Determining Your Cost of Doing Business – Part 2 of a 3 Part Series

CostsIn part 1 of our series we examined the cost of owning and operating your truckmount for your cleaning or restoration business. We came up with a simple way to determine the cost of running your truckmount, and how that related to the revenue stream you needed to generate to pay for it. You can learn more about how to do that in part 1 of our series by clicking on this link.

Now we are going to look at how to look at the expenses beyond owning and operating a truckmount. In part 2 of our series, we will examine how all the other expenses your company has can be built into an overall cost benchmark:

  • Marketing and Advertising (B)
  • General Liability Insurance (C)
  • Van and Truckmount Insurance (D)
  • Care, Custody, and Control Insurance (if you are hauling or storing your customers belongings. (E)
  • Health Insurance (F)
  • Other Insurance (G)
  • Other Maintenance Costs (Van/Shop) (H)
  • Utilities (I)
  • Phone (Mobile and Landline) (J)
  • Rent/Mortgage or percent of rent or mortgage (if operating out of your home) (K)
  • Other expenses (L)
  • Salaries (Labor) (A)

Just like we did with truckmounts, we are still going to be relating expenses to how much it costs for a specific thing related to a production hour. A production hour means your machine is running and you are making money. It is NOT – selling time, driving photo 2time, set-up time, tear down time, break time – just when the machine in on, you are earning money. Now admittedly, there are ways on a job site to earn money when your machine is not running. Selling fabric protector is one that comes to mind. But essentially, when your machine is on, you should be earning income. When it is off, you are usually not earning any income. I call  this a “production hour.” The easiest way to determine how many production hours you have in a year to pay for all of your expenses is to add up the number of total hours you put on your truckmount(s). The easiest way to do this is via your hour meter on your truckmount as a starting point.

The first thing you have to take a look at to use this exercise most effectively is the number of trucks you have on the “street” on a regular basis for cleaning, out earning money. How many truckmounts does your business operate? If you keep 3 trucks consistently busy, then all of the expenses above have to be covered by 3 trucks, not just 1. All you need to do is add up the hours that were put on your fleet of truckmounts. For instance, if you put 620 hours on truck a, 490 hours on truck 2, and 380 hours on truck 3, then you had 1,490 production hours (620+490+380). If you only have 1 truckmount operating, and you put 710 hours on it last year, your total number of production hours is 710.

Now simply use the expense side of your income statement, and remove all of the expenses related to the truckmount itself. We already determined that in part 1 of this series. The only variable in this list of expenses is the amount of salary and labor you want included in your calculation. If you are the owner, do you want to include your pay in the calculation or do you want your pay decided by the amount of profit the company is making?

To keep this simple, let’s start with a one truckmount operation, and use numbers from expenses 2an “average” income statement for a one truck operation. Let’s say that our 1 truck company has 3 people employed – 1 full time and 2 part time. The full time person is you the owner.  Let’s say you want to pay yourself $60,000 per year. The second person is a part-time technician/helper that you call out on larger jobs to assist, and use as a back-up when you are sick or are out of town. Let’s say last year you paid that technician $14,000. The third person would be a part-time office assistant/bookkeeper, and you paid that person $24,000. That means your total annual salaries and labor is $98,000. The rest of these expenses are simply derived from your income statement. Assume you are operating your business out of your home.

  • Marketing and Advertising (B)   – $8,146/710 production hours = $11.47 per production hour
  • General Liability Insurance (C) –  $1,600/710 production hours = $2.25 per production hour
  • Van and Truckmount Insurance (D) –  $3,600/710 production hours = $5.07 per production hour
  • Care, Custody, and Control Insurance (if you are hauling or storing your customers belongings. (E) $1000/710 production hours = $1.41 per production hour
  • Health Insurance (F) $6800/710 production hours = $9.58 per production hour
  • Other Insurance (G) $250/710 production hours = $0.35 per production hour
  • Other Maintenance Costs (Van/Shop) (H) $800/710 production hours = $1.12 per production hour
  • Utilities (I) $2288/710 production hours = $3.22 per production hour
  • Phone (Mobile and Landline) (J) $3000/710 production hours = $4.22 per production hour
  • Rent/Mortgage or percent of rent or mortgage (if operating out of your home) (K) $4800/710 production hours = $6.76 per production hour
  • Other expenses (L) $3,200/710 production hours = $4.51 per production hour
  • Salaries (Labor) (A) $98,000/710 production hours = $138.03 per production hour

As you look over these numbers (or your own if you have calculated them) what MUST jump out at you is your cost of labor. Cleaning carpets and floors is a labor intensive business and your #1 expense by far is labor. That has always been true in our industry. The second thing that should jump out at you is where so may cleaners spend so much time worrying about cost – things like their truckmount, or their chemicals, or trying to xDRIVE on Locationstrong that 12 year old van along another year. If you look back at part 1 of this series, we calculated the cost of owning and operating a BOXXER 318 truckmount in a van at $30.18 per production hour. Your equipment and chemicals job is to make your labot more efficient. The way to prosperity in our industry starts with using equipment, tools, and cleaning solutions that make you faster – makes your labor dollar more efficient. There are other things that are important, but you need to start with that in mind. Simply increasing your average square foot per hour cleaning rate by 50-100 square feet can make an incredible difference.

Now, let’s add up all of the costs per production hour:

  • Owning and operating your truckmount (from part 1 in our series): $30.18 per production hour
  • Marketing and Advertising (B)   – $8,146/710 production hours = $11.47 per production hour
  • General Liability Insurance (C) –  $1,600/710 production hours = $2.25 per production hour
  • Van and Truckmount Insurance (D) –  $3,600/710 production hours = $5.07 per production hour
  • Care, Custody, and Control Insurance (if you are hauling or storing your customers belongings. (E) $1000/710 production hours = $1.41 per production hour
  • Health Insurance (F) $6800/710 production hours = $9.58 per production hour
  • Other Insurance (G) $250/710 production hours = $0.35 per production hour
  • Other Maintenance Costs (Van/Shop) (H) $800/710 production hours = $1.12 per production hour
  • Utilities (I) $2288/710 production hours = $3.22 per production hour
  • Phone (Mobile and Landline) (J) $3000/710 production hours = $4.22 per production hour
  • Rent/Mortgage or percent of rent or mortgage (if operating out of your home) (K) $4800/710 production hours = $6.76 per production hour
  • Other expenses (L) $3,200/710 production hours = $4.51 per production hour
  • Salaries (Labor) (A) $98,000/710 production hours = $138.03 per production hour

