Introduction and Business Concept
00:00:17
Speaker
Hi everybody, welcome to the Exit Podcast.
00:00:19
Speaker
I'm joined here by Cindy at Nova Bin Wash.
00:00:21
Speaker
She's a partner at Nova Bin Wash.
00:00:23
Speaker
She owns a truck that they use to scoop up garbage bins and clean them out as a service.
00:00:30
Speaker
Welcome to the podcast.
00:00:33
Speaker
Thanks for having me.
00:00:35
Speaker
How did you hear about bin washing and why did you get into this business?
00:00:41
Speaker
Well, it's my daughter and I are...
00:00:44
Speaker
business partners and originally there was a third partner, Beth, and the three of us have owned a lot of small businesses for the last 20 years and we just happened to be looking for a business and my daughter was the customer of a, she had been cleaning service at her home and she told Beth and I about it.
00:01:07
Speaker
She said, you should see it.
00:01:08
Speaker
It's just amazing.
00:01:09
Speaker
They just pick up the bins and
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Speaker
they go over the truck and hot water and they come out and you can stick your head in it and to smell it, it smells so good.
Franchise Experience and Brand Building
00:01:17
Speaker
So, but then we thought dealing with trash bins, that sounds disgusting.
00:01:23
Speaker
Well, they came so early to our house.
00:01:25
Speaker
She had never seen who the owners were.
00:01:28
Speaker
And one day she called and she said, I just saw them cleaning the bins.
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Speaker
It's two women and all they had on were gloves.
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Speaker
Like they didn't seem too afraid of the bin.
00:01:39
Speaker
Anyway, we got to thinking about it seriously, and we just thought it was kind of a no-brainer, simple business.
00:01:46
Speaker
Every other business we'd owned had been a franchise.
00:01:49
Speaker
We were franchisees.
00:01:51
Speaker
And just the more we talked about it, we just thought, how hard would it be to build this business, come up with a logo and get the truck done, which we had already started to look into that to see how to do it.
00:02:06
Speaker
And there were a couple options in the United States.
00:02:09
Speaker
And find customers.
00:02:13
Speaker
We're familiar with marketing to our other businesses.
00:02:15
Speaker
So we just decided just to try it.
00:02:19
Speaker
Every time we looked at something else, we'd compare it to how simple this business looked.
00:02:23
Speaker
And we just said, we just have to, we have to try it.
00:02:26
Speaker
So that's how we got into it.
00:02:28
Speaker
And we are in the same, we work in the same area that that other company works.
00:02:35
Speaker
And there's plenty of customers for both of us.
00:02:39
Speaker
Do you mind if I ask you sort of what other businesses you've been involved in?
Finding the Right Manufacturer
00:02:44
Speaker
The first business the three of us owned, it was Curves for Women Fitness franchises back in 2001.
00:02:54
Speaker
And I started one and my daughter was in college.
00:02:59
Speaker
She came home in the summer and worked with me and said, oh, I want to do this.
00:03:04
Speaker
And then Beth was a
00:03:07
Speaker
owned another business in the shopping center where I owned my first Curves.
00:03:10
Speaker
And she said, this seems great.
00:03:13
Speaker
Let's do, you know, I want to do this.
00:03:14
Speaker
We ended up being partners in a couple, but we ended up owning 16 Curves for women franchises.
00:03:21
Speaker
And then we went into the Massage Envy business.
00:03:24
Speaker
We owned three of those.
00:03:25
Speaker
Beth owned her own cooking school for kids.
00:03:30
Speaker
All three of us have owned mosquito, residential mosquito franchises.
00:03:36
Speaker
And we owned a dog grooming business and then we've owned this.
00:03:43
Speaker
I'm sure you've got tons of stories.
00:03:48
Speaker
And so, I mean, that tells me like you guys are old hands at this.
00:03:56
Speaker
You've kind of seen a lot of what there is to see in these small business arena.
00:04:04
Speaker
So selecting this business was a very informed decision and it was, you know what you were looking out for in general.
00:04:16
Speaker
And so that's really good.
00:04:20
Speaker
As far as you talked about buying the truck, getting it wrapped and branded, what was involved in that process?
00:04:30
Speaker
We talked to a couple manufacturers in the United States and we chose a guide out of Florida.
00:04:39
Speaker
His name is John Conway and he runs Sparkling Bins.
00:04:43
Speaker
And he was just very approachable, spent plenty of time helping us understand what the business was gonna be like, what to expect and explained that he had gotten into the business
00:04:59
Speaker
when he wanted his own bins clean, his wife wanted him to clean their bins.
00:05:05
Speaker
And he was like, there must be someone out there that will clean them for me.
00:05:08
Speaker
Because he didn't want to do them.
00:05:11
Speaker
And he found out the closest place was in the UK.
00:05:16
Speaker
So no one in the States was cleaning bins.
00:05:21
Speaker
It is a very common service in the UK and other countries, especially.
00:05:29
Speaker
started investigating it, decided to build a truck himself, you know, figured, you know, buy a truck, put the equipment
Technical Aspects of the Truck
00:05:36
Speaker
He's mechanically inclined and he started cleaning bins.
00:05:40
Speaker
Well, as that business grew, people, he's in Miami, people would see his truck and say, Hey, will you help me create a truck like that too?
00:05:49
Speaker
And he'd say, sure, but just don't come where I'm working.
00:05:53
Speaker
So he made deals with people to help him put a,
00:05:55
Speaker
put the truck together, but, um, protected his own territory.
00:05:59
Speaker
So he got, by the time we met him, he had been building trucks for people for, I think three years.
00:06:08
Speaker
And, and he'd been running his mosquito, our mosquito businesses, a bin cleaning business for five or six years, maybe.
00:06:16
Speaker
Anyway, he had a five truck bin cleaning business, uh, in what was it?
00:06:24
Speaker
In a 15 mile radius, five trucks in Miami, year long, you know, a full season.
