Any thoughts are appreciated.... For those who know me, they know that I am a full time banker and clean roofs every weekend. I need the full time health benefits and cannot give that job up just yet.
With that being said, I have done alot of roofs this year, 98% of them on either Saturday or Sunday. I plan on advertising in a local newspaper beginning in February with a full page color ad, showing before and after pics. The concern that I have is that this might get too big for me to handle. What if I get too many phone calls? I know that is a good problem to have, but it is scary to me.
I have never hired anyone in my life, and not real sure how to handle the money side of things.
For those who have hired people to do this full time for their company, do you recommend a salary or salary plus commission (upsells for siding and such)?
My plan is to do all the advertising, selling and setting up the jobs, and have two guys in my truck all week, doing the work (that I have trained properly, of course).
This way, I could stay working at the bank and still build this thing to where I want it to be.
Any numbers, would be appreciated. Thanks a million.
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Brad R. Iannacchione Soapy Roof, LLC New Kensington, PA 15068
Brad, It really depends on who you are hiring and training. If it is just two random guys that you put an add in the paper for then you might want to consider just salary or possibly hourly. Only thing with hourly is guys might lolly gag around when they could be gettng more jobs done. If you are going to bid and set up all the jobs I would do an houry rate with also a bonus for each job completed that day, just to give them a little more incentive. If they are people you know and really trust you should do a salary plus comission
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Prestige Pressure Washing and Roof Cleaning Roof Cleaning Dayton Ohio Pressure Washing Dayton OH 888-477-9274 Proudly Cleaning Ohio & Indiana since 2007 4633 W Wenger Rd. Clayton, OH 45315
When I started in this business 20 years ago. My thoughts were that I could do this and still maintain my current employment. No way! Unless you want to remain small. Back then I hired a guy and trained him to do it my way. I paid him 20% on every job. This worked out good for about 5 years. Then I brought on a second guy. His title was helper. I paid hime hourly. To this date I have the same set up on each truck. One commissioned and one hourly. The lead person doesn't lolly gag around due to his making money on work completed, which prevents the hourly guy from dragging his feet. Some things have changed.
Today, I have them sign a non-compete from day one. Commission is not paid on the total amount of the job. It is paid on the profit. By that, I mean taking ALL of your expenses to include chemicals, licensing, insurance, phone, advertising, etc. dividing it by 12 and coming up with a figure as to what it cost to operate monthly. I them divide that by 26. Which on the average would be the number of days worked monthly. This will give me a cost of daily operation. Bottom line, is that I take that percentage right off the top. For example, if we do a job for $600.00, I take 17% right off the top for expenses. So my commissioned guy is getting paid on $498.00. At 20% he makes $99.60. My paid helper starts at $8.50 hr.
A $600.00 job given the worst case scenerio of taking 5 hours to complete will cost me in labor $144.50 and $102.00 in expenses, my profit $ 353.50 after all expenses. Barring no major breakdowns. Although, most of that has been considered when establishing expenses or projected expenses.
I have one crew that basically focuses on my maintenances which is a totally different animal.
Brad, I hire seasonal employees. Most of them are school teachers who get summers off. This is perfect for peak season and then when the season tapers down also.
As far as advertising, track the ROI on EVERY MARKETING AVENUE FOR THE WHOLE SEASON. Newspaper bombs for me; totally not productive. But other guys have some success with it. The website is my #1 source of work, along with word-of-mouth being a close second. Decide what type of business model you want to market for, and stick with it so your numbers make sense. And remember, if it doesn't make dollars, then it doesn't make sense (cent$!)