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Soooooooooooooooooo Stringer I made only two small adjustments to my prices I figured out if I lowered the prices on two of the properties I would actually be working for no reason if someone were to clean for me... So I actually decided to lower my bid to .07 on tow of them... I emailed her the response.. She did seem to pleased but she said they are reviewing all contracts today and would give me a call back,, I'm in business to make money not work for free "I wanted to say" Thank You for rall the help and support on the matter... Ill let you know what the results are a little bit later |
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Here is what she said... Im not going to sell myself short for these people... Current economic situation... you were right all along my friend... Our first responsibility is to the properties that employ our services; and considering our current economic situation, pricing is always a priority. I personally believe that pricing should not affect a companies quality of service. Thank you for taking the time to submit the proposal for each of the properties requested; however, we will be awarding the contracts to another company who was able to negotiate pricing to be comparable to our current contracts. Again, your time and consideration in this matter has been greatly appreciated. |
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 Originally Posted by Cleaningman23
In a nutshell... 100 cold calls; 15 - 20 interviews; 3 - 6 proposals; 2 - 3 sales... on average. Also, usually from initial contact it is usually 3 months to contract; bid time, decision time, when the present contract expires... (3 months usually). |
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Hehe I feel Ya stringer At first I was skeptical and didn't understand why you hated pms so much Now I know!! They are CHEAP You were right all along... was that price I gave them a good price you think? The funny thing was two of my proposals were only about 45-60 dollars higher than their older budget... Which to me isn't bad since they just got out of a two year contract... and the others were only about 75 dollars higher... |
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Originally Posted by Cleaningman23
That is a perfect example, you were only talking about maybe $175.00 more a month. Let them have it, you don't need the pain... and trust me there will be pain... they will complain a lot. This economy has forced a lot of companies to tighten their belts... it is now give and take on both sides. I am experiencing it a lot in all fields/markets. Your pricing was very competitive. For future pricing of medium density Class B and C buildings use that as a keystone, I am going to go to our emails last night about pricing and copy and paste them here to possibly help other people. Thanks, Stringer |
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Originally Posted by Cleaningman23
Stringer........ "I do not trust property management companies (period). What you quoted will give them the job done properly and allow you manageable profit. That being said, you know that the choice is yours. Answer this; Are you going to be doing the cleaning yourself? Or are you going to be paying someone to do all this? (Important in my calculations…..) Because, if you are doing this yourself then anything above your expenses (including all taxes) is profit for you, no payout to workers. # 1: I would say this, in my opinion, figure how much time it will take you to complete EACH job on a daily basis. # 2: With average density in the areas to be cleaned…you should be able to clean on average around 3,000 sq ft per hour. Divide this into the sq ft for each area and you will get the time it will take you to clean that specific area. If you are using workers to do this then minimum wage (loaded ) is just under $9.00 per hour in Illinois. Example; say it takes 1 ½ hours to do a specific area = 1 ½ X $9.00 = $13.50 actual labor cost to clean it. Do you get the picture? I usually use about 17 to 25% for equipment and chemicals on top of this. For your administrative costs (taxes and other…): another 25 to 30%. See where that bottoms out for each job. Then get back to me with your figures….in a break out for each and every one of these… It is nice to know what their budget is and what the other company was charging….but I smell a dead fish here…. For her to be this NICE and to give you the 'present' pricing because she likes you so much and simply wants to work with you…..well, maybe? Their job is to cut or maintain all cost, especially now….she could be baiting you….because she knows you are new to commercial possibly…? She is 'selling' you now…'buyer beware.' I can't say that this is true, but my experience of over 30 years doing this…….:( Bottom line is: IF, you can work up your new total figures and compare them to hers and still make a decent profit (20 to 25% on smaller jobs like this) for each and every one of these…then possibly go with it. If for some reason after you do your due diligence and your figures are below hers then I would obviously use hers. I would tell her that you worked hard to 'squeeze' your figures and managed to match hers…tell her nothing else, the more info you give her the more she has to use against you if needed later. If you are going to do this work yourself then you may have more wiggle room. When we are finished with this email, I want you to 'copy' it and paste it on your thread please." - Stringer Cleaningman23...... "Hi Lloyd, I do understand where you are coming from, but for some reason they keep dangling more opportunities in front of my face. Which to me, can open up into other companies than them. I am in this business to make a profit though and will refuse to work for nothing. I have calculated that some days I would bring a worker and work besides him possibly cutting my labor cost by 20%. These are the figures I have calculated so far with your equation. Suite 105= 1.67 HRS X 9.00 per hr= $15.03 labor Same building(same day of cleaning) Network= .96 HRS X 9.00 = $8.64 labor Those two would total to about $23.67 per week or $94.68 per month for labor Suite A and B= 1.13 HRS X $9.00 per hr= $10.17 XXXXXX Building .82 hrs X $9.00 hr=$7.38 Those two would total $17.55 per day cleaned or $70.20 per month Both of those together will be $164.88 Per month labor and less if I were to work along. Now would the admin fees and equipment be on top of the over cost for all the jobs? Or individually? Thanks again" Stringer..... "On top of…..simply take the percentage you want to add to the labor: (percentage??) X the labor for each thing….supplies, equipment, profit…. Then get a total monthly for each job. Then evaluate that against her figures. Then if hers is higher…use hers…if not then you have a problem." |
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Originally Posted by Cleaningman23
But all official business; staff meetings, invoicing, accounts payable, sales meetings, supplier meetings, etc are always handled at our main office... it's about 1500 sq ft with5 offices and a conference/video room that seats 12. |
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Sounds Cozy Hehe One day I will be there! Besides that If you go to the main page under small business and click Views or responses tab at the top... It will show the highest amount... And there is something that has a thrift store... with clough... as the last responder... Over 20,000 views |
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