This is from a B2B standpoint. I think if you agree with or follow these simple rules you wonít encounter pricing issues or pricing negotiations.
Very Important Rules
1) First know who you are. What is your level of services you deliver, the customers you target should match your services and company ideology. Donít try and be something for everyone, find your nitch and exploit it.
2) SELL-relationships and peace-of-mind, never service. DELIVER- unparallel services.
When you sell services like cleaning they are considered commodities, stay away from marketing efforts that identify your company as; consistent, interchangeable, abundant, low price, homogenous these are all signs of commoditization relegating you only to Compete Based on Price.
3) Do your research: target accounts that view good sub-contractors from a scarcity and not abundant mentality.
Our post construction business is broken down into two segments, custom residential and commercial accounts.
Residential- We have set prices based on square foot and degree of detail a house or builder has. If a builder were to try and negotiate pricing per sf, we would ask them what they would like to take out of the work scope to meet their price. They generally say ďOhÖnothing we like the way you clean, we wouldnít want to take out anythingĒ. End of discussion.
For example: from .23 to .25 is a .02 per square foot difference. At 4,000 total square feet thatís only $80 difference.
I ask the builder, For this $800,000 house, isnít $80 worth peace-of-mind for you and your customer? To know that its done right the first time, no problems or call backs.
Also a residential builder may tell you that they paid their old cleaning company only .17 per square foot, why is your pricing higher?
Quickly remind them that the optimal word here is OLD, and why they are looking for a new cleaning company. If they were all that and a bag of chips, we would not be having this conversation.
Because the old company couldnít deliver great quality work, that they were probably force to cut back, thus impacting their quality level. In order to deliver unparallel service, and employ great people at all levels you need to price at X amount.
Again-Know who you are and donít negotiate. Be the right company, at the right time for that client.
Commercial- When bidding on a job, We always ask first. "What is your budget"? They might not tell you but always ask. See if your number can meet theirs first.
Thatís just a few points. I hope it helps.