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msowens · Dec 30, 2011, 09:26 AM

How do you bid on a commercial contract? Is it based on so many cents per sq ft or a flat rate? Can someone please show me the steps on proper bidding?

Thanks

Fr_Chuck · Dec 30, 2011, 10:28 AM

Yes it can be based on both methods.

Though your years of experience in the industry you know the average time it will take you or your crew to do various jobs. You then use that as a estimate, you add allowance for your supplies. Then you have to add your overhead, ( insurance, taxes, license and so on)
Then you know the cost for you to just show up to do the job. To that you will now have to add your profit.

Stringer · Dec 30, 2011, 12:51 PM

Commercial bidding is usually accompanied by specifications which dictate the details for cleaning. Use these as your basis for bidding.

Ask for a 'walk through' of the facility and ask a lot of questions; cleanable square footage (not the total sq ft), are periodics (window cleaning, stripping and refinishing of hard floors, carpet cleaning, light bulb replacement, etc) included with the base price or are they separate. Areas requiring special attention, etc.

How many days per week is the cleaning required? Any special equipment required for snow removal, garage cleaning, etc.

As Chuck said figure all your costs and add profit. Arrive at a total monthly price as most all commercial jobs are bid monthly. Divide your price by the total cleanable sq ft and you will arrive at your price per sq ft. Also to check yourself figure the job by the hour to validate your price for your gratification.

You may loose some bids initially but stay tuned and keep your records to find your 'water line' on competitive pricing, learn.

Good luck,

Stringer

msowens · Dec 30, 2011, 03:58 PM

Thanks a lot I appreciate the help. I don't want to feel intimidated due to the fact I am a woman trying to obtain commercial more so than residential contracts by men whom been in the business longer. When I bid do I just give the monthly cost or do I give a breakdown on how I came to the price. If possible could you show / give me a example of a bid. Right now I am doing turn overs for property managers and private land lords, with that I am doing flat rates. Should I stick to that pricing or do per hour?

Stringer · Dec 30, 2011, 04:46 PM

For commercial give a total monthly price, don't show a price breakdown, that is your business not theirs. You can list all the work that is being bid however.

Please search here at AMHD you will find sample bids for your perusal.

Don't ever feel intimidated Ms Owens.

Good luck, if I may help further please let me know.

Stringer

msowens · Dec 30, 2011, 05:07 PM

Thank you Stringer, as you can see I'm new to the commercial industry.

Stringer · Dec 30, 2011, 05:34 PM

You are welcome, let me know if you need any more help.

Stringer

msowens · Dec 30, 2011, 06:59 PM

Actually, there is. When I do cold calls to companies what is the proper way to address or ask about who does their cleaning and is it professional of me to ask how much they're paying and are they satisfied with their current cleaning contract?

Stringer · Dec 30, 2011, 10:33 PM

Absolutely ask.

Your first contact on a cold call is usually the receptionist or secretary, it is vital that he/she like you. Be pleasant, precise (don't waste her time), ask whom you could see or speak with that 'contracts for your cleaning.' Be careful sometimes people do not listen carefully and you may be given the present cleaning companies name and phone number. Nice to know but not really what you are looking for at this time. Get the proper person's name, title and direct phone number (email also if possible). If you cannot see them immediately (occasionally you get lucky) then call and try to set an appointment to discuss their needs. Remember that IF they will see you then they are probably not real happy with their present situation and may be 'looking.'

Also remember that YOU bring the professionalism to the situation, always be informed, knowledgeable (know your business), precise, polite
And ask questions about what their needs are and how you can provide what they need.

"Keep your client's needs first and this business will take care of you and them."

During the interview you may ask direct questions; who presently provides your service, how many days per week, how many people do they use nightly, and how long do they work each night. These answers will give you a good head start in figuring you quote.

It is a numbers game, if you get one contract in twenty five initial calls that is good, never stop prospecting... never, ever. Remember also that these buildings will be there a long time. The people may change and you may have an opportunity later, call on them again in about six months, keep good records Ms Owens.

Keep your questions coming, I am always available and glad to help where I can.

Stringer

msowens · Dec 31, 2011, 10:05 AM

These pointers are very helpful, making good notes for me. Is there a particular market I should target (banks, real estate agencies)? Or should it be variety of companies.

Stringer · Dec 31, 2011, 10:40 AM

Originally Posted by msowens

These pointers are very helpful, making good notes for me. Is there a particular market I should target (banks, real estate agencies)? Or should it be variety of companies.

Hi, Happy New Year Ms Owens.

You need to get business on the books and prove that you can do the job and take care of your customers.

Twenty years ago when I started this company just getting business was vital I recommend that for you too.

