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Price commercial work better

price commercial workSo your commercial prospect walked you through the building showing you their main “areas of concern”. You interviewed this contact as you filled out your Commercial Carpet Analysis form. GREAT!

But now your prospective client logically asks you, “So how much will you charge to clean up this mess?” Do NOT a) panic, b) “let’em see ya sweat” or c) blurt out a wild guess. Instead, simply reply…

“Let me review my notes and then I’ll share my recommendations.”

On a small job you may write up/share your recommendations right there. On a more complicated account you’ll want to make a return appointment. (Hopefully for the next day.) Here are some guidelines to price commercial work!

1. More money is always better. To price commercial work, start high. If they waffle (“Let me think about this…”) use my “Getting Rid of the Smoke Screen” Reply HERE. Remember too that…

2. You may not be “bidding” against anyone! Due to the daily crush of business many accounts are closed by the first company who walks through the door.

3. Determine your overhead “nut”. Total up ALL your business expenses and then add in a yearly fund for maintenance/ replacement. (Don’t forget to add in a salary for YOU!) Now divide by the number of hours your machine runs per month. (IF you included everything your required Gross Per Hour (GPH) hourly “nut” will shock you!)

4. Calculate your Production per Hour (PPH) on the account. Do you know how many square feet per hour you can clean on any given carpet/ soiling/ furniture/ building layout combo? NO? Seriously? Then download this free Commercial Production/Pricing Analysis Log HERE.

5. Price the job. Divide the total square footage (TSQ) by your Production per Hour. (PPH) Then multiply this number by your required Gross Per Hour (GPH). Here’s the formula: TSQ ÷ PPH x GPH= Your minimum price! But wait! Your goal is to…

6. Do more than “break even”! So add in for the inevitable problems plus a nice profit for you! Are you done? NO! Because your goal is to now…

7. Morph into a Commercial Maintenance Consultant! Let’s make this our next assignment!

Steve

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