Life Changing CashFlow - KEEP READING 👇👇
If you master this you will dominate and you will build yourself a life changing cash flowing business.
🧵
If you master this you will dominate and you will build yourself a life changing cash flowing business.
🧵
1/ The residential cleaning industry has a ton of opportunity right now and its only escalating - House cleaning use to be a luxury and now it's a service everyone wants.
Even peaking higher interest due to COVID-19.
Even peaking higher interest due to COVID-19.
2/ People hire a cleaner and once they experience the feeling of coming home from work to a nice clean house... there is no going back. They are hooked!
LTV of customers is INSANE and the CAC is insanely low.
Thats a prime business if you ask me.
LTV of customers is INSANE and the CAC is insanely low.
Thats a prime business if you ask me.
3/ I have had some customers around for almost 3 years now.
Some paying anywhere from $300-500 a month on average.
People wanting weekly cleanings or bi weekly averaging around: $180-210.
Net margins (depending on location) falling anywhere from: 25%-35%.
Some paying anywhere from $300-500 a month on average.
People wanting weekly cleanings or bi weekly averaging around: $180-210.
Net margins (depending on location) falling anywhere from: 25%-35%.
4/ In addition to all this price elasticity is INSANE in residential cleaning and always say the joke - "You could literally pull a number out of a hat."
If you want to charge last minute bookings fees - do it people will pay.
You crazy room for pricing and endless customers.
If you want to charge last minute bookings fees - do it people will pay.
You crazy room for pricing and endless customers.
5/ The entire industry only really has one bottleneck and that is cleaner churn which can be mitigated easily from doing a few things. SMB owners talk a lot about - culture and creating a work environment that employees want to enjoy.
6/ Firstly, I am a huge proponent of this BUT this does not work for residential cleaning.
Now I am not saying have a horrible work environment.. of course not.
But that should not be the main focus of how you retain cleaners and mitigate churn.
Now I am not saying have a horrible work environment.. of course not.
But that should not be the main focus of how you retain cleaners and mitigate churn.
7/ Cleaners in the residential side of the cleaning industry are focused on only one thing - MONEY.
I have personally tried all kinds of incentives for house cleaners: Amazon Gift Cards, Gift Baskets, Company BBQs, etc. NONE work as well as just paying more MONEY.
I have personally tried all kinds of incentives for house cleaners: Amazon Gift Cards, Gift Baskets, Company BBQs, etc. NONE work as well as just paying more MONEY.
8/ Two ways to conquer this -
1. Pay much higher than your competition and charge your customers more so you stay within your net margin ranges.
2. Offer monthly or quarterly cash payouts to cleaners who - show reliability and quality control.
1. Pay much higher than your competition and charge your customers more so you stay within your net margin ranges.
2. Offer monthly or quarterly cash payouts to cleaners who - show reliability and quality control.
9/ The two largest pain points of customers is reliability and quality control.
If you can mitigate the customers two pain points by leveraging capital to incentives cleaners. DO IT.
If you can mitigate the customers two pain points by leveraging capital to incentives cleaners. DO IT.
10/ Cleaners are the only bottleneck so master that and you can create a cash flowing machine that truly can change your life.
And the best part about it... there are ways to automate it and scale it very quickly if you follow the right playbook.
And the best part about it... there are ways to automate it and scale it very quickly if you follow the right playbook.
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