Average Order???? - REO Property Preservation Forum
 
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post #1 of 7 (permalink) Old 11-02-2012, 06:34 PM Thread Starter
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Average Order????

Any of you guys know what your average order as a company is?

I have continued to have issues with one of my Nationals and it almost seems pointless to try and get along. The average order last pay period was $46.00.

That seems too low to pay a sub contractor, processors, buy equipment supplies, as well as pay for our building and warehouse.
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post #2 of 7 (permalink) Old 11-02-2012, 06:56 PM
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what is your cost in doing the order? the order total is irrelevant, its how much profit vs how much of your time is invested. If you profit $5 but don't have to touch it then its a great deal just do 200 a day, if you profit $20 but have to invest an hour of your time then not so much. With all of the lawn cuts I do I would bet that my average order is less then that but if I only invest 10 minutes in each one then I'm doing pretty good.
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post #3 of 7 (permalink) Old 11-02-2012, 07:01 PM Thread Starter
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Quote:
Originally Posted by nurumkin View Post
what is your cost in doing the order? the order total is irrelevant, its how much profit vs how much of your time is invested. If you profit $5 but don't have to touch it then its a great deal just do 200 a day, if you profit $20 but have to invest an hour of your time then not so much. With all of the lawn cuts I do I would bet that my average order is less then that but if I only invest 10 minutes in each one then I'm doing pretty good.
That average is including Trash outs, GC's, PCR's, Tarping, etc.

My cost on the order varies from losing money on some, to profits on others and everything in between.

we are transitioning to an employee based business model. I am tired of dealing with sub contractors.
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post #4 of 7 (permalink) Old 11-02-2012, 07:15 PM
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Holy Balls! Our last year that we worked with a National we averaged $345.00 per order. This did not include Grass cuts or winterizes. At those averages you are setup to fail and I would cut my losses.
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post #5 of 7 (permalink) Old 11-02-2012, 07:22 PM Thread Starter
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Holy Balls! Our last year that we worked with a National we averaged $345.00 per order. This did not include Grass cuts or winterizes. At those averages you are setup to fail and I would cut my losses.
That is exactly what i am thinking and that is why I asked.

I am ready to cut bait.
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post #6 of 7 (permalink) Old 11-02-2012, 11:18 PM
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I echo nurumkin. Average order price is irrelevant. Depends completely on your business model and profit. Quite honestly I've never looked at average order price per customer. I am really to the point that I can't even track margin per clean out or job. I just come up with rough figures on what costs are to do certain tasks, then decide the lowest price I'm willing to accept for that task, then get as many jobs as I can that are above that price.



Quote:
Originally Posted by nurumkin View Post
what is your cost in doing the order? the order total is irrelevant, its how much profit vs how much of your time is invested. If you profit $5 but don't have to touch it then its a great deal just do 200 a day, if you profit $20 but have to invest an hour of your time then not so much. With all of the lawn cuts I do I would bet that my average order is less then that but if I only invest 10 minutes in each one then I'm doing pretty good.
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post #7 of 7 (permalink) Old 11-03-2012, 10:17 AM
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have to know your costs. If you can wait a few days and back to back the orders that is better. When I get new companies that want ME I ask them what do you pay and look at a initial secure order that is the farthest away from home base and reply to them. a 20$ lock change company is NOT going to have what it takes. They usually want one lock and a GC and thats it. NOPE It costs me 25 to start the truck and move it out of my driveway for you is my reply and when that is 50% of your base order NO THANKS. I used to do work for a national and AVERAGE lockchange work alone was 225 BRING IT ON. If you do work for many different clients then what is your office staff doing in the down time ?? Yes I know it exists. Inventory control checking maintenance on the vehicles ... There is ALWAYS some thing to do. Work SMARTER not HARDER
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