Soap Warehouse Blog

Well September is here and with it the last quarter of the year. Now is a good time to look and see what business goals you set back at the first of the year still have to be done, evaluate things you have tried this year so far to see if you want to continue with them next year or put on the front burner things you still need to do before this year runs out.

So far we have done all the major products we had planned like putting out a monthly newsletter, writing in this blog at least once a month, trade shows and new advertising campaigns in new channels. But even I still have some things that got pushed aside that I need to get done and marked off my to do list.

One big one is to contact every customer to make sure they have a copy of an MSDS for every product they have purchased from us. This one item is very important for you, for your business and for your employees if you have them. This needs to be done and checked at least once a year. So very soon you will be getting either an email or letter in the mail with a list of the MSDS's you should have on hand especially if you still have the product at your house, on your truck or rig.

MSDS's are always sent out by us the first time you buy a new product, when the product contains Hydrofluoric acid or when it is requested by you, our customer. You can get a needed copy by calling 800-762-7911, emailing us or downloading it from the website.

By law (OSHA either federal or state) you need to have a book made up of all MSDS for every product you use routinely in your work, that you or employees can be exposed to. So many more products than just ours should be in there. They need to be cataloged in alphabetical order; by letter tabs are even better, you should probably have more than one MSDS book in your possession. The first should be at your home or office where the bulk of your chemicals are delivered and stored. Other copies should be carried out on the road with you in your truck or on your rig itself. And if you have more than one truck or rig, one for every one of those as well. It is also best for at least the ones on the road to be kept in a waterproof binder with the pages inserted in plastic page covers so dirt and water will not mess them up. If you do not have these books in place yet, this is a great time of year to get them at the lowest possible cost, while back to school supply sales are happening.

If you do not know what is found in an MSDS, or all the sections of an MSDS, now would be a great time to learn. You can go here to learn everything you need to know about an MSDS, like why you should have them, what are the different sections of an MSDS so you know where to look if the situation comes up and you need it.

During an emergency is not the time to wonder if the health cautions or first aid directions are found in section III or VII! Plus if you ever get asked for your MSDS by OSHA, the DOT, a police officer or even a customer to prove what is or is not in a product you are using at their home, this will help your business look professional and possibly not be fined for not having them.

The most frightening calls I have gotten are when customers call us frantic with an injured employee and they do not know where an MSDS is or they did not keep the MSDS we sent them and that employee needs immediate emergency care. I hope you never have a need to open your MSDS books but it sure is important that they are there if you ever do.

Texas was Great!

I got a real treat when I got the chance to meet Alex Debogorski from the History Channel's show "Ice Road Truckers". He was a lot of fun and spent time with everyone that lined up to see him during all three days of the show. He is just as nice in person as he appears on the show and was traveling with his wife Gene, his sister and two sons of his eleven children. The country singer Tracy Lawrence also did a show for attendees Friday night, but tickets were limited, he did not stay and sing as long as promised and would not sign autographs so everyone I spoke to on Saturday was not that pleased with the performance or with him but everyone was saw was very happy they stopped and met Alex. I guess that is why I saw 20 Alex T-shirts to every 1 of Tracy's on Saturday. Being a nice person pays.

Well we made it to the Great American Truck Show with a few set backs but the start is going well.

We were to have 5 staff at this show but the owner of Soap Warehouse got a badly infected cyst on his hand and had to stay back in GA in the hospital to have it taken care of. So down 2 members from that. Then on Wednesday right before 5 pm we had an email from our models staffing company Statementmodles.com that our model decided she did not want the job she was paid a month ago to do and they were refunding us our money. Thanks a lot! So down to 2 staff members. Thank goodness we have friends here in Texas. We called and got a local friend that has done other kinds of trade shows in the past, although not for industrial soaps to drive over to help us at the last minute.

Here is how our booth looks.

So far we have had a good response, seen some new owner operators that had sent in their drawing entries in early to us, some that read about us in the GATS newsletter or saw our ad in the Land Line magazine. We hope to have the next two days to be just as good. Will update everyone on how the whole show turned out along with a list of all our prize drawing winners at the end of the show.

I can not believe we have only three weeks until August 20th and the Great American Truck Show in Dallas, TX. It will be running from Thursday August 20th at noon until Saturday August 22nd at 6 p.m.

We have been working very hard to make Soap Warehouse's first major trade show a success and we want all our customers and friends to share that success and be a part of it.

