What's the logic behind Pricing, Scheduled Interval Cleanings

[snagtooth]

So I'm starting to wonder if I'm missing a mathematical logic or just a general business logic behind the pricing structure of Scheduled Interval Cleanings, such as a 90 day service agreement or a 15 day service agreement. I base all my bids off a calculated range (based on technical factors of travel, degree of soiling, etc.) of price per sqft. that I have found to be agreeable for both my business and my clients.

Early on, in my business endeavor, I have been pricing a one time cleaning and then simply throwing it out there to the client that, "subsequent/frequent cleanings will be honored at a lower, x amount, cost to you". Usually this is written as a little comment within my bid estimate or sometimes it has been discussed during the initial conversation and the client opts to just "try the service out" with a one time cleaning. I would like to start pushing Scheduled Interval Cleanings within all my bid estimates with a degree of consistency.

So, do you guys have any insight on your logic? I like to look at a property and think to myself, "How fast will this place get this dirty again?, if I come back in 60 days will it be any easier/less chemical?, What about 30 days?". I also find that subsequent cleanings go smoother/less man-hours due to knowledge of property, slopes for water flow, problem areas that pool up, dirtiest areas requiring chem. pre-soak, etc... I feel like my evaluation of difficulty doesn't always match my numbers, is there a formula or should this be subjective?

An example of a recent bid estimate I tried the Scheduled Interval Cleanings is attached with notes on the pricing in bold ink, what do you think?

 

["Red"]

Pretty easy for me to figure out...

1 time @ 104 (in a years time) = $104

4 times @ 91 (in a years time) = $364

12 times @ 78 (in a years time) = $936

24 times @ 52 (in a years time) = $1,248

I would dare say the exposure is priceless.

 

[snagtooth]

Pretty easy for me to figure out...

1 time @ 104 (in a years time) = $104

4 times @ 91 (in a years time) = $364

12 times @ 78 (in a years time) = $936

24 times @ 52 (in a years time) = $1,248

I would dare say the exposure is priceless.

I don't get your point? I know how much they client would be spending in a year period...that's pretty obvious if you know basic math. The question is your logic behind your pricing structure of Scheduled Interval Cleanings.

 

["Red"]

I suppose my logic is the exposure. More people see you again and again and get to know who you are. Discounts are directly proportional to the job costs (time and materials). The easier the job usually means less chems and quicker finish times (which also means less overall wear and tear on the equipment).

Beyond that, I'm not sure what you're asking for.

 

[snagtooth]

I suppose my logic is the exposure. More people see you again and again and get to know who you are. Discounts are directly proportional to the job costs (time and materials). The easier the job usually means less chems and quicker finish times (which also means less overall wear and tear on the equipment).

Beyond that, I'm not sure what you're asking for.

Derrel,
Let me ask you this first, do you employ this type of practice in your bidding of commercial properties? If so, is every job broke down the same in terms of your discount per 90day, 60day, 15day, etc.? I guess that is what I'm trying to get at. Is there a general formula, should a 15 day service be 50% less per cleaning because, in general, it is going to be twice as "fast" or "easy" as the one-time clean?

Also, I see what you are saying with the exposure, I feel that is one of my biggest hurdles is just getting a prospective client to understand what I'm trying to do, how I work, the quality of product I can provide, etc. I kind of use a "high-exposure" technique to secure prospective clients by stopping in when I drive by, dropping cards/flyers off multiple times, emailing pictures of their dirty property with the comment, "I would love to help you keep your property looking great!". Hopefully that keeps me fresh in their mind and I feel it has helped in easing clients to "pull the trigger" on a service agreement.

 

["Red"]

Derrel,
Let me ask you this first, do you employ this type of practice in your bidding of commercial properties? If so, is every job broke down the same in terms of your discount per 90day, 60day, 15day, etc.? I guess that is what I'm trying to get at. Is there a general formula, should a 15 day service be 50% less per cleaning because, in general, it is going to be twice as "fast" or "easy" as the one-time clean?