00:06:31
Speaker
Like we only, we only work for nine months out of the year right now.
00:06:37
Speaker
So he was doing a full year.
00:06:39
Speaker
So he gave us just was very transparent about takes to get the business going and how much he was making.
00:06:48
Speaker
And then, so that was, he was doing both at the time.
00:06:52
Speaker
Now he, his wife runs the residential bin cleaning business and he has a shop where mechanics, the whole thing, and he's putting out bin cleaning trucks.
00:07:03
Speaker
So he's got two businesses now.
00:07:05
Speaker
And he's really developed what the trucks can do.
00:07:08
Speaker
And he went, he started from like using a, I think, F-150 with the equipment in the trunk to now we have this,
00:07:18
Speaker
Isuzu truck, a 14 foot flatbed with all the equipment in front, you know, built in, you know, on the flatbed and then with aluminum sides that we brand and, you know, it's looks like a serious business.
00:07:33
Speaker
He offers things as, as small as just a trailer, like a one bin cleaning trailer that can be attached, you know, that you pull with a truck to something as big as ours.
00:07:46
Speaker
And ours is old now.
00:07:48
Speaker
We've had it for three years, 2018.
00:07:52
Speaker
And now if we got a new one, the equipment has just become more developed.
Startup Costs and Financing
00:08:00
Speaker
I think they actually do steam cleaning now.
00:08:03
Speaker
We heat our water to 200 degrees and we have two heads on our truck.
00:08:13
Speaker
but you can only run one at a time to get the full pressure.
00:08:17
Speaker
The newer trucks, he's developed it so they can run both at the same time.
00:08:22
Speaker
So of course it's more efficient.
00:08:24
Speaker
Yeah, that raises a question that as far as the depreciation on the truck, like how, is there like an expected service life?
00:08:35
Speaker
I know that it's a new business, so maybe it hasn't kind of been explored yet, but yeah, what do you expect?
00:08:42
Speaker
Well, I know our competitor has been in business for three years longer than we have, and they still are running the truck they started with.
00:08:50
Speaker
So I just think they've become more efficient, but most of the equipment is power washing equipment that's on the truck.
00:09:02
Speaker
The things that they do, it's adding, we have 500 gallons of clean water, 500 gallon capacity to carry water.
00:09:11
Speaker
the dirty water and you know, they've just, we've got the ability to blow out the lines in the winter on when it's freezing temperatures, those kinds of things.
00:09:26
Speaker
That's what they've, you know, they've just put it all together in this little package, but it's the things that they get better at really just have to do with I think, Oh, the truck now, the newer trucks,
00:09:41
Speaker
run off the engine of the Isuzu truck instead of having a Honda engine.
00:09:49
Speaker
Oh, so your truck has a separate, like a generator to run the power wash.
00:09:59
Speaker
Yeah, it looks like a skid.
00:10:00
Speaker
It's called a skid.
00:10:01
Speaker
I've seen them in power washing stores, the exact equipment that we have sitting on our truck.
00:10:09
Speaker
if a guy wants to go into power washing houses he would have a very similar piece of equipment so now this is what john has i guess really streamlined that he can get rid of that honda engine and the truck itself is powering the equipment yeah did you see so first of all um as far as the the upfront costs
00:10:34
Speaker
A, like what kind of ballpark would someone be talking if they wanted to start up now?
00:10:39
Speaker
And B, did you see a lot of, was it highly variable between the various services you looked at or was it pretty much like the price is the price?
00:10:52
Speaker
The price of the truck?
Marketing and Customer Awareness
00:10:57
Speaker
The prices kind of were all the same and a truck like ours costs,
00:11:03
Speaker
somewhere north of 100,000.
00:11:08
Speaker
We paid probably 112, but I think it's possible the newer ones are more expensive, but that's the ballpark.
00:11:17
Speaker
Let's say a little over 100, but the trailer type would be as low as maybe 50,000.
00:11:25
Speaker
So it's quite a range right now.
00:11:32
Speaker
And are there trailer kits that do two bins or just, or is it just the same?
00:11:37
Speaker
Yeah, there are some that do two.
00:11:39
Speaker
We said that the trailer was not going to be optioned for us because it seemed like it would be difficult for getting in and out of tight spaces.
00:11:51
Speaker
And I'm sure efficiency has got to be a huge part of this business.
00:11:56
Speaker
And the speed at which you can get from place to place.
00:12:01
Speaker
And you, with your experience in small business, I'm sure that you've done the financing experience.
00:12:12
Speaker
You know, you got to know that inside and out by now.
00:12:15
Speaker
Is this something where someone can just walk into the bank and ask for a loan?
00:12:18
Speaker
And sort of like, what sort of, what would someone have to provide to justify that kind of financing?
00:12:27
Speaker
Well, since the business is the truck,
00:12:32
Speaker
And that's kind of the only thing that needs to be financed.
00:12:39
Speaker
And John has connections.
00:12:42
Speaker
So with truck financing companies, so he hooked us up and we were just based on our credit.
00:12:52
Speaker
We were able to finance the truck.
00:12:55
Speaker
I want to say, I can't remember how many years, but a very affordable,
00:13:01
Speaker
monthly payment that we felt we would be able to cover by very quickly by getting enough customers to cover it.
00:13:14
Speaker
So, trucks are hard to come by at the moment, by the way, just like new cars are.
00:13:23
Speaker
Is it a lot of money down?
00:13:28
Speaker
Because of our credit, we didn't have to put any money down.
00:13:34
Speaker
Yeah, we were excited about that.
00:13:36
Speaker
So the money involved that we needed to start the business we had, um, and different people would do this differently, different ways.
00:13:46
Speaker
We were so early on in this idea in this country that people didn't really know that such a business existed.
00:13:56
Speaker
So we were kind of, um,
00:14:00
Speaker
introducing the idea to people.
00:14:02
Speaker
Now, people know it exists.
