Negotiation is not one of my strengths. I’m a sole proprietor and need advice here. Given an opportunity to bid on two commercial buildings for inside and out cleaning. Based on time I projected $5 grand on bldg #1 & $2,950 on bldg#2. I projected 80 man hours for completing both bldgs.
I asked the facility manger/ decision maker for info and here is what I have…
Service currently is twice a year on each building. For the past four years cleaned inside and out by a company I’m familiar with who have quite a few employees. They are charging 4 grand for bldg#1 and $2500 on bldg #2. Annual total is $13,000.00. Evidently they have no contract. He mentioned the quality is good and simply testing the market for price. I asked him what he wanted to save and mentioned: 7%.
For those of you who have been in this position before, how have you handled it and what ideas, possibilities and suggestions do you have to obtain these projects.
Unless you’re wanting to do the job for 7% less than the existing company is getting, I don’t see the odds being in your favor. After all, he is price shopping on a company that is already delivering good service.
Good job on getting that information. Its a rare thing to have that info. Couple points I got from your post, one: I highly doubt he’s looking to save 7% and I also don’t believe there is no contract. If a company is spending that much money, they got a contract. Two: I highly doubt they are even considering using you. He said he wanted to test the market and that the current provider is doing a good job…so why would they change? TIP: They wont.
He’s gotta get 3 bids anyway…FYI, sent you a PM…just some thoughts off the top of my head.
Say I have a large paying job this month and they haven’t sign a contract or ask for a insurance certificate or a w9, business license, they just want them done, oh it’s right up there with your price Steve…It all depends on the job Steve ! I’d drop the 7% and see where it all lands. It won’t hurt and it may get you the job, or maybe not, that’s the merry go round for bidding.
It is quite likely they’re going out for other bids to see if the current price is in the market…That’s the nature of the game, it’s a quick pass across the middle !