Spring is almost here

It might still be 18 degrees outside with snow flurries, but I had my first meeting with a commercial client to discuss plans for 2015.  I was expecting them to scale back this year, but they surprised me....increasing coverage and frequency this year!!  

Next month's dance card is filling up rapidly with 8-12k sqft jobs....looking like about 7 buildings in all.  There might even be an IMAX theater on the schedule, so if you regret missing out on that theater Mo, just come on down and enjoy hell with a wand.

It sure feels good to survive another winter in business and even better to see the Sun shining on the horizon....bring it on!

That's great, glad to hear the account got better rather than what you were expecting.

I had a meeting myself yesterday, with a new commercial customer to do monthly maintenance cleaning and yearly restoration cleaning for their 50k facility. With 30k+ of cleanable areas including carpet/VCT/tile. I'm actually overwhelmed by the shear size of it, and wondering if it's even something I can handle really, and a bit stumped on how I should proceed.

Davey Cracker wrote:That's great, glad to hear the account got better rather than what you were expecting.

I had a meeting myself yesterday, with a new commercial customer to do monthly maintenance cleaning and yearly restoration cleaning for their 50k facility. With 30k+ of cleanable areas including carpet/VCT/tile.  I'm actually overwhelmed by the shear size of it, and wondering if it's even something I can handle really, and a bit stumped on how I should proceed.

Sounds like it is time to pick-up a second rig or else a good sub. I actually prefer the good sub at first unless you have the work to support the second van during the rest of the time.

Ummm, helloooo, great sub is waiting here, throw some my way as we discussed yesterday

Rob, great to hear that, that's a very good sign of better market, they will not increase if they're not doing better

It was definitely the icing on the cake this week. Nothing has broken down and the phone is ringing again.

I'm still working on a deal to get the restrooms at the Zoo this year. They lack proper ventilation and end up smelling like a porta-jon by July. We spoke about it each year, but I haven't convinced them yet.

I figure that I could run teams out there at night, knock out a bathroom in 15 minutes with each crew and move on. Best part is that there are over 300 bathrooms....you do the math.

dp1 wrote:Ummm, helloooo, great sub is waiting here, throw some my way as we discussed yesterday ..................

I know, I know , I'm just still overwhelmed by the shear size of that account.

If I can pull it off, it would be a huge amount of money monthly I'm sure......probably fund my retirement.

milspec6 wrote:

Davey Cracker wrote:That's great, glad to hear the account got better rather than what you were expecting.

I had a meeting myself yesterday, with a new commercial customer to do monthly maintenance cleaning and yearly restoration cleaning for their 50k facility. With 30k+ of cleanable areas including carpet/VCT/tile.  I'm actually overwhelmed by the shear size of it, and wondering if it's even something I can handle really, and a bit stumped on how I should proceed.

Sounds like it is time to pick-up a second rig or else a good sub.  I actually prefer the good sub at first unless you have the work to support the second van during the rest of the time.

I've discussed it with DP, and he and his guys are willing to help........I just need to get my head around an account that big.

The only way to eat an elephant is with lots of small bites.

Once you break it down into sections, it will not be that bad. Sure sounds like a 401k stuffer to me.

Look at it this way, that 30k is only 7500 sqft per week.  That equates to one extra day per week of cleaning with a sub....two days solo.

It also makes for a very good account!

Thats awesome Milspec.

milspec6 wrote:The only way to eat an elephant is with lots of small bites.

Once you break it down into sections, it will not be that bad.  Sure sounds like a 401k stuffer to me.

That's actually the best advice I've heard, and I completely agree on once a week thing, if you're willing to drive to Claremont every week you can actually knock them down yourself with a helper, which I'm willing to share my employee with you if he's OK working with a big control freak jerk like you, lol, j/k

Davey Cracker wrote:

dp1 wrote:Ummm, helloooo, great sub is waiting here, throw some my way as we discussed yesterday ..................

I know, I know , I'm just still overwhelmed by the shear size of that account.

If I can pull it off, it would be a huge amount of money monthly I'm sure......probably fund my retirement.

Retirement OR hospital bill. ? Had a big one years ago, still have nightmares about getting it done.

milspec6 wrote:It was definitely the icing on the cake this week.  Nothing has broken down and the phone is ringing again.

I'm still working on a deal to get the restrooms at the Zoo this year.  They lack proper ventilation and end up smelling like a porta-jon by July.  We spoke about it each year, but I haven't convinced them yet.