00:14:05
Speaker
It's really in three years, it's become much better.
00:14:07
Speaker
Well, you know, much more well known.
Customer Retention and Pricing Strategy
00:14:10
Speaker
Yeah, I wanted to ask you about that.
00:14:12
Speaker
Like when you when you're marketing this to people, is it more often like, wow, I've been waiting for something like this?
00:14:21
Speaker
Or do you have to kind of explain the value proposition?
00:14:24
Speaker
Yeah, and now it's like, yeah, I'm so glad you're here.
00:14:31
Speaker
In the beginning, people were like, huh?
00:14:35
Speaker
Why would we want our bins cleaned?
00:14:36
Speaker
We put trash in them.
00:14:38
Speaker
Just kind of like, well, because they smell.
00:14:42
Speaker
But what we've learned is the best customer lives in an HOA and has to keep their trash bins in their garage.
00:14:53
Speaker
So people that keep their trash bins outside of their house, I could count on one hand how many of those customers we have.
00:15:03
Speaker
And so people that keep their bins in their garage, they know the value as soon as they hear there is such a business.
00:15:12
Speaker
They don't wanna do this job themselves.
00:15:15
Speaker
The bins are so big now that you don't wanna stick your head in there and even pick things that are stuck to the bottom off.
00:15:24
Speaker
So they'd much rather just find somebody so often.
00:15:28
Speaker
Whenever anyone calls, I ask them, how did you hear about us?
00:15:31
Speaker
And in the beginning, it was pretty much, I didn't even know it existed.
00:15:35
Speaker
I was just hoping that someone would come do this.
00:15:38
Speaker
And now people all say, how'd you hear about us?
00:15:41
Speaker
And, oh, you know, I saw a truck.
00:15:43
Speaker
My neighbor, someone talked about it on Facebook.
00:15:47
Speaker
So they know it exists.
00:15:48
Speaker
They just didn't always know about us in particular, but they knew that they could Google something and find somebody in their neighborhood.
00:16:02
Speaker
So what I started to say, let me just say, in the beginning, we spent all the money that we had put aside for this was pretty much spent on marketing.
00:16:13
Speaker
And we did things like ValPAC and Money Mailer and other print things to try to educate people.
00:16:20
Speaker
But that's a pretty expensive way to get the word out.
00:16:26
Speaker
We did a lot of guerrilla type marketing to just making decisions
00:16:30
Speaker
sticky note flyers and going into neighborhoods and sticking them on trash bins on trash day.
00:16:37
Speaker
That's our least expensive way to get customers.
00:16:39
Speaker
And that works because that's, even if they don't become a customer there, you're starting to introduce people to the idea that there is such a business.
00:16:48
Speaker
But after the first year, we really cut back on advertising and just depended on mostly word of mouth and Facebook advertising.
00:17:00
Speaker
And that's how we do it now.
00:17:03
Speaker
We haven't spent a lot of money on advertising.
00:17:06
Speaker
I've done a little bit of like geofencing advertising just to see how that works where you can, it wasn't too expensive.
00:17:17
Speaker
So that's my big thing.
00:17:18
Speaker
I just don't wanna spend a lot of money on it because it's so hard to make sure that your advertising dollars are working in the neighborhood you want.
00:17:28
Speaker
So the geofencing,
00:17:30
Speaker
helps you to target very small areas right where you're working.
00:17:36
Speaker
And then my hope is that when we're advertising on Facebook, doing our ads, then they're also seeing Nova Binwash pop up just when they're on their phone doing whatever, just showing up as a second market.
00:17:55
Speaker
that narrow targeting has got to be because you know like we said efficiency is such an issue um so i i got a cousin who's in digital marketing and he actually was able to create an ad that was marketed so tight that he knew his son would see it and it was for his son's birthday and he and he like had somebody record a happy birthday thing as an ad and he targeted it to his son
00:18:21
Speaker
Yeah, it's amazing.
00:18:22
Speaker
Yeah, you can really narrow it down.
00:18:24
Speaker
And that's got to be so valuable because A, it's cheaper than blasting.
00:18:32
Speaker
And B, you know, in your situation, you really don't want to blast a huge geographic area.
00:18:38
Speaker
You got to go service that huge geographic area.
00:18:41
Speaker
And we, in our first year, we went everywhere, wherever we got a call, because we
00:18:48
Speaker
needed to see where it was going to grow.
00:18:53
Speaker
And after, in the second year, we went to all those areas, but we were driving the truck.
00:19:02
Speaker
Beth was our business partner that was operating at the time.
00:19:04
Speaker
So she was driving the truck.
00:19:05
Speaker
So it was fine because we weren't paying someone, but come 2020, I took over the operations and we decided
00:19:18
Speaker
to cut off a lot of the area that didn't make sense.
00:19:21
Speaker
If we were gonna hire someone, did we wanna pay them to drive all the way to Arlington, Virginia from where we are?
00:19:29
Speaker
So we decided, nope, let's just narrow our focus to the most concentrated areas, which happened to be Loudoun County.
00:19:39
Speaker
We're in Loudoun County three weeks out of four and then Prince William County and a little bit of Falkier County.
00:19:49
Speaker
And the business has grown.
00:19:51
Speaker
We've doubled every year.
00:19:53
Speaker
This is the first year we're going to make a significant profit.
00:20:01
Speaker
Significant to us, but it is not necessarily, we have a full-time employee this year running the truck.
00:20:10
Speaker
So it was the first year that no one has to be there.
00:20:15
Speaker
Last year we had an employee, but I was still
00:20:17
Speaker
working one or two days a week.
Scaling the Business
00:20:21
Speaker
So if I were someone that wanted to do this business and just have me be the truck driver, which is the service person, this would be a decent amount.
00:20:36
Speaker
It would be a decent pay for this year.
00:20:42
Speaker
I expect it to double next year.
00:20:44
Speaker
But next year, we will also need to get a second truck.