Please let us know if you would like a free pair of tickets to attend the show. Normally $10 a ticket for entry you can be our guest for free. Just call or email us and we will be happy to send you some. There will be free tractor parking, and many activities like a Free Concert by Tracy Lawrence. Please use this link to visit the GATS home page for all the info. http://www.gatsonline.com/

Myself along with the owner of Soap Warehouse and other staff will be on hand to meet you at our Booth #14049 to discuss our great line of truck washes and aluminum brighteners that will be the focus of this show. We would love to meet any of our current customers in person or any possible future customer that would like to introduce yourself to us. When you come by to see us make sure you let us know who you are, because all of our current customers that stop by will receive a special item just for coming by to say hello. We would love to hear stories of how our products have or are working for you and your business too. We will also have other booth only items to give-a-way to any attendee that stops to talk and discuss our products with them. We will have show only pricing specials as well as coupons for future purchases with us.

You may fill out a prize entry form before you even get to the show to have the first opportunity possible to win one of our daily booth prizes. You will find the link on the front of our website http://www.soapwarehouse.biz/ fill it out and fax it to 770-939-5501 to be entered.

We will be giving away every day of the show a Fox Fury Command 20 Headlamp and two 5 gallon containers of Big Rig Brite Truck Wash. The Fox Fury Headlamp has a retail value of $90 and the truck wash will be delivered to the winners location a value starting at $70 or more including the shipping.

These as well as our in booth give-a-ways are just some of the reasons to come meet us and enjoy yourself at the show.

The office in Georgia will still be open to serve our customers during the show, taking orders and shipping out product but please be understanding if the phone does not get answered as fast as usual or if someone has to call you back since we are leaving the front office just a little short staffed that week while the rest of us are in Texas.

Again we hope to see you at the show and please call us for tickets and fax your entry in for our prize drawings.

Pricing is a big issue right now for us and for many others. We just finished an in depth mid year review and have found that the overhead costs that have been sneaking up on us over the last year or so have really affected our bottom line. So like so many others we are going to have to adjust our pricing upwards to keep things moving. No we are not in trouble or anything, we are in no danger of having to close like so many others, including some of our own customers this last year, but we realized that in some cases we were giving away the farm and not leaving anything for the company. Every business needs to at least keep up with the cost of living and doing business, and so far this year we have been going in the other direction. Very soon you will be seeing an across the board price increase. While we are cutting and trimming costs in areas that we can you should be pricing your products and services avoiding these mistakes to be sure you keep your business healthy too.

All that pricing is, is a risk. The risk of setting a price you and your customers can both live with and continue to do business. But most risk can be managed with good information.

1. Low ball pricing and undercutting your competition. For some businesses this is a strategy, but not a very good one for long. Pricing yourself and your services too low all the time may bring in great sales numbers but not the bottom line profit to stay in business. You do not have to get all of the price conscious customers that are out there. Know what your service costs you to offer them and price accordingly.

2. Using the same margin for everything. No one says you must make the same % of profit for everything you do. You may need to decrease the margin on less time consuming work, and increase the margin on the infrequent or costlier jobs. You can afford a smaller margin on the higher sales volume of the quicker jobs. Say a complete strip, stain and reseal job for a 3000 square foot deck at the back of the house vs. the quick concrete driveway cleaning at the front.

3. Knowing the difference between markup and margin. Markup is based on your costs and Margin is based on the price. If you price a service with a 20% mark up on the cost of the products you use for the job and then offer your customer even a 10% discount on the total service you may end up with not making the margin you need to run the business.

4. Not taking all costs into account. Every job price must cover all your costs. Not just the cost of the soap, water and gas to get you there but also some of the cost to purchase equipment, operate and maintain it, along with all your bookkeeping and other costs it takes to get and process the job. Every business needs to know its basic hourly overhead for a whole month even if you do not do a single bit of work for that month.

5. You need to know what the competition is charging for the same work. That does not mean you follow the price they charge but you need to find out what value they give vs. what you offer and price accordingly. If you use a better machine, better soap and give superior service include those costs in your price and be able to defend those prices by showing and explaining to the customer why you cost more.

6. Discounting instead of giving added value. Every 10% discount you give means you have to do 50% more work to make the same profit if you had not given the discount. You can discount yourself out of business. So make your discounts mean something when you give them, use them sparingly and try and give your customer added value instead. Give the customer an added service for free as an incentive instead of a discount. Clean the gutters with every roof cleaning, clean windows with a house wash etc. Most of the time you would be right there doing the first job anyway so the base cost is very low, the material cost could also be next to nothing so why not put a price value on the extra service and give that to the customer instead of a cash discount.

I hope this helps you price your work to your customers to keep you running a healthy business and that you understand when we have to reprice our products to keep our business healthy too.