Your total cost per production hour for this business is: $218.17. Now before you freak out that this can’t be possible and it is way too high – first, calmly look through the numbers. What could you reduce? What expenses do you have control over? You could do without health insurance, but you would be fined by the IRS under ObamaCare, and God forbid, what if you racked up some serious medical bills. You could certainly pay yourself less. You could not list any rent or mortgage expenses if you are operating out of your home – but that means you may never be able to afford your own building.  You could cut your marketing and advertising budget way back – but what would that do to your income? Secondly, when I first started to teach carpet cleaners this exercise in the mid 1980’s, their production cost-per-hour for a single truck operator was usually around $110 – $120. You don’t think expenses have doubled in the last 33 years?

Now let me talk you off the proverbial ledge. Come back for part 3 of this series. In part 3 we will do 2 final exercises.

  • The first one is, how to use this calculated cost to determine your price you how-much-should-I-chargeneed to charge.
  • The second one is perhaps even more important for the purposes of your sanity – What about all those carpet cleaners in your town who clean for somewhere between $6 and $20 per room? What about that one cleaner that has the same truckmount as you do, that seems to undercut your bid every time?

One of the potential “punishments” of being in this business is that you can go bankrupt so slowly, and you never know it until it is too late. I will show you how in part 3.

What I would prefer though,  is to show you how to use this information to prosper. Let me show you how to use this information to your advantage. Stay tuned for part 3.

Frequently Asked Questions about Direct Drive Truckmounts… especially from those who have never owned one.

FAQ - Direct Drives

As the # 1 producer of direct drive and power take-off truckmounted cleaning machines in the world, we get asked lots of questions from contract cleaners, facility managers, and restoration contractors about the relative advantages and disadvantages of a direct CDSdrive truckmount. A lot of criticisms directed at direct drive truckmounts are launched by salespeople or contractors who have never owned one. Sometimes what you hear is MUS (made up stuff). But, a lot of the questions we get asked are very legitimate, good questions. Providing an answer can help direct the inquirer to making the right truckmount investment for their business or facility. 

