How did I do when "outbid"?

[Russ T.]

I received this email response after sending her quote. It is a large retail/office space that needs the carpet cleaned.

Thanks for your quote, Russ. It is much appreciated. I did receive a quote from Steam$&@ here in town and they quoted half the price you did. I’m wondering if there is something he missed since his is so low. I am telling this because I felt that you seemed very genuine when I met you today and honestly wanted to give you the business. I need to discuss the options with my manager in more detail later this week.

Thanks again,




This was my response:



Hi Jennifer,

Thank you for being up front with me. We would really love to earn your business. I am quite surprised at the pricing that Steamway is offering. I honestly don't know if they missed something. I almost didn't include the conference room and office to the right as you enter the building. Maybe they didn't include that?

Our industry is filled with all kinds of companies. We consider Steamway to be one of the "good guys". They have been serving our area for a long time and most of the feedback we hear about them is positive.

That being said, let me give you a brief explanation of VLM (Very Low Moisture) cleaning. This process agitates a product called an encapsulate into the carpet. These encapsulates dissolve some of the soil and "bind" the rest to itself. This leaves a minor amount of brittle material that will be collected during regular, routine vacuuming. The appearance of commercial carpet after using VLM is usually superior to that of steam cleaning. The opposite is true in your home.

There are a couple variables to consider when cleaning using VLM.

1) The encapsulation product being used. These products can vary wildly in cost and effectiveness. Some less expensive products tend to resoil rather quickly. The best products will leave the commercial carpet looking its best for a long time.

2) The machine delivering the encapsulate. There are basically 2 types of machines to accomplish VLM. The quickest, and least thorough, is a CRB (Counter Rotating Brush) machine. I have used this method quite a bit when maintaining the DMACC urban campus hallways. It is an excellent choice when frequent (monthly at DMACC) cleaning is being done.

The best machine to accomplish VLM cleaning, in my opinion, is a Cimex Machine. This is the machine we almost always choose when cleaning commercial carpet. There is no other machine that accomplishes the level of agitation and cleaning like the Cimex. It takes a bit more time than a CRB but we feel like it's well worth it.

We don't normally price match due to the nature of the cleaning business. All cleaning is a matter of degree and The Clean Machine aims to put out the highest level possible. There are other companies who make their living by being the cheapest. I really never thought of Steamway as being one of these companies. We have spent years honing our craft and honestly believe we are the best. Our craft is constantly evolving and we invest time and money on the products/equipment/education in order to stay on the leading edge of our industry. Service intensive businesses will always have a wide variety of companies to choose from. We believe there is real value in excellence, even if the price is a little higher.

I hope this isn't way too much information for you, I just wanted to give you guys something to think about when making the decision. It would help us out if you could double check on their quote to see if that conference room and office were included. There is almost 4000 square feet of carpet to be cleaned in the facility and would take us the better part of a day/night to do it right. We may however be able to work with you guys a little on the price.

I'm attaching a few pictures of a Unity Pointe medical center where we maintain the carpet quarterly with a Cimex machine and the best encapsulation products available.

Thanks Jennifer, I'll look forward to hearing back from you.

Russ Terhaar
The Clean Machine of Iowa LLC
www.thegreatcleanmachine.com
Office (515)494-9494
Cell (515)391-1607

 

[dealtimeman]

You sure hit her with a lot of information, but you came across to me as genuine and that will count a lot in their decision. It is very good that you remain positive about the other company in all points, very important to not be one of those that goes around bad mouthing other companies.

 

[Russ T.]

I was afraid I was giving her too much info as I was writing. She told me during the estimate that the other company was "using a method that would save a lot of $". I knew they would be using encap. I wouldn't have discussed method otherwise. I priced it at @ 18 cents a foot and can't believe they were so much cheaper.

We gotta stick to our guns though. We are trying to be the best and shooting for the custy that will look beyond price.

 

[Russ T.]

This other company dominates the Ames market where ISU is. It's @ 10 miles north of me. They have referred work to me and I'm thankful for that. It feels good just knowing I'm on their radar. They have told the referrals that they hear really good things about us. I'd be a fool to badmouth any company, especially them.

 

[Shane Deubell]

Great job russ!

I like how you added the pics and provided a specific reference. Was a little long but you came off as an expert and provided some back up.
A lot of sales is putting that extra effort in like you did.

 

[Desk Jockey]

What about offering to do a room at a greatly discounted rate as a demonstration of your cleaning ability. Let them pick the worst area so they can not only see the difference but see that it has staying power.

 

[Mikey P]

Youll be cleaning her home regardless of landing this job, that's for sure.

 

[Jim Pemberton]

In most cases, you will not get the job, regardless of documentation or good will with the prospect.

However, its important that you did just what you did, as you don't want the reputation of being so extraordinarily high that you'd never even be asked to bid again. You also came across so confident and not at all defensive, that she has to respect you and your position on the matter.

Should the other company drop the ball in any way, or for that matter leave anything that puts a feeling of discomfort in her, you should be next in line to pick this one up.

One of the scary things that they now have to deal with is how they could perform the job this cheaply. They will likely be under a great deal of scrutiny regarding the final outcome of the job, which also might leave you some opportunities the next time.

Once again, very nicely done.

 

[rick imby]

Berry well ritten wesponse--

 

[Desk Jockey]

You misspelled Reesponse!

