When is it Time to Buy Cleaning Equipment?
Episode 146 Jeff Davis Dynamic Duo Janitorial
Today Mike talks about when and how to buy cleaning equipment with Jeff Davis owner of Dynamic Duo Janitorial. Jeff asks if he should buy cleaning equipment before or after signing a big contract with a client.

Mike starts off with some good news. One of the many amazing things about the cleaning business is that it is doesn’t take a ton of cash. Combine that with the fact that you sell a customer once and get paid every month for years and you have yourself a fine business opportunity. If you are bidding and billing properly, you should never need to borrow money to buy equipment or otherwise.

BONUS LOVIN: If you DO have cash flow problems in your cleaning business CLICK HERE for a FREE video interview on how to fix it! If you need help bidding CLICK HERE for more than 20 FREE videos on on how to bid cleaning jobs

With that in mind, Mike shares that he is not a fan of floorwork because it is just a one time opportunity instead of recurring revenue. Of course if you are doing floorwork for your current monthly customers, that can be a great way to solidify that relationship.

Back to Jeff’s original question “When should I buy cleaning equipment?” Mike coaches Jeff to buy cleaning equipment with the profits from the floor work he wants to buy the equipment to do. Some of you smarter readers may be asking

“How can I buy cleaning equipment from floor work profits if I need the equipment to do that work?”

Excellent question! Start by selling the job and contracting with a local company to actually do the work. Quote your customer their retail rate while your business contact charges you their wholesale rate. Your margins will be lower, but you can start making profit immedieatly without all the risk of buying cleaning equipment and investing in training your people on that equipment.

Even then you wouldn’t buy equipment, what you would do is contract with another company in town. Say their retail rate is $1500 ask them for a wholesale rate, of $1100 and charge the customer $1500. Until you have that service going on consistently for 5-10 hours a week you wouldn’t buy that equipment.

Because even with that equipment, it’s just not the equipment, you have to have a “guy” that can operate it properly, you have to store and maintain that equipment etc..

But if you area ready to buy that equipment check out this podcast on Cleaning Supply Vendors

With an outside contractor the equipment is their problem, you know it’s in good shape, their employees can all work the machinery. But you would require them to use your uniforms while they are performing the work.

You would set that money aside to buy floor equipment for yourself. That way you are never cash negative and if a customer backs out, you aren’t stuck with $30k of equipment you aren’t going to use.