navec

  • Posts: 8
Hi,

We are currently running a cleaning comapny and mainly dealing with domestic cleaning with a couple of very small commercial contracts but would like to expand into the commercail sector more, can anyone offer some very much needed advice? Such as how to go about getting the contracts, pricing etc...and is it worth investigating the Procare route?

Thanks in advance  ;)

martin19842

  • Posts: 1945
hi there,


where in the country are you???

the procare route, and other companies like them, are basically a short cut for you to generate cash flow, you will buy the contract, there is a limited guarantee if the clieynt terminates, and you can get left with nothing.

some contracts are profitable whilst a lot provide a low return on the investment.

regards

martin

navec

  • Posts: 8
Hi,

Thanks for your input, we are in Northamptonshire basically right inbetween Northampton and Peterborough, however we are mainly concentrating on the villages and towns around us such as Oundle, Thrapston, Islip, Stanion etc...

martin19842

  • Posts: 1945
hello there,

Ah!!!a competitor 

i have pm'd you

regards

martin

navec

  • Posts: 8
Hi,

Ok being new to this what is pm'd? and where abouts are you?

Tim Downer

  • Posts: 656
I looked into such a company a few years ago, and came to the conclusion that although i could buy a lot of contracts from them, I was giving them too much money each month to really make a good living.
Works for some, but not to me at the time.
Can't beat getting your own contracts and keeping them.

Tim
Tim Downer
Manager

"The difference between Ordinary and Extraordinary.....is that little Extra"

navec

  • Posts: 8
Thanks Tim,

But how do you go about getting them?

Tim Downer

  • Posts: 656
navec

PM is a Private Message that a fellow poster can send to you for your eyes only.
At the top right of your screen will be something like "Hey, Navec, you have 2 messages, 1 is new.... or something like that.
Click your mouse over the "messages" word and another screen comes up with the message.
It will be there that you will be able to read Martins Message to you.

Regards

Tim
Tim Downer
Manager

"The difference between Ordinary and Extraordinary.....is that little Extra"

navec

  • Posts: 8
THANKS Tim,

What a superstar you are  :D

Tim Downer

  • Posts: 656
I have mentioned this subject in a couple of posts around 6 weeks or so ago, but one of the things you could try is to ring a company up and ask for the person who deals with the cleaning, i.e the facility department.....and ask them when the contract for the cleaning is due for renewal.
If they say "end of March 2005" or whenever, then call them up the month before (obviously you would have a list of companies and dates when they are due for renewal!!) and mention that you would like to be considered for tendering for the cleaning.....and see what happens.
You will find this to be more successful than working on a brochure / flyer / letter....for them to just bin it because it is not on their mind just yet  -  (probably opened a can of worms here!!......)

Or

With your business card and a letter, go to the place of business and ask the receptionist to pass it on to the relevant person in the business.....bearing in mind that if you leave a couple of chocolates with the receptionist she will pass it on (otherwise usually straight in the bin)
Call back the next month, introduce yourself again, leave the chocolates and the letter and the card.....and you build up a relationship with these people (in the business sense??) and when the word goes out that they are looking for a new cleaning company.....guess whose name is going to come up?  "Yours!!"

I have been on a course where this was suggested....and apparently it worked!!

As regards the pricing....it will have to be a case of "suck it and see...." as prices down my way will differ to what you can charge up your way....but looking at a lot of the postings recently, you will find that we advise you to do the maths - work out wages, insurance, chemicals, materials, equipment, vans etc etc etc and put yourself a profit ontop and there is your price.
As Martin has always mentioned, price to have the job staffed, because if you start out doing it yourself, make a little money, then staff it....you will find that now you are not earning from the business.

I hope this has given you something to think about??

I have been working since 04:45 this morning and am no longer knowing what i am writing, so am going to sign off now.....

Kind Regards

Tim
Tim Downer
Manager

"The difference between Ordinary and Extraordinary.....is that little Extra"

navec

  • Posts: 8
Tim,

That is great advice thanks very much and sleep well!

CMS

OK..........this is how I do it. Firstly, don't bother wasting your money advertising. In 24 years I have never won a contract through advertising. You MUST walk the streets and 'knock on doors' but I have a strict method of doing things.

1. I go to a reception and say this (word for word) "I work for a cleaning company and we'd like to do your daily cleaning. Is there anybody I can write to initially about this?"

Now then, let's look at what has happened here. Firstly, the receptionist would have been on her guard because she has to act as a 'goalkeeper' and keep the reps away from the decision maker. Then as soon as you say you want to write she starts to relax and you don't have to say any more than you have already said (don't spoil it by trying). I would stake my life on it that within thirty seconds she is offering you a compliment slip with the decision makers name on it. Put it in your pocket and move on. Total time less than a minute.

