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Friday, October 31, 2014

Question

How can I make ANY profit when business owners charge so little for accounts? To compete, the cost BARELY covers overhead and a livable wage to the worker; let alone myself! Is there a sq. ft. amount to look at?


Answer

It's perplexing to see how some contractors bid so low and still stay in business. I suspect if they really knew in advance how little they would net, they might reconsider.
So, here is a tip. If you know the price is way below where it should be, suggest a partial clean several nights a week. A partial clean omits dusting, spray-and-wipe, and detailed vacuuming. Generally, this can reduce the price 25%-35% on a given night. There is bidding software that calculates this for you.
Secondly, always calculate your projected monthly net income on every bid. Determine how many hours it will take you to service the account (train, inspect, bring supplies, etc.). Ask yourself if this hourly rate (monthly billing divided by monthly management hours) will earn your desired monthly income. There are some jobs you can not afford to do.

Gary Clipperton
National Pro Clean Corp.
(719) 598-5112
www.nationalproclean.com