Need help with pricing.

[TimP]

I met with a property management company today that manages 400 homes. First let me say they currently aren't happy with their current cleaner. I have done a couple jobs for them over the past few months and obviously they are happy with my cleaning. They want me to take over his business for them 100% cause they aren't happy and he isn't doing all the work he's supposed to.

They do what they call deep cleanings (where you clean wall to wall and move furniture except really heavy stuff) and they also do monthly cleanings in some of the homes.

My main problem is with the pricing monthly cleanings. I would best describe the level of service they want as an always clean policy for these cleanings. There are 54 of them to do every month and they must be done on weekends and if you're lucky during the week if they aren't rented. The way I understand it I wouldn't clean the whole unit but just taking care of the spots and traffic lanes where you can see new spots/dirt. Now the thing is they do 4 br or less homes for 60.00, 5 br homes for 80 and 6 br homes for 100. And they do this from April through October then from October through April they do deep cleans on all of their homes.

Do you guys think this would be worth my time, keep in mind stairs and living rooms don't count in their current plan as rooms. However I looked at some and most of the bedrooms are from 100-150 sq ft of uncovered carpet and a lot of the homes don't have carpeted halls or stairs. Also keep in mind round trip to the properties is about 120-140 miles.

Anyway I want to see what other seasoned cleaners think, if this is a good deal or not. If I need to ask for a bit more money I doubt I'll get a bunch more out of them. I haven't ever done an always clean deal so I kinda want to see how others feel/think about the deal, and how to keep from getting in trouble ( how to set limits and how best to charge for this and terms to ask etc..). Also they showed me one house that was crazy big and a bunch of carpet I'd say around 2,000 ft of carpet. I told them I don't think that one could be done for the cheap price, so I'm trying to figure out how to be fair for both especially for my own rear.

Thanks in advance.

 

[totalsolution]

Sounds like someone just starting out would love this, but a seasoned vet would hate. Who are you? 10+ years right? To me, it depends where your business is. I'm not talking about posting whole house specials for $49, but a consistent flow of money is not too bad. Treat it like a MMM commercial job. Do you take those too? If you do, then jump on this. If you don't pass and maybe recommend somebody that can take care of them.

 

[Ron Lippold]

That is a long drive for such a low amount of money. If I could get more out of them I would do additional advertising where those house were. If you could get more work out of the area it might be worth it.

They will most likely be rat nasty.

 

[diamond brian]

$4,000 +/- in residential without answering the phone? I'd be on that like a rat on a Cheeto!

 

[Scott Rogers]

6 bedroom home for a 100 bucks????????? Most of those will include Living rooms with formal dining rooms as well as family rooms and stairs. No way I would do that even just traffic areas for 100 bucks.

They want quality, but their pricing is way out of line. 200 would be giving them a hell of a good deal!!!

Even looking at the 4 bedroom deal for 60 bucks, when you factor in the balance of the rooms you will be getting less then 10 bucks a room and driving a good distance to do that. factor in supplies wear and tear on your equipment, gas, insurance, etc. and you will quickly find yourself out of business.

 

[rhyde]

not me

 

[diamond brian]

I don't know your market, but here it's doable. Think about how much labor $4,000 + the deep-cleaning revenues will pay. If the machines are not currently being utilized during the hours necessary--make it happen.

As for deep cleanings, I'm working under the assumption they'll pay quite a bit more.

 

[alazo1]

Sorry, I don't understand what you say regarding stairs, living rooms, family rooms, are these included in the monthlys?.

Albert

 

[Tahoesteve]

Tim

I think you could make it work if you did the following:

Start by deep cleaning every property and price it by the square foot where you would make a decent profit.

Sell them on protector.

Supply their cleaning crews (the ones who go in after every departure) with bottles of spotter.

Teach their cleaning crews how to use the spotter.

This would almost eliminate the monthly spot/area cleanings and probably save them money in the long run.

400 homes x $250.00 - $350.00( low average for deep cleaning with protector)= $100K to $140K divided by 7 months(October to April) = $14000 - $20000 per month. Not bad for the winter season.

The key is finding out what you can charge for the deep cleanings. Most property managers will bill this service directly to the owner and do not make any profit on it...they make theirs on a percentage of the bookings. So you gotta find out what they have been paying for the deep cleanings in the past.

One last thing...make up a carpet protector info sheet for the property manager to send to the owners. If done right, it will convince them to have it applied each year.

Good Luck

8) [/i]

 

[Dolly Llama]

"Also keep in mind round trip to the properties is about 120-140 miles. "

OUCH.



"Anyway I want to see what other seasoned cleaners think,"

doesn't matter what the "seasoned veterans" think.

We're not in "your" shoes with less than a year in biz.
They don't have a clue how hungry you are, how much your monthly expenses are, or if your wife has a good job.

My suggestion is, price it so you can make a profit.
If you need the work, even a small profit is better than none

..L.T.A.

 

[Out of Character - 0]

All depends on if you CAN and Want to crank your production. Access is a key concern to me. What about specialty work, if it's not included you could do well there as well. If your techs are used to doing high line work they may not be good for speed and efficiency while cutting the corners that must be cut in places like that.