Already it is June, kids out of school and temperatures are rising and hopefully the number of your jobs and profits with it.

We all know it was a very slow start to this year with the bad winter hanging on in the Northeast and the rains in the South and Midwest. But things are starting to slowly pick up.

I was hoping that I could get a discussion going on what each of you are seeing in your area, good and bad so you can see that there are others out there just like you.

For us at Soap Warehouse the economic, environmental regulation and weather issues that effect you directly effect us.

We also want to bring you information that will help you meet these challenges and hopefully aid you in over coming some of them. Here are some links to information that may help or at least inform you during these times.

For environmental regulation info go to http://www.washwater.org/ or http://www.epa.gov/

For business building join one or more networking groups. Here is an article about Kudzu:
http://www.entrepreneur.com/magazine/entrepreneur/2008/september/196302.html

Links to different sites are here:
Kudzu http://www.kudzu.com/
Merchant Circle http://www.merchantcircle.com/corporate/
Linkedin http://www.linkedin.com/


Is that Yellow page ad just not bring you in the business any more? Try these other places:
http://www.entrepreneur.com/marketing/marketingcolumnistkimtgordon/article199484.html

I hope some so these ideas help you reve up your revenues this summer.

In the larger cities like Nassau things are about what they are here in the US just slower, but once you get over to some of the little islands, things are drastically different. These islands are too small for many cars, so they use golf carts! These islands thrive on tourism and they know one way to make a tourist pick them over the competition is appearance. For example: If you had the choice of renting a four person golf cart between 2-3 different companies and they are all located together in the same area at the dock when you landed, would you go to the one where you saw carts up on blocks obviously in need of repair with others with stains on the vinyl, or to the one with scuffs on the cart bodies with pealing decals OR would you head for the one that had gleaming clean carts all nicely parked in a row? Well you guessed right the clean ones rent first.




Have a great week and I am glad to be back home, but it sure was pretty to look at.

I just read some very interesting but true advice I would like to pass on to you.

It is better to be just 1% better for 100 reasons than to be 100% better for only 1.

If you take that philosophy with your business you will see that even little changes make a big difference.

For example if your biggest competitor is always giving a 10% discount to new or referral customers and makes a big point of it in their advertising, then you offer 11%. Not that discounts are the answer, I usually do not recommend them but rather suggest that you give bonus value instead. But you get the idea.

Sometimes you can not out do someone or something by even 1%, take "available by phone 24 hours as day" for an example. But you can offer a faster response time either for a call back or actual booked appointment. But you must be able to follow through on your claims so chose carefully. You could offer a superior brand of stain for deck work instead of the run of the mill that everyone else carries, this does not mean that you do not charge for it, just that you carry and market it as the best in the industry. You can offer free window cleaning with a house wash or complementary gutter cleaning with a roof cleaning. Anything that the customer perceives as you giving that extra 1% over and over during your job for them will make you stand out, get you referrals and more jobs.

Always leave the owners property better then you found it, and I do not just mean on the job you are being paid to do. I mean make sure you pick up all of your trash or even their trash that your cleaning uncovers, within reason. If your service included furniture removal and replacement for a deck or patio cleaning be sure it is put back correctly or better than you found it. It may cost you only a few extra pennies to rinse off those plastic planters, deck chairs or cushions to make them look better. Of course you can always offer side services for a complete through cleaning job on these items first. And you must be willing to do these sort of small jobs that take up extra time before you offer them to the customer. It does you no good to advertise that you offer these services and have to later, while on the job, refuse to do them because you have booked your time so tight that you can not accommodate them. No matter how much pre-planning you do or questions you ask, something else will always come up once you are in front of the customer.

But if you do that extra 1% for customers over and over it will pay off 100 times over.

The next product I would like to discuss is Bio Barrier. I wrote about this product last year but I will mention it again after speaking on Citrus X-terior earlier this week. Bio Barrier is a great follow up product to any cleaning where molds and mildews have been a problem. Like with roof shingles - once the black Gloeocapsa Magma algae has been killed and removed, or with vinyl siding or wood decking- once the green, yellow, or black mold and any mildew has been killed and removed.

Bio Barrier needs to be applied right after a through cleaning of the surface has been done and the area to be treated is thoroughly dried. Bio Barrier is not a mold or mildew killer but rather a growth inhibitor. Bio Barrier protects a surface it is applied to from the harmful micro-organisms that cause odor and mold growth from coming back. A properly treated surface will have effective protection for 6-12 months depending on the environment and frequency of exposure to direct water or indirect moisture.