Also, I see what you are saying with the exposure, I feel that is one of my biggest hurdles is just getting a prospective client to understand what I'm trying to do, how I work, the quality of product I can provide, etc. I kind of use a "high-exposure" technique to secure prospective clients by stopping in when I drive by, dropping cards/flyers off multiple times, emailing pictures of their dirty property with the comment, "I would love to help you keep your property looking great!". Hopefully that keeps me fresh in their mind and I feel it has helped in easing clients to "pull the trigger" on a service agreement.

I don't currently do any commercial (primarily residential), but the discount plan is equally as viable in the residential market if you can sell the idea. Barring any weird circumstances, the job will be easier the next time and then the next.... The discounts typically will be what ever the market will bear. Depending on how quickly you complete the job the next time (chems & labor) that, in my opinion, would be the discount for that term (i.e. if you save 15% on chems and labor, then the discount would be 15%). The more frequent the cleaning (theoretically) the easier it will be increasing the discount.

Make sense?

 

[snagtooth]

I don't currently do any commercial (primarily residential), but the discount plan is equally as viable in the residential market if you can sell the idea. Barring any weird circumstances, the job will be easier the next time and then the next.... The discounts typically will be what ever the market will bear. Depending on how quickly you complete the job the next time (chems & labor) that, in my opinion, would be the discount for that term (i.e. if you save 15% on chems and labor, then the discount would be 15%). The more frequent the cleaning (theoretically) the easier it will be increasing the discount.

Make sense?

Absolutely, that makes sense. I see your theory now. Thanks for the input. An issue I still see, and maybe its reflective of my experience level, is trying to get that magic ratio of discount on paper before I have ever cleaned that property. I want to seal the deal on a scheduled interval contract the first go around...

 

[AZ PowerWash Pros]

I think what you are trying to figure out is the correct % to drop the price of a cleaning for regular maintenance. I think its a pretty good question. I don't really have a set %, maybe some guys do. But, the first thing I noticed is that you are bidding something at $104. And anything below $125 will always remain $125. If they have a job that takes me 10 mins one time a month I charge $125 because that is my Minimum. So I would suggest creating a minimum price for your services no matter what the frequency may be. When you are an owner/operator I think your minimum might be able to be less then mine but I wouldn't even leave my house for less then $100 if I were you.

As far as bidding goes, I use to have a lot of these same questions. But what I have realized now is that with experience comes knowledge of what customers are willing to pay. My first 2 years chasing contracts only 1 out of every 6 bids I would land because I was bidding too high and then the ones I would land I was bidding too low. Eventually you keep bidding restaurants, for example, and you find out what the restaurants in your area are willing to pay. Then you can add 10-25% or more on top of that when you gain your sales skills.

I measure properties to get an idea of how long the property is going to take me to complete the work. Square footage is just a reference of time for me. I know how many square feet my guys can clean per hour. Then after you find out how many hours the job takes you go from there. Once you know how long the first cleaning will take because of all the gum and extra amount of work involved in the initial cleaning you can assume how long it will take every 2 weeks when you are maintaining it. Then after I know how long the cleanings will take on a regular basis I play with the numbers so it looks good for the customer and makes sense profit wise. At the end of the day you want consistent work because you know its paying for your bills on a regular basis for the life of the contract. And ALWAYS make them sign something, that is my advice.

Good Luck!

 

[Ron Musgraves]

Don't do your laundry each week it takes hours. Do a load each day it's a few minutes


Oct event San Diego free free text me for more details !!

 

["Red"]

I would suggest creating a minimum price for your services no matter what the frequency may be. When you are an owner/operator I think your minimum might be able to be less then mine but I wouldn't even leave my house for less then $100 if I were you.

Very good point!

 

[Ron Musgraves]

I think what you are trying to figure out is the correct % to drop the price of a cleaning for regular maintenance. I think its a pretty good question. I don't really have a set %, maybe some guys do. But, the first thing I noticed is that you are bidding something at $104. And anything below $125 will always remain $125. If they have a job that takes me 10 mins one time a month I charge $125 because that is my Minimum. So I would suggest creating a minimum price for your services no matter what the frequency may be. When you are an owner/operator I think your minimum might be able to be less then mine but I wouldn't even leave my house for less then $100 if I were you.

