Is Owning a Carpet Cleaning Business Profitable? That is one of the big questions people often have about whether or not to start a carpet (and floor) cleaning business. The answer is YES … IF you understand how to make it profitable.
Too often new carpet cleaners think that going out and cleaning carpets in a few houses each day can be lucrative. While that can certainly bring in some nice cha-ching, there is simply more to it than that. Let’s consider a few truths about the profitability of this business.
Is Owning a Carpet Cleaning Business Profitable? Well, For many carpet cleaners the business is break even at best
There are costs involved in the business of carpet and floor cleaning. So, once you consider the costs of daily operations and then add your personal financial obligations (mortgage, car payments, etc.) you may find that you are merely breaking even each month. This is what my dad always called:
Living hand to mouth
Trust me, you don’t want to live “hand to mouth” each month. When all you do is break even each month, then you really don’t own a business. In reality you only own a job.
Howard Partridge, a key leader in the carpet cleaning world, says that the reason you started a business was so that you could achieve your L.I.F.E. goals (Living In Freedom Everyday) … especially your financial goals. I agree with him but would add that the first two years are very challenging financially.
But don’t give up!
The first two years in business are challenging from the perspective of profitability. Why? because your company is new to your city or town and you are simply not as known as your competitors.
Getting ranked on page 1 of Google (where many of your customers search) takes a lot of effort, energy, and know how. Many SEO (search engine optimization) companies will contact you and offer to get your listing on page 1 within 60 to 90 days. Don’t sign on with them! As much as they promise to get you highly ranked, they cannot. I have learned this lesson the hard way … I lost thousands believing they could do it. I will be happy to tell you more if you opt for my free consultation.
So, yes this business is very profitable but the good money doesn’t roll in as much as you would hope during those beginning years. There is a LOT to learn and do.
Is Owning a Carpet Cleaning Business Profitable? Add-on sales/services can make a HUGE difference in your bottom line
Here is a big head’s up warning: People hate being sold on things that they didn’t asked for. The carpet cleaning industry is plagued by unscrupulous cleaners who give a quote on the phone but then do all they can to up the price significantly once they arrive at the customer’s home. This is called: Bait and Switch.
Bait and Switch is THE plague of the industry
However, there is a way to add-on sales and services without being unscrupulous. Simply learning the right time and the right way to share an added service can make a HUGE difference.
The key is knowing when and how. I can teach you to easily recognize when the time is right and the best way to make an offer.
Let’s say you won a job on which you quoted $110 for three rooms. But when you were on the job you noticed there were other areas that you could clean while in the customer’s home. The customer receives a lot of value because you can offer reduced pricing since you are already in the home.
If you averaged adding a mere $15 to each job you would earn an additional $10,600 per year based on 3 jobs per day Monday through Friday. However, there are ways you can an average $50 per job which translates into an additional $43,000 based on the same amount of jobs.
Is Owning a Carpet Cleaning Business Profitable? Saving money on equipment and cleaning solutions can really help
New and used carpet cleaning equipment is always at a premium. Portable extractors, ETM (electric truck mount) extractors, and gas-powered truck mounts are marketed by quite a number of carpet cleaning supply companies.
Used versions are also marketed on various sites. There are countless options and prices to choose from. Once a decision is reached on the type of extractor that will be used then shopping for one begins,.
When just starting it is probably best to purchase an extractor (new or used) at a low price. This saves LOTS of money but also allows you to “try” the business for a while to make sure it is a good fit for you.
Should you decide the business isn’t for you then you can sell your equipment at a minimal loss. Should you decide to remain in the business then you have good equipment to use until you can afford to upgrade to higher quality equipment.
Options in chemicals, spotters, and pre-sprays are also quite vast. Every cleaner has his or her chemicals of choice. Prices on these products can swing up or down significantly. When starting out it is best to set a budget for these items. And by all means, try to avoid getting caught up in all the “this is the best pre-spray ever” hype that you will see on the internet and through testimonies. In reality there are minimal differences with any of them. I can help you select affordable products to start with that will save you a lot of money.
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So, Is Owning a Carpet Cleaning Business Profitable?
Indeed it is but one must learn the ins and outs of starting so as to make the best decisions and not make costly mistakes.
If you have questions about this topic you can schedule a FREE 20 minute consultation with me by CLICKING HERE. I will be happy to help.
Thanks,
Tony Guthrie