Post by Kevin on Dec 27, 2005 9:37:53 GMT -5
In the thread started Porter Service (listed below) I would like to discuss some of the benefits, and disadvantages of a even money account, or no profit. I think some of the seasoned pros, and also some of the newbies might have had a very little profit account or breaking even. Some of the reasons I think that an account is entered for little money are (or should be)
1- Your working in volume
2-You are trying to fill shifts to avoid lay offs, using labor also for other accounts
3- You are using this account as a training area, experience, or reference
4-You are under the assumption that this account will lead to more cleaning areas or duties.
5-You are directly trying to cover an area, hurting your competition.
1-First lets say you are dealing in volume, this account could be beneficial if your doing many locations, you may profit minimal for example $10.00 per location, after several locations you make $70.00, (but in most cases more trouble than worth)
2- You have a good size staff, take over this account at cost, using the staff that also performs work at this account on another account. Ex; You have a nice size facility your cleaning, lets say 5 hours a night with 2 people. You use the same staff to clean the 2nd non-profit account to fill man hours. Which leads into #3
3-Where you now have a new reference, training area or experience. Maybe this non-profit account is a huge name in your area. You are cleaning it, sure the payout is minimal, but the name is huge, the reference is huge. Make this account happy, and use this as one of your references (if you do a good job, and the price is what they requested, or low enough that nobody else would touch it, this is the key reference used on next proposals.) Also if you lose it, at least you cleaned it, its no loss.
4- More services required. You take this account under the assumption that it will lead to more paying services. Maybe your bid does not cover carpet cleaning or window washing, possibly floor work or janitorial supplies are not in the initial bid. You work these services into secondary profitable services. (From personal experience. Beware all accounts that say if you do a good job here, we will give you another location. When I hear this line, I always say what location? Where is it located at? Can I write you an estimate for this building today also?
5- The devilish account rake, You know another service has this account, and you want it, you step in with a low ball bid to claim this account so that your competition looses it. (Too many of these brings on headaches, and if your trying to best your competition you just taken over a stagnant account, not producing much income but surely plenty of headaches) Immediately after the takeover refer to #4 and try to up sell more services and duties. If you get no response, consider dropping the account. Some may say that is a bad thing to do, take an account at no profit, try to sell more service, if you cant give notice or use it as an hour filler.
There are many more reasons and ways of taking an account that is at no-profit and turning a profit. All decisions regarding this matter should be weighed out accordingly. I think that if you are a newer service you should try for a decent profit first, but if your lacking experience a non-profit break even account in the beginning might give you some experience needed. Plus some income. Whats your thoughts?
usacleaning.proboards30.com/index.cgi?action=display&board=staffing&thread=1135580008&page=1
1- Your working in volume
2-You are trying to fill shifts to avoid lay offs, using labor also for other accounts
3- You are using this account as a training area, experience, or reference
4-You are under the assumption that this account will lead to more cleaning areas or duties.
5-You are directly trying to cover an area, hurting your competition.
1-First lets say you are dealing in volume, this account could be beneficial if your doing many locations, you may profit minimal for example $10.00 per location, after several locations you make $70.00, (but in most cases more trouble than worth)
2- You have a good size staff, take over this account at cost, using the staff that also performs work at this account on another account. Ex; You have a nice size facility your cleaning, lets say 5 hours a night with 2 people. You use the same staff to clean the 2nd non-profit account to fill man hours. Which leads into #3
3-Where you now have a new reference, training area or experience. Maybe this non-profit account is a huge name in your area. You are cleaning it, sure the payout is minimal, but the name is huge, the reference is huge. Make this account happy, and use this as one of your references (if you do a good job, and the price is what they requested, or low enough that nobody else would touch it, this is the key reference used on next proposals.) Also if you lose it, at least you cleaned it, its no loss.
4- More services required. You take this account under the assumption that it will lead to more paying services. Maybe your bid does not cover carpet cleaning or window washing, possibly floor work or janitorial supplies are not in the initial bid. You work these services into secondary profitable services. (From personal experience. Beware all accounts that say if you do a good job here, we will give you another location. When I hear this line, I always say what location? Where is it located at? Can I write you an estimate for this building today also?
5- The devilish account rake, You know another service has this account, and you want it, you step in with a low ball bid to claim this account so that your competition looses it. (Too many of these brings on headaches, and if your trying to best your competition you just taken over a stagnant account, not producing much income but surely plenty of headaches) Immediately after the takeover refer to #4 and try to up sell more services and duties. If you get no response, consider dropping the account. Some may say that is a bad thing to do, take an account at no profit, try to sell more service, if you cant give notice or use it as an hour filler.
There are many more reasons and ways of taking an account that is at no-profit and turning a profit. All decisions regarding this matter should be weighed out accordingly. I think that if you are a newer service you should try for a decent profit first, but if your lacking experience a non-profit break even account in the beginning might give you some experience needed. Plus some income. Whats your thoughts?
usacleaning.proboards30.com/index.cgi?action=display&board=staffing&thread=1135580008&page=1
