Episode 1169 – Making Your Service Agreement Stick and More!
Simplifying Travel Time for Cleaners
In this episode, Mike Campion tackles a common issue faced by cleaning company owners: how to handle travel time for cleaners. Adan, one of the clients, asked about averaging travel time instead of tracking every single minute. Mike jumped in with a straightforward suggestion—just average the travel time and pay the cleaners accordingly. He recommended paying a flat fee, like 15 miles for every trip, even if it averages 13 miles. It keeps things simple and removes the need for micromanaging stops or breaks. Mike reminded everyone to keep things legal, but in terms of business, simplicity is key!
How to Calculate That Average
Adan had another question about how to actually calculate the average time between job locations. Mike made it clear: just track how many trips the cleaners made in a week, divide the total travel time by the number of trips, and boom—you’ve got your average! This method eliminates the need to track every minute, which saves a lot of headaches for both the business and the employees. Plus, Mike joked that Adan should let his accountant handle the math, because who’s got time for that?
Make Your Meetings More Effective
Adan also wanted tips on improving team meetings and reinforcing company core values. Mike’s advice? Always start meetings by spotlighting core values! He suggested using real-life examples from the team, calling out positive behavior. Mike encouraged owners to model the excitement at first, so employees get the hang of it. Over time, the team will start sharing examples on their own. Mike reminded everyone that the energy the leader brings to the meeting will set the tone for the whole team. Keep it fun, keep it real, and don’t let the meeting drag!
Close Deals Faster
Adan had another challenge—clients saying “yes” to a service but then ghosting later. Mike’s solution was to provide immediate value to seal the deal right away. The trick? Don’t just send over a boring service agreement. Instead, give them something tangible, like a small gift or immediate scheduling for service. It’s all about momentum! The quicker you can get clients on the calendar or give them something of value, the less likely they are to back out. Mike even suggested keeping small gifts in the car to hand out when a client says yes, creating a sense of reciprocity.
Hire Floaters to Stay Flexible
Finally, Adan asked about hiring “floaters” to fill in when needed. Mike explained that having a floater for every five cleaners is a good rule of thumb, especially when you need quick turnaround for new clients. While it might cost a bit more upfront, reducing customer churn is worth the investment. Mike stressed the importance of being ready to act quickly when new business comes in, even if it means paying a little extra for flexibility.
Finding the Right Price
In the second part of the discussion, Mike dives into the nitty-gritty of pricing and estimating for cleaning jobs, addressing a common challenge for many cleaning business owners. He acknowledges that figuring out the right price for a first-time clean and ongoing monthly charges can be tricky. The key is to embrace the possibility that your pricing might be just right, rather than stressing over whether you’re overcharging or undercharging.
Practical Pricing Approach
Mike suggests a practical approach: start by assessing the square footage and visualizing how long it would take to clean based on your own experience. If a job seems like it will take three and a half hours, for example, Mike advises adding a buffer, such as four hours, to account for unexpected delays or additional tasks. This way, you’re less likely to underbid and more likely to maintain profitability.
Adjusting for Real-World Variables
He emphasizes the importance of setting realistic expectations and being willing to adjust prices based on the actual time spent. If you overestimate and end up charging more than necessary, you can either offer additional services or adjust the price for future cleans. Conversely, if you underbid, it’s generally acceptable to raise the price as needed.
Long-Term Client Value
Mike also highlights the value of understanding the lifetime value of a client. He argues that while it might seem costly to offer discounts or lower initial charges, the long-term benefit of retaining a client who stays for years far outweighs the short-term cost. For example, if the average client is worth $10,000 over their lifetime, offering a discount on the first clean can be a smart investment in building a long-term relationship.