[Lesley]

Hello All - I'm new to this so please bear with me.

I have a dilema that I'm hoping you can help me with.  I have run a small cleaning company for the last 6 years, 2 years ago I was approached by a LA to quote to clean void props as they were getting a lot of bad press, we quoted - really quite silly prices as I didn't have a clue - (I was originally in domestic, which we have now left behind) - which to my suprise they accepted.  Over the last 2 years we have had nothing but praise for our standard of work from the LA themselves and tenants and this had, unfortunately made me lazy and content and let my 1 egg settle in its basket, now we are about to tender (by end of week) and I am more than a little concerned about our prices, as I have heard whispers that another company are charging around £24 (inclusive of all expenses) per hour per person (need at least two people for approx 4-5 hours).  At present we do not charge by the hour but by the job so our price would be approx. £100 more!  Am I right to be worried - what can I do - any suggestions?

Lesley

[therapist]

Hi Lesley

Local authorities only give work to APPROVED SERVICE PROVIDORS but they don't always take the lowest bid,
nowadays, having to consider, reliability, track record, etc.

However, with computerised systems being installed everywhere, the L/A admin' find it easier to cope with hourly rates.

BELIEVE IT OR NOT, we were asked to increase our rate recently, but to make it a flat rate without holiday period enhancements...This was simply to make life easier for the L/A workers!

I suggest you contact the person / persons who put the work your way and arrange a meeting, to discus how you can best help them.

Ask them if it would be preferable to invoice , hourly, or continue to price work, by the job.

You've been fortunate in getting an insight into your competitors pricing. Are you sure you can't compete with their hourly rate, are you doing the same work, are there other services you could be providing.

Talk to them.......but you must appear to be making their lives easier and hassle free.

Finally move some of those eggs around, L/A 's can bankrupt you in avery short time!!!!!!!!!

Good Luck

 robert m

[martin19842]

hi there,

LA's have to go out to tender for work, you are the encumbant provider, therefore you have the advantage in the tender process over any other company.

you already know what the client wants, and you would hope to have a very good relationship with the decision maker. therefore use this to your advantage and get the information that you need.

good luck

regards

martin

[Lesley]

Hi Martin and Robert

Firstly, thank you both for your advice.  I have taken this on board.

Martin, yes, we had a very good relationship with the department that we dealt with directly to start with - but, this all changed a few months ago when a different department took over!, so now we only really get to talk to the person who looks after the pre-set budget - not the person who sets them - unfortunately.  I have struck up a very good relationship with them, I even do a lot of his job for him (his suggestion) to make it easier all round, he is a really nice guy, but how much weight he pulls - I don't know.

Robert, we could meet their price, but we'd struggle - we would have to cut our prices by approx. 40% and probably lose a member of staff - don't really want to do that if I can help it - but I suppose better that than no contract at all!  Yes, we do provide a service that they don't, clearance of bodily fluids, "sharps sweep".  This I do know for a fact, but this does come at a price -  risk involved - PPE and insurance VERY HIGH,

Letters are going to be flying out of here over the weekend - looking for more business, should have done it sooner though.

I can put forward very good reasons why they should keep us, but don't know if anyone that matters will talk to me - don't know if I'd be breaking protocol if I try to approach them - I don't know what to do.

Thanks again to you both.

Take care

Lesleyxxx

[Fox]

Hi Lesley

I used to do alot of LA work aulthough ours was all communal cleaning of places such as high rise flats etc and end of tenancy cleans plus the odd smoke damage and environmental clean.

All LA's have to go to tender when the outsourced services exceed 50K, believe it or not our LA didn't go to tender until we had over £150k of work!  I liased with the person who used the budget too not the person who set it. 

If your LA works the same as ours (which I'm sure they will) they will want an hourly costing from you.  It is sensible to worry about pricing although LA's now don't have to take the cheapest price as they work to what they call 'Best Value' they will still have a budget.

Have you already recieved tender forms?  If not then don't forget that you have to apply for them, they won't be sent automatically.  The fact that you already provide the extra services the other one doesn't is a bonus and you will already have the insurance, which is what can put other companies off (min of 10mill for LA).

They will take into account that you already do the work and if I were you I would talk to your contact about doing a presentation with your tender.  You could also ask the odd indirect question ref pricing but be warned council workers hold their cards close to their chest and won't give much away.

We were slightly more expensive in our tendering than our competitors but were awarded the works.  I left the company not long after but I know that they were given alot more work throughout the LA because they were then 'approved suppliers' so be prepared to take on alot of extra work if you win the tender.

Sorry I can't give you any more constructive advice but is one of those that you will have to get on with and hold your breath for the outcome!  Just remember you have the upper hand and they will take into account their own administration costs in setting up a contract with a different company.  I wish you luck and hope you are successful in this.  Thanks for sharing it and keep us updated.

Fox