Cleaning & Maintenance Management Online
Ask The Experts

ICAN/ATEX: How can my competition outbid me?

March 26, 2013

Many cleaning professionals visit the International Custodial Advisers Network (ICAN) Ask the Experts page for insight and, every business day, we deliver advice to better help you perform your job.

Tuesday’s Question:ICANATEX Logo

We have a new out-of-state janitorial company that has come into the Jackson, Mississippi, area and is bidding Class-A office space at $.055 per square foot.

This includes carpet cleaning, hard floor stripping and finishing and five-day-a-week cleaning

How is he doing it for this price?

Tuesday’s Answer:

That seems to be a low price, especially when project work such as carpet cleaning is included.

Only time will tell if it is too low to actually perform a quality job. Watch the project and see how the cleaning looks six months from now.

There are economies of scale. A truly large company may be buying equipment and supplies in large quantities and saving money in that area.

A large company can make a smaller profit on each of its many accounts and still run in the black.

And labor costs can be reduced by paying lower hourly wages, pushing for higher production rates, and utilizing more productive equipment.

However, the time and money for the labor cannot be cut back indefinitely without sacrificing   … - Lynn E. Krafft, ICAN/ATEX editor

To read this response in its entirety, click here.