Underbid is a word that strikes fear into the hearts of contract cleaners. We all have received that call or e-mail saying that a contract has been canceled due to the fact you have been underbid. It’s certainly a debilitating feeling when losing a large account. Unfortunately or is it “fortunately” there is always someone out there who will work for less. Sometimes when losing a large account, while your gross sales may be lower your profit margin may be higher. The reason being is that costs will be lower. Avoid lowering your charge to meet the competition. If you do that, then the Company you have the contract with will think they were being “overcharged” previously. Always strive to maintain a high quality of service, this will establish an impeccable reputation in your market area. Some of the "lost' accounts will return.. You’ll hear them say, “I just had to try them at that price.” Ultimately, they realize that the “lower” price produced a “lower” quality service. Develop a philosophy that you can’t do all the cleaning in your market, so only do the best. By staying with the highest standards of service, you will attract customers who seek the highest level of proficiency and are willing to pay a “fair” price for “high” quality service. You may even want to become selective in your clientele. This may become warranted for one and two truck operations where the number of technicians may be limited. You want your people rested and able to provide top quality, daytime service to the most affluent residential market. Residential cleaning accounts for the majority of the total cleaning production in this country. The balance (the commercial market) is inherently the less profitable night work. If crews are working day and night then quality will suffer. You will get your share of the Commercial market as many residential customers either own, manage or work for Companies. These residential clients become your emissaries of good will. No sales force could accomplish what these satisfied customers will do for you. This will allow you the luxury of working for a Commercial market that appreciates “high” quality service. When the competition works for low pay and at night, they do not do a good job in the market that seeks and is willing to pay for high quality. Simply put, a happy customer means repeat business. Related Articles and Information:
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Friday, June 23, 2023
UNDERBID
