[Neil Williams]

Right now I've got your attention  just what the flock is going on.
I've known for some time that one of my local well established TM'ers was a bit on the cheap side, but having spoken to another CC'er today I'm seriously gobsmacked.
No wonder we both lost out to the tune of 300 sq/m of local hotel carpet when this crew got it at 60 PENCE PER SQUARE METER.

I thought the idea of having an expensive fuel sucking machine (no offence and all that) was that you got paid decent money for a days work.

I seriously need to move to another area if this is what the supposed 'rich' Hampshire has got to.

[Mr Dvae]

 

[Mike Halliday]

the equipment you use bares no relevance to how much you charge or how much you earn, the only thing that effects these 2 things is the words that come out of your mouth

EG;" that will cost £80" or "that will cost £180" you choose what you say and what you earn

[jasonl]

And he grossed £180 in 2-3 hours if he worked in an organised fashion.

[The Carpet Cleaning Pro]

 Personally i think its all down to your overheads. what you charge.  
If you have low overheads and basic living costs, then you can get away with low prices.
Low price = chance of getting more jobs. = more money
More jobs = more money, more recommendations, customer becomes frequent user= less advertising cost = more profit =more money.
Low over head and basic living costs = more money.

Its all about doing the maths and dont just take every job as you see it... Look at the bigger picture.

People may or may not agree with what i have said but the one subject i did listen to in my school days was economics.


Low demand dictates a high Price to maintain income rate (Norm)
High demand dictates a high price = GREED (Peoples downfall)

What I learnt was by placing a low price in low demand times means more sales thus more jobs/customers/income = more profit

[L.Doubtfire - The Blade Runner]

That’s good money that Neil.Just think,if that had been
A `Groupon Attack`it would have been 25 pence per sq.yd.
  : : : :


Lewis  Doubtfire

[john rees]

                                                                                                                                  I wouln't worry about it, we have one near us and he uses what he calls the best carpet cleaning chemical he's ever known...and it needs no prespray or rinsing...virosol degreaser.I did have a look at the data sheets and I wouldn't like to use it that's for sure! I do admit to using it myself occasionally.......but only to clean the engine on my truckmount when I'm servicing it!

                                 all the best
                                                  John

[Doug Holloway]

Hi Guys

Economic theories are fine but just look how the so called experts have completely messed up the economy.

It is more an art than a science.

I only know that the hiigher prices I have charged the better off I have become.

Cheers

doug

[John Kelly]

I only know that the hiigher prices I have charged the better off I have become.

Simple common sense Doug

[JandS]

I think jason hit the nail on the head.
£180 for 3 hours work, tradesmen aren't
earning that now.
Just had a joiner round for a couple of small
jobs last week. Took him 3 hours.
Asked him how much and he said £25 per hour
cheque, £20 per hour cash.
And that, apparently, is a good hourly rate round
here for a tradesman.
Not knocking peoples prices if they can get it but
stop moaning if your being undercut at over £60 per hour.

John

[Colin Day]

£60 an hours good going, surely. We'd all love to be making £100-£200 per hour, of course we would.

The fact that they use a TM means they'll be doing the job a lot quicker and probably better, then they'll be on to the next job.... So they'll be raking the cash in, theoretically....

'Pile 'em high, sell 'em cheap' was Alan Sugar's way, he didn't do too bad out of it...

[Mike Halliday]

'Pile 'em high, sell 'em cheap' was Alan Sugar's way, he didn't do too bad out of it..

It was also peacocks motto and they went into receivership yesterday

[jasonl]

'Pile 'em high, sell 'em cheap' was Alan Sugar's way, he didn't do too bad out of it..

It was also peacocks motto and they went into receivership yesterday

And sainsburys , they are not doing bad either , or Lidl , or Aldi , Or Ikea .

[The Carpet Cleaning Pro]

Hi Guys

Economic theories are fine but just look how the so called experts have completely messed up the economy.

It is more an art than a science.

I only know that the higher prices I have charged the better off I have become.

Cheers

doug

Personally I think it's GREED that has messed up the economy. How can some of these higher paid people justifie thier wages and bonuses. ... Oh I know, I will get all these muppets to do the work and I will take the credit for it ... and oh I think I deserve 1million as a bonus.

[garry22]

This guy actually shows the REAL (calculated) effects of price cuts (or rises). e.g what effect even a 10% reduction in prices has on your bottom line.

http://www.amazon.com/Sell-Margins-Higher-Than-Competitors/dp/0471744832/ref=ntt_at_ep_dpi_1

[Colin Day]

'Pile 'em high, sell 'em cheap' was Alan Sugar's way, he didn't do too bad out of it..

It was also peacocks motto and they went into receivership yesterday

I didn't know they did carpet cleaning..... 

[Dave_Lee]

The leverage chart that I have shows this:-

Profit margin.       Increase price by.    reduce price by.      To maintain same gross profit - can decrease sales by - must increase sales by.

     50%   .................   10%   ...   17%

     50%   ...................................................  10%  ...  25%

     50%   ................    25%  ...   33%

     50%   ...................................................  25%  ...  100%

This clearly shows that you have to be careful when it comes to discounting as even just a regular 10% discount can greatly affect your gross profit margin, whilst a 10% increase in prices can cut your workload by a sixth, whilst maintaining your profit.
Dave.

[jasonl]

On the other hand ,1 OPERATOR in the east midlands has 5 vans on the go all the time , charges £25 a room flat rate  each van does £150 a day minimum he clears £50 per van minimum per day  before office and marketing costs , it is a very simple 50k a year for him .

Discounting does mean profit in many cases .

[Craigp]

Jason have you made a mistake there? £50 per van BEFORE office and marketing?

But anyway £150 Gross per day, per van. Thats nowhere near enough! fuel, wages, chemicals machine and van repairs/consumables would soon swallow all that up.

[JandS]

Surely a 10% price increase will reduce work load by 10%.
Plus increase profits by the same??
Or am I missing something?

John