  • Doesn’t owning a Direct Drive require that you purchase a new van increasing your cost and potential payments?
    • When looking at purchasing any new truckmount, it often makes good business sense to invest in a new van or vehicle simultaneously. Your new truckmount can make a powerful impression on your potential customers. You want to make sure that your vehicle makes that same powerful CDS xDRIVE on locationimpression. Plus with used van prices on the rise and innovative financing programs from our partner finance companies, you can often finance a new van and HydraMaster CDS or CDS xDRIVE unit for easy monthly payments and end up with your dream vehicle and set-up.
  • What happens if my van is involved in an accident?
    • Most insurance policies will cover both van and unit and often times you could have a new van and new unit as quick as pulling your slide in unit, finding a new van and re-installing it. In fact, most rental companies will not allow you to drill the holes necessary in a rental vehicle to move your slide-in into anyways.
  • Doesn’t a HydraMaster CDS or CDS xDRIVE cost a lot more than most slide-ins?
    • A HydraMaster CDS or CDS xDRIVE costs you just a little more than a powerful air-cooled engine slide in unit and about the same or less than a water cooled engine slide-in. We believe when making any truckmount photo 2investment you should begin with your three to four year goal in mind. Plus, the HydraMaster CDS or CDS xDRIVE requires the least maintenance and is the easiest unit to train your staff to use. In addition, the space saving design allows you to store more equipment which means you don’t have to spend money on another vehicle to transport accessories. A HydraMaster CDS or CDS xDRIVE typically has simpler and less extensive service intervals and you have to maintain your van engine either way. The HydraMaster CDS or CDSxDRIVE on Location xDRIVE simply lasts longer than entry level slide-in units so when you eventually pay off your HydraMaster CDS or CDS xDRIVE in 4-6 years, your unit will likely still be running strong. You also decrease maintenance costs on both the machine and your van (shocks, brakes, tires, etc…) due to carrying less weight and even weight distribution will offset any extra increase in payments.
    • In addition, both the HydraMaster CDS and CDS xDRIVE are backed by the HydraMaster Ownership Experience Guarantee. We’ve got your back when it comes to support. The reliable track record of our direct drive truckmounts has been so dependable that both the CDS and the CDS xDRIVE come with a three year warranty. Compare that with the typical two year warranty on a slide-in truckmount and you have another reason why a direct drive truckmount from HydraMaster is such a worthy investment.
  • Can the HydraMaster CDS or CDS xDRIVE do everything I may want or need to do as a cleaner or restorer?
    • The HydraMaster CDS or CDS xDRIVE provides you with all the power and performance you need for cleaning and restoring any surface. Think of a CDS as a 200HP unit, because it gets its power from your van engine. CDS units have low medium and high, for upholstery, single wand and dual wand. The CDS in 4 Wheel drive vanCDS will match power and performance with virtually all slide-ins, except for 50+ HP water cooled engine slide-ins. With the HydraMaster CDS XDRIVE producing a consistent 18-20KW of power, you are getting the equivalent of a 27-31HP slide-in unit. Even if you plan on dual wanding on every job, the HydraMaster CDS or CDS xDRIVE will provide you with all the power and flexibility you need.
  • How does the fuel consumption of a HydraMaster CDS or CDS xDRIVE compare to that of a slide-in unit?
    • Both HydraMaster Direct Drive truckmounts are fuel misers and wallet friendly. With the CDS, HydraMaster’s exclusive Electronic Speed Control (ESC) is engineered to work in conjunction with Ford & General Motors engine control systems to optimize van fuel efficiency during CDS operation. That provides you with all of the benefits of operating a CDS unit with fuel consumption (1.5-1.7 gpm) that is equal to most mid-size truckmounts, and better than a typical large format truckmount. Even better, a CDS uses that same fuel consumption that the engine needs to power the van to create a continuous flow of hot water for cleaning and sanitizing carpet and hard surfaces. The CDS xDRIVE provides you with a range of setting designed for you to be ready to take on the most simple to the most challenging cleaning jobs. The proprietary ECONOMY FUEL SAVER and BOOST settings are the first of their kind for a direct drive truckmount. Fuel consumption with a CDS xDRIVE ranges from 1.48 to 1.95 gph – the equivalent or less than a mid-size slide-in truckmount.  Fuel efficient consumption and squeezing every ounce of energy out of that fuel, what could be more “earth friendly” and “wallet friendly” than that?
  • How does a HydraMaster CDS or CDS xDRIVE affect the longevity of the van it is installed in?
    • First the HydraMaster CDS or CDS xDRIVE provides more even weight distribution across the van than with most slide-in units and actually reduces wear on the van (lighter in weight, less tire wear, shocks, and brakes due to Vansless weight and centrality of weight). The CDS runs the van at a low RPM and is only utilizing around 18% of the available capacity of the engine.  It is like driving a van around on the freeway at about 25 to 30 miles an hour. Plus, there is no stopping or starting and puts very little wear on the engine. Many vans with CDS units have well over 150,000 miles on them with the same CDS unit still inside. In addition, when the time comes that the van engine needs to be replaced, changing an engine on a van is only marginally more expensive that replacing a liquid cooled engine on a slide in.
  • What type of vans can I install a HydraMaster CDS or CDS xDRIVE in? Can I install it in a smaller “transit van?”
    • We recommend you install your CDS in a new Chevy Express or GMC cargo van. Our 45+ years’ experience manufacturing both slide-in and direct drive IMG_3198truckmounts tells us that most cleaning operations these days are too diversified and need to carry too much equipment to make a small transit van or “min-van” format practical. The CDS can sometimes be installed in low mileage used Chevy Van. A good general rule of thumb is less than 2 years old and less than 30,000 miles on the engine. Talk with your nearest HydraMaster distributor for more information.
    • The CDS xDRIVE must be installed in a 2016+ T250 or T350 Ford Transit. It can be the low, middle, or high roof option. It MUST be the 3.7L gas engine.
    • Both HydraMaster Direct Drive truckmounts provide you with the smallest footprint in the industry. Their compact, space-saving design allows you CDS XDRIVE - High Roof Transitmaximum flexibility in your van set-up. It is perfect for hauling restoration equipment (airmovers, dehumidifiers, directed heat), power wands, RX-20’s, upholstery tools, rotary hard surface tools, chemical solutions, hauling rugs and furniture and more. The HydraMaster CDS or CDS xDRIVE allows you to say “yes” to virtually any hard or textile surface cleaning or restoration job
  •  Does Chevy and/or Ford approve the installation of a direct drive truckmount into their vehicles? Won’t it void the van warranty?
    • First off, let us address one of the most commonly mistaken and often repeated myths about after-market modifications of vans. HydraMaster is unaware of any specific certification or approval program maintained by Chevy or Ford when it comes to after-market modifications of their vans – whether it be ambulance conversions, news truck conversions, camper conversions, box truck modifications, or direct drive or power take off truckmount installations. HydraMaster has manufactured and installed the CDS direct drive truckmount in more than 15,000 Chevy Vans since 1979.  In doing so we have worked with the GM Upfitter Group – a liaison group that provides us with access to GM’s engineering data.  The GM Upfitter Group does not provide any sort of certification or approval for Special Vehicle Manufacturers like ourselves.  Instead they provide Integration Best Practice Manuals for areas of the vehicle affected in our conversion process. Here is a link to the GM Upfitter website: https://www.gmupfitter.com/pages/about-us. We work with a similar group at Ford in relation to the Ford Transit and the CDS xDRIVE.
    • In reference to potentially affecting your warranty protection on the van, the manufacturer’s policies are clear: The installation of the after market Chevy dealer service baysmodification needs to follow the upfitter guidelines. Their policy has always been that if the modification caused a GM component to fail they will not warranty the component. If the modification did not cause “x” component to fail it will be covered under warranty unless it is determined the failure was caused from lack of maintenance. Our fleet of 15,000 CDS units are serviced by dealerships nationwide.  We work with one of the largest Chevy and Ford fleet dealers in the United States, and in many places, our distributors and/or end user customers purchase vans from dealerships of their own preference.  GM and their dealer network have almost always dependably honored the GM warranty unless it is determined that a failure is the direct result of the special vehicle modification.
    • Magnuson-Moss-Warranty-ActIn addition, provisions of the Magnuson-Moss Act protect our customers from arbitrary decisions made about their warranty that unfairly attribute the cause to aftermarket modifications.  The Federal Trade Commission requires that a manufacturer or dealer be able to demonstrate that a failure is the direct result of the special vehicle modification before denying warranty coverage.  Even if a particular failure is demonstrated to be caused by an aftermarket modification the warranty remains in effect for all other parts of the vehicle. Here is a link to the U.S. Federal Trade Commission Website discussion of the Magnussson – Moss Act. Pay particular attention to the point about after-market modifications: https://www.consumer.ftc.gov/articles/0138-auto-warranties-routine-maintenance.
    • There is one other practical consideration to keep in mind here. This applies to your van even if you have a slide-in. It has been our experience that is almost always smoother when taking your van in for service or maintenance to work with a Ford or Chevy dealership that has a strong commercial fleet division. There are many smaller, consumer focused dealerships that when you take your vehicle in for a potential warranty service, if they see any modification at all – anything from an after market remote starter – to a box conversion – to a direct drive truckmount installation, their first reaction is that they really don’t want to work on it at all. They throw out the modification as a potential “fly-in-the-ointment” when it comes to your warranty coverage. Everything is computer driven now. They need to plug into the SEIC system, and when they see after market things plugged into that also, they just ocassionally are full of excuses. Mindfully, not all small or consumer based dealers are like this. Just keep in mind that ultimately, if a local Ford or Chevy dealer is not cooperating with you, there are always alternatives. Those with fleet divisions generally are easier to work with. As previously stated, GM and Ford and their dealer networks have almost always dependably honored the warranty unless it is determined that a failure is the direct result of the special vehicle modification.

