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How do I know if my bid proposal isn't too high?

3K views 5 replies 6 participants last post by  sofacleaningdublin 
#1 ·
I've had a couple meetings now with companies that have had issues with their previous cleaning clients. All the proposals I've done the companies have been very impressed with but have gone with someone else because of pricing. Am I asking for too much? I feel like my numbers are fair. The last job had 2 properties a 6,000 sqft facility with a 2,000 sq ft lab, 8,000 sqft all together. The second facility was ~2500 sq ft.

What you would you have bid on something like this?

I'm still trying to land my first contract as I'm new and I'm feeling a little overwhelmed because my marketing tactics seem to be working, but I'm having a serious issue closing the sale.

Any help is deeply appreciated.
Thank you so much.
 
#2 ·
Good advice. Always ask questions and try to get a strong sense of what the new customer wants and expects. I dont know how long you have been in this business, but if you are fairly new to it, I would UNDER price a bit, if only for a while. This will help you get experience AND build up clients. If they really like youor work, you can raise the rate gradually.
 
#6 ·
Hi

I am in the cleaning industry for years and i can price a commercial job in seconds. But to be able to decide the final price, there are few relevant factors:

1. Equipment
2. Staff
3. Requirements

Knowing your staff and what they can do, is the best way of pricing a job. If i was pricing a floor polishing job of 1000 sq meters i was doing this:

a. I will need 5 x 5L of floor stripper (100 euro)
b. I will need 10 x 5L primers (500 euro)
c. I will need 5 x 5L of floor polish (150 euro)
d. I will need 4 lads for 3 days (170 euro per man with all taxes x 3 days x 3 lads = 1620 euro)
e. 5 black pads, polish applicators, floor cleaners, diesel to go to the job & back, insurance = 200 euro

Total Costs

2570 euro

For a company to make it worth it, i need to charge double that

2570 euro x 2 = 5140 euro


2750 euro pretax profit

-vat
-corporation tax
-car tax
-etc

1500 euro profit


There are no computer programs to show you how to do it. You are the only one who can appreciate the facts. A software could calculate your final price at 3000 euro euro but they dont know your staff or your equipment
 
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