[Davo]

Looking at the value of domestic window cleaning rounds where does the 2x round value multiple come from??

Surely the value of the round must depend on how much money the round generates for the ammount of time needed to complete the work.

eg.

4 week clean generates £ 400 per week over 2 days ( 12 hours)

value of round £1600 month




4 week clean generates £ 400 per week over 4 days ( 20 hours)

value of round £1600 month

are both these rounds worth £ 3200.


Your views please
Davo

[windowwashers]

Looking at the value of domestic window cleaning rounds where does the 2x round value multiple come from??

Surely the value of the round must depend on how much money the round generates for the ammount of time needed to complete the work.

eg.

4 week clean generates £ 400 per week over 2 days ( 12 hours)

value of round £1600 month




4 week clean generates £ 400 per week over 4 days ( 20 hours)

value of round £1600 month

are both these rounds worth £ 3200.


Your views please
Davo

IMO the quicker the work the higher the value as will make more money in less time, I would say the first would be more than £1600 and the second, you can buy a marketed round for 2x and a worked one (not just canvessed) for more, I would sell at 4x

[Davo]

So why do various cleaners say on the forum they wouldnt give anymore than 2x the value of the clean for domestic work??


Mark

[need a cleaner]

Because anything its only worth what ppl are willing to pay

[Davo]

Thanks for that info....but can anybody enlighten me please....

is it because there is little customer loyalty?

or maybe too many windows not enough cleaners to go round??

or is it because the round has little value to anyone other than a fellow window cleaner?

or is it because if they dont work it on a regular basis they'll lose it all?

some advice would be appreciated.


Mark

[Davo]

posted this a while ago, anyone have anything to say about this topic.

Mark

[NWH]

If your talking about buying work off of a company that have cavassed for you then yes 2x,there`s no way in a million years i would sell my work for just 2x.

[Grafters Cleaning Services]

So why do various cleaners say on the forum they wouldnt give anymore than 2x the value of the clean for domestic work??


Mark

mark the reason i for one say is because.
i feel that if i have to pay more than 2 times ie £200 worth @ £400 i may aswell get of my butt and do it myself therefore saving myself a few quid,
that's not to say that 3 times is not worth it because if it's good quality of work well established then yes i'm sure it's worth it.
if i was to sell my business for example i would want far more than 2 times i can assure you

[Village Gleam]

All the reasons you have stated apply Davo, and your sums made some good points.
But I can't give you any answers. Building a round is a slow burn, you might start with two hours a week. How long can you keep that up before you need to get a job.
There are smarter ways of getting work, and they are all on this site.

[Trevor Knight]

With all work that you buy there is an element of risk involved no matter if it is an established round or a newly canvassed one.

I would suggest that 95% of domestic work is based on a verbal contract and therefore you have no guarantee they will be loyal for any longer than your last clean.

So, from a purchasing perspective you have to look at how long it wil take before you have made a return on your investment. Look at if you have employed staff to do the work, the cost in doing the work etc..... then work out your period of time required before you make a return and then justify if it is a worthwhile investment.

As a general 3 x the value will take you 6/7 months before you make any money - that is a long time to work for a return as peoples circumstances change, lose job, move, don't like you, don't like method, not happy with standards etc.... these are variables you need to consider when purchasing.

[Davo]

justify if it is a worthwhile investment.

As a general 3 x the value will take you 6/7 months before you make any money - that is a long time to work for a return as peoples circumstances change, lose job, move, don't like you, don't like method, not happy with standards etc.... these are variables you need to consider when purchasing.

[Davo]

As a general 3 x the value will take you 6/7 months before you make any money - that is a long time to work for a return as peoples circumstances change, lose job, move, don't like you, don't like method, not happy with standards etc.... these are variables you need to consider when purchasing.

Trevor how do you arrive at the 6/7 months figure before you show a return on a 3x valuation. Is that allowing for your fixed costs or is it the ammount of the round you would lose in the initial take over period??


Thanks
Mark

[windowwashers]

With all work that you buy there is an element of risk involved no matter if it is an established round or a newly canvassed one.

I would suggest that 95% of domestic work is based on a verbal contract and therefore you have no guarantee they will be loyal for any longer than your last clean.

So, from a purchasing perspective you have to look at how long it wil take before you have made a return on your investment. Look at if you have employed staff to do the work, the cost in doing the work etc..... then work out your period of time required before you make a return and then justify if it is a worthwhile investment.

As a general 3 x the value will take you 6/7 months before you make any money - that is a long time to work for a return as peoples circumstances change, lose job, move, don't like you, don't like method, not happy with standards etc.... these are variables you need to consider when purchasing.

Have to add this, can you tell me any business that within 6/7 months you are in profit and a good one at that? people pay canvassers 2x 3x and 4x the price for a new customer IMO the longer the work is established the better the % that you will limit the losses therefor you will pay a higher price for this, I myself sell some of my work and get 4x as I know it is worth it if they dont they simply dont buy it never had a problem selling any work in the past.

[Davo]

Have to add this, can you tell me any business that within 6/7 months you are in profit and a good one at that? people pay canvassers 2x 3x and 4x the price for a new customer IMO the longer the work is established the better the % that you will limit the losses therefor you will pay a higher price for this, I myself sell some of my work and get 4x as I know it is worth it if they dont they simply dont buy it never had a problem selling any work in the past.

No I dont Ian, it looks to me as though window cleaners undervalue the resale value of their businesses in alot of instances. Obviously the work has to be well priced and fairly compact, otherwise you may be buying a pain in the neck.

I would have thought that a business t/o £25 k per annum with relatively low overheads must be worth more than  £4- £6 k. Many talk on the forum about valuing the work correctly, (in regard to pricing) but it seems to me that their exit value isnt high in relation to the value of the business.

Just thought there may be a reason for that that I had missed.

Mark

[Davo]

Found this link to some very good information on this subject.



http://www.windowcleaningroundforsale.co.uk/#Buying

Mark