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| Thursday, July 29, 2010 |
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| [Friday, March 24, 2006] |
| We are going national with a franchise system and are at a point where the Rimrock and MITC programs are in our future. We have used the MITC program and were not impressed. We found that it underbid accounts and required way too much tweaking to be "right". What I have seen over and over again reading through your answers is "that it is difficult to determine pricing due to variables." I agree with you and for years have trained people to quote jobs with the mindset that they must know the work before they can quote it. My current bidding formula is based on a knowledge of cleaning and a basic understanding of the general market. The consultant that I am working with to streamline our operations has made a real stink with my assessment of the bidding process. He says that there has to be a way to create a benchmark for bidding regardless of the market. Years of knowing how to bid being questioned by someone with very little experience have brought me to my limit. What do you recommend? Is there an easy way to get this done?
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| Bidding & Estimating - Matthew Stowe |
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Answer #1:
If you are going to franchise your cleaning and management system, it is obvious that you place a great deal of trust in its operation. Clearly, success is the defining factor.
Your consultant is unrealistic in attempting to oversimplify the janitorial bidding process by seeking a “benchmark” with wide application in a market as diverse as ours.
Rather than being shaken by this not-so-unusual pursuit, stand your ground and keep on working with your proven system. Seeking the easy way when there is none, means you may not reach your goal at all!
There are numerous software programs out there that allow for variation to be factored into the bidding equation. Do a “Google” search under “Jan Bid” or “Janitorial Bidding”.
Lynn E. Krafft, ICAN Associate Editor for ATEX
lekrafft@juno.com
Answer #2:
Benchmarks authenticate production times within identical facilities. The key word in the statement is “identical”.
Undoubtedly, cleaning variables affect production times. For standard office cleaning, the time can drop to 1,000 sq. ft. per hour or soar to 5,000 sq. ft. per hour. The bidding challenge lies in factoring the variables in advance, to predict where each building will register.
One approach is to use a distinct scale to rate each variable, so a difficulty score can be entered into the bidding software. Variables with maximum impact on cleaning times include: size of building, frequency of cleaning, occupancy and use of building, size of rooms, fixtures, cleaning specifications, equipment, cleaning while occupied and expectations. Other variables affect cleaning times, but to a lesser degree.
Labor factors are also a major consideration. Insurance needs, supervisory requirements as well as the normal payroll costs, indirect costs, travel time, and required profit all contribute to accurate pricing. These are some of the factors we quantify in our software.
Performance benchmarking for your accounts can take the pulse and predict future profitability. This would include production times, net profit per hour, and square footage pricing. Bidding software should help remind you of all the ingredients as you crunch the numbers.
Gary Clipperton
National Pro Clean Corp.
(719) 598-5112
www.nationalproclean.com
Answer # 3.
Get a new consultant.
Unknown ICAN member
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| ICAN representative |
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