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Help, bid encapping 20,000 sf office complex?

April 21 2011 at 8:43 PM
Randy Grygiel  

I am needing to provide carpet cleaning proposal for office complex, single story. Carpet is approx 3 years old, never been cleaned but visually looks pretty good. No visual traffic lanes, no spotting, they just want it clean. Here are the facts:

*10,600 sf open areas (aisles, walkway, etc...)
* 9,400 sf cubicles, offices, = 28 each 20 sf cubicle, 28 each 60 sf cubicle,
5 each 100 sf offices, 33 each 150 sf offices, 8 each 210 sf offices.

My friend already does the janitorial in this complex for 4 years, he and I would do this with 2 Cimex's. They like his work so we are probably already in, but don't want to price too high for fear of starting a bidding war. They would like 2 bids, (1) they pick up as much as possible around and in offices & cubicles, or (2) we do the moving and picking up on offices and cubicles.

Should I give one total price or break it down showing prices for open areas; cubicles, offices? I know this is alot of questions but sure could use some help, really want to provide a professional proposal!

Thanks for all your help, ya'll.

Randy

 
 
AuthorReply

Rick Gelinas

Re: Help, bid encapping 20,000 sf office complex?

April 22 2011, 2:50 AM 

I would bid it at 11.7 per sq ft = $2,340 for cleaning the carpet and moving stuff.

And also offer a DISCOUNTED rate of 9.7 per sq ft = $1,940 if they move stuff out of the way and you simply clean the accessible areas remaining.

When you're offering two rates for the service it's always better to present it this way. THe larger, full price - followed by the DISCOUNTED price. Discounts are an inducement to buy, whereas an upcharge is viewed negatively.


P.S. if you're using the Releasit CMS program, you'll have the proposal and contract for bidding there in the package.



Rick Gelinas

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Kevin Pearson

Re: Help, bid encapping 20,000 sf office complex?

April 22 2011, 9:34 AM 

Randy,

I would bid the job out at .15 a sf. for the entire job. I don't like doing the discount thing (not saying I have never done it, but I don't like it) I think it cheapens my service. That's just me though. I would do a free demo in the worst area when I hand deliver my bid and leave a bottle of my spot remover with the bid. I would also let them know that the day after I do the cleaning I will be back to make sure they are pleased.

Usually by offering a few extras like that, then I can land the job even if I am higher than the other bids. Especially if I am dealing with the owner of the building or the owner of the business.


 
 

Joe DeSouza

Hmmm...

April 23 2011, 10:38 AM 

Kevin, down in these parts (florida) .15 is what some guys are getting for WANDING the entire job...I think Rick's pricing is more realistic for encap, but thats just me. If I bid .15 for a big job like that they would laugh me out of the place! .10 is the norm for encap I think all over the country, but I may be wrong on that...Ive made good money at .06/ft with the cimex

Joe

 
 

Kevin Pearson

Charge what you want

April 23 2011, 11:17 AM 

Joe,

Randy asked what people would charge and that is what I would charge. We charge .15 on most Cimex jobs. The exception is something that is real dirty or tons of furniture to move, then we would charge .18 or more. I have charged .30 for a Cimex job before.

The good news is that you can have all the .06 to .10 a sf jobs you want, I promise not to touch them. (lol) We have done 13 Cimex jobs this month ranging from 800 sf to 12000 sf. We charged .15 a sf on all of them and I had no problem getting any of the jobs and 8 of them were repeat customers. We also have a couple more scheduled before the end of the month too.

This may not be a lot compared to the rest of you guys that do commercial only, but for me it is pretty good. Our main business is water damage #1, rug cleaning #2, residential cleaning #3, and then commercial carpet cleaning #4.

Joe you said that some guys get .15 in florida for wanding a job. So why couldn't you get .15 for encapping the job if you are selling clean carpet. Don't sell the method, you are the expert, sell clean carpet. Trust me very few people care how you clean it, as long as the spots are gone when you are done. Most customers look at it like this "Looks clean, is clean." Even though we as professional carpet cleaners know differently. So sell them on the fact that you are going to clean the carpet and don't tell them how, then see how much you can charge.

