commercial bidding

lust1kiddo

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Brooklyn, NY
i have just hooked up with a commercial cleaning company that wants to sub the carpet cleaning and upholstery to me. I just go in there and tell him what the price is and he marks it up. I would like to know if any of you guys have worked like that and what do you thin I should be charging per square ft. Realistically, I am thinking that the bigger the place ( banquet hall) I should charge less than lets say like a red lobster. Plus what would be the difference in lets say quarterly cleaning vs monthly maintenance. If you guys don't know me yet, I am a one man show so maybe I would take a guy with me for some help, its almost all profit for me. I was thinking maybe .25 cents up to a certain size then maybe like 17 cents after that..I dont know.
Thanks,

Jarred
Who is freezing his ass off in brooklyn !gotcha!
 

Desk Jockey

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Rico Suave
You're probably going to be at least half that. However with the high production systems you can probably make as much or more than your full residential price. Could be an excellent opportunity for you!

Use the search to look up commercial cleaning, there should be lots of good threads and posts.
 
L

llong

Guest
Hey-you aren't the SUBWAY GUY are you ? :lol: i thought you were eating sandwiches and running marathons in Africa. Okay-now the truth is out-you are really a carpet cleaner in Brooklyn. :lol: :lol:
 

Steve Toburen

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lust1kiddo said:
i have just hooked up with a commercial cleaning company that wants to sub the carpet cleaning and upholstery to me. I just go in there and tell him what the price is and he marks it up. I would like to know if any of you guys have worked like that and what do you thin I should be charging per square ft. Realistically, I am thinking that the bigger the place ( banquet hall) I should charge less than lets say like a red lobster. Plus what would be the difference in lets say quarterly cleaning vs monthly maintenance. If you guys don't know me yet, I am a one man show so maybe I would take a guy with me for some help, its almost all profit for me. I was thinking maybe .25 cents up to a certain size then maybe like 17 cents after that..I dont know.

First Jarred, congratulations on connecting with a client like this. In fact, Jeff Cutshall, who runs a large commercial carpet cleaning company, does much of his business by subbing to janitorial companies. Here is an excerpt from his just released mini-manual on "How to Build a Encapsulation Maintenance Route":

"If you already own a carpet cleaning company instead of viewing the Building Service Contractor (BSC) as your competition why not explore the option of partnering up with janitorial services? That’s right, subcontract from janitorial companies. Provide carpet cleaning and encapsulation services to their accounts and then give the BSC a cut. If you are encapsulating you can easily give your “referring partner” janitorial service a 20, 30 or even 40 percent discount (depending on how they have priced the job) and still make $100 an hour or more for yourself! Everyone is happy!

Trust us on this one, even if the BSC does the work themselves, by the time they factor in training, equipment and repairs, chemicals and most importantly labor cost they won’t net much more than that 20 to 30 percent number anyway, and with you all they have to do is pick up the phone and bingo … it’s done right the first time!"

Now Jarred, re: your pricing concerns. Maybe prices are dramatically higher in Brooklyn than in other parts of the US. But I gotta tell you in most areas that if your BSC takes your proposed "I was thinking maybe .25 cents up to a certain size then maybe like 17 cents after that..I dont know" and then tacks on his desired cut he will get laughed out of every building in town!!!

Here is how Jeff's chapter on pricing starts out: "In some markets you may get over $0.10 per foot for commercial carpet cleaning but many (especially the larger facilities) won’t pay even this much. In larger facilities (we’re talking the projects that have ten thousand square feet or even hundreds of thousands of square feet) you’ll probably have to really sharpen your pencil. But with encapsulation and the Cimex Cyclone’s production potential you are going to have tremendous pricing flexibility and still make a great profit! You know your business better than anyone but we’re going to throw out some surprising numbers here. So get rid of your pre-conceptions and dig out your calculator!"

Jarred, Jeff goes on to really dig into how to bid a hypothetical 10,000 square foot facility, including develop a proposal for "zoned monthly maintenance" which is where the real money is for you because you can (if you wish) morph enough of these into a "route" which can be run with a part time employee using his own vehicle and your Cimex. Jeff's manual is 26 pages and if the ever-vigilant board police will let me post a link here without having a hissy fit the download is free:

http://sfs.jondon.com/6994/resources/sp ... tes-part-1

I know this stuff seems inimidating, Jarred, but if you are willing to crunch the numbers you may find it is a fantastic way to get yourself out of the dog-eat-dog life of the typical carpet cleaner.

