If you listen to Josh Latimer’s (quicktalk podcast) podcasts he discusses in one of the episodes how a business with recurring income such as monthly contracts that bill automatically sell for a higher multiple then those that are just a book of business.
I do. To apartment complexes. Got 3 in total who pay me around $1000 each per month and selling another one now. The places are perpetually cleaned. Sometimes it’s a building. Sometimes it’s concrete.
If I can get one per day without much traveling I’ll stop doing houses and everything else.
Any math saavy homeowner will realized that $60 a month/$720 a year for 2 house washes is too expensive for something they need every two years. I can see that going badly once they catch on.
I think he’s right, but I haven’t quite figured it out on the residential pressure washing side since a house wash is my bread and butter and next year I’ll be doing a bunch of driveways and decks at the same time commitment for money made last year.
I agree seems like a tough sell for a house wash or window cleaning. I know some roofers in our area have monthly memberships that include semi annual inspections, and if any repairs or replacements need done the monthly cost they already contributed is deducted from the repair cost.
I think it’s a wonderful idea:
Quick math says if you’re doing 3 housewaahes per day (our typical day) for 20 days a month at $39/month that’s $2340 in the first month, but in month 6 that’s $14040 in recurring revenue.
I like that a lot. But I also know that $20k-$30k per month is achievable charging full price. Ask me how I know.
At $39/month you have to get to almost full year to make what I’m regularly making every month anyway.
I love the idea in theory and I’m probably missing something in the math, but I still haven’t figured out how to do it and make money at it.
If you talk to landscape companies you’ll find there biggest problem is people not paying on time or paying at all. . Invoices that go unpaid credit card that are no good anymore. Customers that find call back nasty letters . Just doesn’t seem worth it maybe in a perfect world. You would have to look at yourself like a bank rates would have to up to compensate for the people that don’t pay . Not because there bad peoples or because they don’t want to pay but $hit happens and that can’t but you’ve already done the work
I wouldn’t know what to do with myself if I were grossing 20-30k a month that’s insane.
You’d be working 12 hour days with 5 days off in past 14 weeks including weekends, lol.
Been There and done that without making a fraction of that. Plus I gotta make up for a slow winter.
not 14 weeks… but I imagine there is a different sense of pride when its your company you’re building.
Not if you’re charging the right amount for the value you bring to the table. Reread @racers post above about value.
And if your process is the same every time it’s automatic.
Did two housewashes yesterday on 2 3200 sf houses on opposite corners of the neighborhood. Travel time was 5 minutes, but setup and roll up was the same. Finished them both before 11:00 and the painting company we partnered with to wash 25-30 houses a month couldn’t believe it. They were taking longer to wash a house with 2 machines going simultaneously and he took me to lunch the other day and told me we clean better than they did.
That’s not including the 3-5 houses a week my other subcontractors are doing. Don’t turn down work if you can sub it out.
What do I gotta do to follow you around for a week? lol
Also, good to have another carpenter in the group. I still tell people to this day that by trade I’m a carpenter.
My big brother, dad, and I have hung crown moulding in a government officials mansion, built houses, and everything in between. I even had a cabinet shop when I lived in Virginia Beach and built cabinets and custom built ins part time when I was in college.
My last project was 20 stairs on a knuckle that raised and lowered with a hoist for a large house locally that couldn’t find stairs long enough to get into a 3rd story attic over a garage.
I’ll dig up some pics.
Give me about 2 weeks heads up, send your proof of insurance, and come out. I live in a 700 sq ft house with 3 dogs, 2 big though so you’re responsible for lodging. Lol
I’ve got a big manufacturing plant/EIFS job I’d rather not use labor ready for in late August if you want to work overnights 60 feet in the air. Lol
That’s also a concern of mine.
20-30k sounds like a lot… which it is. But as @squidskc knows money goes out just as fast as it comes in.
After fuel, chemicals, purchasing new equipment, payroll…payroll taxes, rent (if you have a shop) electric bill…pre pay federal taxes…marketing,advertising cost and then pay yourself. Definitely make a living, but if you think 20k gross will get you rich, it won’t.
My wife is like you did 30k this month!! And starts getting all those big ideas in her head and I have to constantly remind her that’s not how it works lol
Bingo. Before you see $ signs just assume that half of it is already gone.
My monthly fuel cost is more than my house rent. My cost for bleach alone is about the same as my house rent.
My monthly cost for the CPA is more than I was spending on gas and bleach each month in my first two years.
Which is why is so incredibly important to get your pricing down ASAP. Price jobs assuming your cost is going to double every year and like you’re in your 4th or 5th year.
I know there is certainly over head to manage but even then 6,8,10k ahead would be astronomically huge for me.
Heights and over nights are no big deal at all I dont have commercial insurance tho
You might be able to get a bond which is just insurance for a limited term and scope. I got another guy who wants to come up too. Once I have the dates set in stone I’ll let you know in case anything changes.
And people wonder why I’m so afraid of getting one of those. Joking aside, I’m glad Emma doesn’t ask. Mostly because she knows I’m tighter than an old prom dress and won’t spend any of it anyway.