So my advice would be to dream big, don't worry if you lose out on a few jobs. Define what an ideal customer for you looks like and go after them.

I used to think the same thing about selling carpet protector both residential and commercially, Joe. I thought that most people would not pay the extra money. Boy was I wrong, just ask Rick how much money I spend buying carpet protector from him.

Joe I said all that above, but I also know that you are right that nationally the average commercial job goes for .10 or less. However, there are people that pay extra for quality look for those customers and charge accordingly.

Have a great day and make sure to spend plenty of time worshipping and with your family this Easter weekend.



    
This message has been edited by Kevin_Pearson on Apr 23, 2011 11:25 AM
This message has been edited by Kevin_Pearson on Apr 23, 2011 11:18 AM


 
 

Charles

Price / JOE

April 23 2011, 6:56 PM 

Hey Joe,

Guys that get .15 for HWE in Florida are not carpet cleaners.
They are those carpet scammers you have down there. Whole House $54.95
up to 1,000 sq ft. For HWE in Florida you should be able to get .24 to .30 easy. I have already lived in Florida so I know what cleaners are like down there. Joe look in the West Volusia Pennysaver and see those ads. Kevin gets .15 & not because he is in the Houston area but because he shows people Quality & Value!!! I am in welfare city of upstate NY and I get .173 & have gotten .20 for commercial. Couple of years ago I looked at a job of 35,000 sq ft. real filthy dirty, lots of spills and priced it for them at .113 but Mr. Corporate man thinks people work for pennies. Their last cleaning was for .07 and it looked like it too! Crap looking work. Guess what, their floors are still filthy and will stay that way. Charge what you are worth and show Quality & Value. Randy's job I would bid at .123 and still make money. happy.gif

 
 
Randy Grygiel

Help, Bid

April 23 2011, 7:14 PM 

I value all of your comments. Please keep them coming. I have 2 days before I have to give them the proposal. I will keep reading!! I will keep you all posted on how it goes. Thanks

Randy

 
 

Joe DeSouza

wow...

April 23 2011, 9:11 PM 

Maybe you guys are right? I might try to charge more on commercial...now I DO charge .15+ if its a small job, but for what he's talking about, It would be around what Rick specified...

Now for HWE, on a resi job, I get upwards of.32 up to .50...so I know that it is possible to get that much; when I mentioned .15 for wanding, I was referring to HWE on a large commercial job, not resi...

I might take your guys advice and try to go for more and lets see what happens!

Joe

PS If you havent already, buy the big wheel kit for the cimex, wow! what a difference!

 
 
Steve Borcherdt

Price resistance is in YOUR head not your clients'

April 23 2011, 9:29 PM 

I went from .35 a square to package pricing in August 2008, before the bottom dropped out. I have not dropped my prices. Have you checked what you are paying for gas by the gallon? My pricing has NOTHING to do with the Economy or Geography, trust me.

I charge .49 for basic cleaning no pre-vacuum, no furniture moving for "Budget/Rental" usually "empties" going on the market. Imagine whipping through a 1000 sq ft in under an hour for $500. I charge .59 for my "Healthy Home Preferred Family Plan" Package which includes pre vacuum, furniture moving and protector. People decide that they are "a Preferred Family Plan" not a Bronze Gold or Platinum person. I charge .65 for "The Works" with Allergy and Pet treatments.

Over 90% of my business is for Healthy Homes. I rarely get any price resistance even from repeat clients. I do not quote over the phone. I tell prospects, "I have 3 packages to fit their budget, when would you like me to come over?" I have a 95% close rate. I tell price shoppers up front I am NOT their guy. If I get "How much do you charge per square foot?" I ask if price is their #1 criteria for picking a cleaner. If the say, "Yes," I say "Goodbye" If they say no, I begin to build value with guarantees and testimonials.