 

[Scott Rogers]

How long do they plan on holding the money before cutting you a check? 30-60-90 days??

 

[TimP]

These monthlies are only just to spot clean and keep them looking good. I don't have to clean the whole area. If there are no spots I don't have to do anything. The places I saw were in moderate shape cause the person doing it now isn't getting them done. Nor do I figure they are doing it properly. The deep cleans would pay my bare minimum to do them but the volume is the only reason why I'd do them for the price. I'm billing .20 ft and 1.50 a stair for them, cheap I know but guaranteed work.

Like I said I'm not worried about the deep clean. Just the time to get the monthly maintenance done. Keep them looking good during the heavy rental season (these are resort properties). Then deep clean all of them in the off season. Keep in mind that's at least 3200 for my weekends every month for 6 months probably around 4k a month. Then I could be looking at 80 k for the other 6 months.

I'm also not a seasoned vet and have yet to build up my customer base. So this could make my business. I'm trying to figure out if I should negotiate more on the monthly cleanings or is it enough.

 

[TimP]

Another thing is I'm a one truck one man show. Probably a helper if I end up needing one and eventually a vortex to increase production as I see the need to dual wand and knock them out.

 

[KBRENNY]

If those prices were what they were originally paying to the guy you would be replacing then you already have your marketing strategy to ask for a higher pay. Let them know that the guy who was doing not such a good job before was also making not such good money and that quality will come at a higher price.

Those prices seem a little low for what I would have guessed, I would talk to them, feel them out, and ask for what you think it is worth.

Anytime I go to do a job I bid and did not bid high enough I kick myself in the ass and promise myself to do things different in the future.

 

[dallasdj]

Vortex is unnecessary, your margins don't justify one.

You need to get organized and find someone to answer phones if you don't already. Be systematic about routing monthlies and occupied cleans.

The flood work will be profitable(if you intend to do them) but I would not touch it without restoration/drying jobs.

I've been presented with a similar offer...11 apartment complexes. It's over 400 cleans per month with up-charges and flood work being profitable and cleaning at break-even.

Run the numbers and try to estimate accurately if not over-estimate, and then run the numbers again and again until you see the writing-on-the-wall and GOOD LUCK!

 

[rhino1]

I wouldn't feel bad about doing this just to have a Guaranteed Income, knowing you can count on that money every single month would be awesome, IMHO. I really do value the steady commercial client, it usually leads to other opportunities, as you mentioned.

The mileage does suck, but you could include a fuel surcharge or service fee if you have to make repeat trips.

Of course I'm not a millionaire yet like some here, it wouldn't be worth their time...

 

[CL]

If you want guaranteed income,. then go work at McDonald's. Working at low, or just above break even, will eat at you after the new wears off and the monotony sets in.
What happens if you get going and your busy as hell with them and some one undercuts your pricing? Think it can't happen? Ask around.
Either do it for what it's worth or look for work that will pay you what your worth.
Been there, done that!
My two cents worth.

Good luck in whatever your decision.

 

[The Great Oz]

Even if your shop is on an on-ramp and their development is where the freeway ends, you're talking about two to three hours of travel time. The drive should be the deal breaker here, unless you can do several days worth of work at a time and live in one of the units.

If they were to sign a one-year deal that guaranteed you would get the deep cleaning during the time of year most cleaners are slow, you might be able to justify the rest.

Be careful though, most companies like this think they own you once you start working for them, and they'll begin to demand that you take care of their emergencies first, even if it means canceling your better paying work and making that drive to clean a vomit spot.

 

[Rex Tyus]

Tim, have you decided yet? Don't agree to a "unit" price, ie 4br or less. establish at a minimum a room or area price. Too many variables on unit pricing. You may can make this opportunity work but not with that pricing structure. There is a reason the other guy isn't doing everything they want him to do at that price.

Call me.

 

[Farenheit251]

There will also be minor water leaks(a/c backups,toilet overflows). They are going to expect you to respond quickly and cheap requiring additional 120 mile trips during the week.
I took on some work like this when i restarted. Eventually realized that I was always too tired and too busy to pursue better work. It is easy to end up making just enough and miss the opportunity to make the kind of money you went into business for.
What part of Florida is Blountstown?

 

[Rex Tyus]

What part of Florida is Blountstown?

It is in the Panhandle. About 45 min to an hour SW of Tallahassee.

 

[TimP]

I'm thinking I'm going to decline based two things. First is the fact that they will want me to come down there in a moments notice. Second that I'm not willing to give up my weekends. I Probably could go through and knock out the spot cleaning in about an hour per place once I got them cleaned up but there really are too many variables. I don't know how messy the renters will be or if they will try to be clean. I'd like the deep cleans but I'm not going to belong to any organization. Unless I can do things on my terms.

 

[Farenheit251]

Actually I wouldn't decline it. Just give them prices and parameters that are good for you and let them decline. Everyone once in a while you might be pleasantly surprised. I recently was.