00:20:47
Speaker
So, but what I'm starting to realize is that there are people coming into the business now that have a completely different approach than we have.
00:20:59
Speaker
So our approach has been kind of like build something.
00:21:02
Speaker
We wanted to prove it first.
00:21:03
Speaker
So we feel like we've proven it and that it is a good business.
00:21:07
Speaker
And, but we've just kind of scaling it slowly.
00:21:11
Speaker
Well, there are people coming in with a lot of capital
00:21:15
Speaker
And they are saying, we're getting 10 trucks.
00:21:17
Speaker
We're going to have a salesperson.
00:21:20
Speaker
We're going to just hit all the HOAs and make deals with the whole HOA to go through and clean all of the people in their whole neighborhood.
00:21:34
Speaker
So they're coming at it from a different point of view than we were.
00:21:38
Speaker
We're kind of like a little guy just building a little business that...
00:21:44
Speaker
And our goal is to, I could, I can see myself running it with anywhere from three to 10 trucks.
00:21:52
Speaker
I don't know if I want to, or just building it to the point that it's got value that we can sell it.
00:22:01
Speaker
And we actually have talked to, we're in conversation with two people right now about purchasing our business.
00:22:08
Speaker
So we're at the point to sell it or scale it.
Operational Challenges and Solutions
00:22:13
Speaker
you know, but I just, I think we're happy with what we've done.
00:22:20
Speaker
Uh, we feel like it's been a success, but when I hear some of these other guys and what they're doing, I'm thinking, oh gosh, we're just peanuts in comparison to them and what's possible.
00:22:31
Speaker
But we started with, um, we didn't have that much capital that we were willing to put into it to start it.
00:22:40
Speaker
our dog grooming business, we were running at the same time and that actually died of COVID in 2020.
00:22:47
Speaker
So, so it kind of hit us financially in a way that we just didn't have a lot of extra money to be throwing at this.
00:22:59
Speaker
So we just said, let it just grow like it is.
00:23:02
Speaker
And, and it's been great.
00:23:05
Speaker
But if I had an extra, extra money, I, uh,
00:23:10
Speaker
I think it definitely, we could have bought another truck or two.
00:23:14
Speaker
I did look at it last year and I almost pulled the trigger and I thought, oh, just wait, just get one truck to capacity and then purchase another truck.
00:23:25
Speaker
So that's where we are.
00:23:26
Speaker
Have you considered targeting an institutional customer like an HOA?
00:23:30
Speaker
Because that seems like that would really drive you.
00:23:34
Speaker
Yeah, we have, but you have to lower your price to make that work.
00:23:40
Speaker
And we go between, all right, do we want to lower the price?
00:23:48
Speaker
Yes, you'll save on gas, but you will increase the wear and tear on the equipment.
00:23:57
Speaker
The more you do, the more wear and tear there is.
00:24:01
Speaker
And I don't know, we actually charge more than most people do.
00:24:09
Speaker
And we're kind of happy the way we do it compared to those people that you have to charge $10 or less if you're doing HOA.
00:24:22
Speaker
And yes, you have to target them.
00:24:24
Speaker
You have to get it in and we need a whole new truck to do that.
00:24:30
Speaker
So we just haven't gone there with this.
00:24:33
Speaker
But part of what we look at is we charge the
00:24:39
Speaker
$78 the first time they have their bins cleaned.
00:24:43
Speaker
And a lot of people don't do this.
00:24:45
Speaker
They'll just say, yeah, it's $78 if you want it done one time.
00:24:53
Speaker
Or if you sign up for monthly, then it's just going to be $25 a month.
00:25:00
Speaker
Our take on it is everybody pays $78 for two bins the first time.
00:25:04
Speaker
Then that makes them eligible to be a monthly
00:25:07
Speaker
bimonthly or quarterly customer.
00:25:11
Speaker
So we have customers.
00:25:15
Speaker
Well, just because it takes, you're selling time, I think you're selling your time.
00:25:21
Speaker
And so it takes three to four times longer to clean a new set of bins than it does to do a monthly or bimonthly or quarterly service.
00:25:29
Speaker
Just because they're accumulated.
00:25:30
Speaker
So yeah, so it's, you know, it's, if it takes us 30 minutes,
00:25:37
Speaker
I want to be paid for that 30 minutes right then.
00:25:43
Speaker
And then when we come back for monthly, it'll take 10 minutes.
00:25:46
Speaker
But if we come back for quarterly, it takes 15 minutes.
00:25:51
Speaker
So you get paid according to what, how much time it takes because I mean, that's, that's what we're selling is our time and we're hiring someone to do it.
00:26:02
Speaker
I don't ever feel bad if someone says, I just want a one-time cleaning.
00:26:06
Speaker
Great, I'll do one-time cleanings all day long.
00:26:09
Speaker
My stop then is I make $78 or grow $78.
00:26:17
Speaker
Rather than, it's just annoying when you go the first time and you've got a monthly customer and we did it the first year this way and that's what we learned is, okay, yes, they're signing up for $25 a month
00:26:32
Speaker
But that first time you think these people have not cleaned these bins for 10 years.
00:26:37
Speaker
It takes time and it can be pretty disgusting.
00:26:43
Speaker
And you're just working yourself and you don't know, unless you're taking, collecting all the money for the year up front, you don't know for sure they're going to stay a customer.
00:26:54
Speaker
So we just got annoyed with that.
00:26:57
Speaker
And we decided we wanted to
00:26:59
Speaker
just be paid for our time, appropriately for our time and not make people be in contracts.
00:27:05
Speaker
And that way we're not gonna sweat it if they decide not to be a customer.
00:27:10
Speaker
The fall off of customers is minimal.
00:27:14
Speaker
Once they start having their bins cleaned, they are hooked.
00:27:18
Speaker
So the only time we lose customers is if they're moving and very often they're moving in the area.
