Episode 595 – Cleaning Company Bidding Tips for 2021
Hey Cleaning Nation. Today I want to talk about some bidding tips you can use in 2021.
One of my first companies was a construction company and I did everything WRONG. I would offer low prices to bad clients when I should have been charging higher to get good clients. I would even do the job first and hope to get paid after which is a very bad idea. Because of these decisions my company made $500K in “profit” but I didn’t end up with any of it. This is when I finally learned the difference between cash and profit. In my effort to build my business and get clients I completely overlooked the most important thing, cash flow. Not only did that kill my ability to make money, it made me question my own ability as an entrepreneur. I tried EVERYTHING but because I was ignoring this very important aspect of business nothing worked. I was constantly battling to pay bills because I didn’t know where the money was going.
The funniest thing about this is that I finally started to learn when I was helping other businesses. Yes, you heard that right. I could see the issue in other businesses but not in my own business.
This is when I realized that the REAL problem was I didn’t understand and believe in the real value I brought to the world. After FINALLY getting this right and charging what I should, I realized no matter how good of a business owner I was, how many books I read or how hard I worked, I could NEVER overcome bad math.
If you can’t get this right, NOTHING you do will work.
It was in coaching that I started to see clearly. Car washes can be $5 or $25 or $250 or $25,000 and they will all make money. The difference in the price is because of the value you bring and how much you believe you are worth. You need to get out of the cleaning business and into the problem solving, pain killing, pleasure bringing business.
Here are some of my top tips on how to understand your value and make a profit.
- Get clear on your why
- Believe they are only customers if they bring profit. The keyword there is profit. Just giving you money does not make them a customer.
- Know that your value is the ability to understand and communicate their pain, not clean.
- Charge based on the value you bring
- Your playground, your rules.
- Charge premium pricing (AT LEAST 50% gross profit)
- Charge in advance.
- Charge everyone.
- Those who pay are paying attention!
I’ve raised prices over the years because I know we give massive value. Because of this we have begun to bring in profit. There are coaches out there for $20/ hour but we charge thousands because we create transformations!! But the most important thing we have done is taken hundreds of owners and helped them raise prices. Every time people respond completely differently than they thought they would. As impressive as it is to see them make way more money in way less time, it’s even better to see their own estimation of their personal value grow. A big side benefit is not having to deal with loser customers and be appreciated for what you do.
Not only do we make great money, because we charge enough, we have all the resources to make sure our clients get the same results. When your clients start believing you are premium, you start believing it in every part of your life, business and other.
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