$85 an Hour for Labor

SO I was at a Roots blower repair center today, and the tech told me the labor rate was $85 per hour. And that does not include parts needed for the repair, just labor. Not really a surprise, but it made me think about the guys who are cleaning 2 rms for $65 or whole house cleaning for $99.

If the Roots mechanic is charging $85 an hr. plus parts, why is it some of us think we should work for so much less. When we figure in business expenses, why should we be working for a fraction of the going labor rate?

I feel I charge a far amount for my service most of the time, but it's the cleaners out there under cutting me/us, that give us a bad name and cause customers to expect quality service for penny's on the dollar, I think.........the reason most price shoppers say "ok thanks, click", when I tell them my min charge is $120-150 on the phone.

Why can't we (as a whole) be like the Roots service man?

Your thoughts?

I definately agree, when it comes to having work done it costs money and it is redicilous of some of the rates, but when the work is done and the problem is fixed so you dont have to go back then the money is well worth it or if you have to take it back fix the problem again and make it right. My 99 dodge van cost 1500 for new front end and this last year it popped off like a hip socket in the middle of a parking lot. The whole thing dropped right on the tire and thankfully we were in the parking lot and not on the winding road we had been traveling down. The warranty was still good and it was replaced the second time at no charge. If I was to charge crazy cheap prices it it is going to be difficult to keep my machinery up and take care of my family. I sometimes neglect my own body by being cheap and not spending the money to put proper nutrients in it,or let my teeth go for 15 years, therefore a couple of weeks ago I gave out and bam 12 stitches in the eye and 30k for 5 hours of hospital time and a iv for dehydration. Wish that would have been cheap.

As a single truck Owner operator I need $125 an hour to make a small profit. At $85 dollars an hour I would be paying the customers to work for them.

Davey Cracker wrote:SO I was at a Roots blower repair center today, and the tech told me the labor rate was $85 per hour.  And that does not include parts needed for the repair, just labor.  Not really a surprise, but it made me think about the guys who are cleaning 2 rms for $65 or whole house cleaning for $99.

If the Roots mechanic is charging $85 an hr. plus parts, why is it some of us think we should work for so much less.  When we figure in business expenses, why should we be working for a fraction of the going labor rate?

I feel I charge a far amount for my service most of the time, but it's the cleaners out there under cutting me/us, that give us a bad name and cause customers to expect quality service for penny's on the dollar, I think.........the reason most price shoppers say "ok thanks, click", when I tell them my min charge is $120-150 on the phone.

Why can't we (as a whole) be like the Roots service man?

Your thoughts?

Was that a Freudian slip? ("I feel I charge a FAR amount for my service...")

The problem isn't that there are guys out there undercutting us. The problem is that the public doesn't value the difference between cleaners and that is our fault and the fault of our trade organizations.

People will always pay for what they value, just look at that wedding ring for example. Even though the mark-up on jewelry is over 300%, people still buy it as they see value in it.

What we need to do a better job of is educating the public on why they should value a quality cleaner. Stop focusing only on getting the job done and scooting off to the next one without explaining to the customer why you were able to remove that stain.

One of my favorite thing to do is leave a specimen jar of the waste water after a job, showing the customer just what was removed. I don't do it all the time, but when I get a customer that tells me their carpet isn't very dirty, they get proof to the contrary. Then they see the actual value in what we do for their homes or business.

Seems in my area that people are very cautious about "deals" on carpet cleaning. Almost everybody has made the 5 rooms for $49 mistake that has been running for 30 years straight now. Once bitten, twice shy. People that have been bitten expect to pay more as they now know what the package deal will get them- an under experienced salesman who will fly through their home regardless of how many "ADD ONS" They will buy. This model of doing business is very close to it's end as " SMART" consumers have caught on- too good to be true? Yes it is.

In a word "warranty" Theirs is more standardized because they know that if it breaks under warranty they have to fix it. The second problem is and always will be: barrier to entry. The blower repair man had to go to school and in school they teach among other things the cost of doing business.

What we might do instead of lamenting the existence of the low price guy is to develop a way of educating them to the true cost of doing business because educating the consumer is not going to work in my life time.

I get $90-125 hr while working(minimal debt and low biz expenses). But I don't work(labor) 8 hr a day. On average 4-5hrs. BUT some days it 1-2hrs; so I need to balance those days by making the $100ish/hr. Some would say "why don't you charge a lower price and get a lot more jobs?" It doesn't work that way unfortunately. And to get and do more jobs would burn me out. They when someone's dog has diarea all over, they don't want to pay much to have someone come do it. So if my min is twice what they will pay...they call "not me".
With a low price I'm considered " just a carpet cleaner". Right along with used car salesman, lawn care guy, pool boy, and burger flipper. NO disrespect ment to those.
Plus, i ve got to pay for that $30k TM that's in the van some how.
Does a plumber have $30k in tools? Or the HVAC guy? idk?
In addition; I laugh inside that a guy who barely (really) graduated from HS, did comm college 2x, and broadcasting school; can make $100 to $150hr.

They are paying for results. And my jobs is to charge the most I reasonably can before they say ouch.
3 rooms for $49... they are getting $49 worth of results.

