Ask Drake
Grand Master Janitor, 30+ years
With the truly, humbling success of CleanlyRun(formerly CleanGuidePro), we’ve received a lot of questions (from companies all over the world) about a variety of topics in the janitorial industry. Today I’d like to share one about Fair Market pricing.
Hey Drake: I own a start-up janitorial business in a large U.S. city and I have to compete with large companies to win bids. How does CleanlyRun Janitorial Bidware address this issue as well the concept of “fair market pricing”?
Answer: First of all, there is no real “set market” or “fair price” chart – i.e. Dallas vs. Chicago – to go by. That’s the wrong way to think about it…
You need to think in terms of what’s the fair market costs associated with your area. For example, what are the minimum hourly wages, chemicals, state and local payroll tax rates that you have to pay. (By the way, our Bidware does all this for you in Step 4 of the bid creation process, the Workloading and Pricing screen.)
All companies (especially the large national and regional ones) have to FIRST calculate/count their monthly costs to clean a building. Only then do you add a fair profit price (which is also suggested by the software). Remember, the bigger companies will always have higher costs than the smaller companies because they have higher overhead, more mid level supervisors, and higher liability insurance which means slimmer profit margins.
Don’t be intimidated by the bigger companies, but rather focus on constantly improving your own company! Keep in mind that the “big companies” were all a startups once.
