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
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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
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.
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
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?
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
Thank you Stringer, as you can see I'm new to the commercial industry.
You are welcome, let me know if you need any more help.
Stringer
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?
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
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.Quote:
Originally Posted by msowens
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
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. :)Quote:
Originally Posted by msowens
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
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... :):):)Quote:
Originally Posted by msowens
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
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
I like your spirit Ms Owens.Quote:
Originally Posted by msowens
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
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.Quote:
Originally Posted by msowens
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?
Usually there IS a reason that they consider changing Ms Owens, could it be that their present company didn't figure enough to do the job correctly? :)Quote:
Originally Posted by msowens
Always do your due diligence, always. Figure each job, promise please to do this. You will always know where you stand.
As far as more info on websites I am sorry, I know what I like however I pay other employees to take care of this matter.
I like your questions you are bright and apparently have a passion.
Stringer
I'm always looking to learn. You rarely find someone to genuine help you, they feel like if your going into the same business as them they feel threatened as if you're tendencies are to steal their customers away. Me honestly I just want to my business succeed and as long as I know I'm giving it my all and applying everything you told me then I should see some progress in all do time. With a lot of foot work, word of mouth and other network resources then it will be sooner than later. Again I can't thank you enough for taking the time to thoroughly answer my questions to give me a clear understanding of the commercial aspect of cleaning. Any other info you feel may be of use to me pass it on..
My family & my business is my passion and my main focus
Make 2012 the year !
Stringer
I Will, I PROMISE!!
Ha HA ! :DQuote:
Originally Posted by msowens
Okey, remember results are what matter... go get 'um!
Stringer
I'm going full speed ahead tomorrow... Positive energy brings positive results!!
Let me know how you do.
Well I made a connection with a housing inspector and told him about the my business along with some of the other services we offer as well as I can do flat roofs. (I'm a woman of many trades) and he asked for some business cards and told me there is a property manager that might can use my services. So I praying that goes well. I will keep you updated
Great! Follow up closely, get leads from the property manager also.Quote:
Originally Posted by msowens
Now don't let up.
Stringer
I'm definitely going to keep pushing forward. Tomorrow I'm going out to a couple of real estate agencies hoping to gain a contract or two. Question, I live in Massachusetts and in my state there is only 1 crime scene cleaning company, do you know if there is any special requirements for going into that line of work? Do you think it would be a good move?
We considered doing this a few years ago. I know that you have to be certified and it takes time in Illinois. I presently don't have more info available though.Quote:
Originally Posted by msowens
1. Dead bodies
2. Body parts (sometimes all over the room/s including the ceilings)
3 Internal body parts
4. Lots and lots of blood (everywhere)
If this doesn't bother you or your employees and you won't dream about it, it can be very profitable to those qualified and with the proper connections. Like all other business you learn, put the business parts together, and then have to find and convince others you can do it... properly.
We started a separate company a couple years ago that is a water / sewer reclamation company. There was a lot of expense and training involved along with the marketing expense. We are also qualified for mold.
Finally after two years we are doing about $500,000.00 /year.
Stringer
Wow!! Congrats on that... I was looking into that. Maybe I'll hold off on that for now and just focus on the cleaning.. I want to be where you're at.. LOL
It takes a lot of work Ms Owens but the main secret is that failure is not an option.Quote:
Originally Posted by msowens
My partner and I started this company almost twenty years ago and we cover N.E. Indiana, Central and Northern Illinois. We have almost 300 employees, 12 supervisors, 6 sales persons and an administrative staff. No I don't have a secretary, my partner does, I didn't want one. We do just over $6m annually. We specialize in medical, everything from clinics to hospitals.
When we started I had most of the experience however we both put our homes up for start up. Within two months we had our first contract, luck, being in the right place at the right time and dedication...
You can also... things start slow, build on them and never stop learning.
Stringer
I know all it takes is 1 contract/customer and word of mouth and the referral will come, it's all about patience and timing like you said being in the right place at the right time. All in due time
Right now I am offering 50% off for customers 1st initial cleaning is that a good way to attract customers or should I do the 1st cleaning pro-bono to get their attention? What do you think is a good marketing idea?
Luck and being in the right place at the right time is like the rock star who is an 'overnight star' when he was playing the dives for five years! :)Quote:
Originally Posted by msowens
Persistence, drive and hard work along with being smart is also called 'luck.'
Stringer
Gotcha!! Someone mentioned to me that I shouldn't offer the snow removal services and should only focus on one or the other being residential or commercial. I feel as long as I have the employees to provide the services then it shouldn't matter, correct?
I wouldn't overlook any opportunities Ms Owens because in the beginning it is vital to keep your revenues flowing in. But there is an old saying... 'don't forget what got you here.'Quote:
Originally Posted by msowens
Stringer
Exactly. Don't limited yourself, cause you won't know unless you try..
Yep, they won't beat a path to your door, you must go and find them.Quote:
Originally Posted by msowens
Stringer
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