Compare any truckmount to the HydraMaster CDS or CDS xDRIVE and you will find the HydraMaster CDS or CDS xDRIVE provides with your highest return on investment. Best of all the HydraMaster CDS or CDS xDRIVE is ready for every type of business you may pursue in the future – whether it is for doing hard core water damage restoration, hard surface cleaning, or commercial night time carpet cleaning. Also, don’t forget that CDS installed black van 1the HydraMaster CDS has the highest resale value of any truckmount system in the industry and the list of people looking for a decent used CDS systems is long. You are provided with a safer and more secure operating environment because you can fully close the doors of the van during operation. This quieter set-up also can also allow for late night commercial cleaning. The HydraMaster CDS and CDS xDRIVE allow you to clean any surface at anytime of the day or night at virtually any location. You have plenty of room left in your rig for all of the rest of your gear and equipment you need to carry. They are easier to train technicians how to operate and maintain, and they will be making you money for a long, long time.

If you would like more information about the HydraMaster CDS and CDS xDRIVE, including the full range of financing options, visit the HydraMaster website information request form.

 

 

 

How much does it cost to operate your truckmount?

HM_MachineLineupPart 1 in a 3 Part Series

We get a lot of questions from cleaners, restorers, entrepreneurs thinking about becoming a cleaner or restorer, tax accountants, consultants, and more related to the ownership cost of a truckmount. How much does it cost to own and operate a truckmount? How does that related to how much you charge for using it? What is the how_much_does_it_cost_nsiincome earning potential for a truckmount? While all three of those questions are related, they are really asking three different questions when it comes to measuring them.

  • What is the cost of owning and operating your HydraMaster truckmount? Hourly? Annually?
  • How does this cost of operating interact with what you should be charging for cleaning services that you use your truckmount to perform?
  • What is the revenue production capability of your truckmount? Hourly? Annually?

There are many ways to approach answering these questions. I like to try and look at everything in relation to a production hour. A production hour means your machine is running and you are making money. It is NOT – selling time, driving time, set-up time, imagejpeg_1001tear down time, break time – just when the machine in on, you are earning money. Now admittedly, there are ways on a job site to earn money when your machine is not running. Selling fabric protector is one that comes to mind. But essentially, when your machine is on, you should be earning income. When it is off, you are usually not earning any income. I call  this a “production hour.”

If you are brand new in business, your likely most pressing issue is not whether you are earning money – it is likely you need to get some jobs booked so you can earn money. So if you booked less than say, 5 jobs last week, using a production hour to measure cost and revenue is not going to be your most effective measurement. So if you are new and in this boat, just go with me for a while and at least let me get these principles introduced into your mind.

A problem I often see when any group of cleaners and restorers start talking about what Boastingsomething costs and what something can make, is that they often have a tendency to boast too much or get defensive about the way they do things. Enter this calculation with an open mind. This is not a contest, it is more like getting a numbers based “physical” at your doctor – not to determine your health, but the first step in looking Rusty vanat the health of your business.

Another common mistake made when calculating cost is that too many people put into their cost calculations what they presently have when it comes to a van and their cleaning equipment. Then they base their prices on that and wonder why they can never seem to afford something more. For instance, if you determine your cost based upon paying for a used van, then the price you determine to charge from that cost may always limit you to a used van. If you want a new van, or you have your Ziggy 1eye on a specific truckmount, try doing these calculations twice – once the way things are now, and once the way you want them to be. See what the difference is.

In Part 1 of our 3 Part series, we are going to focus simply on the ownership and operational cost of your truckmounted equipment.

If you have access to an income statement for your company from the most recent year, that may assist you in some of these calculations. If you don’t, we will provide some Boxxer 318 in Nissan“averages” to help you get going on these calculations. For our sample calculations, we are going to use a HydraMaster Boxxer 318 Slide-In Truckmount. So let’s get started on our journey.

A. What is the replacement cost of the cleaning equipment? (machine, hoses, wands, accessories, tools, van organization – everything in your can you must have to complete the job) $_______________

B. What is the replacement cost of the transportation equipment (van)?$___________

C. How much do you spend annually on the  chemicals you use while you are operating your truckmount? (If you operate more than one van and truckmount, divide the annual cost on chemicals be the number of cleaning trucks in your fleet) $_____________

D. How much gasoline do you consume while running your equipment? (This is not the cost of gasoline to get from job site to job site – that will come later) $______________ (If you don’t know we will give you a way to calculate this)

E. What is the annual cost of proper maintenance of your equipment? (If you operate more than one van and truckmount, divide the annual cost on chemicals be the number of cleaning trucks in your fleet) $____________

F. How many hours a year do you put on your truckmount? (Production Hours). The industry average is around 500. ____________

G. The accounting life of a truckmount is 5 years. It will be completely depreciated in five years. So that is the number we will use for the life of your cleaning equipment. Of course, you can make a truckmount last longer. But as any tax accountant will tell you, periodically replacing your older equipment with newer equipment is one of the best ways to save you money on taxes and reduce your maintenance costs. G=5

