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Your opinion about our industry?

Henry Bockman

New member
Okay I'm back after taking a break... I've had people calling me all week asking me the same questions over and over again and I got a bit fed up with it. Don't misunderstand, if you really need help or have a question I'd be happy to talk to anyone. BUT, don't keep asking me the same questions about the same jobs!!!!!!!!!! Geez, no one listens these days. They ask questions and never pay attention to the answer or write it down, just call back 5 minutes later and ask again. Use the search feature on the BBS, if you can't find the answer, then call me.

I think our industry is in it's teenage years and I agree with John T to some extent, 2009 is going to be tough for a lot of guys but I think he's dead wrong on the residential market doing well this year!

I see home owners cutting back and doing their own deck cleaning, using information they find on the net and BBS's like these. I see them letting the "look" of their homes go a bit so they can hang on to their money. I see a lot of guys that have been in the PW biz for a while downsize or close all together because of large overheads. I see LOTS of new guys coming in with lower prices, less overhead and what they learn on BBS's to get started up. I see wood restoration slowly tapering off as new composite materials are developed and home owners learn to do for themselves. (This may take 10 years)

I think the commercial and industrial PW markets will slow down but for those that positioned themselves properly last year, will do very well. I see a big change over in the industry over the next three years but, I think there is some good news. Everything that people delay cleaning will keep getting dirty, when things turn around those companies that are still around and can market themselves well will really "clean up" Pardon the pun!

It's going to take time for things to turn around but when they do, things will really pick up! Until then, diversify, diversify diversify! Add on services, market your company and hang on to your customers! If you can do that, and keep your overhead down you should be just fine.
 

topcoat

Contributing Member
Henry,
Topcoat, Being a painting contractor also, I grew my business with networking. We joined the PDCA 11 years ago and grew every year since. The networking goes on today. The info is amazing and every meeting we attend, we learn something. I believe the painting industry as a whole is a huge asset to our business. We test products for several companys and our comments are respected in various painting magazines yearly. Not because we are the smartest painters, because we share our ideas and help others, for free! LOL I've been paid back many times over with any help we ever gave out. This is where the UAMCC comes in. By Contractors for Contractors. Thank you.

Terry

I have grown my business through networking as well, just a different path than yours. You must be in an area with a really strong local chapter. I am a member, and support it as an org, however I have not found my local chapter to have the constituency so far to be as valuable a resource as you describe. Like you, we pursue other avenues as well, manufacturers, dealers, magazines, etc. We do network with other paint contractors who arent even in the PDCA, but are more like minded in approach and type of work. There are opportunities, but we have to be very proactive in finding them. I foresee the UAMCC setting the bar a little higher as an industry org.
 

topcoat

Contributing Member
Scott - I think you hit the nail squarely on the head. This is the exact model for succesful business in America. And despite the plethora of opinions out there as to what a succesful business model is - opinions are like bellybuttons - everyone has one. But doesn't mean they're all noteworthy.

I think pressure washing is the next business where the independent owner/operator can step in at the ground floor - before this business goes big - and ride it to the top. If guys and gals have no intentions of going big in the next 5-10 years - then this business will leave you behind one day - leaving bottom feeders to fight over the 'scraps'.

Dan

Call me a dreamer, but I believe there will always be a place for custom services. No big megabusiness is going to take that away. Who are these big mega businesses going to get to do the work? You, me, Ron Musgraves, Fenner? Doubtful. The one man bandit lowballers? Doubtful. The good employees that none of us can seem to find? Doubtful. There will always be room for good honest service oriented businesses. As you have been noting on this and other forums, its really a matter of finding the right clientele and the right amount of work for the size you are comfortable operating at. There are companies 5 times my size right in my own market that none of my customers would allow through the gate. And there are many more customers like mine. I intend to find every single one of them.
 

Terry Miller

New member
Terry

I have grown my business through networking as well, just a different path than yours. You must be in an area with a really strong local chapter. I am a member, and support it as an org, however I have not found my local chapter to have the constituency so far to be as valuable a resource as you describe. Like you, we pursue other avenues as well, manufacturers, dealers, magazines, etc. We do network with other paint contractors who arent even in the PDCA, but are more like minded in approach and type of work. There are opportunities, but we have to be very proactive in finding them. I foresee the UAMCC setting the bar a little higher as an industry org.
Very True. Thank you.
 

Scott Davis

New member
Dan

Call me a dreamer, but I believe there will always be a place for custom services. No big megabusiness is going to take that away. Who are these big mega businesses going to get to do the work? You, me, Ron Musgraves, Fenner? Doubtful. The one man bandit lowballers? Doubtful. The good employees that none of us can seem to find? Doubtful. There will always be room for good honest service oriented businesses. As you have been noting on this and other forums, its really a matter of finding the right clientele and the right amount of work for the size you are comfortable operating at. There are companies 5 times my size right in my own market that none of my customers would allow through the gate. And there are many more customers like mine. I intend to find every single one of them.

While I don't disagree with you, I am ultimately in this business for the $$ not because I love washing, I hate washing. I love business. Mr Handyman is looking at $75million in sales this year, and was formed in 2000. True they are a franchise, but why cant we franchise?
 

Ken Fenner

Active member
Scott, I started PressurePros with the intention of franchising. I looked into the SEC laws and explored the avenue. Its expensive and you need a fairly high amount of liquid capital to do it right. It can definitely be done though.
 

Scott Davis

New member
Scott, I started PressurePros with the intention of franchising. I looked into the SEC laws and explored the avenue. Its expensive and you need a fairly high amount of liquid capital to do it right. It can definitely be done though.

Have you considered VC's or AI's to raise the capital needed?
 

