I am bidding on the cleaning contract for a local health spa that occupies approx. 5000 sq. ft. There are no other bidders as I have learned through a business close by that they might be interested in my services. They are currently paying $10 per hour to two ladies who come in and clean the bathrooms at night and a full cleaning is done on the weekends with similar pay to another person. They seem to want to step up their cleanliness and asked me to submit a bid for additional cleaning. I have drawn up three bids. One for the full responsibility of cleaning services assuming I was the only one doing the job, and two other bids that both include a nightly full clean and one or two day time quick cleans to ensure the bathrooms and reception area are constantly clean. My problem is if I bid them at .08 per square foot that is $400 per cleaning (full Clean) when they are now paying a fraction of that. How do I compete with these low prices or how can I convince the owner he needs to pay more and get more?

In part your forgetting something. And it is with this that you can negotiate. 2 employees plus 1 at $10 an hour and a full day cleaning is already $240 per day. That does not include any paid benefits nor insurance nor paying social security. So the actual cost is higher just in wages alone. Then after that because it's a spa certain chemicals need to be used to clean with and to eliminate germs. Again a company expense at this time.

That adds even more to the internal cost. You can barter as to who supplies what for the function of cleaning the place. And that can affect your bottom line bidding. But you see your not being unrealistic in your figures at this time. So your next step is how much your going to need from this job and that will give you your bottom dollar.

Try looking at the big picture.

And you are not going to ever be cheaper, or often never the cheapest bid anytime, if you get business by always just being the cheapest you will either go out of business or can't afford to do the jobs.

You bid and sell your service, you show them how things could be cleaner, you explain that they would not be liable for workers comp if someone got hurt, and so on.

And you are not going to ever be cheaper, or often never the cheapest bid anytime, if you get business by always just being the cheapest you will either go out of business or can't afford to do the jobs.

You bid and sell your service, you show them how things could be cleaner, you explain that they would not be liable for workers comp if someone got hurt, and so on.

Exactly.

Stringer