H. The accounting life of your van is 5 years (See note for equipment above) H=5

I. What is your average cost of gasoline per gallon? $_____________

Calculating the cost of owning and running your truckmount

  1. Replacement cost of the equipment is determined as follows: Cost of cleaning equipment (A) divided by the life expectancy in production hours of the machine  (F x G)  = A/ (F X G)
    • In the case of a Boxxer 318, that is presently $13,650. Let’s add $3000 for tools accessories, hoses, etc in your van for a total of $16,650.00 (A)
    • The “accounting” life of the machine is generally going to be 5 years (G). The average carpet cleaner puts about 500 hours a year on their machine (F). That means the useful life of the machine is around 2500 hours (F x G).
    • 16, 650.00 divided by 2500 hours means the cost of the machine is about: $6.66 per hour
    • So the replacement cost of the machine is around $6.66 per production hour (time on the job spent cleaning)
  2. Replacement cost of the van is determined as follows: Cost of the van (B) divided by the life expectancy of the van in production hours of the machine. (F x G)
    1. A good price for the van new these days is around $31,000 (B)
    2. The “accounting” life of the machine is generally going to be 5 years. The average carpet cleaner puts about 500 hours a year on their machine. That means the useful life of the machine is around 2500 hours. (F x G)
    3. 31,000.00 divided by 2500 hours means the cost of the van is about: $12.40 per hour B/(F x G)
    4. So the cost of the van is around $12.40 per production hour (time on the job spent cleaning)
  3. Cost of chemicals is determined by the following: Your annual cost for chemicals (C) divided by the production hours in a year (F)
    1. Let’s say you spent around $2500 per year for cleaning chemicals
    2. That is $2500 divided by 500 production hours (C/F)
    3. That means your cost of chemicals is $5.00 per production hour.
  4. How much gasoline annually do you use while running your equipment? (D)
    1. You are running 500 hours per year. The engine on a Boxxer 318 consumes around 1.4 gallpns per hour. So that is 500 hours  x 1.4 gallons = 700 gallons consumed per year.
    2. 700 gallons x $3.30 (I) per gallon equals $2310.00 annually in gas to run the equipment.
    3. $2310 divided by 500 hours means your cost of gasoline is $4.62 per production hour (D)
    4. By the way, did you know that in many states, you can apply to have the sales tax you paid on gasoline you used to operate your truckmount (not drive from job to job but to actually perform a production hour) refunded? Consult with your tax advisor.
  5. What is your annual maintenance cost for the truckmount? (E)
    1. If you just look at your financials for the last year, you could come up with an exact figure for this. Let’s assume it is around $750 per year
    2. $750 per year divided by 500 production hours in a year = $1.50 per production hour. (E/F)

So what does it cost you to own and run your  Boxxer 318 (assuming you are the cleaning technician)?

  1. Replacement cost of equipment: $6.66 per production hourDSCF0181
  2. Replacement cost of the van: $12.40 per production hour
  3. Cost of chemicals: $5.00 per production hour
  4. Cost of gasoline to run your truckmount: $4.62 per production hour
  5. Maintenance cost for truckmount: $1.50 per production hour

So question 1 is answered. What is the cost of owning and operating your HydraMaster truckmount? The cost of owning and operating a Boxxer 318 truckmount is approximately $30.18 per production hour.

Now keep in mind that does NOT include a lot of the other expenses for running the business: gasoline cost for driving the van from job to job: marketing and advertising:  insurance – general liability, van/truck, life, health;; van maintenance; utilities, cellphone/telephone; rent/mortgage, miscellaneous, and MOST IMPORTANTLY labor – how you pay yourself and any employees that are helping you.

In part 2 of our series, we will examine how all the other expenses your company has can be built into an overall cost benchmark:

  • Salaries (Labor)
  • Marketing and Advertising
  • General Liability Insurance
  • Van and Truckmount Insurance
  • Care, Custody, and Control Insurance (if you are hauling or storing your customers Businessman struggling with large Expensesbelongings)
  • Health Insurance
  • Other Insurance
  • Other Maintenance Costs (Van/Shop)
  • Utilities
  • Phone (Mobile and Landline)
  • Rent/Mortgage or percent of rent or mortgage (if operating out of your home)
  • Other expenses

In part 3 of our series, we will focus on how you can use your cost calculations to help you set prices, and also look at how to measure the revenue producing capacity of your equipment overall. But let’s start with a simple calculation. If someone asks you what the revenue generating capabilities of your truckmount are, we can simply look at some industry averages as a starting point. If you are charging 30 cents per square foot for carpet cleaning (average price per square foot in last Cleanfax magazine benchmark survey  – http://www.cleanfax-digital.com/NovDec2017#&pageSet=5 – and you average 500 square feet per hour cleaning carpet residentially, then your production hour revenue is $150 per production hour (500 x $0.30 per square foot). We will dig deeper into this in part 3.

 

 

The Most Innovative Wand and Tool Family in the Industry is Growing

Evolution Wand SeriesBetter Cleaning, Faster Drying, Reduced Fatigue

About the EVOLUTION Wand Technology

HydraMaster took wand and tool design to the next level with the development of the technology with the Evolution Wand Series. Using a copolymer process to rotationally mold cleaning wands has resulted in tools that are lighter, more durable, and outperform traditional stainless steel wands and tools. Through scientific testing, the Evolution Wand series was developed to smooth airflow and boost water recovery Laminar-vs-turbulent-flowperformance through laminar airflow design. Side by side comparative testing of the 1.5” Evolution Wand against many of the other types of wands available resulted in ½ of the residual moisture per square foot, and has shown unmatched performance versus any other type of wand.

The rotationally molded wand heads and aircraft aluminum tubes make the Evolution Wand Series nearly half the weight as comparable stainless steel wands and tools. Evolution wands and tools are custom fitted with a Delrin® acetyl glide with a glide holder that is molded or mounted to the wand or tool head for an airtight fit. Many aftermarket Teflon glides used on traditional wands are designed to fit a wide variety of tools and often don’t fit well and slip and slide off. The Delrin® glides are especially matched to the glide holder on each Evolution Wand giving it an airtight seal and making it easily replaceable.

Now the full line of Evolution Wands and tools provide the professional cleaner and restorer  with a wide range of problem solving and quick drying options whether using a truckmount or portable extractor, doing water damage and flood extraction, cleaning hard surface floors, or taking care of fine upholstery.

What new tools have been added to the family?

EVOLUTION Stair Wand

The Evolution Stair Wand has a rotationally molded head, Delrin Glide, and is a wand Evo Stair 2 KO black glidedesigned to clean stairs and hard to reach places. It comes with a 10″ head and has a single jet. The Evolution Stair Wand is lighter and more durable than stainless steel stair wands and tools. Features of the new Evolution Stain Wand include:

  • Through scientific testing, the Evolution Stair Wand was designed to smooth airflow and boost water recovery performance. A rotationally molded head and aircraft aluminum tube make the Evolution Stair Wand lighter than most other stair wands or tools and more durable
  • Ergonomically angled wand tube for fatigue reduction
  • Laminar like airflow design improves airflow, increases extraction performance, and reduces drying time – leaves less residual moisture
  • Delrin glide is mounted to the rotationally molded head for airtight fit and no IMGP6795slippage
  • Brass check valve/stainless steel Inline filter with brass quick-connect prevents clogging and is easy to clean out
  • 10” head with single jet spray application
  • Part # 000-163-759
Click here to learn more about the EVOLUTION Stair Wand or to order
Click here to see a video about the EVOLUTION Stair Wand

