How many house washes do you average per season, and what is your 2014 goal number?
I myself run my business on a part-time basis and have a projected goal of 80-100 residential washes this year.
Thinking it would be nice to see how everyone operates and at what levels.
My business goals involve counting money, not houses.
My average housewash last year was over $600 (much higher if I include roof washes) and my gross was “X”. I could have washed twice as many homes and grossed the same by dropping my prices in half. I did see any advantage to doing that other than being able to say “I washed more homes than someone else”
Absolutely true about money.
But…more houses = more referrals, exposure ect…which in turn = more $$$$$$.
I think it’s good to keeps stats on a yearly basis (including both number of jobs and revenue).
do you want more referrals for $100 house washes or more referrals for $600 house washes? In other words, is washing six $100 washes a day better than washing one $600 house wash a day AND who do you think each customer will refer you to?
People wanting a $100 wash usually hang out with the same sort of people. People who want a $600 wash usually hang out with people who want $700 wash.
Wrong again! Its not “good” to keep stats on a yearly basis, its absolutely necessary to keep stats on a daily basis. On every wash, time of year, advertising that generated the call, EVERY expense, etc…
There is no way you can know what your business is doing if you don’t keep stats on what your business is doing on a daily basis.
My average house washes are $350 - $450 with higher rates on occasions.
I hear what your saying with quality vs quantity.
But In my eyes, lining up 10 $350-$450 homes in a week is more productive for future growth then one or two higher end houses.
This industry is all about referrals. And your gonna get many more $350 referrals then you would $600.
It’s all about efficiency vs profit.
Although I’ve done it in the past, I am not a fan of being the low price leader. Chasing all the cheaper, smaller jobs wont encourage growth or good craftsmanship. In fact, I don’t believe it creates long term customer relationships. It only helps reinforce the customer’s dedication to finding the lowest price possible for the work we do. Rest assured when the lower price comes to town (and it will) there is no loyalty to you… Only to their saved dollar. I don’t want to help cultivate that mindset.
Charge for your knowledge, materials, experience and for your quality finished product and those who get burned by the cheap and unskilled will learn that they do truly get what they pay for.
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Profit?
here is an example
I wash four homes @ $600ea. in one day = $2400/day with ~$200 in expenses
You wash four homes @ $400ea in one day = $1600/day with ~$200 in expenses
I walk away with $2200 and you walk away with $1400
I get 4 referrals and you get 6 (I’ll come back to this)
Assuming we close all referrals at the same prices and expenses, I will end up with another $2200 and you with end up with $2100 + you had to work another half day to get that money and you still made less than me.
Back to referrals - Its been my experience that income levels do not affect referrals but it will affect the closing rates. In other words, one Dr. refers you to another Dr. and odds are really good that you will get that job. If Joe laborer refers you to his buddies your closing rates will go up slightly but not as much as the higher income people.
Your missing the point.
Of course 4 houses (same size) at $600 a piece is more profitable then 4 houses (same size) at $400. That’s simple math.
My clientele that comes from marketing, referrals, ect… are houses that I price right in the $350-$450 range.
These are all jobs where Im profiting close to $200 an hour on average.
My closing ratio is close to 80%+ when giving out these estimates.
Im not too high, and not too low. The happy medium is where the gold is.
If I price the same houses at $600 a piece my closing ratio would drop dramatically.
Im not seeing how that would be more profitable and good for future business.
Now, If a house is a $600 job I will price it at that.
If your only getting contacted by homes that are priced right at $600 a piece I think that’s awesome and would love to know your secret.
But right now I have to work with what is brought to the table.
Also a larger house priced at a higher amount usually takes longer and requires more expenses.
So really it’s all relative, unless your talking about pricing the same houses at a higher rate…which would lose business rather then gain (in my experience).
My example was lining up 10 houses in a week at $350-$450 compared to only a couple houses at $600.
We charge what we charge no matter where we go. If it’s a $300 house wash then it’s a $300 house wash. A $3000 cedarshake housewash in the Hamptons we do those as well.
Our prices stay consistent and whoever hires us we hope they refer us to. So basically we clean on all sides of the scale with $250 being our minimum. Personally I have to juggle rich area’s with middle income areas and in some places below middle class areas. This keeps my employees busy and everyday I’m making money.
Be consistent in your pricing and you’ll have no headaches is pretty much my motto.
Your closing rate is way too high at 80% unless your business model is high volume/low margin, try to get it in the 50% range by raising your prices. Or lower your prices, hire another crew to see if you like the high volume stuff.
Your example is perfect at 10 houses for $450ea because this week I have five set up for mon/tues that will gross over $4800
You’re in the Brick/Monmouth area of NJ, that is home to some of the highest incomes in the state and MANY big houses, far more than I have down here. You have access to countless condo’s, town homes and communities that need washing. Plus you have very little competition from professional washers, I only know of one in your area.
Grab some beers this summer?