Ken Fenner

Active member
I honestly don't know if I have it in me at this stage of my life, Scott. My target income is $500K per year. Not an easy target but not buy a yacht and sail the world at age 45 goal either. I have gotten to the point where money is balanced against having a life. I do love business but I don't want to be married to it for the rest of my life. I am leaning towards smaller, self managed businesses and internet models to build a nice residual income stream. I would rather own ten modestly earning businesses than have one mega biz that makes $500K. Thats why I like franchises. They run themselves.
 

Scott Davis

New member
My ideal situation would be to build this up, franchise it and then sell the whole kit and kaboodle to a larger corporation and use that money to start new businesses. Serial entrepreneurship if you will. Or buy up similar businesses around the country and just rebrand them under our company name/model.


In regards to your statement above, I am the opposite. i would rather have 1 well run mega biz that makes $500k rather than 10 small ones giving me a headache, and having to deal with different business models. Seems like you'd be scattered and wouldnt master any of them....
 

Ken Fenner

Active member
Scott, it all depends on the business. I own two franchises and I spend about an hour per week in each of them. They are so systemized and the managers in them so loyal and dependable that I just don't have to micromanage either one. The same rules apply as they do in other business. You are as strong as your systems and your employees. You have a young company so I certainly can relate to your thoughts on this. You are going to find that as you grow, the issues that require your time multiply exponentially. I can buy ten franchises tommorow (if I had the capital) that earn $50K for the owner. To build a $3 million dollar gross per year business (especially a service oriented one) can take 15+ years with a ton of growing pains in between.
 

James Foley

New member
I've always had a simple philosophy in my service Biz ..... Can I find 200 hundred people to spend 1000 dollars or 400 people to spend 500 and target them. I just got confirmation on 7k from 2 people . I have narrowed my targets to a very specific type person not effected by the economy.

There will always be a Niche or Niche's within an industry for specialization and for Reputation. I don't advertise but for some Spring and Fall Home improvement Ad's. Now I am back into it because of competition and I got killed last year by the Economy. I was caught off guard last year with gas prices and Wall ST and it's effect on the people I deal with for my work! Web is getting done and I'm going to get some of those Business cards people hand out. LOL

I disagree with Henry about Composites. Deck builders are starting to use PT lumber more as a choice again. Over the last 6 years Composites killed PT because of the CCA problem but it's making a comeback( I am refered by some builders) and have seen a spike in new PT. Price is also a factor it's cheaper. Do it yourself'ers may choose composites more due to the Maint. issues and people will forego having their decks done this years. I think you will see a lot of Cash deals going on to reduce price !

I think the industry will be a challenge this year but as a whole if you are Specialized in niche markets and have a Reputation. It will be very good going foreword . Just keep the clients you start with !
 

Henry Bockman

New member
Hey Jim you may have a point about the PT decks, I know 4 or 5 deck builders in my area and they say everyones switching over to composites but that's just 5 companies in the DC area. People around here tend to think differently. I'm also a bit out of touch with wood restoration since I'm thinking about phasing it out of my operation, I just haven't come to a definite decision on it yet.

I do think residential markets are going to seriously shrink this year. There will still be work out there but not nearly as much as last year. So far I know of 15 companies in my area that have closed, others have cut employees back and cut overhead in other ways as well.
 

Ron Musgraves

Past President
Staff member
Dan

Call me a dreamer, but I believe there will always be a place for custom services. No big megabusiness is going to take that away. Who are these big mega businesses going to get to do the work? You, me, Ron Musgraves, Fenner? Doubtful. The one man bandit lowballers? Doubtful. The good employees that none of us can seem to find? Doubtful. There will always be room for good honest service oriented businesses. As you have been noting on this and other forums, its really a matter of finding the right clientele and the right amount of work for the size you are comfortable operating at. There are companies 5 times my size right in my own market that none of my customers would allow through the gate. And there are many more customers like mine. I intend to find every single one of them.


I think I like you Scott, independant contractors. I like itttt
 

Henry Bockman

New member
Yes the meeting is still on the 14th. I'll send out an email later this week about it but I don't want to hi-jack this thread.

AJ, what do you see happening in the PW industry over the next three years? Or how is the PW market doing in your area right now?
 

topcoat

Contributing Member
I think I like you Scott, independant contractors. I like itttt

As long as we have a service that people want/need, and can deliver it at a high level, we will be there.

The mega model for residential and commercial services won't be happening if for no other reason than the challenge of finding the workers to do the work. Its not like retail where the big boxes crushed the local hardware stores.
 

Ron Musgraves

Past President
Staff member
Big Mike how are you
I think that this industry will not be taken seriously by the general public until the CWA is enforced on a nationwide level. Unfortunately this doesn't appear to happening anytime soon. This is the only way I can see the weekend warrior being taken out of the equation. Until that happens, I'm afraid that we won't truly be recognized as an "industry". This year will see a dramatic increase of new pressure washing contractors simply because of the downturn in construction. These guys know how to use tools, and its EZ to throw a pressure washer in the back of your truck and make a few bucks. Since the prez extended unemployment benefits to 18 months, many of these folks will be looking for side work. If I was going to start a business this year, it certainly wouldn't be pressure washing. There are too many other business ventures that would be easier to start on a tight budget. I see handyman type businesses as the real boom this year, and many of them will offer pressure washing as a service.

John, I think just the opposite. Residential customers will have a lot more people vying for their dollars, and many know someone who's hurting personally and want to help them out. I think residential work will fall off dramatically, and commercial will hold steady for a while longer. Its harder for newcomers to the "industry", to break into commercial work than residential.

The best way to hold on in this economy is to reaffirm your commitment to quality and service to your current and past clients. Let them know that although economic times are tough, your level of service will remain steady. Hold on to what you've got.
 
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