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Master Window Cleaners of America


WILLINGHAM ON WINDOWS





WINDOW CLEANING FACTOR BIDDING



   Factor Bidding Sheet Download       Save document to your PC.

   Troy Liposec added formulas so when you insert the number of surfaces and your price per unit for that type of surface it will total the price for you. Thank you Troy.



   In all of my travels across the United States the #1 complaint I get is “I have a competitor in town that bids low and customers always take the lowest bid.”


   The question I have for all of you is “Do we always take the lowest bid or do we just want the best deal?” I think most of us always want the best deal on the product or service we need or want not the lowest price for an inferior product.


   If customers are not convinces you are giving them the best deal on a better product, they usually will take the lowest price.


   Let me give you some examples:


   “Starbucks” Why do thousands of people wait in line for a $4.50 cup of coffee when they can get a $0.89 cup of coffee next door? Because they believe that Starbucks has better coffee and more choices.


   Now this is true, they do but why do we pay over 300% more for this and wait in line for it? Because we are convinces it’s the best deal for what we want or need.


   Brand Name Labels: Often we pay more for canned goods, clothes, jewelry, sporting goods, cars, etc. because we believe that we need or want quality over price. Are these products superior to other brands? In some cases, yes, in others, no, but are they so superior that we are willing to pay in most cases 50% more for them.



  Let’s take an example: Levi’s Jeans are well made but Wrangler can and does sell there jeans at a premium price well over 30% higher than Levi’s.


   Generic can goods are often manufactured at the same plant and line as their brand name counterparts. The only difference is the label on the outside. Corn is corn.

   Americans are the world champions at paying a higher price for something because they believe it is a better product or service and American’s want the best at the best price.




  Another example is: I bought a 2002 Chevrolet King Cab a few years ago. A week later my competitor bought the same style, color and year model truck, except that it was a GMC. Now those in Detroit know that both these trucks come off of the same assembly line, have the same motor, transmission, drive line, chassis and body. He couldn’t wait to show it to me and proclaim that he bought a better quality truck. The only difference is cosmetic and he paid $4,000 more for a different grill.


   Business tends to go in cycles and once the public learns that choices are available and quality is about the same that are of business will have a downtrend or down sizing. Window Cleaning is not anywhere near this downtrend. Let me give you an example of a business downtrend.




   Airlines: During the 80’s & 90’s the big (3) American, Delta and United controlled about 70% of air travel. The public paid a higher price for these airline tickets because they believed they got the best deal for the best product. Southwest offered a lower price with the same or better service. With a few changes, slowly people responded to lower prices/better service but not all at once. People are slow to change, but now Southwest Airlines is the 3rd largest airline in the country and most profitable. All 3 original leaders are downsizing and cutting prices to try and gain back the market. All 3 are also near bankruptcy.


   The Question I give you all now is “Are you Starbucks or are you 7-11?”


   How are we presenting our service to the consumer and are we pricing like 7-11 or Starbucks?


   Do we have the extra flavors? The visual effects? The pizzazz that is required to charge a premium price?


  In every town I have ever spoken in I have discovered that prices vary greatly even within the same companies. I once did a study with a new Aquaclean customer in a town in Wisconsin. We ask for bids on several buildings from several companies to try and set a local market price. We found out that companies had no rhyme or reason to the bid process. We received bids on building that had 100 windows that were priced higher than buildings with 400 windows, from the same company! This was true of every company we called. This is why I came up with this factor sheet you now have in front of you.


   The only thing that is common among all of us here is time. All of us have different ways to add flavor to our companies but none of us has more time than the other.


   I believe that window surfaces require basically the same amount of time to clean among professionals and if there is a difference it is not more than 20%. Even if you are the fastest cleaner in your area, chances are your employees will not clean as fast as you. This is why I gave up “Time Bidding” to “Factor Bidding”.


   Let’s take an example: Let say we are bidding a store front business that has 40 panes of glass, 80 surfaces that can be reached by hand. In order for us to make $45 a man hour we must clean at least 40 surfaces an hour to accomplish this. That is one surface cleaned, frame wiped, and touched up in 1.5 minutes.


   Now some of you are saying that this is very possible; yet is it with employees’ breaks, driving time, morning start up, end of day put away, collecting, and or work ticket signed?



   

The average window cleaner on route will have the squeegee on the glass for 6.5 hour in an 8 hour day. Therefore taking the 1.5 minutes per surface and multiplying 60 minutes x 6.5 hours that comes to 390 minutes a day cleaning glass. If we are cleaning 260 surfaces in 6.5 hours @ 40 surfaces per hour and our target price is $45 per hour then our factor needs to be $1.38 per surface, working an 8 hour day. This equals about $360 a day per man for 6.5 hours of squeegee time.


   The factors and ability can and will change according to what you are doing to each surface. I have given you some factors that we use for different kinds of work but your factors will be different based on your market.


   Factor Bidding Sheet Download Save document to your PC.


   Ask the Experts. Factor Bidding - Purchase at IWCA

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NOTICE: This seminar information is considered part of the “Willingham on Windows” continuing education seminar series. This information cannot be copied for sale or reprint for profit.