Episode 549 – How to Bid Cleaning Jobs in 2020
Lexus Lesson Learned:
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
- 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!
- BIG SECRET: MATH, NOT EMOTION!
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: https://youtu.be/3ZA1Icz5Qdk
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