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Episode 549

How to Bid Cleaning Jobs in 2020: Episode 549: Mike Campion LIVE


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Episode 549 – How to Bid Cleaning Jobs in 2020

Even though 2020 has been a wild ride so far, some things never change in the cleaning business! If you bid too little, you don’t make any money and you can’t grow your business. You’ll probably end up doing a terrible job, since the pay is so low, and end up hurting your reputation in this situation. The problem is, there are people out there bidding ridiculous amounts so if you bid too high, you’ll never get any new business! Today, you are going to discover how to ALWAYS have the confidence you are bidding exactly what you need to WIN bids AND be profitable!

Lexus Lesson Learned:

When you are tempted to “match” your competitors, consider this story: When I used to own a car dealership, I was always fascinated by Lexuses and wanted to bid on one at an auction. The problem was though, I noticed that everyone was bidding way to high on these and I never understood why. I was always tempted to pay the high amount at the auction, but I never did. Finally, we received a Lexus as a trade-in that had a ton of miles on it but it was still beautiful. I was nervous about buying it because of the mileage, but I went ahead and bought it and posted it on our website. Within 24 hours, the car was purchased. I later found out that a wholesaler had purchased this car at retail price to send it to Saudi Arabia where Lexuses were in huge demand thus, driving up the price. If I had paid that crazy price at the original auction, I would have been screwed and not understood why! Don’t go in bidding the wrong price without understanding what your competition is doing and how it fits into their business model! I grew up feeling like I had to bid every “opportunity” and I had to “win” every bid. The reality was that these people are only customers if they pay profit. The real problem wasn’t losing bids, it was not knowing how to get ENOUGH of the RIGHT people to COME TO ME.

Three Step Bidding Framework:

Step #1- Understanding who YOUR IDEAL customers are and WHAT EXACTLY they want.

NOTE: If you are constantly getting price objections it is one of two problems

  1. You have the WRONG customer- (in which case, move on!)

2.They aren’t clear on their pain, what it’s costing them and don’t believe you can solve it.

Here’s a big secret: every time you give the RIGHT offer to the RIGHT person, this equals  plenty of money. If you get EITHER of these things wrong, then your potential client will have no budget for you.

Step #2- Make sure you have more than enough potential clients coming to you.

    • THIS IS THE MAGIC- when you have more people coming to you for help than you can help, you can pick and choose what people you want to serve!
    • A perfect example of this is that I’ve been business coaching now for over five years. Every time a friend of family member come to me for free advice,  they get no results. When Cleaning Nation, our community comes to me, they are getting MASSIVE results. The difference is MARKETING! The people that know me in my personal life don’t know (or even care) about the knowledge I have.
  • BIG SECRET: Having too many prospects is the ONLY WAY to TRULY bid properly.

Step #3- Understand the COST to provide your service and bid based on MATH. NO EMOTION!

  • Nearly all clients come to me with prices and profit ALL OVER the board. This isn’t a lack of ability to do math. It is a lack of certainty due to NOT doing steps 1-3!!
  • Labor includes drive time, mileage, pay, FUTA, SUTA, SS, Workers comp, etc.
  • It is the SAME whether you clean or not!
  • We teach the 50/30/20 breakdown: 50% is cost of good sold, 30% is overhead, and 20% is profit. The easiest way to do this is to just double your cost and that will leave room for profit and overhead.
  • Overhead and profit are REAL NEEDS- NOT A GOAL or BONUS!
  • Make sure your cash flow is positive,  not just “paper profit” which will put you out of business! 

Now you know the REAL reason you are bidding too low:

  • Wrong customers (Step 1)
  • Wrong solution (Step 1)

Why you feel you can’t bid enough:

  • Not enough customers (Step 2) 

You understand the REAL cost of providing service:

  • Overhead and profit are REAL (Step 3) 

Why it makes NO DIFFERENCE what your competitors charge or how much money your customers say they have:

  • You use MATH NOT EMOTION! (Step 3)

Episode note: Original video MIke refers to:

If you enjoyed this and would like to watch this video and others like it, click here. If you are still hungry to learn more and would like to watch our free informative webinar, head over to this link and find the most suitable time for you!

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