00:27:24
Speaker
So we just pick up cleaning in their new house.
00:27:29
Speaker
And a handful of people due to money issues because of COVID.
00:27:35
Speaker
But other than that, they become a customer, they stay a customer.
00:27:39
Speaker
And I consider we have a lot of customers, they just call us once or twice a year.
00:27:45
Speaker
If they want to pay $78, just each time we come out, I'm fine with that.
00:27:52
Speaker
Because $78 twice in a year is...
00:27:57
Speaker
pretty much the same as their, let's see, they could have their first cleaning and become a quarterly customer and have two more cleanings.
00:28:11
Speaker
So I'm going to them three times or I can go to them two times for the same money.
00:28:16
Speaker
It doesn't really matter to me.
00:28:19
Speaker
So we're happy with the way we have it figured out.
00:28:23
Speaker
A lot of people try to,
00:28:26
Speaker
have prices be so low because they think that's going to entice customers.
00:28:32
Speaker
But, and then it's hard to make money.
00:28:36
Speaker
And a lot of people have gotten out in this business and then out of the business because they just couldn't make a go of it because they weren't charging enough.
00:28:45
Speaker
And, and I don't believe in going in and undercutting prices in a neighborhood where somebody else is.
00:28:55
Speaker
because then you start a race to the bottom.
00:28:58
Speaker
And more and more people that are gonna get it, there will be more and more people getting into this business.
00:29:04
Speaker
It will be smart to just offer at least the same prices as other people or even higher and have it make a business that makes sense because you gotta make money.
00:29:18
Speaker
And in the beginning, the way we did it, there was no money.
00:29:22
Speaker
As owners, we haven't taken any money
00:29:25
Speaker
this would be the first year that we could do that.
00:29:29
Speaker
And that we'll be able to if we want, but at the same time, whatever we're making, we may decide just to buy another truck with.
00:29:40
Speaker
Yeah, how much, what are the variable costs?
00:29:45
Speaker
Like what I'm picturing just naively is you've got fuel, you've got cleaning supplies, you've got water.
00:29:50
Speaker
Occasionally the equipment breaks, you gotta fix it, you got marketing.
00:29:54
Speaker
Is there anything else that's, or which of those is the big one?
00:30:00
Speaker
Well, those are all the cost.
00:30:05
Speaker
But the one thing you didn't say that probably is the biggest cost is insurance.
00:30:10
Speaker
We have to have business insurance and, you know, liability insurance, possibly because it's a new business and they
00:30:22
Speaker
aren't all that familiar with it.
00:30:25
Speaker
It's kind of high.
00:30:25
Speaker
It's probably about $3,000 a year for just liability insurance.
00:30:36
Speaker
And then workers comp insurance, you have to have that.
00:30:44
Speaker
I figured out this year to go with a company for payroll that does
00:30:52
Speaker
I forget what it's called.
00:30:53
Speaker
It's kind of as needed.
00:30:55
Speaker
So I've saved a lot of money on workers' comp insurance instead of just buying a blanket policy.
00:31:02
Speaker
It just, every time payroll hits, they calculate the workers' comp on that payroll.
00:31:10
Speaker
In some states, and Virginia is one of them, even though we didn't have employees, we still had to have a workers' comp policy just because of the owners running the truck.
00:31:22
Speaker
even though we weren't covered by it.
00:31:24
Speaker
Don't ask me to explain, because they had to re-explain it to me every year.
00:31:28
Speaker
Like, tell me again why I have to have this when I don't have employees.
00:31:31
Speaker
They said, oh, it's a Virginia law.
00:31:33
Speaker
Anyway, so insurance is high.
00:31:34
Speaker
So our truck payment each month.
00:31:39
Speaker
And water is the least expensive.
00:31:42
Speaker
We get water here through fire hydrants.
00:31:45
Speaker
That's the bulk water system.
00:31:48
Speaker
And it costs like $3.50.
00:31:52
Speaker
for 500 gallons of water and pretty much have to get water every day, sometimes twice a day.
00:32:02
Speaker
And you just work around, you start the day looking where the water is that's close to you so that you can work it in the schedule into the route.
00:32:13
Speaker
And you have to call the city, I guess, to arrange for you to use their hydrants.
00:32:19
Speaker
Yes, yes, you have to.
00:32:22
Speaker
get a meter actually and that meter you we had a down payment a deposit on it that you don't get back until you end the business and give them back their meter so that was like $1,700 and it doesn't have to be that high they've got a $400 one that we started with but and you use a the hose like a garden hose
00:32:48
Speaker
but it takes forever to fill the tank.
00:32:50
Speaker
So then we went to the $1,700 meter, which is a fire hose.
00:32:54
Speaker
And it takes, from the time you get out of the truck, hook everything up and unhook everything and get back in the truck, it's 15 minutes stop.
00:33:04
Speaker
So that's very fast to fill out.
00:33:06
Speaker
That's a one a day, two a day kind of commitment.
00:33:11
Speaker
Then to dump the water can be the trickiest part.
00:33:16
Speaker
we in in loudon county we have a we go to a sanitation the same place that the um oh what do you call them the septic guys go that are dumping their septic stuff and it doesn't cost us anything or they we just go to the same place and dump right there uh but you have to again you have to figure that into your route for the day and in other counties um it's a
00:33:46
Speaker
they'll let different people go to like car washes they make arrangements with the car wash I was never able to find one that would do that because the newer car washes recycle their water and if you have like a farmer if you happen to know a farmer farmers the water is gray water it's not black water so it's a farmer wouldn't mind if you want a water is is filled with it it would actually be good for it okay so that that's something that people definitely have to
00:34:16
Speaker
look into to know what regulations apply in their county.
00:34:24
Speaker
For dumping water.
00:34:25
Speaker
Some people pay to dump water.
00:34:27
Speaker
I've never had to pay for it.
Daily Operations and Technology
00:34:29
Speaker
Some people go to RVs.
