Competing with low price cleaners.

[Bucey]

I have lost a few pm companies that have done buisness with us for last two years. Most is due to about a 20% difference is cost. Lets don't get lost on why. So I was wondering if I ran a detergent cleaning only (no ps) would help be more competitive in this arena.

Here is what I'm looking for

What in tank solution detergent would be best for application?

Am I just pissing in the wind, forget it and stay on the high road.

Not starving at all but just hate to lose an account and dont want to be heavy in one sector.

Thx

 

[Royal Man]

If is a commercial account. You might want to got to encap,
it's more cost effective, faster production and often better results.

If you are worried about resi cleaning. Don't get into a "Who can clean for the lowest?" price war. It's a losing proposition.
Instead take price off the table with your advertising. Emphasize/ advertise all the other things your company offers, that are far more important to your client other than price.

Do a little brainstorming. What do you offer that will separate you from the rest of your competition?

For instance: You don't rush the job, Raving testimonials, Trustworthiness, Outstanding Guarantee, ..............Whatever.................

You're in this biz to mke money, right?

 

[Brian R]

OP

Nuff sed

 

[NobleCarpetCleaners]

The soil load will have the biggest factor on whether or not you can clean with a detergent alone and have it look good and not streak or have any wick backs. I'm gonna assume you are cleaning with truck mounts and looking to reduce your cost of cleaning by approx 20% to be more competetive.

If that's the case then absolutely switch to encapsulation if it's not a greasy soil load. When I encap I reduce my fixed costs and actually work a little less to accomplish the same look. You dont have to scrub with a $3k Cimex to encap even hammered commercial carpet. A 15"-19" 175 rotary can help you reduce those hourly costs and the polymers will keep the wick backs and spots from re-appearing.

I've got 3 specific commercial clients that have large areas, 22k, 7.8k and 3.2k. Encap with my 100lb 15" rotary has allowed me to have rock bottom cost per hour and remain competetive against my competition and have great results. Scrub pads from Excellent Supply are certainly a must.

 

[Bucey]

On commercial properties encap is the way to go. I am referring to rental homes. Sorry for not being a bit more specific.

 

[machinejjh]

Rental homes tend to be more, how should we, "lived in" than normal residential homes. ProChem's Heavy Artillery works wonders. It's cheaper than a TLC/PowerBurst mix, and at 5 oz./2 gal. compared to 8-10 oz./2 gal. of TLC you use less. Yes, you have to pre-spray and rinse, but honestly, that doesn't cut into your time spent/money made model that much.

As far as "Price Wars", you're a professional get paid like one. Every lil Jimmy can bid lower, but that doesn't make them a cleaner.

If that 20% is bothering you, simply mark up things like protection, spotters, etc. 20% to recoup what you can.

 

[Joe Couch]

We specialize in rentals and apartments and while it is a very cut throat business we always stick by our guns when it comes to pricing. We have lost some big accounts over just $7 a apartment. We always stress service over price but in the rental game it is a fine line to follow.

 

[Royal Man]

When it comes down to it. The price of chemicals is such a small fraction of costs of doing business, that should not be an issue. With rentals if the landlord sets up the rental agreement right. The cleaning should be billed to the tenant anyway. So, the owner should be receiving a quality cleaning and not a once over the top cleaning for the lowest price.

I know in real life many rental owners pocket the entire deposit and don't want to spend crap on the cleaning.

You might have to let these kind of accounts slip away, as they will price you to very low margins.

I have found that the Mom and Pop rental owners (less that 75 units) care about their properties. They will pay what it cost to get the job done right and bill back to tenants and they can become very loyal clients.

The major property rentals have cleaning guys fighting to the bottom of the price scale on these with 2 bedrooms going as low as $35.00 and they will drop you at a moments notice for a lower price.

I could care less about getting into a price war to the bottom.

The best thing to do is to balance your company out. Let this low paying rental crap drop and pick up with some high paying resi and encapping commercial.

 

[Brian R]

On commercial properties encap is the way to go. I am referring to rental homes. Sorry for not being a bit more specific.

OP it with Microfiber scrubby pads.....Or don't do prop mngrs.

 

[Jimmy L]

Double strength encap shampoo at 4 oz per gallon dries out to 2 TEASPOONS of dried product.

The physics say no way can 2 TEASPOONS of dried residue "encap" anything spread out over an area of 200-400 sqft.

Better to use a product like "Clean Free" which is a powdered peroxide type cleaner for a more economical bonnet/shampoo for the Op/cimex

encap is a fraud

 

[Brian R]

Blast


If you padcap, you're pulling up the soil.

 

[idreadnought]

my suggestion, Go find others that are willing to pay your price. Understand the needs of property management and solve those needs. If I was a pm hiring a carpet cleaning company the first thing I would need is reliability, few cheap guys are reliable, next I would need good work, to much effort trying to rent a unit that looks bad or smells bad, then I would need priority scheduling, too many times turnovers happen fast and they will lose more in rent by not having the carpet cleaned fast than they can save by a cheap cleaner. And last I would look at price. If those other 3 things are not being done then I would lose more money than what the carpet cleaning would cost (besides I don't even pay for it)

In a lot of cases property management does pay for carpets when the tenants are evicted or the deposit doesn't cover all costs associated with the turnover. You could come up with a 1 out of every 15 carpets are free. That way when this does happen they wouldn't have to pay at all.

