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The up coming Season

Jeff Wible · Approved Exterior Cleaner

I think were good with he regular customers who call every year or two year cycle. Might see a decrease in new customers?? Was considering this just this morning, nice to have so many loyal customers to keep the phone ringing. We shall see how it plays out. Not raising prices for my regulars.

Jeff

BlueRidge · Approved Exterior Cleaner

We added a $25.00 per job charge (not commercial) last year to break even and cover our $300.00 extra monthly fuel cost and the increase on some chemicals. This year I just raised it to $30.00. We did change some pricing in the Customer Factor that was easy and dropped our lowest house wash price completely, which was only for small, local jobs.

My labor rate has increased to battle with all others trying to get help, thanks to Sleepy Joe and our past governor. I am paying out an extra $160.00 a week and that is only accounting for two people. It doesn't seem like much but for the entire season it adds up to $6800.00. It will only get worse when we add the crew for truck two. During the season, my weekly payroll is around $4500.00. Added expenses is just going to lower the profit margin if I don't find ways to cover these costs.

When I went to the Huge Conventions, I was fortunate to go twice when Howard Partridge was there. A great success story with what he has accomplished. He says you need to raise your prices every year. Most people in the class were concerned. One thing he said it does, is get rid of the low baller tire kickers. I have found that our previous customers understand that prices have to go up, especially now. I would rather work for five customers who understand and don't complain than 10 who want everything for nothing!

Our year has started off well, just as good as previous years. I can only hope it continues in that direction!

Jeff Wible · Approved Exterior Cleaner

Yea Brett, I see your point on having to raise some costs,..simply due to employees if nothing else. As a single operator I can absorb some extra cost for my regulars,..and make it up on the new customers, Ha, Ha,....I agree, most people do understand acceptable cost rise,..but it's also nice to show people that not everything in the world has to go up. May lose some income I suppose,.but for now it's how I will play. Yes,.my season will start in April and already have about 18-20 lined up. And most of them are regulars.

Jeff

BlueRidge · Approved Exterior Cleaner

Jeff Wible wrote:
Yea Brett, I see your point on having to raise some costs,..simply due to employees if nothing else. As a single operator I can absorb some extra cost for my regulars,..and make it up on the new customers, Ha, Ha,....I agree, most people do understand acceptable cost rise,..but it's also nice to show people that not everything in the world has to go up. May lose some income I suppose,.but for now it's how I will play. Yes,.my season will start in April and already have about 18-20 lined up. And most of them are regulars.

Jeff

We are trying to keep our pricing the same for repeat customers. Our waiting list is somewhere around 50% repeat business. The only up-charge they will see is the Material/Fuel charge.

The owner operators around me are doing what you do, but they have no clue how to price a job for profit and growth. It's hard to battle them on price so we get them on customer service. One of these guys who use to have $169.00 house wash for any home under 2K SF. He spray painted over the $169 on his yard signs! Now there's some quality stuff! And... I thought I was cheap!

Jeff Wible · Approved Exterior Cleaner

Yea, I can say,..not many houses I'd do for $169.00. Maybe a dog house.

Here's what I do know,.unfortunately there is a market for those cheap prices. For example: I do more of a detailed house wash, proper cleaners, push up window screens, use Magic Erasers for scuff marks, brush gutters to whiten, etc, etc,..

But anyone offering a splash and dash with bleach and water are making easy money, the customer isn't expecting perfect, just better than it was. And that's usually what they get. Considering 90% of what's on siding is mold of some sort it does make it look better than it did. Now,..I can't bring myself to do inferior work like that. Just doesn't feel right. Fortunately there are still alot of people who want a premium service,...but just stating there is a market for splash and dash. Does sound easy.

Jeff

Art O · Approved Exterior Cleaner

We haven't got any $169 guys around here, But we have a few Home Adviser idiots that can really low ball a job. All the new company's start out there. Some homeowners just don't get it!

BlueRidge · Approved Exterior Cleaner

Art O wrote:
We haven't got any $169 guys around here, But we have a few Home Adviser idiots that can really low ball a job. All the new company's start out there. Some homeowners just don't get it!