00:34:32
Speaker
Yeah, if you use 500 gallons of water, you're going to have to dump 500 gallons of water.
00:34:39
Speaker
Because the truck is capturing the water.
00:34:41
Speaker
Obviously, there's some water that goes to the ground, but the
00:34:46
Speaker
Ben's getting held up over the hopper and that's where the water is dropping in as the high pressure.
00:34:56
Speaker
heads are cleaning the inside of the bin and it just waters going into the hopper.
00:35:04
Speaker
So yeah and the biggest right now, the cost of gasoline has definitely impacted us yeah.
00:35:17
Speaker
That's our, after the truck cost, gasoline is the second biggest cost.
00:35:22
Speaker
And it's gone up by a third this year since the gas prices jumped.
00:35:31
Speaker
And then what else in there?
00:35:34
Speaker
How many households do you service in a typical day?
00:35:41
Speaker
We average about 20 stops.
00:35:45
Speaker
today we have 25 stops.
00:35:47
Speaker
I kind of think of it in terms of how many times when I'm trying to figure out how long it's going to take for the day, how many times the bins are going to go up on the hopper.
00:36:01
Speaker
So if it's a recurring customer, that's going to go up once.
00:36:04
Speaker
If it's a new customer, I average twice, but sometimes they go up three times.
00:36:10
Speaker
So in how long it's going to take us to get the
00:36:15
Speaker
And so it could be if it's 20 customers, but five of them are new customers, then that's the same.
00:36:26
Speaker
I count that as like, that could be, that's like 25 recurring stops.
00:36:31
Speaker
So we just, I just have a math way, a way of figuring out calculating how long it's going to take.
00:36:37
Speaker
And probably the most because of our routes are, we go to different neighborhoods.
00:36:43
Speaker
today will take him about six hours.
00:36:47
Speaker
If he were, if we just had an HOA kind of situation like we talked about, I've heard of people doing, they say they do like 50 stops in the same period of time that we could do, you know, our 20 stops.
00:37:07
Speaker
So, so this is just a guess, but I would think
00:37:13
Speaker
Well, so first of all, you mentioned 10 minutes and 30 minutes.
00:37:17
Speaker
Is that a typical rule of thumb for how long it takes to do a recurring bin versus a new bin?
00:37:24
Speaker
A monthly bin, and that takes us, one person who's doing two bins.
00:37:30
Speaker
If two people are driving the truck, then it's going to be a little bit shorter because we dry the bins, we hand dry it.
00:37:37
Speaker
So one person has to hand dry two bins.
00:37:40
Speaker
That probably, that takes as much or more time as it takes
00:37:44
Speaker
took to clean the bin with the heads.
00:37:48
Speaker
And you, so you mentioned that some of these do steam washing.
00:37:51
Speaker
Does that cut that time down?
00:37:54
Speaker
I, yeah, that's what they say.
00:37:56
Speaker
Cuts it down because number one, it's doing it at the same time.
00:38:02
Speaker
We do, we put the bins up and then we pull one lever.
00:38:06
Speaker
One bin is being cleaned, put that lever up, pull the other lever.
00:38:10
Speaker
Now the other bins being cleaned and then you put them down.
00:38:14
Speaker
And if it's a new bin, once you put them down, you are gonna be, we scrub them.
00:38:19
Speaker
We use, we just get in there and scrub every inch inside and out.
00:38:25
Speaker
And that way I can see because of the bubbles that everything has been touched.
00:38:32
Speaker
And Dawn is a great degreaser.
00:38:35
Speaker
We don't use chemicals other than that.
00:38:38
Speaker
If we do use something
00:38:40
Speaker
like for odor neutralizer or sometimes pets or diapers might have more of a smell.
00:38:47
Speaker
We might use a odor neutralizer, but so, so the first time bins, we're scrubbing, they go back up, we bring them down.
00:38:56
Speaker
There may still be stuff that needs to be worked on.
00:39:00
Speaker
Like we might have to get a scraper.
00:39:01
Speaker
There might be paint in it that you have to do a little more detail work.
00:39:06
Speaker
Then up it goes again.
00:39:07
Speaker
And then once it's,
00:39:10
Speaker
as clean as we can get it, then we dry the whole thing and use an industrial deodorizer just to give it a nice smell and pull it up to the garage.
00:39:21
Speaker
So that takes longer.
00:39:25
Speaker
If it's a recurring bin, we just pull them down.
00:39:28
Speaker
Usually people leave them at the curb.
00:39:29
Speaker
We put them up on the truck, inside and out.
00:39:33
Speaker
The truck does the inside, then we power wash the outside.
00:39:37
Speaker
And then we're just drying it.
00:39:40
Speaker
and using the industrial deodorizer because once a bin's been cleaned thoroughly, like we do the first time, it's like, it may look dirty when you first look at it, but everything slides out with the 200 degree water.
00:39:55
Speaker
And it sanitizes and deodorizes at the same time, as long as the stuff hasn't been sitting in there for months at a time.
00:40:06
Speaker
So it's just quick.
00:40:08
Speaker
So if you're, if you're considering scaling up when you buy the, when you buy the next truck, you're going to have a different calculus on your hands as far as like, how many can I do?
00:40:20
Speaker
But also like, how hard do I have to work this equipment for it to be profitable?
00:40:24
Speaker
Because I imagine it's going to be a little more expensive.
00:40:29
Speaker
So, so like when you're, when you're setting up these routes, you're not.
00:40:32
Speaker
What I've heard about that.
00:40:37
Speaker
I just have heard that the hoses don't last as long with the steam cleaning.
00:40:45
Speaker
So I don't know, it may just be a wash.
00:40:47
Speaker
If I had a new truck, I might even get one of the older trucks.
00:40:52
Speaker
I'm not sure unless, until I see how it works in person, I'm not sure that if I have to pay more and if it costs more to take, you know, replacement for replacement parts,
00:41:10
Speaker
It just depends on what kind of routes you're doing.
