[ala2144452]

Hello everyone, I am Alan and I am fairly new to the commercial cleaning industry, although my parents have owned a small cleaning company for ~12 years. My intent is to grow this business beyond what my parents ever imagined, but for now, small steps will do. - I'm 20 after all, but excited to get my bearings rolling.

Anyhow, my parents have primarily done construction cleaning (all phases), almost exclusively working with 1 medium sized GC, while doing other jobs for other small/medium GC's every now and then. Both my parents have trouble speaking English fluently so growing their company into a sizable company is my primary task as of now. I have been researching different GC's around Phoenix (where I reside) and their Subcontractor applications require bonding. My question is, what type of bond are these GC's going to require? We already have the standard GL, Workers Comp, and Auto Insurances, but the GC's we work with have never asked for a bond.

Any help is greatly appreciated!

[Stringer]

Hi Alan,

Bonding is not usually required unless specifically required in the bid package. If it is bonding can be acquired from your insurance agent. If you find that liability insurance sill suffice then that is the way to go as you will need need this insurance for almost all your jobs.

Stringer

[ala2144452]

Thank you Stringer. Since this is solely for pre-qualification purposes, do you think I should submit the application without a bond? One contractor asks on their application "Can your company provide a payment and performance bond?" I said no, but have yet to submit the application. Our General Liability is enough coverage for the services we perform.

By the way, I have read a good amount of your posts and it's apparent you're the guru for cleaning services. Have you, or your partner/company delved into construction cleaning(mainly commercial buildings)? If so, are there any tips you can offer? The biggest struggle going forward is attempting to re-construct the image of my parents company. They have been a small operation for quite some time, and while we do great work (yes, I too have helped clean, though I want the business operations job now) as well as offer low/competitive pricing, the company doesn't scream out professionalism. Heck, for 12 years, we used an e-mail from msn. I just recently bought a domain so that I can begin using an e-mail with the company's domain.

Again, thank your for your help.

[Stringer]

Thank you Stringer. Since this is solely for pre-qualification purposes, do you think I should go ahead and submit the application without a bond? One contractor asks on their application "Can your company provide a payment and performance bond?" I said no, but have yet to submit the application. Our General Liability is enough coverage for the services we perform.

By the way, I have read a good amount of your posts and it's apparent your the guru for cleaning services. Have you, or your partner/company delved into construction cleaning(mainly commercial buildings)? If so, are there any tips you can offer? The biggest struggle going forward is attempting to re-construct the image of my parents company. They have been a small operation for quite some time, and while we do great work (yes, I too have helped clean, though I want the business operations job now) as well as offer low/competitive pricing, the company doesn't scream out professionalism. Heck, for 12 years, we used an e-mail from msn. I just recently bought a domain so that I can begin using an e-mail with the company's domain.

Again, thank your for your help.

First let me apologize I thought that I saw 'Alan' as your name... :( And thank you for the compliment, appreciated.

As you probably know with any small company you must wear many, many hats and always be thinking how to improve and doing it without busting the bank.

Marketing and sales are two different species although they do intertwine at times.

Marketing;

Professional looking website that delivers, professional brochures, local networking groups, attend seminars, talk to EVERYONE always; if they can't help you directly they may know someone who can, professional calling cards with nice clean logo, etc.

Sales:

Become proficient and an expert in your chosen field; knowledge breeds confidence and attracts respect. Read everything/Google everything you can on your business and never stop learning (stay ahead of the curve-always). Dress, speak, listen, take copious notes, do what you say you will, learn who and what your competitors are doing (try to find out their prices on jobs that you bid), be tireless, smile always, don't ever complain about your life to a prospect or client... never, you will lose their confidence.

Always remember in sales that YOU bring the professionalism to the trade and you will be respected for it along with more jobs.

AND... most important, never quit knocking on doors, never. Personally, I love sales, I like people, it is you that takes something that is nothing (in business) and you grow it to a toddler, to a teenager and finally to a successful venture. Something that you will always be proud of and something that you leave as a legacy to your own.

Business:

Secret :)... always hire great people around you that you can trust, if they break that trust (no matter who they are) terminate them. This is a great building block for any business but is vital in ours. Try initially to stay away from hiring family.

Pricing... always vital, always changing for various reasons; economy, competition, etc.

Especially in the beginning, your business is your life, I remember many times almost 20 years ago when my partner and I stated this company (and the 3 sister companies that came later) there were many times I went without sleep for up to 3 days. Some times I fell asleep in my chair... but I would not let this ever fail... 'not even an option, ever". I take it a little easier presently as I am old (er) but I love this business even with the headaches that sometimes occur. And my clients are great, they have been good to me in return, we do approximately $7 mil per year and I have had my son on board for the last 7 years and he also loves sales and has a gift for it. Eventually, well... don't want to fold it up and put it all away neatly in a drawer you know... not any time soon. :) But all of this is and was extremely exciting and quite a rush.

Try to get a mentor, try to establish a relationship with a lawyer, build bonds.

More questions... fire away. :)

Stringer

[ala2144452]

You're actually right, my name is Alan.

You really are a wealth of information, Stringer, greatly appreciate it. And your emergence into this business is quite amazing, our company barely breaks into the 6 figure range, 7 million is impressive for having a substantial part in building it with your own hands.

You certainly have the enthusiasm for sales, unfortunately I have zero experience acquiring any accounts, but that's because we don't do much office cleaning. Although I certainly see that as a possibility in the future. Meanwhile, construction cleaning is where our strength lies, it's much easier to get jobs and in turn, sustain new employees (which we will be hiring soon). There are plenty of large contractors out there, and the potential to create new relationships with them is GREAT.