I have the self image and confidence in my systems to command and get my price. I LEARNED how to raise my self image and build my systems. Anyone with a 'want to' can do the same as I did. I have top of the line equipment, I am certified and have 13 years in the business. I have over 100 testimonials on my website from "people just like you" who have have used and liked my services. It takes work to collect them but they do add up.

When benchmark surveys come out on National Pricing I giggle because I am above the chart and proud of it, I am worth it. You could and should be, too. Without being mean you need to get out of your own way.

I admit my business has been slow for lack of marketing on my part but when I work I make good money and do not have to work as much to make ends meet. I am making the switch to commercial carpet cleaning to have a steady monthly income and bigger paychecks.

Somebody had this heart to heart with me years ago. I am just trying to help you, the low priced cleaner, (collectively, not aimed at any one person) change your thinking so you will change your action so you can enjoy a better result. Build quality and value and systems into your service and the sky is the limit on the price you charge.


    
This message has been edited by cleancarpetman on Apr 23, 2011 10:53 PM
This message has been edited by cleancarpetman on Apr 23, 2011 9:37 PM
This message has been edited by cleancarpetman on Apr 23, 2011 9:33 PM
This message has been edited by cleancarpetman on Apr 23, 2011 9:31 PM


 
 
Randy Grygiel

Re: Price resistance is in YOUR head not your clients'

April 24 2011, 12:36 AM 

WOW - great stuff, good food for thought. I have been slowly raising my prices, currently at .35 sf for residential but looking to go to .40 soon. I don't own a wand, use Hydramaster RX20 or Rotovac Powerwand depending on carpet. Always pre-vacuum, 175 the traffic lanes, extract, groom then air movers. Always pay attention to corners and baseboards. Believing in myself, offer the best service possible.

I know this got off my original thread, but this is interesting stuff!! Keep it coming. Randy

 
 
David

Re: Price resistance is in YOUR head not your clients'

April 24 2011, 10:14 AM 

I agree with Kevin sell clean not method charge what you need to make money.

We recently bid a job over 100k of carpeting in great shape, no vacuuming or moving , this was at 7 cents a sq ft. on the other side we also bid 24k job at 20 cents a sq ft due to soiling and other conditions.

Everything depends on several factors that makes the job easy or hard, even the PIA factor of the client .


PIA= (Pain In the A--)

 
 
George

charge for clean AND method

April 26 2011, 2:48 PM 

I must be weird. I charge according to what I offer. The CHEAPEST thing I offer is HWE. I charge more to encap commercial. And, yet more again to OP commercial or residential. I HWE so infrequently I've been selling off bulky HWE items to purchase more OP items.

I do not care about setup time, production time, or job costs (not really, but, for the purposes of THIS discussion I don't). I care that I offer the best solution.

WHY should I discount my services because my setup time is reduced? Is my job as good (or better) than the HWE guy last in the place? If so, WHY should I be less? If it is BETTER then WHY WHY would I be less?? My finished product is usable MUCH quicker, so, WHY should I be cheaper? I am out of the home owner's way and if I can't get the key out of the business faster reducing THEIR labor cost. So, again, WHY should I be cheaper?

I'm better, faster, faster back into use, and a nicer guy (okay, not really, but, they don't know that). So, I charge more. The ONLY discounts I give are personal reasons OR demos to get the job.

 
 
Don Eldred

Re: Price resistance is in YOUR head not your clients'

April 25 2011, 10:20 AM 

Don"t you love it when someone asks "How much should I charge"
One needs to know their own expenses and cost of doing business to establish how much to charge. No 2 companies have the same expenses, therefore when quoting on large commercial jobs you need to know how much it will cost you to do the job and than quote according to that. It does not matter what other people charge.
The commercial market can differ from city to city. however, with proper pricing and great service you can tie up a client for a long time, over price and you will be lucky to keep that client for any length of time.

 
 
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