The housing market shortage, inflation and covid have reshaped business. Gas prices in Palm Springs, California are close to $7.00. Inflation has skyrocketed due to supply chain shortages and administration policies. Houses are selling around 20% over asking. The FUD factor over covid has waned at the moment. All these factors have had an impact on our business practices and prices.
Inflation can affect the real estate market, commodities and service prices.
The housing market shortage has created a FOMO (fear of missing out) buying pattern. Buyers are worried if they don’t get in now, they will pay more later. The irony of this paradox is truly amazing. First time buyers and investors are swooping up homes rapidly. The wave began in Texas, moved to Tennessee, Missouri, Arkansas, then Florida. As a window cleaner in Palm Desert, California, business has picked up. Covid is in the rear view and sellers are booking cleaning services. There are some cons to the current state of affairs.
Supply Chain Shortages
The Ever Given stuck in The Suez Canal is one example affecting supply prices.
Many of the chemicals and products we use are delayed in shipping. Some supplies are simply no longer available. As a result we have had to modify our service procedures. Labor shortage is another problem here in Palm Springs, California. There is too much work and not enough help. We have raised prices to adjust to higher costs to operate. Most of our customers understand but several have fallen by the wayside. Sodium hypochlorite used for pressure washing has tripled in cost. Bronze wool used for window cleaning is difficult to obtain. These factors have forced ShinePro Window Cleaning to adapt. Some examples are utilizing alternative chemicals that cost a little more and spending more time onsite.
Inflation
The bubble is about to burst with inflation being more than the market can bear.
What causes inflation? Well, that’s a complex question with a complex answer. There are many theories abound that point to domestic policy, greed and foreign factors. This is a cleaning blog, thus we will not delve into those theories. I will specify how COGS applies to the big picture. ShinePro is an exterior cleaning service provider. Our primary costs to provide window cleaning, solar panel cleaning and pressure washing depends on basic elements. Our biggest cost is fuel. With our coverage area including Palm Springs, Palm Desert, La Quinta, all the way to Redlands, we drive a lot. To cover gas costs, we have implemented a nine percent price increase. Our customers live in the same world as us, therefor understand.
Covid
Covid FUD is waning, but November 8th is just around the corner…
Coronavirus made or broke a lot of businesses. Brick and mortar companies suffered the most. For us, Covid presented a challenge that we chose to rise to. The demand for disinfecting services skyrocketed. Our answer was ShinePro Sanitizing Services. From auto dealerships, medical facilities, and even private residences, business boomed. Of course the decline in infections has been a blessing. The trend of shaking hands with customers again supersedes any service revenue.
Closing Thoughts
2022 has proven to be a challenging year all around. What the next year will bring is up in the air. Forecasts predict a recession although it may not materialize (hopefully) As a business that was born from The Great Recession of 2008, ShinePro will persevere. Our primary concern is for the people of Rancho Mirage, Indian Wells, Yucaipa and Beaumont, California. ShinePro will continue to offer window cleaning, solar panel cleaning and pressure washing to customers in need.
Brandon Scott, COO of ShinePro Window Cleaning
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