$$ Planning

Do you plan or lay out how much you want to make in a year in advance?

And if so does it usually work out for you?

Well…it didn’t last year :frowning:

If I remember correctly you had horrible weather, storms maybe? Power outages, heat waves? So it was kinda out of your hands?

Yeah it was grim, we are still seeing the backend of it. Infact in the last 2 months we have had the islands average rainfall for the year! Things can only get better - it has to or I’ll be flipping burgers :mad:

we missed our goal by just a bit last year. Come to think about it though, i dont really do anything to try and make my goal, just kinda think what it will be and go with it…pointless i guess.

An additional question I would like to add is: Do you know how you are going to make that money?

We try to plan for between 15-25% growth each year this last year it was 17% over the previous but we had the floods and more rain and snow/ice than average so I’m pretty happy about it overall.

We set weekly, monthly and yearly production goals. We then set daily, weekly, and monthly booking goals. We try for 20% more of what the last five years average was.

At what Revenue level do you think 20% becomes unsustainable?

I am curious, you say on a different post that you did not do any advertising except for the YP. Since there is no regularity in YP ads how do you increase sales to meet your goal?

It is actually hard to maintain a business averaging only 4% annual growth. How do you contend with inflation, do you raise prices across the board?

I am not being a azzhole, I am truly curious.

not sure, still have my feelers out for that one. It wasn’t till about 8 months ago I realized that we were under the average price here. We are now slowly bumping up the price. Also the number of houses has jumped big time and from what I figure we are only servicing about 17-23% of the areas that we service. We also do a ton of small jobs. We just dropped our minimum charge and the flood gates seemed to have opened up. we now get a ton of apartments, condos, small homes…ect. I guess I really can’t answer that question until work slows down and I can’t make what I need to. our company is more or less a dinosaur with a face lift. Its been run about the same for 25 years and till now changes are finally being made. so far everything was so behind the times luckily everything is working out for the good now. I think our customer loyalty is the best thing going for us. right now we are thinking about doing quarterly contracts…more incentives. who knows. I am at the point I don’t even know if my changes will fail. things will turn around. The way I see it…the hard times now weeds out the good cleaners from the bad and in the end all of us will still be here doing what we do best. I am trying a new lemonade diet cause I sure have a ton lemons.

I have coupons in the yellow pages. Other than that we get most of our work from referrals and telemarketing. Not so much on the telemarketing. We do push for referrals. Don’t get me wrong there are times were we don’t meet our goals. That is why we have goals. your not going to get first place every time. over all we pick a place to shoot for and go get it. I would say in the slower months are goals are lower than the busy months by a lot. Last year January and February were horrible. Almost put us out of biz. This year we did more in the first week of Jan. than Jan. and Feb. of last year. Still trying dig out of that hole. I am also not saying that in 2000-2007 we din’t advertise either. 2008 sucked in a bad way for us. all available funds went to bills and some things got cut. this year looks like we can get back on track.

I’m not worried about inflation. I’m worried about deflation, or the collapse of prices in my market. We have too many window cleaning companies for the size of our market, and during a slowing economy every winds up underbidding the last guy who underbid. It’s a death spiral, worse than inflation. I’ve seen some of my competitors bid jobs for 30% of my price.
It’s crazy.

This is a good question. I would like to hear your response to your own question Chris. When guys first start out or even a couple years in it is pretty easy to increase your business by 20,30,40% But to say you can always do that?

At a certain point you have to realize market share and then I think try and maintain that rather than increase each year. I mean you always raise your prices. However if there is a population of 120,000 people like Bloomington, there is only so many homes and so many people going to get there windows cleaned. Then you have three other companies that are jockeying for the business as well. So at some point you are tapped out.

I have tried in all markets to say we arent at market share until at least 2.00 per person of the population of the town. I dont know for sure even then but its a goal. Its hard to know because you never really know your competition’s numbers.

I think it’s definately the “grapes of wrath.” I reckon there’s a price war everywhere now & illegal workers aren’t making anything easier. If they policed the situation better over here, it would also raise prices. Living in a place where the black economy rules is hard :mad:

I hope squeegee Bob’s just drop doing their work… I mean the stupid price cutting illegal working half homeless washers of glass have to be getting a hit from this.