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Newsletter 107


Issue 107


The Cleaning Entrepreneur


Mar 06, 2005


James Nokes

<><> Editor <><>



Come visit us at build-a-business.com
and you can find my current online article at:
Online Article 48


Email address: jfntci@aol.com

The Cleaning Institute
955 Karol Way, #3
San Leandro, CA 94577

ISSN # 1538-5736

      Editor's Note

Hi:

Reminder: If you're new to my newsletter, I hope you'll take a minute, go to my site and get a copy of my free eBook.

It's easy, just go to my Free eBook page and download your copy.

Last week I accidentally referred to my newsletter as number 47 that was actually the number of my online article. I don't know if anybody else noticed or cared but, for the record, it was Issue 106 and this one is Issue 107 and my online article for this week is Number 48.

Now, onto this weeks topic...

The number one subject people ask me about is: How do you bid accounts?. I know that being able to bid confidently is a major concern for people starting their own cleaning business, so I'm happy to announce that Gary Clipperton, author of the $100,000 Cleaning Business Program and the Cleaning Performance Handbook has created a piece of software that is fairly easy to use, affordable, powerful, and unlike other bidding programs - geared towards helping smaller cleaning businesses with their estimating and bidding needs.

Gary is still polishing Jan Bid so it will be awhile before it's available for purchase but prepare to be impressed by this little gem!

I quote Gary's remarks about 'cleaning variances' on my hints page, in an article called
pricing your cleaning work. Check it out if you'd like to get an idea of how he uses his hard won knowledge of how variations in the level of difficulty in cleaning an account will affect your bid price.

Before I talk about Gary's prgram I want to make sure everyone understands that it's created within an EXCEL spreadsheet. This means that you won't be able to use it unless you have EXCEL on your computer. Sorry about that but I've done a little informal survey with my readers and I believe most of you will be able to use it.

Let's dig in...

James Nokes, Author of
How to Start a Cleaning Company
(And Make It Pay!)
      Plus my bonus eBook
 The Cleaning Entrepreneur, Issues 1 to 40 
And my new bonus eBook
 The Cleaning Entrepreneur, Issues 46 to 85 

      Article

 Jan Bid 



Recently Gary told me about his software which he has tenatively named, Jan Bid but I was skeptical. The two big problems with the bidding software that I've dealt with are: One, they're too complicated to use easily. And two, they seem to require that the user has a professional's ability to assess the difficulty of cleaning a particular account.

Well, even if software is a little clunky to use you can get used to that. But the other problem seemed insurmountable. If you don't yet have the experience to professionally asses a job, what good is a software package that demands it of you? That's where Gary's approach makes the difference, it allows you to bid an account properly while you're still learning the ropes in the cleaning field.

Even though Gary's Jan Bid software addressed both these concerns I was still uncertain. One of the things that convinced me was the following email I received.

 Nellie's Email 



.... I recently ordered your cleaning business manual and I think it is wonderful. I have been in business for 2 and 1/2 years and am just beginning to bid on commercial accounts.
I just bid on one but did not get it and I think I might be bidding too high. I did ask what the other company bid but the manager said he prefered not to disclose that.... but it was a huge difference????....
What I would like to do is give you the information on the office building and please tell me what you would have honestly bid on it.... Here goes:
The build is approximately 20,000 SF with 2 floors. It is mostly carpeted with about 53 offices in it. In addition to the offices there are a few meeting rooms, a very large front entrance way with ceramic tile, lots of hallways, 2 large breakrooms ( vinyl tile) and mens and womens bathrooms up and down (vinyl tile) with 3 stalls in each one. In addition to basic vacuum/dusting, the stairs (one set on each side of the building) had to vacuumed, glass doors and windows in the front entrance had to be cleaned as well as the glass doors between the offices. In the breakroom, in addition to the basic cleaning the microwave and the fridge had to be cleaned out on the inside. We included strip and wax the tile floors twice a year (the building is about 90% carpet).
This was to be done Tuesday, Thursday and Saturday weekly....
I just want to know how far off I really was.... I will tell you how much I bid once I see what how you would have bid.....
Thank you so much for any information you can give me.
Sincerely,
Nellie G.

(The ellipsis in the note indicate places where I removed text)

I sent this email off to Gary asking him to run it through his software to see what kind of bid he could come up with and here's the note he sent me.

 Gary's Estimate - Using Jan Bid 



Hi James,

I took the time to enter into our software the building info. for Nellie regarding her bid. As you know the software has numerous fields that can be adjusted or customized. With incomplete info. I made the following assumptions:

  • 14,400 sq. ft carpet
  • 1,500 sq. ft tile in break rooms
  • 500 sq ft ceramic in entrance
  • 600 sq. ft tile in rest rooms
  • 4 sinks, 1 urinal, 4 mirrors, 6 commodes and 12 partitions

The 7 cleaning variables I rated as follows

Size of building - large 18 points offset
Density of occupants medium 3
Building use medium 3
Cleaning frequency 3 times – 3
Ease of floor cleaning 6
Access 2
Condition of building 2

Total offset score 37

Entering a .63 difficulty factor (100-37) produced a cleaning time of 6.16 hours a night for the offices and break rooms and .816 hours a night for rest rooms.

At $11 an hour ($8 an hour plus payroll taxes and workers comp.) the monthly labor cost would be $1044.75

If a contractor’s overhead was 15%, plus 3% for chemical and equipment then total costs would be $1232. If a 35% profit is desired then you would divide $1232 by 65% = $1895 a month (just a little under 9 ˝ cents a square foot. On the high end would be a 45% profit margin which would bring the bid to $2240 (11 cents a sq. ft).

To that add floor waxing (probably @ .30), carpet cleaning (@.12), window washing ($4 ea,) and any paper goods ($2 a head).

As I mentioned, without our Building Survey Data sheet for the building, I had to guess on the rest room fixtures and the amount of break room tile, plus the rating for the 7 Difficulty Factors.

All of these factors are on our survey form so when a contractor walks the building they can fill in the blanks. My guess if the building went for under $1800 a month, it was underbid and the contractor will need to shortchange the customer, which won't last for long.

Hope this info is helpful.

Gary Clipperton
National Pro Clean


 Nellie's Estimate 



James! .... Thank you for all that trouble! That is awesome. I needed to know if I was way off, but guess what, my bid was $1820 per month, which included hard floor maintenance on a regular schedule.

I was very close to lowering my bid, I am glad I did not....

You have no idea how much your ebook and all the information you have given me has helped. I owe you! I just can't say enough!

Nellie
P.S. (When I bid this job most of the information and forms I used came from your book, thanks again)


 I Was Impressed 



Despite limited information which forced Gary to make a number of assumptions about Nellie's account his Jan Bid software really came through.

Even better, the Jan Bid software package comes with a Building Survery Data sheet -- which prompts the users to determine all the necessary information for bidding the account, such as: total square footage, floor types, number of fixtures in the restrooms, and the 7 cleaning variances Gary uses to make the estimate so accurate.

Jan Bid is coming out soon, I hope you'll keep an eye out for it. -- See you next time.

~~~~~

And don't forget to read my current online article:
Online Article 48

See you next time, until then, Keep It Clean!


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The Cleaning Entrepreneur
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