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in this video I'm going to teach you how to bid commercial cleaning jobs to help grow your business if you set the price too high you may scare away customers however if you set the price too low you may put your business in jeopardy hi I'm Matt and today I'm going to be sharing tips that octoclean has learned over the past 30 years of doing business in this industry we're going to help you learn how to bid commercial cleaning services the right way foreign welcome so the first piece of advice that I'm going to give you is if you're new to the business you really want to learn the business before you start bidding accounts on a regular basis if you choose to get started in this business and then just get an app that's going to tell you this is how you bid a building that's really not the most important part the most important part is that you know what your production rate is you know how long it takes you to clean a toilet a sink a floor a carpet whatever that stuff is now there's a lot of available information online for this you can find bidding apps but you can also use things like the Issa cleaning times which are available to you online you can do a lot of other things that I think are way more effective which would be testing your own time and get it to a point where it is highly highly efficient cleaning with no complaints and that it's something that you can reproduce I see way too many companies in this industry who fail miserably after the core owners walk away from the job hire employees and those employees aren't able to reproduce the work so it's important if you're going to be bidding a job and that you're going to learn how to build your business then you need to learn how to run your business on a daily basis so let's jump into a few things that are going to help you out number one we're gonna make Available to You service schedules for different types of facilities you can see that just by clicking here and it's going to help you to get the foundational pieces that you need on building service schedules for your business if you don't have a service schedule it's almost impossible for you to effectively service a customer in fact they're going to always come back to you and say hey do you remember that conversation about doing my dishes for free or unloading the dishwasher or something like that if the service schedules are in place and what you're going to end up with is just a lot of hey do you remember you want those service schedules to be tight what happens the day that I show up to a building and I have a prospect sitting in front of me the Assumption should be that they invited you in because they know who you are and they know the services that you offer you don't need to sell yourself what you need to do is ask a lot of questions you need to determine if they have a certain amount of problems or issues that you can solve and more importantly you need to make sure that those problems or issues can be solved by the services that you offer you never want to try to figure this out on the job when I'm sitting in front of that Prospect and I ask those questions if I think that there's enough that I can help them with and I have enough solutions to solve their problems I'm going to ask the look at the building I want to tour the facility and at that point I'm going to have my notepad and my pen and my laser and I'm going to go through the entire facility I'm going to measure every square inch of the cleanable space when I go into an office I'm measuring square footage and what's the flooring surface when I go into a conference room I'm doing the same thing common areas same thing and I'm listing all of those things one by one then I walk into the restrooms and I only look at the square footage but I look at how many sinks how many toilets how many urinals and how many stalls are in that restroom that's a big part of the bidding process when it comes to getting your final number in your proposal it cannot be understated that you have to know what your hourly rate is going to be if I'm going into a facility and I have all of this building information and I know how long it takes me to clean because I've done my work before and I know exactly how long it takes me to clean a facility of that type if I don't know how much is a good dollar amount to build them on an hourly rate that includes how much I'm paying employees plus load plus profit I'm going to end up making a lot of mistakes in fact what you'll probably end up doing is getting customers disappointing them and destroying your company and its brand very very quickly so how do you come up with that number it's pretty simple what's the going minimum wage in your area when I say minimum wage I mean how much are other companies paying other people so what is your competitor paying someone to clean a building so you want to take that and you're going to multiply that by 50 or 20 or some number in between I typically see companies will do somewhere between 30 and 35 percent as their overhead plus profit so you can do the math on that how that would look for you and your area now you have your hourly rate you have your building inventory and you're able to figure out how much time it's going to take you to clean a facility every day so what's this equation on how to bid accounts it's pretty simple [Music] I take all of my building information and I come up with how many total hours per day that I'm going to be spending in that facility once I have that number I'm going to multiply that by the number of days that that customer is requesting your prospect is requesting that I clean their facility and I'm multiplying that by 52 weeks and I'm dividing that by 12 months which is going to give me the monthly MRC or monthly recurring charge so that gives me a number that I can do something pretty interesting with I can do a high medium and low price based on hourly rates at 50 35 and maybe 25 percent markup that's going to help me to know what I need to do with it I can choose to go lower if I have a crew that's highly efficient or I have a building that's right next door to it that could be a part of it if I wanted to you know move up the scale maybe because I sat with a prospect for 20 minutes and they told me how upset they were with the last five companies they've had and their expectations are so high I know I have to bid it at the highest number in order for us to meet you know meet their expectations and maintain that level of expectation so just keep on working on your business and learning how fast you can do it and not only how fast you can do it but how fast you can train others to once you have that the rest of it will come together that's it for this video If you enjoyed what you just watched hit the like button and subscribe to our Channel we'll see you next time [Music]