Are You Lowering Your Price To Win The Account?

Winning the Account Doesn't Mean You Have to Submit the Lowest Price!

Contrary to popular belief, winning the account for a cleaning contract doesn't necessarily mean that you have to submit the lowest price. Do you really want to aim to be the “low price leader”?  What that means is, you've made your cleaning service a commodity business. Sure, you'll likely win a few accounts that way, but at what cost to your bottom line? After all, you went into business to make a profit, didn't you?

To start with, it's communication and engagement with your point of contact that makes the difference. Whether dealing with the office manager, operations manager, or the CEO of the company, asking great questions and engaging in open communication will keep you in the running.

Asking the Right Questions Opens the Door for Winning the Account

 Why are they looking for another cleaning company?

• How long has the previous cleaning company been servicing your facility?
• What are your concerns and do you have any problems that need to be addressed immediately?
• Do you manage or own any other properties?
• Do you have a budget in mind?

Questions like this will help you understand their current situation, address their problems, and gauge their expectations. That way, the proposal you put together will cater precisely to what your prospective customer wants and expects, and will also support your proposal price. For example, are they more concerned about price than they are about the quality of cleaning? It is important for you to understand where their priorities are.

The Building Walk-Through

Before submitting any proposal, it's imperative that you do a building walk-through with the prospect. This provides you the opportunity to take down the details about the building itself, the building classification, its layout, the current condition, and of course begins the ever-so-important start to building a solid relationship with the prospective customer.

Bring a pen, pencil, legal/note pad and a walk-through information list that contains the following items as a basic foundation of information. Also include any project work or add-on services you offer, so you can provide a full-service proposal.

• Total cleanable square footage (you will need a measuring wheel or laser measurer for this). Include the types of floor surfaces and the measurements per type of floor surface. Floor care services such as carpet cleaning and stripping and waxing should be priced separately, although included on the same proposal.
   
• Tasks and frequency of service for each of the tasks (this is your cleaning specifications list).
   
• Similar to the floors, windows can be priced on a per-unit basis and can be considered an add-on service. Count the number of outside windows and the number of inside windows. You'll want to give a separate price for each, as outside windows are typically cleaned more often than inside windows.
   
• Restroom supplies and trash can liners should be identified and any proprietary items and dispensers noted. A separate pricing scale should be made for consumable management.

• Make sure you check both inside and outside of the building, and include any seasonal or special tasks such as outside window cleaning or property maintenance (snow removal) that require attention. 

Begin putting together a list of cleaning specifications for the job. You can ask the prospect if they have one for you, or you can create one and go over it with the prospect when you submit the proposal. This ensures you and the prospect both know exactly what is expected.

Before leaving the building, thank them for the opportunity, and don't forget to ask any questions you may have about the job details and their expectations or any questions they may have for you. Also, set up a date and time to meet for the next appointment to present the proposal in person.

By taking the time to perform the building walk-through, and asking relevant questions, you are taking out the guesswork and using logic and quantitative information to establish a profitable price for your cleaning company and a comprehensive cleaning program for your prospect.

Tips for Calculating Price 

• Create a list of specifications based on your walk-through with the client, and establish recommended frequencies.

• Workload the space by using your Production cleaning rates - for example how long it takes to vacuum a space based on square footage and type of vacuum, how long a restroom fixture takes to clean (toilets, urinals, sinks), and how many trash cans can be emptied in an hour.

• Overhead expenses, fixed expenses, variable expenses, labor, and materials should all be considered in your price. This is where it is extremely important to know your company's numbers (overhead and expenses).

• Initial cleaning cost - you may need to charge separately for the first-time cleaning if the building needs to be brought up to the correct level of appearance by giving a thorough detailed cleaning.

And finally, remember that the presentation of your proposal is as important as its contents. Put some effort into creating a professional proposal packet, which includes information about your company, a specifications list, references, testimonials, contract terms/conditions, and other information pertinent to the bid.

You didn't spend all that time marketing to the prospect, getting invited to the walk-through, and performing the entire bidding and estimating process just to submit an amateur looking proposal. Spend a few extra bucks and print with a good quality stock paper, and present it with a clear cover or portfolio with tang fasteners or sliding bar holders (no paper clips or staples). This will not only impress the prospect, but really reflect professionalism and attention to detail back onto your company.

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