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Discussion Starter · #1 ·
I think this is very important to have, if you own a business.
In my area, is a lot of competition but most of that people don't have
insurance & bond.
And their rates are very cheap.
The problem is if you go with a person and give your estimate
three time more then the uninsurance competition,
The clients in my area goes with the uninsurance competition.
to save money.
What you guys think?

How to fight this!..:blink:
 

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Sell them on the benefits of being insured. The insurance is for thier protection. Also, explain that if the other bidder has cut a corner by not getting insured, then what other corners are they cutting. Explain that while your price is higher, you are the better deal because you offer more value being properly insured and licensed.
 

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When you give an estimate, pick something in the house that looks expensive and could be damaged while cleaning. Ask them how much it would be to replace it and wouldn't they be more assured knowing that their valuable investments are covered by insurance and bond?

It only takes one broken vase or a lost/stolen watch and their "savings" would be out the window.
 

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Daeana,

Consider that being bonded and insured is something you hope you never really have to use. However, the facts of having a bond and being insured should be used in every piece of advertising you send out. Let's say you advertise in the local penny saver along with a bazillion other cleaning outfits. If you are one of the few who are bonded and insured, you should say so which will send a message to clients that you are more professional than the others. People really do scour ads for the particulars. Sure, there are those who would rather hire the unbonded and uninsured because they think they will be cheaper. Do you want cheap customers? Go for the ones that want the job done right and are willing to pay top dollar. It takes longer to acquire these types of customers but in the end, you wind up with a much better client base.
 

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I'm not a cleaner by trade, but I sell services just the same as you all.
The painting/decorating industry is hugely plagued with low ball, illegal, and part timer competition. When I know the potetial client is getting or has gotten other estimates, I tell them that is a very wise decision. Then I tell them when you compare all our prices, make sure you are doing it apples-to-apples. Make sure they know what exactly they are getting for their dollar. I always write up a very lengthy and detailed scope of owrk, which makes Suzy Homeowner think she is getting way more 'bang for her buck' with me than the others. Plus, I give them an Estimate Comparison form, so I set the precedent for any other contractor coming in behind me. When they see I have gen liab. insurance and workmans comp, you can bet they will ask the next guy if he has it. And at the very end, if the cutomer chooses someone else over you solely based on price, well then, they weren't a good fit/ideal client for my company anyways. Here is a snippet of my proposal.

Crap, it won't let me paste. Nevermind. Below is a copy of my estimate comparison form. Adjust it to fit your needs, and buy me a beer later. :D
 

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Prowallguy,

Thats is a great way to sway new customers! I also agree that cheap customers arent the best ones to do work for, In the end they will get what they pay for.......
 
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