How We Pay Our Employees | Pressure Washing Business

[@josh.miller]

Pay for job with bonus for no issues or complaints and additional bonus for 5 star review. Might try it, thanks for the ideas man. Tired of old system that creates lazy employees

[@JackofHaulTrades]

I like the pay for performance when you have full team!

[@c-moneycantrell]

I appreciate you explaining that it really does make sense and works out for everyone

[@fsb_-bf3th]

Hell yeah! About to purchase the course next week.

[@AustinDavis24]

Lets go!

[@larryyoung3732]

I'm so glad that about this cause. I have been telling mobile detailers and people that do pressure washing. That have people help them quit paying by the hour and paid by percentage per job. It's better for your business 👏🏾👍🏾💵💵💵💵💵

[@ChuckStriler]

The only negative to percentage pay is if you raise your prices to try to make more profit your employees automatically get a raise. This business model is difficult to sustain.

[@dfPats2665]

@@ChuckStriler you dont raise prices to make more profit, now THATS an unsustainable business model. the idea is you expand your business and hire more poeple to serve more customers to make more profit, thats what having a business is about. also this company has a weekly cap for pay so thats also factored in.

[@JohnWiggins-g8u]

@@ChuckStriler What is wrong with your employees making more when you do?

[@northjerseykevin3915]

This is a great way to structure it. A win win for everyone

[@stevedaws7]

Awesome Austin. Always providing valuable pressure washing content. I used to pay hourly with performance bonuses, which the the guys referred as, B's. Interested in what/who you uses for employee payroll. Keep Rocking, brother and TY for being a mentor to so many.

[@northjerseykevin3915]

I watch a lot of videos and this was one of the best

[@grahamthiel1362]

Hey Austin can you make a video or respond on how you and your business handled merging. What I mean is how you handled previous clientele, your Google business posting, all that

[@AustinDavis24]

Interesting topic but sure!

[@grahamthiel1362]

@@AustinDavis24 my buddy and I both own seperate pressure washing businesses and are looking to merge to take over our city. Or if I can talk to you some other way that would be amazing. Love what you do!

[@jscol34]

I like your pay for performance remuneration model. While the intended audience for this video is likely US based, this model won't be able to be established in some other countries due to employment laws. My proposed solution in conutries that require a minimum hourly wage to be paid, is to pay a base minimum hourly rate that is guaranteed as a pay floor for staff, with a cut of the revenue made by the business payable to them once a certain revenue threshold is achieved, to drive staff motivation. If the potential bonus is unachievable, it will demotivate staff. The pay for performance model may also drive staff to find additional work for the company. The pay for performance model also mitigates having to exert effort managing people.

[@JohnWiggins-g8u]

How do you get around the regulations around having to track hours and have an hourly rate you pay employees? I know mike andes has a base pay per hour and tracks that by the pay period. Do you do that same thing or is it treated differently

[@JohnWiggins-g8u]

Do you take out a certain amount for COGS like chems and gas or do you just do a total rev number?

[@kostadinospehlivanis993]

So other than maybe rinsing plants what is the reason to have 2 people per truck. One person could still do roughly 3 jobs per day ( depending on the size). I do it my self. I know you did it your self for a while. How much faster is it really to have 2 people per truck vs have 1 person per truck and maybe being able to have an extra truck or just save money for the company.

[@AustinDavis24]

I find most business owners that have not gotten off the truck yet will have no problem doing it all themselves for the reasons that you alluded to. But as you grow, we find that it’s just too much work for one person that’s getting paid what they are getting paid to handle themselves. Helping with hoses, rinsing, set up and tear down. It’s a lot especially on a hot day. It’s worth the extra pay to keep guys happy

[@nickdantonio8050]

Hey Austin, I'm trying to buy your course but every time it attempts to purchase it, I get redirected to a page that says "The page you were looking for doesn't exist."

[@AustinDavis24]

www.sixfigurepressure.com

[@justinspowerwashing]

You mention that $400 cap per day. Is that cap the same for the Crew Chief as it is for the Tech? Or is it different, given the disparity in percentage? $3636 job would cap the crew chief at $400. Tech would get $254. Assuming there was still time left in the day, how does the tech have the opportunity to make up the difference? Or is that $400 a cap per job? I appreciate any clarification, especially if I am misunderstanding. :)

[@justinspowerwashing]

And also, how do you handle pay if a job requires more than 2 people?

