Desperation Makes Improper Calculation

[Kevin]

I would think that many new services, are so eager to get the new job or account that they underbid the job. Taking the job in desperation of the need of money or experience. If your taking the job for experience, I think that is OK. If the job is taken because you need the money, so you intenionally low-ball the bid. Guess whats going to happen next time? Your going to lowball that bid also. It will be the never ending game or cycle of you taking every job at the lowest price. You at this point are also giving the perspective to customers that service prices are low.
Why would you as a cleaning service owner take a job that is not your normal rate of pay? or Have you been in a situation where a customer wants something so low, that no service could make a profit?

[glosgoodies]

Hi there! Actually I just started a " Part Time" residential cleaning service that offers housecleaning, petsitting, housesitting, errand services and party preparation help. I started with my first client last Monday. I charged them $125.00 for the initial clean and it will be $90.00 every other week. After the intitial I realized that with the amount of time I took and the extras I did, I underbid the intitial, but I also realized that this is my first client and they have agreed to be a reference for me, so I actually did not mind all that much. The last free estimate I did, I did say it would be $185.00 for the initial and $85.00 a week. I feel that my time is worth that and I really pay attention to detail on the initial ( I moved the fridge and also got up on the plant shelves in the kitchen to dust) I am just starting out and hope to have a few more clients soon, been out marketing like a mad woman! LOL! My first contacts came from Craigslist.

[Kevin]

The last free estimate I did, I did say it would be $185.00 for the initial and $85.00 a week.

Did you get the second job? With the initial fee being over the actual price of the per visit clean price?

[glosgoodies]

Hi, actually i am pretty sure i did not get the job, but i am going to contact them tommorow for a follow up. Also everything is negotiable. Who knows. This was a 3bdrm 2 bath home with all hard wood floors. Do you think that is too high for the inital? I thought it was resonable, but i am a total newbie too.
Thanks for you help!
Have an AWESOME ONE!
Glo

[rusty]

The past two weeks we went on two walk through bids. Both had weekly cleaning services. We paid strict attention to every aspect of our walk through. When entering a home don't be intimidated. Talk to the owner, but don't chitchat so much you forgot to really look at things. A new service wants to impress, so they will really talk it up and forget to look in the showers or something else. Dusting was really poor on both estimates, here are some areas that might get overlooked.
1. Baseboards
2. Windowsills and molding on windowpanes
3. Chandelier chains
4. Hanging light fixtures
5. Bulbs in table lamps
6. Plants broad leaf ones
7. Backs of chairs, especially leather ones
8. Crossbeams underneath tables
9. Curved feet of chairs and tables
10. Heater and ac vents
11. tops of drawers and drawer pulls
12. Drapes near the top
13. Louvered doors
14. TV picture screens, be careful with new flat panel screens
These are just a few things a new service might miss.

Hi Glo, I saw in another post that you were not licensed, do yourself a favor and go get your OCC license. You can get away without insurance and bonding, but your doing illegal business and the city you operate in can fine you for running an unlicensed business. It's around $65.00 and is tax deductible.
Rusty

[Kevin]

rusty said:

Talk to the owner, but don't chitchat so much you forgot to really look at things.

You can get away without insurance and bonding,

Rusty,
Two things I do not agree with above, quoted. I think if you have the opportunity to chit chat with the owner, it is much more important than you actually looking around. Surely you can look at the things that need to be cleaned. That opportunity with the owner (face time) is more important than how there shower looks.

Secondly insurance and bonding. It is the cost of doing business. Your protecting yourself and the customer.

Great list of usually overlooked items though.

[rusty]

I fully agree that you must listen and talk to the customer from the first handshake. We love to talk, I will strike up a conversation with anyone. Thus all the post! But when we first started we under bid a lot of jobs. That could be any number of reasons. However, I feel we did to much talking and not enough looking. Two hour bid on a three hour job your kicking yourself that you should have looked around better.

Bonding and insurance is the cost of doing business, but if your the only one cleaning you can get away with it. Doesn't make it right though. Because as an association we need to promote professionalism in all aspects of our business.

[FreedomClean]

I guess I'm getting in on this a little late. I agree that there is a happy medium when it comes to chatting with the client and really looking over a place. Your interaction with a customer is very important at the first meeting. If this is a residential this may be your only opportunity to see the client and you need to instill a sense of trust and really bond with them. On the other hand, I wish I had a nickle for every home that I went back into after the initial walk through and thought to myself, "I don't remember the shower looking like this!".
It's an art and we have not perfected it, but we are getting better.
As for the bonding and insurance: I agree with Kevin, it is the cost of doing business. I will also admit that we went for about six or seven months without obtaining it. It's not worth the risk to not have it. For us, it's not very expensive, and the benefits way out-number the costs.

Mike

ps Thanks for the list, Rusty. Those are fantastic!