 

[bob vawter]

now go throw nails in her driveway and laugh all the way home!

 

[Russ T.]

now go throw nails in her driveway and laugh all the way home!

Lol!

 

[Shane Deubell]

I was afraid I was giving her too much info as I was writing. She told me during the estimate that the other company was "using a method that would save a lot of $". I knew they would be using encap. I wouldn't have discussed method otherwise. I priced it at @ 18 cents a foot and can't believe they were so much cheaper.

We gotta stick to our guns though. We are trying to be the best and shooting for the custy that will look beyond price.

What kind of sqr ft and frequency per year are you looking at?

.18 cents is relative, 100k sqr ft = good but 1000 sqr ft too low.

 

[Russ T.]

Shane, it's @ 4000 sq ft. Several cubicles to work around otherwise it's a pretty open space. I think I could do it in @ 5 hours.

 

[Russ T.]

I'm not sure about frequency yet. I still have a hard time nailing down regular cleanings on the first shot...but the Kid's getting better!

 

[Shane Deubell]

Shane, it's @ 4000 sq ft. Several cubicles to work around otherwise it's a pretty open space. I think I could do it in @ 5 hours.

Thats tough russ, i can send someone out with a backpack to detail vacuum and cimex at $400 and still make a fat profit.
He can stay all night for all i care...

Commercial you really have to look at production numbers and gross profit.
Gonna be a rough ride if you continue to let your pride get in the way of commercial bidding.

Just being honest.

 

[dealtimeman]

I wouldn't do it for 400 unless it was a repeat cimex job.

 

[Russ T.]

I appreciate you being honest Shane.

I didn't see the exact number they gave her but it must have been between 3 and 400. This would be the least, hourly, that I've been able to make while pushing Big Yella if I were to match their price.

Yes, it's better than nothing. Yes, maybe I should check my pride. I'm just trying to stay the course. I'd probably walk with $50 per hour after expenses. That's not bad. It's not great either, especially knowing it would eat up one of my coveted nights or weekends.

I've run myself ragged the last 6 months and haven't worked like this in years. I've dropped almost 30 pounds and am stressed out feeling like I need to share the load.

This mentality is probably getting in the way of some real growth for my biz. I think I'm learning I've got to let go a little and find some good help.

 

[Jim Pemberton]

Yes, it's better than nothing. Yes, maybe I should check my pride. I'm just trying to stay the course. I'd probably walk with $50 per hour after expenses. That's not bad. It's not great either, especially knowing it would eat up one of my coveted nights or weekends.

I've run myself ragged the last 6 months and haven't worked like this in years. I've dropped almost 30 pounds and am stressed out feeling like I need to share the load.

This mentality is probably getting in the way of some real growth for my biz. I think I'm learning I've got to let go a little and find some good help.

I think you need to be commended for your honesty with yourself. If you started your own business so that you could have some freedom to make more decisions for yourself as to how you spend your time, then working weekends and evenings wouldn't make much sense to you, or most people.

Should you decide to bring on some help, there are good "underemployed" people who would love some weekend and/or evening work to supplement their income.

Such people are often very responsible, trustworthy and motivated.

 

[Russ T.]

Thanks for the kind words Jim.

My mom flies in from Florida this morning. It's been a little over a year since we've seen each other. The Kid and fam are taking the next 4 days off!

Then to Steamboat, CO to see my brothers for Thanksgiving.

I hope this Winter isn't as severe as last but I'm glad to slow down a little.

 

[Mikey P]

Thats tough russ, i can send someone out with a backpack to detail vacuum and cimex at $400 and still make a fat profit.
He can stay all night for all i care...

Commercial you really have to look at production numbers and gross profit.
Gonna be a rough ride if you continue to let your pride get in the way of commercial bidding.

Just being honest.

This one lonely worker of yours will be above or below minimum wage?

 

[rick imby]

Well if you are busy and don't have much time off and you won't work for less than $50 per hour your finances should be fine.

 

[Russ T.]

Well if you are busy and don't have much time off and you won't work for less than $50 per hour your finances should be fine.

Kinda where I'm at Rick. Been a good run, this year.


The Clean Machine

 

[Desk Jockey]

You can only do so much. Everyone has a limit.

Go have fun and take a much deserved break!

 

[rick imby]

And don't worry about the jobs that pay less per hour than the jobs you are doing now that you do not get. You want the jobs that Pay MORE than the ones you are doing now.

 

[Russ T.]

You can only do so much. Everyone has a limit.

Go have fun and take a much deserved break!

Will do Chavez. Tonight we're gonna watch my Brownies spank the Bengals on Thursday Night Football!

WOOF WOOF!

 

[Desk Jockey]

Football season went down the shitter for me. The Bears can't even win the locker room fights.

Oh well, the Jayhawks look pretty good in basketball this year!

 

[Shane Deubell]

This one lonely worker of yours will be above or below minimum wage?

Why would you say that? depends on schedule, might send 2 techs.

They would make $20-25 hour easy.
Why? very little drive time and no set up time.

 

[dealtimeman]

Are these your employees Shane? Or subs?

Commission or hourly?

Your vehicles and equipment or theirs?

Please keep in mind Russ is in a different market and it is primarily russ doing all of the work for now.

 

[Mikey P]

Just wondering what you consider a healthy profit is all.