So far, my list for improving professionalism includes: new business cards, new shirts for our crew, improved communication, and new invoice/bid templates.

There is one general contractor that a project manager from another contractor recommended we seek jobs with, I'm planning on visiting this contractor and leaving a business card along with copies of our insurances, and finally a list of our recent projects. What else can I include? I am assuming I won't even get the opportunity to meet with any administrator, but it's worth letting them know we exist.

[Stringer]

If you do not have written references talk to your clients and ask them to please write up a short letter of reference on their letterhead Alan. Include these with you card and insurance certificate/s in a neat package to give to them.

I suggest that put together a brochure also to include with your package, money well spent.

My partner is basically operations and loves that part of our business he probably has sold maybe two accounts over the 20 years. Operations is just a important obviously as you must do what you promise.

The nice thing about general nightly cleaning is that you have a steady income flow. And as you get more business it layers upward. We also do construction clean ups and they are profitable Alan, However there are more existing business that need competent service companies and more opportunities for us.

We clean all types of businesses however our niche is medical cleaning; hospital, clinics, dialysis centers, surgery centers, etc. This requires more and detailed training for all our supervisors and crews. Plus we are a full service company; carpet cleaning, hard floor refinishing, window cleaning, restoration work.

One of our sister companies is a water/storm reclamation company and we work through insurance companies and we do not have to go out and find this business, it is very profitable for us.

Stringer

[ala2144452]

Overnight/office cleaning is very appealing because of the steady income flow, but acquiring those accounts are tough when you're in the southwest and there many Janitorial companies willing to bid low. Of course, they don't always do a great job but most offices will endure that quality of service instead of paying what they consider a high premium. Perhaps I need to seek out corporate type offices, since they are most willing to pay a fair price.

Anyhow, does this bid seem fairly priced to you? It is a current job that we are placing a bid on, and while it doesn't sit well with me that we are bidding this low, my parents are going through with it. The bid we placed is for 6000, the job being a ~60,000 sq ft remodel, it is 6 different floors in a single building. It's a dept. of education building so you can imagine what will be demolished and remodeled with(complete remodel with new office furnishing). The project will run from 9/19 - 12/21. I imagine there will be several cleanings involved, although it cannot be every day. Fair price, or too low?

[Stringer]

Overnight/office cleaning is very appealing because of the steady income flow, but acquiring those accounts are tough when you're in the southwest and there many Janitorial companies willing to bid low. Of course, they don't always do a great job but most offices will endure that quality of service instead of paying what they consider a high premium. Perhaps I need to seek out corporate type offices, since they are most willing to pay a fair price.

Anyhow, does this bid seem fairly priced to you? It is a current job that we are placing a bid on, and while it doesn't sit well with me that we are bidding this low, my parents are going through with it. The bid we placed is for 6000, the job being a ~60,000 sq ft remodel, it is 6 different floors in a single building. It's a dept. of education building so you can imagine what will be demolished and remodeled with(complete remodel with new office furnishing). The project will run from 9/19 - 12/21. I imagine there will be several cleanings involved, although it cannot be every day. Fair price, or too low?

Pricing is always relative Alan and it is extremely important that you stay current with your competition.

Do you have any relationship with this client at all? Can you have a discussion with them concerning pricing? If so, I definitely would. This is an important part of your business... building relationships, where they are open with you.

I do not know your competitive situation as I do in the states that I do business however personally I would have probably would have gone in at about $0.11 or $0.115 as each percent represents $600,00 which is a 'cushion; and could drop to the bottom line. You may want to tell them that should you be 'a penny or so' off in your pricing you are open to discussing it. BUT be careful as not all are honest with you.

Win or lose, make sure you find out what pricing your competition used!

Good luck Alan,

Stringer

[ala2144452]

Pricing is always relative Alan and it is extremely important that you stay current with your competition.

Do you have any relationship with this client at all? Can you have a discussion with them concerning pricing? If so, I definitely would. This is an important part of your business....building relationships, where they are open with you.

I do not know your competitive situation as I do in the states that I do business however personally I would have probably would have gone in at about $0.11 or $0.115 as each percent represents $600,00 which is a 'cushion; and could drop to the bottom line. You may want to tell them that should you be 'a penny or so' off in your pricing you are open to discussing it. BUT be careful as not all are honest with you.

Win or lose, make sure you find out what pricing your competition used!

Good luck Alan,

Stringer

Thank you for the suggestion stringer, we haven't sent the Bid yet, although the deadline is in a few hours. We have completed a number of Jobs for this company/Project Manager, so we have a good relationship with him, however, he tends to be a bit "resistant" to our usual pricing... aka cheap. I'll talk it over with my parents and give him a call, but I think .11-.115 sounds plenty fair, especially because the duration of the project will require several visits.

[ala2144452]

And I will definitely ask about our competitors pricing. It isn't common, but a lot of PM's/Superintendents do tell us from time to time what other companies have proposed(in terms of prices).

[Stringer]

Good build those relationships alan they can help expand your business.

Stringer

[ala2144452]

Good build those relationships alan they can help expand your business.

Stringer

One more question as I attempt to extract more knowledge from you, what brand of vacuums do you use? (if you don't mind sharing) Currently we use Sanitaire upright vacuums - it's a red one with white "commercial" lettering on it. They work just fine for our cleaning, with the exception of the occasional construction debree messing up the rubber belt.

[Stringer]

We too use Sanitaire and we also use back pack vacuums for a lot of jobs, lighter and quicker.

Stringer