EVOLUTION Glided Upholstery Tool

The Evolution Glided Upholstery Tools has a rotationally Molded Head with a Delrin® Glide. The 4″ head a single angled jet spray. This durable, rotationally molded tool is lighter than conventional steel upholstery tools, reducing hand and wrist fatigue inEvo upholstery tool 2 ko upholstery cleaning. The Evolution Upholstery Tool was designed to smooth airflow and boost water recovery performance as compared to the harsh angles of a steel tool. Best of all, the glided head moves across the upholstery fabric better and increases water recovery. Features of the Evolution Glided Upholstery Tool include:

  • The cleaning angle of the single jet shears across the fabric rather than directly down onto it greatly reducing your chances of over-wetting.
  • Rotationally molded to reduce weight and increase durability
  • Laminar like airflow design improves airflow, increases extraction performance,IMGP6807 and reduces drying time.
  • Ergonomically designed to reduce operator fatigue and ensure proper recovery when cleaning surfaces with unique geometry.
  • Delrin glide is mounted to the rotationally molded tool head for airtight fit and no slippage
  • Plastic glide is less likely to develop burrs than a steel tool head which could damage delicate upholstery fabrics. Also, glide can be replaced when worn
  • The recommended cleaning solution pressure for the tool is 40-80 psi. The valve is rated to 1200 psi. The part number is 000-163-617.
    Click here to learn more about the EVOLUTION Glided Upholstery Tool or to order
    Click here to see a video about the EVOLUTION Glided Upholstery Tool

EVOLUTION Wand Holder/Rack

You can finally quit fumbling around in the back of their van or work vehicle trying toHydraMaster wand holder-rackfind the right place for their wands. Those clips don’t hold up and often don’t fit, but they still need to clear floor space and have a place where their  technicians know the wand always goes.  The Evolution Multi-Purpose Wand Rack/Holder is designed to provide a more professional look to your van, while simultaneously increasing your van organization and efficiency. It protects your wands, and all of the other contents of your van from damage being inflicted by falling wands.

  • The Evolution Multi-Purpose Wand Rack is manufactured with black durable HDPE plastic that is corrosion resistant. It is available in a 1.5” version and a 2” version.
  • The 1.5” version is specifically designed to hold the 1.5 Evolution Wand or Evolution Stair Wand. It will also hold most standard stainless steel 1.5” wands and some 1.5” “S” Bend stainless steel wands. The 2” version is designed to hold the 2” EvolutionEVOLUTION WAND HOLDER Wand and the 2” Titanium Evolution Wand. It will also hold most standard stainless steel or Titanium 2.0” wands and some 2.0” “S” Bend stainless steel wands.
  • The auto-secure tensioner “locks” the wand in place so it will not fall out, even when making sudden stops or turning sharp corners.
  • The rack can be mounted either to the side of the van or the roof. An added slot will simultaneously store and hold a carpet grooming tool or rake (van side-mount only).
  • Three additional holes on the rack allow you to use bungee cords/wraps to store other hoses and accessories in place.
  • Standard kits come with two brackets and recommended mounting is directly to the rib of the van. Two kits can be mounted on one wall to hold multiple wands
  • The EVOLUTION WAND RACK comes as a two bracket kit.
Click here to learn more about the EVOLUTION Wand Rack or to order
Click here to see a video about the EVOLUTION Wand Rack

Want to meet the rest of the family?

1.5” EVOLUTION Wand for Truckmounts or Portables

Rotationally Molded Delrin Glide Carpet Cleaning Wand (13” head, 2 jet)

HM_EVO-head ko

  • Rotationally molded to reduce weight and increase durability
  • Laminar airflow design improves water recovery, increases extraction performance, and reduces drying time
  • Laboratory tested to leave less residual moisture in the carpet
  • Delrin glide holder is rotationally molded into the wand head for airtight fit and no slippage
  • Designed to be used with both truckmounts and portable extractors (all jet sizes included)
  • Part #  000-163-034
Click here to learn more about the 1.5″  EVOLUTION Wand or to order
Click here to see a video about the 1.5″ EVOLUTION Wand

2.0” Truckmount EVOLUTION Wand

Rotationally Molded Delrin Glide Carpet Cleaning Wand (16” head, 6 jet)

  • Rotationally molded to reduce weight (only 8.8#) and increase durability2 inch head jets
  • Laminar airflow design improves airflow, increases extraction performance, and reduces drying time
  • 2” diameter vacuum tube increases airflow for faster drying and fits perfectly to 2” vacuum hose without the need for reducing couplers that can limit performance
  • 6 stainless steel spray jets are strategically placed on the stainless steel spray bar for maximum coverage, and the wide 16” cleaning head increase productivity by 30% over 1.5” wand
  • Part # 000-163-035
Click here to learn more about the 2″  EVOLUTION Truckmount Wand or to order
Click here to see a video about the 2″ EVOLUTION Truckmount Wand

EVOLUTION Titanium 2” Wand

Rotationally Molded Head, Titanium Tube, Delrin Glide Carpet Cleaning Wand (16” head, 6 jet wand) – The lightest head and the lightest and most durable wand tube

  • Designed for maximum corrosion resistance, yet 2lbs. lighter than a 2” stainless EVO-2inch-Titaniumsteel wand
  • Flow control orifice keeps maximum control over flow and reduces clogging
  • Durable, yet lightweight
  • Titanium tube
  • Rotationally molded to reduce weight and increase durability
  • Laminar airflow design improves water recovery which increases extraction performance and reduces drying times
  • Part # 000-163-054
Click here to learn more about the 2″  TITANIUM EVOLUTION Truckmount Wand or to order

EVOLUTION  Flood Extraction Wand

Rotationally Molded Head, Delrin Glide Water Extraction Wand (16” head)

  • The Aluminum tube and Rotomold head make it extremely lightweight helping HM_EvolutionFloodWandreduce fatigue on the technician. The sealed Delrin® glides help push the wand across the carpet, and are tapered to keep a good seal on the fibers.
  • No other tool has made such a dramatic increase in soil and water recovery due to its laminar airflow design
  • Part # 000-163-058
Click here to learn more about the 2″  TITANIUM EVOLUTION Truckmount Wand or to order

For more information about the new tools or any tool in the Evolution Wand Series, click here and we will send you the very latest information

The Stakes Have Been Raised – Rotary Jet Extraction® Wands

IMGP6862The History of Rotary Jet Extraction® Wands

As truckmounts became the dominant way of cleaning carpet for the cleaning professional in the 1980’s, the evolution of cleaning wands had moved from the original drag wands to lighter weight “scrub” wands. Scrub wands became the most popular choice for cleaning carpet. But too often carpet cleaners would wear down as the day went on, and truthfully, their ability to use the scrub wand as an agitation and extraction tool waned as they became fatigued. In addition, when faced with large open areas of43 carpet to be cleaned, many cleaners figured there had to be an easier, faster, and more effective way to clean carpets than heavy weighted drag wands and lighter weight but arm busting scrub wands. That is when the concept of the rotary jet extractor® was developed by the engineers at HydraMaster.

