I've been cleaning a few carpets for a local real estate company in their vacant homes. The are generally 2 story, 4-6 bdrms, 2-3 baths, 2-3 larger rooms(family/rec/dining). Occasionally a few 1 story houses with less space, etc. The company sells these homes for $150-$280K and advertises moving in and repairing credits for just $2995 down. The real estate company seems to get a lot of them back, and they clean them up and resell them. They seem very trashed too me, but the whole purchasing scheme doesn't seem to be a recipe for home ownership success. Anyway, all they want to pay is $120 for the multi-levels and $90 for the single levels, citing volume(10-15 houses per month). Prices are generally quite low to me around here, so it somewhat seems reasonable numbers. But they are really trashed, lots of poo & pee, red dye stains and frequently alot of grease and oils. All are frieze carpet. In my opinion most need extraction and lots of spotting. However to me the economics only justify encapping with a CRB and limited spotting. Personally I generally feel $$ somewhat determine the the final outcome of what one is purchasing, be it service, food, or automobile. Not sure if I should do, continue to do them and structure the method to accomodate the price or what? They seem pretty set on the price, from what I been able to pick up the other people they have had do carpets for them generally used rotary w/bonnets & Advance Aquaclean self contained.

Do you think you can clean one of these homes and do a reasonably good job at those prices? I am in a low price market around here and wouldn't consider cleaning for that price. Around $10 per room, no opportunity to upsell services - no way!!!

As far as volume goes, there is no upside to doing 10 of these per month considering you have to drive to each home separately, set up each one individually, lug your system up stairs, and pray you have access to water and electricity, NOT TO MENTION the fact that they are in such bad condition and with companies like this, getting your money can sometimes be a crapshoot...

Save yourself alot of trouble and pain - decline this slave wage offer and spend the time you would have wasted by working on getting some GOOD, better paying jobs.

Chris said "Save yourself alot of trouble and pain - decline this slave wage offer and spend the time you would have wasted by working on getting some GOOD, better paying jobs."

I AGREE!

Something to ponder: "I could be doing BIGGER things if I wasn't so busy doing little things..."

Joe

Dave-
Thats usally how apartment complexs, realtors etc. pay low because of volume. I look at it 2 ways if business is slow or winter is upon you you need all the business you can get. The other way I look at it is that is a base price significant stains require compensation, I explain they are still saving hundreds over replacing, they have not given me greif over the added charges, create value for what you do. You can always keep them as clients as you look for better opportunities. Make sure your getting before and after pictures for future clients so you can create value from day one with them.

I would pass on the offer. What they are offering is obsurd! Even if you just ran a CRB through it would'nt be worth it. Just the pre-vac would be worth those prices. I am all for giving a company a volume discount but this is nuts. Plus your name is on the line. When people move in these houses some of them will find out who cleaned the carpets, and if all you can afford to do is fly through without stain treatment or any detail work it will make you look bad.
Figure a fair price that you could do the work for and still turn out some good work and present it to them on paper. Maybe after they fool with some idiots with Rug Doctors for a while they might consider calling a professional. Companies like this really tick me off. We get training, buy expensive equipment and chemicals and then they want us to work for them for slave wages. If other carpet cleaning companies would quit their "low balling" and hireing kids for six bucks an hour we would'nt have to put up with so much of this crap.
Getting off my soap box now. Good luck with your decision.

Do you got to Wal-Mart and set their prices for what you want to pay?

Do you go to McDonalds and tell them you want a cheeseburger and by the way the Dollar Menu ain't good enough you are paying a quarter?

Make you own luck,

Del Scrivner
Owner/Operator
Cowboy's Carpet Care

I was reading a Vancouver YP ad and i found a cleaner that will do a 2 br apartment for $44.95

The ad cost hime 400.00 a month. They must charge to move anything and charge for any type of stain.

I live in a smal city less then 100,000 people with 20 carpet cleaners, i would be chocked if i saw that price in a ad.

I would hire them to come clean my carpets just to see what they do!!!

my old man would say  "bastards"

 

Anywho

I sympathize with the above post, I have thought the same way when I started out.

If you are counting on YP ads to get you jobs, forget it. If you are counting on sitting at home by the phone to get you jobs, forget it. If you think you are only worth $15 per hour, that is exactly what you will get. Quit worrying about other cleaners - you have to find a way to stand out yourself.

I was in your shoes not long ago, but since we started getting truly aggressive, our biz is exploding. If you want some help, e-mail me (rhinoclean@gmail.com) and I will let you know how we are landing the smaller commercial accounts - with a phone call. I'm not selling you anything and it won't cost you anything but a little time. It works in our area, maybe it will help you out as well.

Do you need the money? I would rather do something then nothing which I am doing now.

Would you rather do 120 for say a few hours work or get 0 for no work. Its easy to say walk away. What bills do you have to pay? Do you have mouths to feed? Home sales are flat and getting repoed now. Business at least around here in my area are not thinking carpet cleaning. All the marketing systems and all the post cards dont mean crap if the phone ain't ringing. I was in my yellow paes ad with 85 other carpet cleaners, I had a 1 in 85 chance I would get a call. 1 in 85 and one guy had his prices in the ad.