2. At the end of a day walking the streets you should have in excess of 100 compliment slips, in fact you can get that in 3 hours. Send an introductory letter to the decision maker on each compliment slip (a good mail merge/database manager like Act! can do this). You must keep it brief; just a short introduction, say why you are writing (that you would welcome the opportunity to quote) and, most importantly, that you will call him in a couple of days to make arrangements to visit. And make sure that you do.

From 100 compliment slips you should get the opportunity to quote for 10% of them. I can convert half of these into contracts but I've been doing it a lot of years. If you work on a conversion rate of 10% of your quotes you should get 1 new contract a week (100 compliment slips = 10 quotes = 1 contract).

You must keep collecting the compliment slips, maybe 200 a week then you will have a constant 'pipeline' of intro letters/quotes/new starts. But remember, as soon as you stop collecting compliment slips the pipeline will dry up!

Also, make sure you maintain your database properly. As has been said before, keep a record of 'renewal dates' etc.

Now I'm going to tell you about something that I do that I bet no-one else on here does.

I presume that like me you will keep your quotes on disk somewhere.

REQUOTE EVERY THREE MONTHS! - automatically whether they have asked for it or not. You can knock up a short covering letter to say that you are requoting incase the clients circumstances have changed.

You MUST maintain your collection of 100 compliment slips a week which will give you 10 quotes a week. After three months you will be sending out 10 new quotes a week PLUS 10 requotes that you did three months ago. After six months you will be sending out 10 new quotes a week, 10 three month old quotes a week and 10 six month old quotes a week.

The Conversion rate is less on requotes but it does happen. Your original quote may have been declined BUT three months later it could land on a guys desk when he's had a really crap day with his cleaners.

I used to convert 50% of new quotes and 10% of requotes.

BUT KEEP THAT PIPELINE OF COMPLIMENT SLIPS GOING - IT'S A NUMBERS GAME. IF YOU DON'T GET THE QUOTES IN YOU WILL NEVER GET THE BUSINESS IN.



Good luck.

PS - Never buy business. I used to be a Director of one of these companies (they shall remain nameless) and believe me we didn't care what crap we sold you (that's why I got out, I wanted to sell a good service).


Unique

  • Posts: 15
Hi CMS

Great advice,  I will be trying it as i juswt had a staff meeting this morning about getting out on the street and selling.  Your input has been invaluable in creating a plan. 

Thanks

Sharon

navec

  • Posts: 8
Hi CMS,

I second what Sharon said, that is very valuable advice and I appreciate the fact you are generous enough to share it so thanks very much.

Traci

Ian Gourlay

  • Posts: 5748
Karl,

Its one of the best posts I have seen on winning bussiness could be used for any product.

You must cover a wide area, i

AS eventually you would run out of companies?

Littled puzzled why you have your cost calculator on your Web Site.

Regards

Ian


martin19842

  • Posts: 1945
hi there,

requoting is actually a very good way of wining business, as when i worked for a national company over a period of sya 18 month s you would end up back in an appt that you had been to see the year earlier, and the bet line then is.

so have the cleaners got any better?

you will be amazed at the number of companies that will stay with a cleaning company because they cant be bothered with the hassle to change, and eventually they will

persistence pays

regards

martin

Pristine_Cleaning

  • Posts: 103
CMS,

GREAT POST!!!  I have to say that your plan for chasing and winning business is one of the best I have read.

Having worked as a sales person for the past 10 years before venturing into this industry, this is the most valuable and simplest advice you can give to anyone looking for new business. 

Thanks again for your advice.

Regards

John Byrne
John Byrne
Pristine Cleaning

CMS

Ian

Re : Cost Calculator

It's not normally there. I just shoved it on so that the poster who was asking advice could get a look at it..................... ::)


Tim Downer

  • Posts: 656
CMS

I tend to agree with John regarding your post, however if advertising brought about no business.....then it wouldn't exist.
I have advertized in Yellow pages many a time in the past when I had my own business and they worked Ok for me....However, saying that, why should i spend £1,000 on advertising when I could spend £150 on a good suit, shirt and tie and go to the potential customer and introduce myself for free?
Well done mate....

Regards

Tim
Tim Downer
Manager

"The difference between Ordinary and Extraordinary.....is that little Extra"

CMS

Thank you all for your kind comments.

Timbob, one thought comes to mind as I read your post..........

Quote
I have advertized in Yellow pages many a time in the past when I had my own business and they worked Ok for me.

With the greatest respect...........how well did it work for you? You don't run your own business now do you?