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How far is too far?


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  #1  
Old 05-02-2009, 01:14 PM
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Default How far is too far?

So I am finaly getting started. all of my equipment is together. I have began marketing, I am all set to go right? I was thinking of where i wanted to be with my business. Did i want to do residential and have some one at every home, or did i want to go commercial and..... well you get the idea. I decided to with foreclosed homes. I have family who are in real estate. I began sending email and calling all the leads I recieved. And about 5 min. after i sent the mail i got a response. An agent in modesto california replied that he had at least 7 properties that needed my services. Great right? well... modesto is about 350 miles away from anaheim the trip would take nearly 5 hours. But the lead could lead to more homes. right now they have over 40 homes that need maintence but they already have someone taking care of 33 of them. They told me they were considering someone new? Should I take the accounts or not?

Sorry for the long story, i could not make it any shorter...:-)
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Old 05-02-2009, 02:29 PM
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That seems too far IMHO, your travel and maintenance costs would be very high....but that is just my thoughts. Personally my work area is a 45 min circle from my house and I have turned away a few good excavation jobs that were just over an hour, it's just too much travel time.
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Old 05-02-2009, 05:42 PM
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No way man. Too far.
Like he said above, your expenses would eat you alive. What if you got so many there that you needed some help.... you gonna pay an employee all that drive time on top of it?! Set a boundary, a line in the sand that is reasonable & don't cross it.
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Old 05-02-2009, 08:11 PM
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What is your view now after hearing some reactions to your question?
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Old 05-02-2009, 10:07 PM
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I suppose you could do it, just with the appropriate pay. Your customer would have to accept that you have to charge more if you are expected to drive that distance. If you employees are needed you would have to figure this in. I would say if you are willing to drive the distance and you customer is willing to pay you for your time and expense to drive the distance than have at it. For example, if you have to drive for 5 hours each way, you would have to stay there at a motel or something. 10 hours pay for you and each employee + motel cost + mileage charge + cost to do work = customer charge ..... I agree the cost would probably be insurmountable but if they are willing to pay (at least some of it up front) then I would be willing to go. I doubt they would be willing to pay you the extra cost needed.
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Old 05-02-2009, 10:14 PM
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Default Another thing to think about is getting paid.

I do foreclosed homes here but was warned that getting paid is often a challenge. Here, I can easily file a lien on the property. I tell the agents up front, that I get paid by the 15th of the following month or I file a lien.

350 miles to file a lien is 700 miles round trip and that you can't get reinbursed for.

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Old 05-04-2009, 11:08 AM
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Quote:
Should I take the accounts or not?

Sorry for the long story, i could not make it any shorter...:-)

You should put a mobile home on the back of your truck, that way you can live there lol.

Sounds like a good opportunity, but I wouldn't do it. Too farrrrrr $$$$$$.
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Old 05-04-2009, 09:47 PM
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1 hr is my maximum
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Old 05-06-2009, 11:19 AM
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Wow! thanks for all of the responses. I think I am going to go with the crowd here. I am not going to do this account. After putting all the numbers together i came out with a total profit of about 100$ for 2 days (10 hr each), That is after paying my one helper. and including all fuel charges. That was the most expensive part. I have an older dodge pick up and we average 9mpg on the freeway. It would cost around 200$ in just fuel. I estimated the room at 50$ per night. I pay my helper an average of 10$ per hour. That is 100$. I estimate food for both of us at 50$. And I was going to charge 150 for the first time. and 75 after that. So I am leaning toward a no. Thanks everyone for your feedback. Also how would you beable to explain to the customer that i will not be able to take there account

Thank you for all of your help.
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Old 05-06-2009, 11:40 AM
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Quote:
Also how would you beable to explain to the customer that i will not be able to take there account
Two ideas off the top of my head.

1. Give them an estimate for an outrageous fee to do the services so they say no, but if they say yes you would be pleasantly surprised.

2. Just simply say it's outside your service area however if they have any jobs within your area, to give you a call.

Keep us posted on how this goes.
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