A cleaning proposal would include an annual, renewable contract quoting a monthly fee. It is a serious mistake to offer a bid that is priced below your own cost. Do yourself a favor and master the bidding process before you begin submitting proposals. Whenever you price your service too high, your proposal may be tossed out. If your price too low, you may secure the contract and wish that you hadn’t.
Customers don’t feel obligated to help you construct and price your service fees. They figure if you are a qualified contractor, you will know how to submit an accurate price estimate for all the required services. A bidding formula takes into consideration all of your expenses, the desired net profit, and what the market will bear.
Start by estimating how many hours a night it will take to clean the building you are bidding on. Next, determine what the going labor rate is for your city. Then, add your labor burden that that includes all payroll costs. Next, add all of your anticipated expenses including chemical, equipment, and overhead (such as office supplies, phone, insurance, advertising costs, etc.). Finally, you calculate a fair profit to add to your price. The net profit is the amount of income available to you as the owner.
Since bidding can be a complex task, an accurate and efficient bidding software program provides many advantages. For example, a building survey form should be available to collect and record the cleaning specifications, frequencies, and special needs. Most importantly, the cleaning variables must be rated to determine if the cleaning demands will be light, medium, or heavy. By scoring at least seven cleaning demands on a sliding scale, accurate production times can be projected for each separate bid.
Another consideration is whether a customer desires a complete cleaning each time or whether they would be interested in a partial cleaning with just a trash pickup and restroom touchup on given nights. By offering these options, a customer experiencing severe budget constraints can then pick and choose service levels. Using our JanBid checklist is helpful, especially in identifying customer expectations.
During the building tour, a prospect will observe your appearance, grooming, and self-confidence. To make a good first impression, refrain from uneducated questions that could reveal your inexperience. Don’t criticize the current service provider because it could be a family member. Be punctual for all appointments and try to bond with your prospect.
If you are making a tour in response to a Request for Proposal, make sure you have studied the proposal in advance. During the building inspection or bid walk-thru, you must identify all the cleaning demands and needs. It helps to evaluate the quality of cleaning currently being provided and note all deficiencies.
Determine if the prospect requires carpet and floor care services. If so, plan to offer these services or locate a sub-contractor who can perform the work for you. It is best to price additional services separately and invoice the customer as the service is performed.