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Johnny B

  • Posts: 2385
Undercutting?
« on: January 16, 2012, 06:24:23 pm »
I would like to run this by you guys to see what you think.

While canvassing today, I was given a tip that a local nursing home was looking for a cheaper window cleaner. Apparently the current guy has cleaned them for years, but the nursing home's management are seeking to cut costs. They will still need their windows cleaned regularly though, but not at the price they currently pay.

I have no idea what the current guy charges, neither do I wish to know. Would you believe it to be (un)ethical if I approach the nursing home, and give them my price? If my price happens to be accepted, then it would follow that I must be cheaper. If on the other hand they rejected my price, I would not be dropping my price to get the job.

I would be interested in what you guys would do in a similar situation. Thanks.

John
       
Being diplomatic is being able to tell someone to go to hell in such a way that they look forward to the trip.

Catherine10

Re: Undercutting?
« Reply #1 on: January 16, 2012, 06:43:56 pm »
I think you would just have to ask them directly, up front what their paying and then assess it on your own merits.  If the customer is looking its their choice, but then you wouldn't want them taking the pee.  Had a class example today - but I cant post it on here.

supernova77

  • Posts: 3547
Re: Undercutting?
« Reply #2 on: January 16, 2012, 06:47:31 pm »
I would quote my normal rate and see what happens - business is business. But I wouldn't undercut on purpose just to get the job!

The nursing home are seeking to cut costs?   I bet their not cutting their rates though!

Andy

Pope vader

  • Posts: 1944
Re: Undercutting?
« Reply #3 on: January 16, 2012, 06:48:49 pm »
find out price and if you can beat it then do it

Catherine10

Re: Undercutting?
« Reply #4 on: January 16, 2012, 06:53:48 pm »
With you Santa, just assess on your own pricing structure.  If you dont know what they are being charged hard one to call.  If you ask OP - you have a guideline.  Could be way out or in line with what you do......

Spruce

  • Posts: 8647
Re: Undercutting?
« Reply #5 on: January 16, 2012, 07:04:28 pm »
I would like to run this by you guys to see what you think.

While canvassing today, I was given a tip that a local nursing home was looking for a cheaper window cleaner. Apparently the current guy has cleaned them for years, but the nursing home's management are seeking to cut costs. They will still need their windows cleaned regularly though, but not at the price they currently pay.

I have no idea what the current guy charges, neither do I wish to know. Would you believe it to be (un)ethical if I approach the nursing home, and give them my price? If my price happens to be accepted, then it would follow that I must be cheaper. If on the other hand they rejected my price, I would not be dropping my price to get the job.

I would be interested in what you guys would do in a similar situation. Thanks.

John
       

Personally, I would quote your price, but I wouldn't spend to much time on it.

Firstly business is always trying to cut costs as every penny saved is more in management's pockets. Nursing homes are no different. The chances are that if you are a little cheaper they will use your quote to screw the price down of the existing cleaner.
If you are a lot cheaper then they could be tempted to get additional quotes as they could still feel you must be charging top rate with your quote.

They will always be looking at the minimum wage per hour and asking if there is a possibility of employing an occasional to clean them as and when.

One of the local nursing homes just made the housekeepers responsibile for external window cleaning as well - they found out when their employment terms and conditions changed to include this as well - no additional pay either. Take it or find other employment.
Meanwhile management became more and more top heavy with family members in executive jobs with fancy titles and new cars.

I've lost a bit of commercial going inhouse of late (expecting another) so really focusing on residential rather.

Spruce
 
Success is 1% inspiration, 98% perspiration and 2% attention to detail!

The older I get, the better I was ;)

Llaaww

  • Posts: 2260
Re: Undercutting?
« Reply #6 on: January 16, 2012, 07:05:43 pm »
Deliberate undercutting is not good for the industry. Prices spiral downwards causing corners to be cut. Over time the image of window cleaners will suffer, as well as the pockets.

Just go in at a price you are happy with. That way you are not undercutting.
if it is dirty it is fair game

Re: Undercutting?
« Reply #7 on: January 16, 2012, 07:07:10 pm »
The chances are you will not get the job even if you are cheaper, they have used this guy for years, so they must be happy with him and his cleaning, they are just looking at ways to cut costs.