The RX-20 Rotary jet extractor® was introduced to the industry 35 years ago by HydraMaster with three primary goals;  a higher level of cleaning DSC_2095performance in a carpet cleaning wand, faster drying,  and reducing fatigue for the cleaning technician. Since that time, over 25,000 RX20 Units have been sold. Through the years, several companies have introduced rotary wands. Ultimately they continue to seem to all compare themselves to the RX20. In fact though, the introduction of lighter, less durable rotary extractors has actually simply raised the awareness of the value of rotary extraction. Over the years, innovations by HydraMaster have been developed that help the RX20 clean faster, extract more water and reduce drying times even further

The RX20 Set the Standard. The New RX20 NextGen Rotary Jet Extractor Raises that Standard

So just how has the innovator and originator of Rotary Extraction raised the bar with the new RX20 NextGen? We listened to the input of professional cleaning and restoration contractors just like you.

RX20 Next Right Side KOThe RX20 NextGen is easier to handle and more comfortable to operate. An additional momentary switch on the controls sustains head rotation and allows the user to operate the unit with their left hand only. We’ve added an additional lower rear carry handle that makes the unit easier to load and unload and move up and down stairs. Best of all, we implemented a no slip handle locking mechanism that utilizes a  tee handle, spring pull, and latches with positive locks that set at 5-7 degree increments. This makes setting the RX20 NextGen to the right height for you easier than ever and reduces maintenance.

New, exclusive features on the RX20 NextGen extend your cleaning reach and optimize productivity. The on-board crevice tool with robust design and storage bracket increases your cleaning reach and allows for vacuuming or edges and corners. Another money making feature of this is that the clear tube on the tool allows for your customer to see the extracted water and soiling through the sight tube while you are cleaning their carpet or hard surface floor.

Operating the RX20 NextGen is easier than ever. We have made enhancements that makeRX20 Next Gen Back KO it even less fatiguing so you can continuously operate longer. The operator handle and been ergonomically re-designed for operator comfort. The handle angle is positioned for comfort and productivity.

Enhanced engineering designs on the RX20 NextGen reduce complexity and makes it easier to train new technicians to operate. Redesigned and enhanced label artwork and color graphics  provide detailed operation instructions right on the handle for the operator. New smooth wheels help prevent picking up debris during transport

Finally streamlined manufacturing practices have brought about a reduction in numberRX20 Next Left Side KO of parts, and more of the mechanisms are built into the cast and molded handle make the tool even more robust. The longevity, reliability, and durability of the RX20 were not compromised in this new design. It is designed and manufactured to last longer, clean deeper, and dry faster than all of the competition. It remains the most remarkable tool to restore soiled carpet, restore the nap, and groom the carpet pile. 35 years of accumulated knowledge in manufacturing resulted in improved processes and designs to reduce cost, and IMGP6862pass that savings on to you.

How does the RX20 NextGen Clean Faster and Better?

The RX20 NextGen Rotary Jet Extractor® continues to revolutionize the way professional cleaners and restorers deep clean carpets.  It cleans the carpet fiber from five different angles. With three spray jets matched with 5 vacuum slots that are independently suspended by a flexible spring arm, the RX20 NextGen makes over 650 cleaning passes per minute. This super agitation, combined New Shoes2with the unit’s weight cleans a carpet deeper, extracting soil and cleaning solution. The rotating head cleans all sides of the carpet fiber, fluffing up and restoring the pile. The cleaning head floats and glides across the carpet. The self-propelled RX20 NextGen glides over the carpet; the rotary action of the cleaning head does all the work. The RX20 NextGen sweeps back and forth with just a slight change of balance on the handle. The effort needed to use an RX20 NextGen is a fraction of that used scrubbing back and forthIMGP6904 with a wand. Best of all, the extraction recovery performance of the RX20 NextGen dries the carpet faster than ever. The results are astounding, especially on extremely soiled, matted carpet.

The RX20 NextGen delivers consistent results all day long and is not operator dependent. Using a rotary jet extractor often means you’ll be cleaning at the same quick pace at the end of the day as when you started; consistent effort that translates into consistent quality and happy customers. It is kind of like that famous battery bunny. It just keeps going and going and going. Customers will be impressed by the high-tech approach to cleaning that the RX20 NextGen provides, setting your cleaning company apart from those that use a conventional scrub or drag wand. Experience has shown this to be true as repeat customers often call specifically requesting the rotary extraction of an RX20 NextGen.

RX20 NextGen – A High Production Water Extraction Tool for Water Damage Restoration

Another often overlooked feature of the RX20 Next Gen is its ability to extract standing water, particularly on glue down commercial carpets. An independent water extraction test by a leading trade association demonstrated that heavier rotary extraction wands like the RX20 NextGen did a better job at extracting water from glue down carpets than many wands specifically designed for water extraction only. In fact, even on residential style carpet the RX20 outperformed many so called dedicated extraction wands at water recovery from a flooded carpet. Multiple passes of head across the carpet ensures a higher level of water extraction and faster drying. Finally, just like in cleaning, when using the RX20 NextGen for water extraction, it reduces fatigue, and keeps up maximum extraction even when the restoration technician is worn out.

The RX20 NextGen is Not Just a Carpet Extraction Tool – Low Moisture and Hard Surface Cleaning

The RX Pad and Bonnet Driver (Part No. 190-041-024) attachment allows the RX to quickly convert to drive carpet cleaning bonnet pads.