I would start and saturate one area at a time and I would concentrate on smaller to mid sized buildings possibly 15 to 20,000 sq ft. These size buildings offer several advantages; lower start up costs, easier to see the person in charge, etc and you can start building references (very important).

At some point I would ask why they are making a change of companies. This will give you things to concentrate on so their concerned areas are taken with priority. ALSO... this economy concerns me and has uncovered problems such as companies not paying their bills or paying late, be aware.

Here's to a successful New Year... go get 'um!

Stringer

msowens · Dec 31, 2011, 12:58 PM

Happy New Years To You Too Stringer,

That's good to know so I won't be all over the place, I can just focus on a particular area.
I'm praying that this New year will bring prosperity for my business, even though it's a little over a year old I should have a few contracts by now, but I guess I was scared of the rejection and gotten discouraged when I was told they have a cleaning company, so this year I have to have the drive and determination to get my company off the ground. With the advice you are providing me with play a vital role for my marketing.
I also wanted to start a minor home repair services (painting, lock changed, sheet rock and even building rooms) since I have someone who has all the skills except for electrician work. Could that be incorporated with the cleaning (with residential mainly once I customers)? Or would I have to start a whole new business towards such. Would that person have to licensed even just for the painting?
As you can see I have a lot of services to offer besides cleaning.

Stringer · Dec 31, 2011, 09:42 PM

Originally Posted by msowens

Happy New Years To You Too Stringer,

That's good to know so I won't be all over the place, I can just focus on a particular area.
I'm praying that this New year will bring prosperity for my business, even though it's a little over a year old I should have a few contracts by now, but I guess I was scared of the rejection and gotten discouraged when I was told they have a cleaning company, so this year I have to have the drive and determination to get my company off the ground. With the advice you are providing me with play a vital role for my marketing.
I also wanted to start a minor home repair services (painting, lock changed, sheet rock and even building rooms) since I have someone who has all the skills except for electrician work. Could that be incorporated with the cleaning (with residential mainly once I customers)? Or would I have to start a whole new business towards such. Would that person have to licensed even just for the painting?
As you can see I have a lot of services to offer besides cleaning.

You may ask me any questions, hopefully I have the answers. :)

Personally I would set up another separate company for this and all these things can be under that name. You can let your cleaning customers know that you have a 'sister' company that provides all these other services.

As far as licenses, I believe that would be advisable.

Here's to great success in 2012, being unwilling to accept failure is your first step...

Good luck, any questions let me know.

Stringer

msowens · Dec 31, 2011, 09:51 PM

Here's to a year of prosperity!! I appreciate all you help and will put everything you told me into play. "Be Unwilling to accept failure is my motto for 2010.. Thanks again Stringer... Have a happy & Blessed New Year

Stringer · Dec 31, 2011, 10:00 PM

Originally Posted by msowens

Here's to a year of prosperity!!!! I appreciate all you help and will put everything you told me into play. "Be Unwilling to accept failure is my motto for 2010.. Thanks again Stringer... Have a happy & Blessed New Year

Thank you hon, but we need that motto in 2012 too... :):):)

Don't know where you are located but it will be the new year in one hour in Chicago, IL. Here's to Healthy, wealthy and WISE !

Stringer

msowens · Jan 1, 2012, 09:22 AM

I totally agree!! I'm in Massachusetts... I have a good feeling about this year. I had a fortune cookie and it told me that I will receive and offer I can't refuse. Here's the link to my webpage can you see if view it and give me your feedback if any changes are necessary.
Www.pccsvs.webs.com

Stringer · Jan 1, 2012, 11:35 AM

Originally Posted by msowens

I totally agree!!!! I'm in Massachusetts... I have a good feeling about this year. I had a fortune cookie and it told me that I will receive and offer I can't refuse. Here's the link to my webpage can you see if view it and give me your feedback if any changes are necessary.
Home - Preferred Choice Cleaning Services

I like your spirit Ms Owens.

Web page looks good. I would only suggest that you emphasize commercial if that is where you eventually want to go.

Some commercial clients feel for some reason that residential companies aren't quite capable of the level needed to do commercial cleaning properly. It isn't right however it is what it is... My opinion.

Possibly think about a website strictly for commercial? Just a suggestion hon.

Here's to great selling!

Stringer

msowens · Jan 1, 2012, 11:40 AM

How should I emphasize on the commercial? Should I advertise on it on the front page?

Stringer · Jan 1, 2012, 12:12 PM

Originally Posted by msowens

How should I emphasize on the commercial? Should I advertise on it on the front page?

If you do this, I would emphasize commercial. List all your services; good training of employees, supervision of employees, carpet cleaning, hard floor care, etc.

msowens · Jan 1, 2012, 05:46 PM

Would it be wise of me to offer to match their current price (if they're under contract)?
What other websites/directories can I advertise and promote my business?