What they are likely to do is get some quotes in and hopefully for them they find someone cheaper, they can then go to their current cleaner with this quote and ask him to either beat or match it.

If its a good job and he doesn't want to lose it then he will drop his price.

But all jobs are quotable and if you know what the other cleaners are charging, then thats a bonus.

Catherine10

Re: Undercutting?
« Reply #8 on: January 16, 2012, 07:08:13 pm »
Seen that several times, yes give us a price - back to the original supplier, it really is saddening.  Best ones, are no cleaner or not happy with the current service.  Mainly genuine.

Spruce

  • Posts: 8647
Re: Undercutting?
« Reply #9 on: January 16, 2012, 07:08:57 pm »
I think you would just have to ask them directly, up front what their paying and then assess it on your own merits.  If the customer is looking its their choice, but then you wouldn't want them taking the pee.  Had a class example today - but I cant post it on here.

We would ask what the budget is, or what am I up against? Of course that opens up the possibility of the truth not being told.

Spruce
Success is 1% inspiration, 98% perspiration and 2% attention to detail!

The older I get, the better I was ;)

Catherine10

Re: Undercutting?
« Reply #10 on: January 16, 2012, 07:11:54 pm »
Normally on the phone, (just what I experience) they are quite happy to give prices...but then you smell a rat because its going to be a "can you beat the price" call.  But its such a hard call, until you turn up at the building

bobplum

  • Posts: 5602
Re: Undercutting?
« Reply #11 on: January 16, 2012, 07:21:07 pm »
I wouldn't get involved :)

Steve_c

Re: Undercutting?
« Reply #12 on: January 16, 2012, 07:30:39 pm »
If you know what the guy is charging and you just dont want to say on here and you undercut him to get the job, what comes around go's around. Put your price in and its go to be your price.

Re: Undercutting?
« Reply #13 on: January 16, 2012, 07:36:48 pm »
I don't like asking what previous cleaner charged. if I find out, I try and charge more, on principle.

if you go cheap just to get it, your working for less. and who knows in 6 months some other wannabe will come along far too cheap again, and you will loose it any!

my advice, quote a realistic normal price. nothing worse than going cheap to get a job, then finding out you could have and should have charged twice the price! quote enough so that you will be happy doing it and can do a good job still.

Steve_c

Re: Undercutting?
« Reply #14 on: January 16, 2012, 07:44:00 pm »
I don't like asking what previous cleaner charged. if u find out, I try and charge more.

if you go cheap just to get it, your working for less. and who knows in 6 months some other wannabe will come along far too cheap again, and you will loose it any!

my advice, quote a realistic normal price. nothing worse than going cheap to get a job, then finding out you could have and should have charged twice the price! quote enough so that you will be happy doing it and can do a good job still.
Bang on

king marko

Re: Undercutting?
« Reply #15 on: January 16, 2012, 07:51:36 pm »
I'm with AS on this one - who's to say nursing home won't stab you in the back as soon as a cheaper quote drops on the mat?
They are almost certainly just using you to gain cheaper price off existing cleaner anyway - it would be a lot different if they'd already sacked him off tho

jouk45

  • Posts: 2010
Re: Undercutting?
« Reply #16 on: January 16, 2012, 08:37:17 pm »
or have you thought, maybe they want a cheaper quote to use against the current w/c, i have had that thrown at me a few times,

Catherine10

Re: Undercutting?
« Reply #17 on: January 16, 2012, 08:52:21 pm »
Why wouldnt you ask about previous prices? 

jouk45

  • Posts: 2010
Re: Undercutting?
« Reply #18 on: January 16, 2012, 09:02:34 pm »
catherine if you wanted a quote from a company, would you tell them what your best quote was,  most will not tell you,

Catherine10

Re: Undercutting?
« Reply #19 on: January 16, 2012, 09:05:14 pm »
Most do jouk when your making several calls a day its not a myth - its simple.  You go in as a chance as with any business and make the most of it.  I can make 25 calls an hour, yes some are oppulent with information some are not, its luck of the draw.  I do high volume calling you come across all sorts not one or two calls 100 a day .  You cant apply that theory when you make so many calls.  Every situation is different some do and some dont.  Its about gleaming as much information as you can on the call and move on and do the best for the client..... so yea I do ask for prices if you dont know you have no guideline