You can also do hard surface floor deep cleaning, stripping, or scrubbing on luxury vinyl tile, ceramic or porcelain tile, natural stone, and finished concrete with the right IMGP6898attachments:

  • RX Hard Floor Attachment – LD (Part No. 190-041-024)
    • Suitable for Light Duty (LD) scrubbing of vinyl, terrazzo, slate and marble surfaces. The brush on this attachment replaces red pads.
  • RX Hard Floor Attachment – MD (Part No. 190-041-025)
    • Suitable for Medium Duty (MD) to aggressive scrubbing and stripping of resilient floors, terrazzo, quarry tile and concrete floors. The brush on this attachment replaces brown and black pads and will outlast them more than 100 to 1.
  • RX Hard Floor Attachment – HD Part No. 190-041-025
    • Designed for Heavy Duty (HD) to most aggressive stripping and scrubbing of resilient floors, terrazzo, quarry tile and concrete floors. The brush on this attachment replaces high productivity pads.

The Stakes Have Been Raised

The RX20 NextGen has raised the stakes in rotary jet extraction wands. Fortunately, you are the beneficiary with features that make it easier than ever for you to use:

  • Easier to handle and more comfortable to operate.
  • Locking handle mechanism makes it easier to lock in at the right adjustment level IMGP6889for you
  • Extend your cleaning reach and optimize productivity with the on-board crevice tool
  • See through sight tube allows your customer to see the extracted water and soiling
  • Ergonomic redesign of the handle for operator comfort
  • Reduced complexity and on board instructions make it easier to train new technicians
  • And perhaps most importantly,  streamlined manufacturing processes without compromising performance, reliability, and durability that make the tool more affordable than ever.

For more information on the RX20 NextGen, follow this link and we will get you information right out!

 

 

HydraMaster Introduces New Smartphone/Tablet Technical Support App for Truckmounted Equipment.

This app will help HydraMaster equipment owners troubleshoot and answer some of the most common questions while operating or maintaining a HydraMaster Truckmount. It provides on-the-job immediate support 24/7/365, even when you are cleaning at night, on HM_MachineLineupweekends, and on holidays. It is a great resource for training new technicians. You can access diagrams, charts, videos, and more. It also provides the user with quick access to their local HydraMaster Distributor, HydraMaster headquarters Technical Support and includes a General Motors and Ford HYdraMaster Truckmount Support Appservice dealer locator for your van. It also provides direct links to HydraMaster’s vast series of equipment operations and training videos in our YouTube library that can provide even more information. There is even a direct link to the HydraMaster web site, where you can download an equipment manual for virtually every truckmount or portable that HydraMaster has ever manufactured.

The HydraMaster Support App is available on Apple and Android. You can install it on your phone or tablet and it is FREE! There are two easy ways to install.
1. You can follow this link: https://apps.appmachine.com/hydramastersupportapp
2. Or you can also go directly to the Android or Apple app store and download it from the following search: HydraMaster Support App.

HydraMaster will be expanding the information on the app on a regular basis, and it contains helpful information for all of HydraMaster’s presently manufactured Direct Drive and slide-in truckmounts. HM_HassleFreeBadgePATHS

The HydraMaster Truckmount Troubleshooting App is just another important key in our on-going commitment to provide HydraMaster truckmount owners with a hassle free ownership experience – one more way; “We’ve Got Your Back”

HydraMaster_SupportAppFlyer

 

Why HydraMaster is your best choice for Restoration Equipment…

HM-RestorationCollageHydraMaster Restoration equipment is based on a 45+ year track record of HydraMaster reliability, durability, and dependability. Everything we make has to be part of this reputation. The HydraMaster restoration product line is rooted in the reality of the restoration equipment income earning marketplace. The large majority of water damage HM5000-Singlerestoration jobs are billed to and paid for by insurance companies. Rather than focusing exclusively on industry focused technical standards, the HydraMaster product range seeks to find the right mix of drying performance with the level of income that the equipment can produce, and that insurance companies are willing to pay.

The restoration equipment market today seems to be dominated by two opposing forces. First are US Based companies who were the pioneers of establishing the restorative drying industry who work hard to make sure industry standards of care see the science of restoration in a way that fits their product performance. The other are foreign manufactured equipment focused seemingly on making airmovers, dehumidifiers, and air scrubbers as inexpensively as possible to try and wrestle market share from the pioneers. Performance and quality control take a back seat to flooding the marketplace (pardon the pun) with multiple varieties of the same equipment at an inexpensive price.

IMG_9920The quality, conscientious restoration contractor is caught in the middle. In truth, he/she can charge the insurance company the same nightly rental rate for an inexpensive, foreign made  1/3 HP airmover as they can the cream of the crop airmover from the pioneer company. What they don’t know about is quality of construction, safety considerations, warranty and technical support, and more when it comes to that less expensive piece of equipment.

The HydraMaster line of restoration equipment provides both domestically produced HM3000_Masked_0743and foreign made airmovers, air scrubbers, and dehumidifiers, ozone generators, and flood extractors. The equipment is manufactured to our exacting standards with quality control people and mechanisms in place whether the equipment is made in the United States or overseas. Here’s what you can count on when choosing HydraMaster Restoration equipment:

  • Uncompromising Performance – When it comes to CFM, gallons per Hour of water removed, or fail-safe electronics and certification that you need to safely and effectively operate in a wet environment, we take no short cuts. Low amp usage for daisy chain capability and reduced power usage, GFCI breakers and ETL Certification for safer operation, and rugged and reliable design and construction for longevity make our product line your best choice.
  • Hassle-Free Warranty Service – on the rare occasion something goes wrong HM_HassleFreeBadgePATHSoutside of regular maintenance, HydraMaster’s legendary technical support and hassle free warranty support kick in.
  • Phone Technical Support – Our HydraMaster Technical Support line puts you in touch with our highly trained, patient and reliable tech support team to talk you through your operations, maintenance and troubleshooting questions. They are available Monday through Friday from 7am – 5pm (PST)
  • Competitive Pricing – Our equipment is not the most expensive, and it is not the cheapest either. We demand a high level of performance, safety testing, and quality no matter what factory it is made in.

Would you like to know more about our restoration equipment? Click here