Showing posts with label profit margins. Show all posts
Showing posts with label profit margins. Show all posts

Friday, May 1, 2009

Working as a subcontractor


Working As A Subcontractor
 
I haven't posted for quite a while. So I apologize.

I wanted to speak about something that could really add a nice income stream to your business. Subcontracting. Many janitorial companies in particular, don't want or don't know how to properly clean windows. Many are very eager to work with a window cleaning company to clean windows for their clients. They may be happy because they may have turned down window cleaning jobs before, but now, they can have someone they trust clean the windows, and they can make a tidy profit on it.

I have worked with several janitorial companies over the past year. One janitorial company I have cleaned a restaurant for. Another has me clean some insurance office windows. Another had me clean payday loan centres, And this latest one has me clean condo sales offices. Generally there are two kinds of companies, serious business owners who charge good prices, and are reaping the benefits, and ones who charge very little and are working like dogs. I have worked with both.

The important things to deal with when you work with companies is this. Provide a pay period that they must pay you by. For example due on receipt or due in two weeks. You deserve your money, and don't stand for not getting paid til the customer gets paid. Let the contractor manage the risk, that will be a large weight off your back.

Try to put things in writing, even if it's just an email. For each new job you bid on send an email outlining what work you will do, and how much you will charge. Often terms are forgotten and arguments or misunderstandings may arise.

Don't feel that you need to cut your prices. I have charged decent prices, and the contractor was still able to put a decent cut on top of it.

Good communication is key. A janitor doesn't think like a window cleaner, and he might not understand your pricing, what work is involved, or other issues.

An advantage of working as a subcontractor is that you may get jobs that you may not get through your marketing efforts, or you may not be allowed to bid on.

Of course, janitors are not the only people you can work with. You can subcontract for property maintenance companies, national service companies, even other window cleaners.

So, in summary. Set payment terms, communicate, put things in writing, and don't cut your prices if you don't have to.

Thanks for reading my blog. If you are in the Toronto area, and want your windows cleaned. Call me. I am the Toronto Window Cleaner. 647-409-8144

Wednesday, September 24, 2008

The trap of being busy

Are you busy? How's business? These questions are like the how do you like the weather questions for business people.

They are good conversation starters, and are an enjoyable start to a discussion. However in those words lie a trap.

like alcohol for an alcoholic, being busy is like the alcohol for a business person. Being busy often makes us forget, or not realize that our business is floundering or not established properly.

It feels good to be busy, it makes us think that we are successful, because we have work, we have customers, we get paid, and it seems like we are building our business. But therin lies a trap. Often business people who work very hard, feel that they are successful, that they have built a good window cleaning route, or other business. However, they may be fooling themselves.

I know how good it feels to be busy. When establishing my business, it was scary. It was extremely worrying and frustrating to spend days canvassing, and not get any clients. I doubted myself, I wondered am I pricing to high? Am I targeting the wrong clientele? Is there too much competition? It was scary.

However, as I got some new clients, and as I cleaned windows, I felt good, I felt like business was rolling in, that my business principles were sound, and I was targeting the right people and pricing well. Being busy made me feel good. Because let's face it, men especially, need to work, and window cleaning for me fills that need for work.

However, when you look out in the world of small business and especially window cleaners. The busiest window cleaners are often slaving. They price too low, they wonder why they find it hard to make ends meet, they start cutting corners, feeling frustrated in not having good help they don't take vacations, they might leave their jobs for a few weeks to take the vacation. Being busy hides the flaws of their business, and lets face it, one of the biggest flaw is pricing. Often they have so much work because there prices are very low. But yet, pity them, they can't make ends meet, they cut corners, causing problems with their customers, they miss doing jobs because they are too busy, they work out of a beat up car that is always in the shop, they don't take vacations and get needed rest, and they might take chances with the equipment they use. But they don't know, they are so busy they think they are succesful. They might also fear raising prices, but their busy ness is the main problem, clouding their judgment, hiding the problems.

Most people equate busy ness with success. If you say that you only work a little bit each week, people think you are strange, and unsuccessful. They worry about you, even though your business is unfolding the way it should, and you are building a good well established business. You might look at a store, and if they are not busy assume they are going out of business. Most people equate busy ness with success. That is not true.

You can build a successful business through pricing with good margins, you wouldn't need to work as much, you don't need to cut corners, you don't need to skimp on equipment, you can take nice vacations, and hire help, and get away from being a technician, just working on running your business.

Stop looking at how much you are making, and look at how much you are charging. One of the biggest factors in your success is looking at your profit margin, making it as big as you can given market conditions and then marketing it to the appropriate parties.

Stop worrying about busyness, worry about profit margins instead.

Are you in the Toronto area and want your windows cleaned? Call Mike, the Toronto Window Cleaner at 647-409-8144