00:41:13
Speaker
But so far, I'm perfectly happy with our truck.
00:41:17
Speaker
And I think we may save a minute or two here or there.
00:41:21
Speaker
And we're always trying to do that.
00:41:24
Speaker
But it depends on what it costs to save that minute or two.
00:41:29
Speaker
And this is just a guess.
00:41:30
Speaker
And this kind of relates to that.
00:41:32
Speaker
But I would think that you don't have a ton of contact with the customer unless something's gone wrong.
00:41:36
Speaker
You know, they leave the bin, you pick it up, that's that.
00:41:38
Speaker
You probably need though, a little bit of cooperation from the customer as far as like, they gotta have the bins out on the day.
00:41:45
Speaker
They have to be empty.
00:41:45
Speaker
It probably helps to have them like oriented properly on the street.
00:41:49
Speaker
Do you do anything to like coach the customer to help you out?
00:41:51
Speaker
Yeah, we just ask them to leave them at the curb.
00:41:57
Speaker
A lot of people say, oh, my HOA won't let us do that because we go,
00:42:03
Speaker
do the cleaning the day after the bins have been emptied.
00:42:07
Speaker
So we say, if that's the case, feel free to leave them just outside your garage where we can easily access them.
00:42:14
Speaker
In other words, you know, if there's cars in the driveway, I don't want to bump into them as we're pulling the bins down, that sort of thing.
00:42:22
Speaker
But most people leave them at the curb and we just pull up and clean them and then we return them to the garage so they don't sit out all day in case the customer's not there.
00:42:33
Speaker
But what we learned is we kind of trained people in the beginning that we really weren't that serious when we said, leave your bins empty, empty, because there'd be so much stuff in their bins.
00:42:48
Speaker
And we'd sit there and we have a, you know, handheld grabber.
00:42:53
Speaker
We grab the pieces out like in the recycle bin, just empty cans and bottles.
00:42:57
Speaker
And finally this year we said, you know what, we got to retrain these.
00:43:00
Speaker
people because this is not working because it's taking us so much time to empty what they've left in their bins so our reminders we send out by text and email before they um before we come out the day before it says can you hear me i can hear you yeah okay great um it says uh we charge ten dollars a ten dollar service fee if the bin's
00:43:29
Speaker
are not empty or not waiting for us.
00:43:33
Speaker
And that changed everything.
00:43:37
Speaker
That's, have you ever had to, so like if you're on a route, if you're on a route and maybe somebody's like a little bit out of the way and they're sort of consistently like forgetting to put the bin out or something, have you ever had to like fire a customer?
00:43:52
Speaker
No, no, I haven't.
00:43:55
Speaker
But I'm charging the $10 for me.
00:43:59
Speaker
satisfies me because if they're out of the way, it costs us money in employee time and in driving time.
00:44:07
Speaker
And sometimes if the schedule is full, I won't add somebody to that day because I think I've got a full schedule.
00:44:12
Speaker
So if I can, you know, charge that $10, which I do, then they're, they may not be happy with it, but they're getting trained and I'm, it takes care of that for me.
00:44:29
Speaker
And honestly, sometimes when it's a full day, it actually helps when someone drops off the schedule.
00:44:35
Speaker
You're like, all right, we're going to get them done.
00:44:37
Speaker
Get everyone done.
00:44:40
Speaker
But it's changed a lot since I put that, since we've added that requirement.
00:44:48
Speaker
So any other like pleasant or unpleasant surprises, things you didn't expect going in?
00:45:00
Speaker
It's a, it is actually a very easy business to run people because we can text with people and email with people.
00:45:11
Speaker
We do everything online.
00:45:12
Speaker
We have a very good software system that everything's in one place.
00:45:20
Speaker
And this, that is critical, by the way, you have to have a good customer management software for this.
00:45:26
Speaker
And so it does the routing.
00:45:28
Speaker
We do the billing through it.
00:45:30
Speaker
So customers, if they're like on a regular basis these days, people's credit cards get changed because of fraud and this and that.
00:45:41
Speaker
So when I go to do the billing and that happens, I just send them a link to their file.
00:45:46
Speaker
Here's, use this link to update your card.
00:45:49
Speaker
It's all very automated.
00:45:51
Speaker
So that's all very smooth.
00:45:53
Speaker
And I think people like it and we like it.
00:45:56
Speaker
there's not a lot of contact having to talk to them.
Hiring and Employee Management
00:46:02
Speaker
It's super simple.
00:46:04
Speaker
I don't have complaints.
00:46:05
Speaker
It's very satisfying to clean, take something that's so dirty and make it so clean.
00:46:14
Speaker
And people are delighted.
00:46:15
Speaker
As you noticed, we have a lot of five-star reviews because people are just tickled that this is,
00:46:24
Speaker
done so nicely, they didn't have to do it.
00:46:26
Speaker
Their garage not only doesn't smell bad anymore, but it can smell good because of our deodorizer that we use has just got a very pleasant smell.
00:46:37
Speaker
And it's again, it's industrial, so it doesn't dissipate right away.
00:46:44
Speaker
Yeah, my wife, we were in an HOA in our last house and my wife was constantly complaining about the garage being disgusting.
00:46:53
Speaker
And I know she was signed up 100%.
00:46:58
Speaker
And people get super excited about it.
00:47:01
Speaker
So it's a fun business.
00:47:03
Speaker
All the businesses that we've owned, we've always had to deal with complaints.
00:47:08
Speaker
And this one, we haven't.
00:47:12
Speaker
There's just nothing to complain about.
00:47:13
Speaker
Your bins are super clean.
00:47:15
Speaker
Although we did have one complaint.
00:47:17
Speaker
I have to take that back.
00:47:21
Speaker
who hired us to do two bins.
00:47:25
Speaker
And my guy, my technician got there.