Bio Barrier does not have to be used on the whole house, roof or deck. You can locate, mark or document, like with photographs or a drawing of the problem areas before cleaning is done to easily locate them later for treatment. Bio Barrier is used straight, not diluted. It can be sprayed, sponged or wiped onto the surface for treatment just so a light but complete wetting of the product is applied to the surface material. Bio Barrier does not have to be used to soak, saturate or be allowed to run down or pool on a surface to be effective.

Bio Barrier can be used as an add on to your normal cleaning as an added value, additionally priced service. For just pennies you could be able to give a no growth guarantee with your cleaning that would be a perceived added value to your customer.

Say for instance you clean a house and a few days later come back to apply Bio Barrier just to the problem areas. If you have left a sign in the yard stating your company name and number, plus left cards with your current customer with a referral offer, you may very well be coming back to that area to do a new job besides doing the Bio Barrier treatment and moving your sign to a different house's yard in the same neighborhood.

Bio Barrier will make you look good to your customers and if you did a quality first cleaning job it should bring you added word of mouth business as well when the mold does not grow back in just a few months. It also gives you a leg up as to why you should come back on a yearly basis to clean the house and retreat for the mold.

Bio Barrier is available in 1 gallon bottles and 5 gallon pails. You can call to order Bio Barrier at 800-762-7911 or go to our web site where you will find a Data Sheet and other valuable information about Bio Barrier.

One of the most dreaded words of the small business owner.

I wanted to share a few tips we have found to pass on along with some other links that may help some of you.

First tip: Get some professional help. I do not mean to have to pay a fortune for this help but too many small business owners think they can do it themselves and find out only years later after an audit, that they either owe money they don't have or wasted money they could have gotten back, but is now too late to recover it.

Even if you just read up on the subject, go on line for a self help like at Entrepreneur.com or pay for a tax filing program you will be ahead of the game.

Here is a link to a great lady I know Diana Crawford. She did tax audit videos for a client and it has helped many people, one link is at the end of this post. Besides just being an accountant with a CPA degree she is an Intuit QuickBooks expert. So if you use QuickBooks and have a problem give her a shout (I suggest you use some type of computer program). She will help anyone or at least steer them to a local person that can. She teaches QuickBooks small business classes for free and does Beta testing for Intuit on new versions of QuickBooks and is an Intuit Trainer. If you already have QuickBooks there is a wealth of free information just through Intuit Support on line.

dcrawford@cmccpas.com is her e-mail. Please indicate on the subject line or in your e-mail that you are a Soap Warehouse customer. She is also available to do any ones businesses taxes, her firm handles clients across the country.

Right now we are planing to start recording her free "How to set up your small business with QuickBooks" sessions so she will have more time to devote to hosting other advanced classes. We are also discussing with her to possibly make a video just for pressure washing businesses to address their specific needs to put on our site. I will let everyone know as soon as new sessions are available.

Next make sure you are tracking every expense. Do you give out coupons or give discounts for services to customers? You need to track that money as cost of advertising, this expense is to be taken against the money you made. If you list your total income minus cost of labor and supplies but forget this amount it could be costing you hundreds of dollars a year in tax savings.

Mileage vs actual cost: Always keep a log book in your company vehicle listing the beginning millage on Jan 1. on the first page and then keep a millage log to and from every customer or stop. List every dollar spent on gas, oil changes, tires, tune ups, repairs etc. I also suggest putting this information into a spreadsheet at least once a week or so. This way at the end of the year you can evaluate if you should take the flat mileage rate of the miles you drove for work or the actual costs of using your vehicle for business. Don't forgot the mileage on your personal vehicle either especially if it is used to do other errands like deposit money in the bank or pick up office supplies. Keep an estimate book in your family , so if you meet someone, hand them a card and give them an estimate, you can write off some of that mileage as well.

Even something as simple as doing your laundry can save you money. If you spend the few extra dollars to put a company name patch on your clothes you are then able to write off not only the cost of the items, but the cost of the patch and cleaning them for the entire year. Because they are then considered a uniform not just personal apparel, but I suggest wearing them sometimes even when you are not working to promote your business name. I will sometimes wear our Soap Warehouse business tag out just to try and start conversations and get new leads. Even putting a sign with your business's name and number on your personal car will allow you to write off the costs it takes to do it plus gives you the added advertising. I have even lent a set of magnetic signs to friends to put on their vehicle when I know are going on a long cross country trip to generate calls. I never know where my next customer may be coming from.

Here is a link to a video Diana did on how to report itemized deductions you might learn from.

Good Luck with Uncle Sam this year.