I let my pm customers know that if there is a property that they are having bad financials on that let me know and I will adjust the numbers on that one. I am blessed that my clients treat me really really good and don't take advantage of me.

 

[Willy P]

We specialize in rentals and apartments and while it is a very cut throat business we always stick by our guns when it comes to pricing. We have lost some big accounts over just $7 a apartment. We always stress service over price but in the rental game it is a fine line to follow.

Absolutely 100% correct. I might and I stress MIGHT give a small break on common areas, but never on rentals. Here the money for suites comes out of the security deposit, not the landlord's pocket.If you service the buildings by being on time and doing the best job possible, with no hand holding needed, pricing will be of little or no concern

 

[BradFenstermaker]

Prochem Dry Slurry, run Tm as hot as you can get with 500psi.

Honestly a tlc doesn't take that long with a hydro force.

I would let them go and see if they call back when the other services sucks.

 

[Johnny]

Absolutely 100% correct. I might and I stress MIGHT give a small break on common areas, but never on rentals. Here the money for suites comes out of the security deposit, not the landlord's pocket.If you service the buildings by being on time and doing the best job possible, with no hand holding needed, pricing will be of little or no concern

+1. Price shouldn't be the primary consideration for a landlord / property manager unless he is keeping the tenant's security deposit or overcharging the tenant for carpet cleaning.

 

[Willy P]

Absolutely 100% correct. I might and I stress MIGHT give a small break on common areas, but never on rentals. Here the money for suites comes out of the security deposit, not the landlord's pocket.If you service the buildings by being on time and doing the best job possible, with no hand holding needed, pricing will be of little or no concern

+1. Price shouldn't be the primary consideration for a landlord / property manager unless he is keeping the tenant's security deposit or overcharging the tenant for carpet cleaning.

That's not legal here. PM's have to keep records for 5 (I think) years and can't keep anything above costs.
Interestingly, Vancouver has now become the most expensive city to live in in North America. :shock:

 

[joeynbgky]

Some of my pm say I'm the highest for rentals. Some say I'm lower but.........from the ones that say I'm $20 to 30 bucks more on a unit they keep me. Because I save them so much money cleaning the carpet and not replacing it... if it doesn't come clean and they have to replace it. There's no charge. I stop by their offices bring gifts take them out to lunch. I stop by all offices atleast 3 times a week.. why? I'm a nice guy and an ass kisser sue me. Plus all employees of that company gets free carpet cleaning in their personal homes once a year

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[Bucey]

It was an over night change. Been serving them with no problems for over two years. Never helps when mgr change. Disappointing. Always get BS when I talk to them. No big deal just hate to see that one go!

 

[Willy P]

It was an over night change. Been serving them with no problems for over two years. Never helps when mgr change. Disappointing. Always get BS when I talk to them. No big deal just hate to see that one go!

You now have to seize the opportunity of the open time from that drop you'll now have. Devote that time to "customer replacement" and marketing and you should shine above where you stood before. I never take it personally and just move on to the line.
NEXT!

 

[ayetti]

PM is hard to hang onto in this economy. I would say do what you need to do, but don't get too caught up in it. NOBODY can pay taxes insurance and everything and still do business at the prices some of these guys charge. They will be gone one way or the other.

 

[dgargan]

Or you could show them why you are worth 20% more. Do your best to build a relationship with each manager. They will pay more when doing business with friends

 

[rhino1]

Rental properties are the biggest pain to deal with, starting with the condition you can usually expect a rental to be in and ending with trying to collect from some company/person who will delay payment as long as possible. I always wonder why carpet cleaners would even bother to compete for these accounts?

 

[ayetti]

Rental properties are the biggest pain to deal with, starting with the condition you can usually expect a rental to be in and ending with trying to collect from some company/person who will delay payment as long as possible. I always wonder why carpet cleaners would even bother to compete for these accounts?

I sort of agree, the contrast between dealing with a nice residential homeowner and a PM company can be pretty stark. I have dealt with some great people at PM companies but the turnover is so high that they are gone pretty quick. The turnover definitely made me stop putting much effort into trying to network with them.

 

[Willy P]

Rental properties are the biggest pain to deal with, starting with the condition you can usually expect a rental to be in and ending with trying to collect from some company/person who will delay payment as long as possible. I always wonder why carpet cleaners would even bother to compete for these accounts?

Then you're dealing with the wrong companies. I've b]NEVER [/b]have any grief from my rental customers and they comprise about 50% of my work. They trust me when to make the call on pull out or "salvage cleaning" on the messy ones that I get paid more for. BTW - the lowest I get is .30 a square and they go to .33 for regular cleans April 1st.

 

[joeynbgky]

Just got called for a water extaction at 1255 back at 125 30 minutes from the time I left home and got back. Just a little water heater leak. 100 bucks and plus a fan rental. I love my pms. That's how u get in good with them. Show them u care and bust ass to get to an emergency.

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[rhino1]

Not saying all pm's are bad, I have one that is very good to work for, but that one is far outweighed by most who are troublesome to deal with. I turn many rentals down.