Don't get me wrong, I'm they most expensive hack in my area.

in order to not look like this poor mouse when youve been in this business for a long time

you just need to change who you advertise to,    if you advertise discounts and coupons then youll be known for discounts and coupons,   so you will only get customers looking for discounts and coupons

For 125.00/ hr labor you can make a solid profit,   costs should not be very high in carpet cleaning.

say you bring in 600 for a day thats not a full 8hrs,   how much would your costs be?     Ours would be well under 200.00

What expenses are including in that under 200.00 per day AC? I would presume its not you total cost of doing business? Insurance, taxes, maintenance, fuel and other expenses.

Did you pay cash for that TNT? Some guys will fiance a new TM and start of with a 200 monthly payment.

My biggest expenses is labor and workers comp, those 2 amounts to almost 30 % ( for 2 man crew ), equipments are paid off, 2 vans are still making payments, 2 years left, low interests for those, so I would say for all the costs including insurances ( van and equipment insurance, liability insurance ), fuel, cleaning solutions, wear and tear maintenance, etc, would amount to about 50 %, that's not including depreciation and taxes ( which is also one of the biggest expenses ).
If you can pocket $ 400+ from $ 600 gross sales, you're doing really well, don't know how you do it :-)

Yes I dont mean employee labor included, this is for the truck I go out on solo cleaning

My employee is paid on percentage no hourly. Hes a small member of the LLC so no workers comp etc to be paid. Also hes not a sub contractor which brings up other issues and expenses.

He is paid much more than I could pay a normal employee but it allows him to make good money and stay motivated to help increase the growth of the business. Also keeps him trying very hard on every job and treating the customers really well, he regularly gets $40 tips... I dont as often because they know I am the owner.

under 200 for the day is factoring maintenance, tax, fuel, chems, insurance (which is very low at $90/month) and advertising to keep that van booked

milspec6 wrote:

Davey Cracker wrote:SO I was at a Roots blower repair center today, and the tech told me the labor rate was $85 per hour.  And that does not include parts needed for the repair, just labor.  Not really a surprise, but it made me think about the guys who are cleaning 2 rms for $65 or whole house cleaning for $99.

If the Roots mechanic is charging $85 an hr. plus parts, why is it some of us think we should work for so much less.  When we figure in business expenses, why should we be working for a fraction of the going labor rate?

I feel I charge a far amount for my service most of the time, but it's the cleaners out there under cutting me/us, that give us a bad name and cause customers to expect quality service for penny's on the dollar, I think.........the reason most price shoppers say "ok thanks, click", when I tell them my min charge is $120-150 on the phone.

Why can't we (as a whole) be like the Roots service man?

Your thoughts?

Was that a Freudian slip?  ("I feel I charge a FAR amount for my service...")

The problem isn't that there are guys out there undercutting us.  The problem is that the public doesn't value the difference between cleaners and that is our fault and the fault of our trade organizations.

People will always pay for what they value, just look at that wedding ring for example.  Even though the mark-up on jewelry is over 300%, people still buy it as they see value in it.  

What we need to do a better job of is educating the public on why they should value a quality cleaner.  Stop focusing only on getting the job done and scooting off to the next one without explaining to the customer why you were able to remove that stain.

One of my favorite thing to do is leave a specimen jar of the waste water after a job, showing the customer just what was removed.  I don't do it all the time, but when I get a customer that tells me their carpet isn't very dirty, they get proof to the contrary.  Then they see the actual value in what we do for their homes or business.

I disagree ~ I think customers do know the difference between cleaners, otherwise you wouldnt be in business. I think people get weak and fall for the $99 cleaning specials because it sounds good, convenient and the mind tricks them into thinking the guy selling it couldnt last long ripping people...right??...and they usually dont! AND some people can clean cheaper than you....its all about overhead. If my monthly bills were $1000 and yours were $3000 you would need to cost more...it doesnt always mean they are crappy cleaners BUT for the most part they probably are. Thats why its crazy to price based on competition....some offer insurance and some dont....some buy simple green and some dont....its subjective. I will charge what I need to to make a fair profit. I will do much more than my competitor does for added value.

^ that is so true, but not something I can tell a customer, of course.

I can't say I charge more because my bills are 4x as much as illegal Jose, or that I live a good life. But I can grantee that I will do a much better job, because I take the time to do so, and care that they are happy. Plus I can also say I am insured, use safe cleaning solutions, will be around next time they need service/or if they have a problem with the work I do I will come back (Try that Jose), among many other things that a budget cleaner isn't going to do.

3 Rm's for $85, they can have them!!.......that's no competition of mine.

Why Davey?? that is the meat! thats exactly why you can tell them, Im am more because I have insurance, chemicals, yadda yadda and I happen to make just a few more dollars then that other guy....I like to be a happy worker. Ask who they want to clean thier carpets...a pissed off $8 hr guy or a $18 an hour dad/family man who is trained and has drive. This is why Im back in....they do not get it here.

Now, Im just starting back up and will admit Ive already done a couple jobs cheaper than I should of BUT, I can, and im building things this first few months to get funds in my account to move forward with.....I have wiggle room right now. I will be the guy who is charging more than any other in my 60 mile radius and probably even further out then that. Not because I can but rather because its the value they will ultimately want.

Dang it! had to write this twice...forgot to copy.