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Thanks for two excellent reply's. I agree that a business that is run correctly is more apt to succeed then one that is run poorly. You do see that all the time, regardless if its a service company or a retail company. With PW I just see an opportunity to succeed if I can provide a quality product.

I do plan to start partime and see for myself just what I can do in this business. Having spoken to PW in my area I get the impression that there is a good amount of work available.

What I like about this particular field is that the start up costs are manegable and there are so many different applications for PW. Cars, Boats, Planes, Houses, concrete, decks, fences, parking lots, ect.

There seem to be many avenues to market the service and dirt and its removal is here to stay.

So I recognize that starting a PW business is just not learning to powerwash and use chemicals. It is marketing, sales, customer satifaction, and persistance.

I just see an opportunity to start a low startup business that has maybe a better chance to succeed then your average startup.

Starting partime is also a big help.

So let me ask again. If I do everthing right with this can I move into an area after 2 or 3 years where I can gross 100,000 or more?

Also can you tell me what the average percentage of profit is?

I have read everything from 35% to 60% for operating costs.

Thanks again.

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Also I have got to say that reading Rfitz's post

I know from being in the PW biz, I will never get wealthy, but hopefully have a roof over my head and food on the table, but I know this is not nor ever be a get rich biz, sometimes you just have to realize this is all you were meant to have and be, once you accept that, you will be much happier, I believe that getting rich is mostly luck, and being at the right place at the right time is for sure luck, I have seen way too many folks get rich, not by hard work, but just being lucky

was pretty depressing to read. He makes it sound like he is one step from poverty. If this is the experience of the average PW then I have to look to another business to get into.

Any comments?

Thanks

Lou

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