[@FountainPens-tt7up]

@@justinspowerwashing Kind of defeats the purpose of P4P that they cap at 400 for large projects. What would make them want to get that done in 1 day? Why not drag that large project out a week and make 400 a day since it's capped out.

[@justinspowerwashing]

@@FountainPens-tt7up I was asking for clarification because he states that the jobs cap at $400, but then talks about making $400/day. Is that only on 1-day jobs? What about jobs that require more than a 2-person crew? This was the first time I had heard about a cap on percentage-based pay and was just hoping to clear up the confusion.

[@dfPats2665]

@@justinspowerwashing theres a lot of factors that play into this, but im assuming they do NOT cap out often, and if they were capping out often basically thats an indication of the company taking on too much work or just needing more crews to get jobs done faster. Also theres no one holding the owner back from changing caps for certain employees over time, or just plainly giving bonuses to the hardest workers. its a good enough base pay system to motivate people up to there cap while still being able to make more than most hourly wages at that economic level i suppose.

[@dfPats2665]

@@FountainPens-tt7up because an honest worker at that economic level would be thrilled for the opportunity to make $400 a day, even if its just occasionally which im assuming it is. Also when the owner takes on projects and gets final bids he knows his crew and employees enough to probably get an accurate idea of how long it will take. It seems like the owner has a good relationship with his employees to the point where they wouldn't want to stretch jobs out, be lazy, and make the company look bad. Its not a perfect method, but its far far better than hourly or salary at that economic level. Also its a relatively safe, clean, stress free and simple job compared to alot of other jobs, especially at the tech level, so employees are more willing to stay and work hard. Youre not dealing with crazy belligerent rude customers all day like you would in retail or sales, youre not breathing in cancerous fumes and chemicals and shitty working conditions like you would at factories and farms, youre not sitting behind a desk all day atrophying your legs and becoming morbidly sedentary and ruining your vision. If you are an able bodied person, dont mind sunscreen and dont need to be rich, then this is actually an excellent occupation. and, at the end of the day the customer has a shiny clean happy house or facility !

[@bigb8425]

1. 7:30 = motivated to produce. 2. 11:30 motivated to bond, talk, and get some calories. 3. 1:00 motivated to think about when to get home and to recover physically. (sore body). 4. 3:00 Tired. 5. So much for motivation.. 6. 4:30. Feet, back, knees are burned out. 7. Like to stay, but need to go home. 8. Tomorrow call off.

[@iamBIIZARRE]

Most of the hardest workers in the world are paid by the hour . 280$ a day is closer to 72k a year. But i still do agree PfP is a good way to go also.

[@AustinDavis24]

No doubt about it!

[@AustinDavis24]

And I’m giving them an opportunity where they can be more rewarded for the work that they put in.

[@oldsouthautodetail9327]

280 per day is equal to 67k a year if you work an 8 hr day every day with weekends off. But then you have to factor in the 30% to Uncle Sam if they are 1099 employees. Which then comes to 47k take home.

[@ismaelcruz7576]

How are yall booking jobs?? I keep leaving door hangers in well off neighborhoods and I still get nothing

[@Kazerez]

@AustinDavis24 do you calculate the commissions after you separate your 15% for taxes or before? Are they being paid as employees or independent contractors?

[@AustinDavis24]

@@Kazerez they are W2. No the first thing that gets calculated is their wage. From the total gross. Because their income offsets our taxes.

[@guyger429]

Do you give any extra bonuses if the employee generates a 5 star review per job?

[@FlyingTomat0]

do you use any software for this specific p4p structure

[@thatskelvin]

Hey Austin I need help . So I understand the 4gpm pressure washer is good to start however, I can only afford a 2.4 gpm. I’ve watched a lot of your videos and have started buying necessities for pressure washing. After reading many reviews (also taking the 4xgpm rule into account ) my 3200psi 2.4gpm isn’t going to be worth it to do concrete driveways or even really work great with anything over a 14” surface cleaner. Is there anything I can add to my pressure washer to enhance my concrete cleaning as it’s all I have until I’ve saved enough money for a 4gpm pressure washer?

[@lightninghostgaming8931]

Smaller surface cleaner just will take more time to do the job. You won't be super efficient at first. As you make money you can reinvest for better equipment which can bring better efficiency and will equal less time and more money. I've been looking into starting a pressure washing business and have done a ton of research. No point in going into debt unless this is your full time gig. I'm gonna work this as a side hustle and hopefully turn it into full time one day.