Steve Toburen
http://www.SFS.JonDon.com

PS Do yourself a favor, Jarred. As Jeff alludes to above look into something called "encapsulation cleaning" and especially with a machine called the Cimex Cyclone. For wide open commercial (such as your banquet hall example) encapping with a Cimex is the cat's meow. (I have nothing to do with equipment sales at Jon-Don.)
 

Jeremy

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Jeremy
4 words: Sliding Scale & Hourly Rate

Get a calculator and make the #s work...
If you need a hand give me a ring.
812-754-1447
 

JeffC

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Dec 14, 2006
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Kansas City
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Jeff
Jarred,
This topic has been discussed numerous times here. If you do a search under commercial cleaning or janitorial companies you should come up with plenty to keep you busy for an entire day.
Yes, this relationship can work well. On larger facilities you’ll probably have to sharpen your pencil quite a bit from those numbers though. But you should be able to encap a good portion of it and still make a good profit.

I’m typing fast but here’s a few advantages of subcontracting work form janitorial companies
1. They already have relationships with customers it could take you years to develop.
2. They have access to a lot of work and often times their janitorial customers would prefer to let them have the carpet cleaning, since they already have access, etc. (This is of course unless they’re constantly screwing up on the janitorial. LOL)
3. Your company can grow very fast. Yes, you’ll need at least a good helper or two.
4. Many janitorial companies have already failed at trying to do it themselves. Turnover is extremely high in janitorial. With hiring you they don’t have to worry about training, equipment breakdowns, etc. One call to you and their problems are solves. It’s a win, win for everyone, if done correctly.

Disadvantages
1. With one phone call your company can also have to downsize very fast if they ever decide to do it themselves.
2. You’re the middleman, which can be frustrating at times. I usually go in under the janitorial service umbrella. Some know they sub to me and others don’t. Communication at times can be a challenge because oftentimes I don’t deal directly with them client, rather the janitorial company.
3. Most of the time the janitorial company is the one that maintains the relationship. Good for them but not so good for you.
4. Because of the large facilities they maintain, sometimes it’s very challenging scheduling jobs. (This is can also be a good problem though.) Some weekends we don’t have anything going on and some weekends we’re cleaning 50,000 sq feet. I’ve found if possible we like to do the bulk of the work on the weekend. Of course it doesn’t always work that way.

Generally speaking the ones I work for are happy to make 20-30% on the job. Honestly most of the time if they did it themselves they’d have all the headaches and still not make much more than that. With one phone call (to you) all their carpet cleaning problems are solved. They look good and it gives them credibility.

Remember though commercial is VERY competitive. You completely need to change your pricing (and cleaning method) mentality. Encapsulation cleaning often times produces superior results and you can still be very competitive.

On the other hand, if this is a national company you’re referring to that’s looking at subcontracting work to you I haven’t found they are very good to work for. I’d stick with the local ones.
Keep us posted
JeffC

www.SFS.JonDon.com
 

floorguy

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Utah
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Doug
oie...do it this way...


drop your normal price by 10-25%...i mean hey you dont have to waste time hittin the streets, passing flyers etc.

if they keep you busy, then its closer to the 25% mark...if they only throw ya a bone, stay to the 10% mark...

just be sure to stay on his ass, about payments...either he has the money to pay when your done, or make sure you know when he gets paid from the places...

i had 2 i did work for, 1 was big and paid me within 10 days, 1 was small, and i knew when he got his check from his companies, and made sure he paid me then...

everything worked out till

A. the small one...yea was doing a job and my worker at the time stole some stuff...couldnt see it on tape, but found out from his ex wife and GF that he had stolen before...in fact they gave me some of the stuff from other places :shock: :shock: :shock: :shock: :shock: :x :x :x :x :x needless to say i better not ever see that dick on the street :x :x :x :x :x

B. Big one combined with another cleaning company, and they have there own people...hodels knows who it is....did it to save his marriage and be with his wife more....6mths later she still divorced him :shock: :shock: :shock: :shock: what a bitch, he was a nice guy
 

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