00:47:27
Speaker
He did the two bins that were in front of the guy's mailbox, but the trash company had put the bins down cattywampus.
00:47:36
Speaker
And so the guy complained because we only cleaned one of his bins and then we cleaned his neighbor's bin.
00:47:42
Speaker
We're like, okay, well, lucky neighbor, we'll come right back and clean your other bin.
00:47:46
Speaker
You know, it's not a big deal.
00:47:48
Speaker
So, and that has happened.
00:47:51
Speaker
that's probably the thing that the detail that has to, you really have to pay attention to is probably four times we have cleaned the wrong bins because of where they get set down or we just, it just happened the other day, last week actually, two houses, townhouses, very close to each other with the alleyway where you clean, the number on the house is on the front of the house, then you have to go around to the alleyway
00:48:21
Speaker
And there are bins sitting on the, at the curb.
00:48:25
Speaker
So my guy said, okay, well, that's it.
00:48:27
Speaker
Well, he just kind of made an assumption because there was a day after bins were emptied.
00:48:33
Speaker
It was the only been sitting out.
00:48:34
Speaker
Well, it turns out our customer had left their bins by the side of their house for us.
00:48:40
Speaker
And this was their neighbor.
00:48:41
Speaker
So we cleaned their neighbor's bins, but they called us.
00:48:43
Speaker
They're not upset.
00:48:44
Speaker
They're like, Hey,
00:48:45
Speaker
You didn't clean our bins.
00:48:46
Speaker
You cleaned our neighbor bins.
00:48:47
Speaker
We're like, oh, lucky neighbor.
00:48:49
Speaker
We'll be right back.
00:48:50
Speaker
So it's not a big deal.
00:48:52
Speaker
That's the worst thing that's happened.
00:48:54
Speaker
It's just a pretty straightforward model as long as you're showing up and doing it.
00:48:59
Speaker
And then as with any business, the trickiest thing, if you don't want to do it yourself, is getting good employees.
00:49:09
Speaker
How have you approached that?
00:49:15
Speaker
The first last year was the first time we hired employees and it was tricky because they have to have a good driving record they can't your insurance will not allow you to hire someone with certain things on their driving record so.
00:49:31
Speaker
We had to collect driving records, submit them to
Customer Satisfaction and Business Rewards
00:49:34
Speaker
our insurance company all that, and it was it wasn't easy, I have to admit this year we got super lucky and I am used a recruiter who.
00:49:46
Speaker
was actually focusing on service drivers for service companies, hiring drivers for service companies.
00:49:54
Speaker
So he did all that work and he just found me a guy that has been wonderful.
00:49:59
Speaker
So he's the one that went through the applicants and did the advertising and checked all the driving records and all that and came up with this guy.
00:50:08
Speaker
And so it's worked out well, but if I, I always do dread when I need more, if somebody,
00:50:15
Speaker
last year we went through, we had two different fellows and, you know, that's the trickiest part.
00:50:23
Speaker
So you have to just go in with eyes wide open.
00:50:26
Speaker
You're talking about it not being a, really a problem with the customer.
00:50:30
Speaker
What sort of headaches did you run into?
00:50:33
Speaker
Was it just like sort of not showing up for work or what?
00:50:41
Speaker
Not really wanting to work.
00:50:45
Speaker
This, this can be like one day might be six hours.
00:50:48
Speaker
The next day might be 10 hours.
00:50:51
Speaker
It's inconsistent.
00:50:53
Speaker
It's hot in the summer.
00:50:56
Speaker
Like I, I went out just for a quality control day with my technician last week.
00:51:03
Speaker
And I said, where'd your glasses go?
00:51:05
Speaker
He said, they just slipped off my face.
00:51:09
Speaker
You know, he was so sweaty.
00:51:13
Speaker
It has to be someone that doesn't mind that.
00:51:17
Speaker
It's manual labor, but it's not hard.
00:51:20
Speaker
I actually did it myself for much.
00:51:24
Speaker
The last six weeks, I didn't have someone last year.
00:51:26
Speaker
I said, I'm just going to do it myself.
00:51:31
Speaker
You're taking something dirty, making it clean.
00:51:33
Speaker
That is very satisfying to me.
00:51:37
Speaker
Challenging yourself to do it more efficiently each time
00:51:42
Speaker
that sort of thing.
00:51:44
Speaker
So the right personality, it's a good job.
00:51:47
Speaker
My person that I have now, he likes the flexibility of it.
00:51:53
Speaker
He knows how long it takes him to do whatever the route might be.
00:51:57
Speaker
So I let him, I just say, when are you starting today?
00:52:02
Speaker
And I know that he knows that whenever he starts, he's got to be done by sunset.
00:52:07
Speaker
And he figures that out and we never run out.
00:52:10
Speaker
He's never not done that.
00:52:12
Speaker
So he likes to be able to have some say over his schedule.
00:52:18
Speaker
And he likes being outside.
00:52:23
Speaker
And he's very personable.
00:52:25
Speaker
So if he does run into a customer, they're always very impressed with what a gentleman he is.
00:52:33
Speaker
Well, this sounds like just an awesome business.
00:52:36
Speaker
And I really think the folks in the group are going to enjoy this.
00:52:42
Speaker
Thank you so much for coming on.
00:52:45
Speaker
It's Cindy at Nova Bin Wash.
00:52:49
Speaker
If you're in the area in Northern Virginia, be sure to check them out and sign up.
00:52:54
Speaker
Thanks for joining us, Cindy.
00:52:56
Speaker
Well, thanks for having me.
00:52:58
Speaker
And I never mind talking with people that are serious about getting in the business and need some help figuring things out.
00:53:07
Speaker
So I'm happy to take calls if anyone is going to take action on this.
00:53:12
Speaker
Oh, that's awesome.
00:53:12
Speaker
I so appreciate that.
00:53:13
Speaker
And I'm sure the guys will too.
00:53:15
Speaker
Thank you so much.