[@thatskelvin]

@@lightninghostgaming8931 thank you for taking time out of your day, I’ve been sitting here until someone replies. I really appreciate it and heck yeah , you’ll get there! We both will and , I just ordered a 15in surface cleaner hoping it will get the job done. As far as clientele I’ve gotten 6 customers since I last posted this

[@lightninghostgaming8931]

@thatskelvin I'm still in the planning stages want to try this out with my house friends and family for free to make sure what I'm doing works before I move to a paying customer. I've had a pressure washer for years and it's about time to clean the house again and started thinking about how this could work for some extra income. Keep up with the work it will pay off. My startup cost is gonna only be about 300 for chemicals. Should have more than enough to do my house and couple more then start with the business still need to get an llc and insurance and all that "fun" stuff. It's gonna be a grind but I can see it paying off.

[@fijicivic24]

Austin what if a job that $2000 for example takes 2 days but we thought we would be able to complete in 1 day. In this structure if I pay my technician 7% would be $140. So that would be $70 per day. Or would it be $140 for both days equaling $280. Thank you

[@AustinDavis24]

@@fijicivic24 so this happens very very little because we know exactly how long jobs are going to take us. If a job takes us more than one day then the price goes up significantly because you’re correct, you would pay him his rate per day it took. So in your scenario would be $280. If we’re doing a $10,000 apartment complex job, our guys would max out at their $400 cap per day it took to complete the job.

[@fijicivic24]

@@AustinDavis24 thanks for the response! I want to book a coaching call with you. I was actually just looking at it. In one of your previous videos I thought it would be $75 for the 20 to 30 minute call. On the website it says $225 for 30 minutes. Is it possible to get for that original price or did you raise it up to $225?

[@AustinDavis24]

@ I did raise it. My older videos were from a year or two ago. I’m a lot busier than I was a year or two ago. But I can hook you up with 199 if you like.

[@fijicivic24]

@ okay I’m down! Want me to sign up through the site like normal?

[@AustinDavis24]

@ yes

[@JorgeSalinas503]

First helll yeah!

[@AustinDavis24]

haha

[@Anne3000]

How do you ensure quality?

[@AustinDavis24]

They will have to go back and work for free if it dosent look up to standard.

[@charlidmelioiloveyoudixie9647]

In Australia that’s impossible do it

[@bullfrogoutdoors2666]

I like that but how can you make it fair, if one truck gets assigned a 5k$ job and the other guy gets assigned a 2k$ job then it’s obvious that the 5k guy has more opportunity to make more cash, like how do you decide what truck gets the highest paid job to make it fair?

[@AustinDavis24]

Good point! Each truck averages the same amount per day. We make it so that it’s even. Give or take a couple hundred dollars. Someday one truck is more full than the other truck and vice versa.

[@bullfrogoutdoors2666]

@@AustinDavis24 makes sense!

[@jairettbutler8183]

I love this method I’ve been telling guys for a while that this is the best way to do it. This method also encourages guys to upscale and to knock doors as the more business they drum up the more they make

[@matthewv06]

hey austin, want the copy I sent ya?

[@michaelhemric5228]

I wish i could land a boss like you i have killed myself for 18 years for a guy that has no inclination for getting rid of bad employees or taking care of good ones that bust ass to get it done and carry everyone around them

[@derickz03]

P4p? You mean commission. You pay them a commission. Lol 😂

[@jumpmane2k]

Have You Heard Of Payroll Funding?

[@Ridehighfxdb]

You’re not getting paid any extra with getting paid by the day either. You get paid the same whether you do 2 jobs are 5 jobs a day. Hourly at least you have the opportunity for OT

[@ezracaoili3581]

It’s not how you pay it’s who you pay.

[@shumushrif9204]

Honestly wouldn't you be better off paying $1000 a week cash, with like a $20 per job bonus, and tell them to kick rocks if they don't preform? Stick a go pro on every truck and they know they're being POV recorded, both for content, and for insurance, and I guess to make them know you're watching lol

[@AustinDavis24]

Short answer is no. I want our guys to feel a bit more rewarded. Something about knowing that you’re making more money on particular jobs depending on what you’re doing is pretty satisfying to them. Our crew chief average 65 to 70 K a year