I figure that I could run teams out there at night, knock out a bathroom in 15 minutes with each crew and move on.  Best part is that there are over 300 bathrooms....you do the math.

300 bathrooms?! That for people or animals?
Saw a video about doing bathrooms. Spray everything down with a cleaner/disinfectant then hose it off and sqweegee everything into the drain. Yep, about 15 minutes.

The 300 bathrooms are for visitors. It is crazy how many there are and most are just 2-3 stalls in size.

I will be trying to nail that down on Monday...it would sure be nice to get that going in March.

where do you guys draw the line with commercial to the point of where it becomes janitorial?

I know some offer janitorial services and can be a good way to grow your business, but as an owner operator or a small company is it really worth it to take on bathroom cleanings in large buildings like that?

I draw the line at the tile...no toilets, sinks, mirrors, etc.

Like you, I don't see any value going beyond that.

I once had a great account doing general cleaning in addition to cleaning the carpets in a large complex making units rent ready.

But got burnt out on it, and now only stick to floors.

I work with another home cleaning company out here, I throw them apartment cleaning, small cleaning job, here and there in exchange for them referring carpet cleaning work to me, it works out great, originally he wants commissions for referring carpet cleaning work and I had agreed on that, but he backed out from asking commission when I refer a cleaning job to him without asking him for commission, now I think he had referred more work to me than me to him.

I refer some cleaning work to my house cleaners but not enough they still want 10% of the first carpet cleaning they refer but it way worth it

Meeting over.....7 buildings (over 80k sqft total) scheduled over 5 days.

Maybe I shouldn't have wished so hard? That will be a long week next month, but 2015 is looking really good as the quarterly buildings are now going to monthly cleanings.

Now if it would just warm the heck up!

Wow, nice Rob.

Can I ask how the price per sf for really large jobs like that compares to a smaller, lets say 1,000 sf job?

I'm just trying to get an idea on where I should be at per sf on the large bid I'm working on.

Davey Cracker wrote:Wow, nice Rob.  

Can I ask how the price per sf for really large jobs like that compares to a smaller, lets say 1,000 sf job?

I'm just trying to get an idea on where I should be at per sf on the large bid I'm working on.

Most places that size, set their budgets in October, so they base it on what the last guy was charging. If you are much higher than him, they will walk or just schedule far less cleanings. In most manager's eyes, volume equals discount pricing, so you often end up losing a couple of cents off the price to clean that 1,000 sqft. As long as they set good terms (payment in 2 weeks, flexible scheduling, etc.) I give that discount.

I have always taken the approach of getting them to view you as a long-term solution. It makes it easy on their scheduling and after the first year, you can look to increase your rate with the next budget. I like to offer them a 3 year contract with a fairly low rate under the current budget, with scheduled increases with each subsequent budget.

Right now, I just received an email asking me for my new rates now that we have reached the end of that 3 years. It will include the normal rate increases on what looks to be a 2 year contract this time. I didn't even start the conversation, they have been "trained" to just budget the increases.

So on a large monthly account like that you're only a couple cents cheaper than you would be on a 1000 sf job?.....If I read that correctly? Seems good, if so.

The problem I've noticed around here is guys are willing to do large commercial jobs for stupid low prices, like less than .10 a sf sometimes. When for instance and example I'd usually be in the .20-.30 sf range for a job a 1000 sf...so going down to .10 sf., even if a larger monthly job, .10 sf seems like a price that would be hard to offer and still make a profit.

Don't ever drop it down like that....a couple of cents should be plenty. I don't think I have ever dropped more than 3 cents from my standard commercial price.

Just like in residential, there are those that offer the dirt cheap pricing. When I started this contract years ago, there were 2 companies willing to do it for 8 cents!!

For a commercial manager, he wants simple things: Trustworthy; Reliable; Insured; and Reasonably priced. When a company throws out a low-ball, they know it will not come with those things.

Remember that you have an ace on commercial...you are dealing with a person who understands business and the costs of doing business. If you can ensure him/her that you will be reliable, you will carry the day.

I don't know what the pricing is in your area is, so I couldn't say what to bid. If you are getting .20-.30 now, then you should be in the .15-.25 range, I would guess.

Even in this area, there is no way that I would work for .10....no way at all.

Ok great thanks for all the help.