As far as bidding goes, I use to have a lot of these same questions. But what I have realized now is that with experience comes knowledge of what customers are willing to pay. My first 2 years chasing contracts only 1 out of every 6 bids I would land because I was bidding too high and then the ones I would land I was bidding too low. Eventually you keep bidding restaurants, for example, and you find out what the restaurants in your area are willing to pay. Then you can add 10-25% or more on top of that when you gain your sales skills.

I measure properties to get an idea of how long the property is going to take me to complete the work. Square footage is just a reference of time for me. I know how many square feet my guys can clean per hour. Then after you find out how many hours the job takes you go from there. Once you know how long the first cleaning will take because of all the gum and extra amount of work involved in the initial cleaning you can assume how long it will take every 2 weeks when you are maintaining it. Then after I know how long the cleanings will take on a regular basis I play with the numbers so it looks good for the customer and makes sense profit wise. At the end of the day you want consistent work because you know its paying for your bills on a regular basis for the life of the contract. And ALWAYS make them sign something, that is my advice.

Good Luck!

Good work , or just call me and ask the price


Oct event San Diego free free text me for more details !!

 

[Andy Hinson]

I think what you are trying to figure out is the correct % to drop the price of a cleaning for regular maintenance. I think its a pretty good question. I don't really have a set %, maybe some guys do. But, the first thing I noticed is that you are bidding something at $104. And anything below $125 will always remain $125. If they have a job that takes me 10 mins one time a month I charge $125 because that is my Minimum. So I would suggest creating a minimum price for your services no matter what the frequency may be. When you are an owner/operator I think your minimum might be able to be less then mine but I wouldn't even leave my house for less then $100 if I were you.

As far as bidding goes, I use to have a lot of these same questions. But what I have realized now is that with experience comes knowledge of what customers are willing to pay. My first 2 years chasing contracts only 1 out of every 6 bids I would land because I was bidding too high and then the ones I would land I was bidding too low. Eventually you keep bidding restaurants, for example, and you find out what the restaurants in your area are willing to pay. Then you can add 10-25% or more on top of that when you gain your sales skills.

I measure properties to get an idea of how long the property is going to take me to complete the work. Square footage is just a reference of time for me. I know how many square feet my guys can clean per hour. Then after you find out how many hours the job takes you go from there. Once you know how long the first cleaning will take because of all the gum and extra amount of work involved in the initial cleaning you can assume how long it will take every 2 weeks when you are maintaining it. Then after I know how long the cleanings will take on a regular basis I play with the numbers so it looks good for the customer and makes sense profit wise. At the end of the day you want consistent work because you know its paying for your bills on a regular basis for the life of the contract. And ALWAYS make them sign something, that is my advice.

Good Luck!

+1 well said

 

[CL Scott]

I think what you are trying to figure out is the correct % to drop the price of a cleaning for regular maintenance. I think its a pretty good question. I don't really have a set %, maybe some guys do. But, the first thing I noticed is that you are bidding something at $104. And anything below $125 will always remain $125. If they have a job that takes me 10 mins one time a month I charge $125 because that is my Minimum. So I would suggest creating a minimum price for your services no matter what the frequency may be. When you are an owner/operator I think your minimum might be able to be less then mine but I wouldn't even leave my house for less then $100 if I were you.

As far as bidding goes, I use to have a lot of these same questions. But what I have realized now is that with experience comes knowledge of what customers are willing to pay. My first 2 years chasing contracts only 1 out of every 6 bids I would land because I was bidding too high and then the ones I would land I was bidding too low. Eventually you keep bidding restaurants, for example, and you find out what the restaurants in your area are willing to pay. Then you can add 10-25% or more on top of that when you gain your sales skills.

I measure properties to get an idea of how long the property is going to take me to complete the work. Square footage is just a reference of time for me. I know how many square feet my guys can clean per hour. Then after you find out how many hours the job takes you go from there. Once you know how long the first cleaning will take because of all the gum and extra amount of work involved in the initial cleaning you can assume how long it will take every 2 weeks when you are maintaining it. Then after I know how long the cleanings will take on a regular basis I play with the numbers so it looks good for the customer and makes sense profit wise. At the end of the day you want consistent work because you know its paying for your bills on a regular basis for the life of the contract. And ALWAYS make them sign something, that is my advice.

Good Luck!

Good stuff Ty... Thanks!