Yea, the guy isn't doing $169 any more but we get no less than four of his previous customers each year. They all have the same complaints. we can usually figure out the low ballers when we answer the phone. The "what would you charge, I don't want any written estimate, give me a price" people go away fast! We'll keep doing what we do, it has worked to grow to three trucks so something must be right!

DirtyRoofcom · Approved Exterior Cleaner

I'm raising my prices. I even started a topic about this back in January on the FB page but didn't get any responses.

Most business are seeing a increase in liability insurance, fuel is up over 50% from last year. SH is going up 20%, parts and equipment has all gone up. Pressure washers that were $3k 2 years ago are now selling for $4k.

Personally, food is up drastically, entertainment is up drastically, gas for personal cars, housing is up, sewer bill went up, taxes will follow. Insurance is going up on property, flood and cars. Everything is going up and it's a lot more than 7.5%.

There really is no alternative either raise your prices or make less profit. You really want to be proactive with pricing every year rather than get to far behind and have to play catch up when it's too late like now.

This is where the cycle shakes out the bottom feeders. When times are good the bottom feeders get enough work to get by where they think they doing well. Now with increasing prices and potentially less work it will force them out.

Jeff, you do great work and you are busy vecause your customers value this. An extra $50 on a $500 job is most likely not going to change much.

DirtyRoofcom · Approved Exterior Cleaner

There is a saying

"I can go broke sitting on the couch. I don't need to go to work to do so"

Maverick Contracting · Approved Exterior Cleaner

funny you should mention fuel prices.

was just looking at oil prices lower 10 years and on 4/20/2020 a barrel of oil dipped from $18 a barrel to -$37.63! yes that's a negative -$38!

Shit, its about to hit $125 forecasted by Goldman Sachs.

Imagine if you invested $1k 2yrs ago, you'd be a millionaire+!

Juuust say'n

-- Edited by Maverick Contracting on Wednesday 2nd of March 2022 10:20:16 PM

Jeff Wible · Approved Exterior Cleaner

DirtyRoofcom wrote:

Jeff, you do great work and you are busy vecause your customers value this. An extra $50 on a $500 job is most likely not going to change much.

Well, I appreciate the compliment. And yes, I realize I can raise my prices, and I likely will on new customers for sure. I'm very certain my old customers will likely even tell me that they won't mind if I have to charge more,..and I may? AndI may pick and choose? ..But I will first wait and see how it shakes out. Fortunately all my equipment is paid for and I work alone.

* One way I will save money on SH is simple: I've always liked a fast acting percentage in my house wash,.this year I will be less "wasteful",... On my regular customers especially, I will be dialing back the percentage to more of a treatment dose rather than a cleaning dose. My every year and two year houses are usually mostly clean already and just need going over. This alone should save a lot. I figure I can do two houses, with the same amount I used to do on one house.

**I actually just picked up an account I had a long time ago, and based the decision mostly on the fact of rising costs,..and this will help offset it. I did boat bottoms and pontoon cleaning for a local anchorage up until about 10 years ago,..then I gave that account to someone else who works there, simply because I was "done" with it. Well that guy quit and the anchorage called me and asked if I was willing to do it again. I thought about it for a week and told them I would do the pontoons that are traded in need cleaned for re-sale. Not interested at this point in doing for everyone at this point like I use to. It is very good money though. An extra few hundred dollars here and there can't hurt none. And I will have the option to do the gel coat bottoms also if I choose. So, this should also help me be able to keep my raising prices to a minimum.

Jeff

BlueRidge · Approved Exterior Cleaner

DirtyRoofcom wrote:
There is a saying

"I can go broke sitting on the couch. I don't need to go to work to do so"

That's one I remember well! It is so true!

BlueRidge · Approved Exterior Cleaner

The first week of March is gone, the phone is ringing and the jobs are coming in. The acceptance rate is around 60%. The majority are large and higher priced jobs. The $30.00 fuel/material add on has not been questioned once! I can only hope Sleepy Joe doesn't make things worse! This warm weather for early March is a blessing... for now. I have a love/hate relationship with March. At this time of year I have a serious case of spragin fever! My made up word combining spring and cabin fever!

This is February!