Digi-sign Cleaning Proposal Template Made Easy

Digital signature janitorial services proposal template

hey Jordan Tong here with elite business coaching where we are dedicated to helping janitorial contractors scale up their businesses and build great companies so one of the challenges that we all face it's one that we face at our company of Trance building services is what's actually threefold so number one is getting the types of prices that we would like to get on our contracts or our proposal so we go out and propose submit a proposal to a prospective client to be able to get the kind of end price the contract price of one can often be difficult secondly we all struggle with being able to pay our employees the kinds of wages that number one we'd like to pay number two that they would like to get and number three the kind of wages that will keep people around for a longer period of time so the kind of wages that will help people not skip and go work at McDonald's or some other place that's offering a similar type of wage and so one of the things that we have done at our company over time that has been very successful and really as shocked us a little bit is we have begun to be a little bit more transparent in the bidding and estimating process when we present our proposals and specifically how our costs are structured if I want to offer up a quick and easy little tip or technique that you could use when you go to submit your next proposal to a prospective customer regarding how you share and talk about your price so one of the things that as we all know our price is largely contingent upon two things its number one the amount of hours that are in the budget to take care of the the building or buildings and number two the pay rates that are associated so here's a sample budget that we submitted to a customer recently and you'll see that at the top here's our labor and then labor related costs so this is direct labor here with some benefits and then taxes and insurance and drug screen so so this here if you look here so about four thousand dollars a month in direct labor costs additional five hundred months and some other payroll related costs and if you look down at the bottom this translates to more than 50% of the jobs around the sixty percent mark is directly tied to labor so we all know that labor is everything when it comes to our pricing and so what we have done is we have let the customer know that first of all and we have begun giving our customer two or three different options when we submit proposals to them and those options are based on what we pay our team members and so if you look you know right now I have the wage set at $9 an hour and there's 5,200 hours a year so that's about two full-time people that work on-site here so at nine dollars an hour this translates to a monthly price of sixty seven ninety and that's what about 17% markup okay so which is actually a pretty low margin here so so you see 67 90 so if we adjust that pay rate to ten dollars an hour the price goes up to seventy four thirty four and if you bring it up to $11 an hour the price is eight thousand seventy seven dollars here's what's interesting as we started doing this we've done it multiple times over the last couple of years we have never had a person select the cheapest price on our contract so which is really interesting to me you know we're always battling and trying to be competitive against our other competitors to win business and we think we've got to get you know hours down and wages down as low as the market will bear well when we open up our budget a little bit tell our customer how the price is tied to labor and the wages and then we give them the option of hey would you like us to pay our people $9 an hour $10 an hour or $11 an hour or whatever the case may be almost always they understand how the wage we pay how that ties to their can have a direct tie to the quality of employee and they understand how it is for them to get employees and so they see this connection so it brings them into the struggle that we already have and let it kind of push the ball in their court as to the caliber of employee they want on-site because they all want good people there so when you let them or help them make the decision if they get a sense of feeling like they're in control of the kind of people you're going to bring outside and in control of the cost and so there have been times with the prospective customers selected the highest price there been other time so they've selected the middle option but as I am aware we have not yet had someone select the lowest price option and so this is something I would encourage you to try using in your next few proposals and see how this works out for you all I would guarantee they're going to be shocked at the feedback that you get and seeing that you're going to end up getting better pricing on your proposals than what you think you could for those of you all that are in the the elite BSC mastermind group I'm going to post a copy of the budget here so you guys can use it and work through it in a subsequent video we'll walk through how we put our budgets together but this will be a copy this will be on the the mastermind platform so if there's any questions that I can answer feel free to reach out to me and I look forward to connecting with you again soon and good luck with growing and building your company