Damm and I will say it again. Damm, I wish I had an offer like yours. It easy to say walk or run away when your plate is full.

Where else can you do a job even if its three hours for 120.00 or 40 per hour.

Crap, I did jobs for 50.00 that took 45 min because I have kids to feed. I caught flak a few years back on this board with guys telling me "my truck doesnt move for anything less then 100.00 per job".

Only you know what you got to do, but remember work is work as long as they pay you.

Agree with Joe, do what you have to do until something better comes along. I just came back from a apartment complex extraction from laundry room flooding. Dropped everything and went on holiday weekend, why they are large contributor during the winter and slower times. I do charge them decent prices no low balling however the prices become decent for add ons (real ones). I would explain to the current realtors that you are investing in highend stain removers and charge accordingly becuase it sounds like the base price is in stone. The otherway I get larger $ is I do the tile while I'm there and VCT in kitchens etc, normally there so bad I need to sandscreen them. I also do any wood or laminate floor if they have it. The VCT restoring, and wood are pretty much niche markets here so I can get decent $. Plus the more you offer the less chance they will consider anyone else. Just thoghts for you

i guess it's alot about your costs. I rasied my prices from . 20 sq ft to .28 and i'm more busy now then ever, i hope to hire someome for all the jobs i can't get too. All i use is the YP but all i do is res work ATM. With my cimex in hand I'm  ready for the comm work and looking forward towards it.

I know most have a min job rate. i don't, if its a bedroom only or stairs i go do it. alot of my business is refferals now, so it paid off for me. Chatting and reading about ever ones concerns has helpped me out. Its allways to much today, not enough tomorrow. I'm lucky i have other business that do very well. If i had to live on the money i make carpet cleaning it would be tight. But i'm only entering my 2nd yr of business. I have a friend that (yes i have one of them hehehe) cc in Ontario and we exchange idea's, of course his business was up and runing longer then mine was at the time. No alot worked for me but it works for him, perhaps due to the bigger customer database.

I'm at or getting to the point that alot of my new clients don't ever ask my price there only concern is when i can get there. I belive they see me work alot longer then Sears or chem-dry and get more for there money. Of course i make less an hr but i have really ingrease my time over the last months.

Sorry for the long comment but i got my monies worth 8-)

 

Your friend

Steve

 

 

 

 

well if you don't have any other buisness you have to start somewhere. the only way i think you can pull that off and do a good job for that price is with an op machine.

I think it depends. If you aren't busy now, then you really SHOULD take the work. Think of it as your EDUCATION. Where else can you get 30, 40 or even 50 bucks an hour to learn your trade? If you have other, much higher paying work, then by all means take a pass.

I was in a similar situation 2 months ago when a property management company approached me. They wanted me to clean their appts for .10/sf. I talked them up to .12, but that's still a LOT of carpet to make some $$. UV tests are extra, deo is extra, and trashed units are extra though so it's not horrible. However, they are filling up many of my days with work, so I'm making decent money with it. I may change my mind in about a year, but until then I think of it as my Carpet College.

Also, they will all be empty which is very nice. Just my .02.

I would love a gig like that for a year or so. let me share something with you guys;

In between working ships years and years...I would also do some mobile car detailing. That lead to RV cleaning. Often I'd get calls for detailing RV's for sale. That lead to houses. There are many details missing here but you get the idea.

Anyway, I had a small property manger (he owned like 15 houses)decide to sell his rentals and they were low-rent areas. some were crack houses (really). I had a porty and a Rotovac. I new how to power wash, do windows, fans, yadda yadda yadda....I made a small fortune in about 3 months doing all of his nasty houses. I learned how to bid that service.

I never learned how to really clean carpet though since they were usually going to throw out the stuff and do tile.

I would jump on the chance to do that...with carpet. Get a reputation for being able to really work out some nasty carpets...get some photo's...put together a portfolio..have my own little science lab for carpets!?

Thanks for all the responses! It has given me much to think about. It helped me to put these houses/work into perspective.
Thanks again!

I see both sides of this argument and I've accepted and declined jobs because of this. Having some work is not always better than no work. The education and experience has value. but you can get that same experience while making profit also. My advice would be to carefully figure out your job cost numbers. I think you'll determine that your net profit is not that good.

The 2 story job sounds like at least 2-3 hours of work and maybe more for $120. Consider all your expenses including: vehicle, fuel, equipment costs, business insurance, vehicle insurance, chemistry, cell phone... Your list may be longer or shorter. Then there is the IRS. Say this job takes you 3 hours and your gross is $40/ hr. Your expenses for this job work out to $30 and that leaves you with $90 or $30/ hr. After the gov't takes 45% of your profit (if you own the company) your left with $16.50/ hr. Can you support a family and build a business on that?

IMO this will Bleed you to Death. It creates a bad catch 22 where you'll be too busy with low margin business which prevents you from doing the things necessary to build a viable business. At these rates you can't hire someone to do this, because you can't afford to pay them. Therefore you will have to do it all the time. It will also prevent you from going out and getting higher margin business. A lot of compnaies will float this offer out there and the work will be done on thier terms. You do a good job and expect things to get better but they don't.

I would pass and work on something that is a better fit. Most of us (myself included) could use more work but there's not enough profit in this job to build a business.

TimO