If you have a commercial cleaning company and have always wondered how to land BIG accounts the episode will explain how it works!
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Thank you for this helpful episode!
Now I have a situation when I need to decide what to do with a proposal from a big respectful company. I need your advice!
This company is a big hotel with their own cleaning staff, but in the pick season it is not enough people to clean. They proposed to my company to help them in pick time as a contractor. They are going to train my workers, all supplies will be theirs. I, as an owner, should provide workers on their request. I’m paying my workers $10 per hour, most of my clients are paying to my company $25 per hour per person. The hotel’s rate is $14 per hour per person (it is their final number). My company is growing; we have a lot of houses to clean. I understand that I won’t have any profit from this contract, and it will be very time and nerves consuming for myself, may be even I’ll lost some of my current clients, but it can be some intangible assets from this contract – having this hotel name in my accounts list will be very helpful, the experience to work with big companies etc. But I have big doubt is it worth this efforts. What do you think about this situation? Please let me know if you have any ideas or experience.
Tatyana
Tatyana,
If you already know that this account will not be profitable then walk away. Even though it would be nice to have a high profile name as a client, it’s not worth the high price of losing money, the stress, etc that this could bring. You did not go into business to break even or lose money and they should respect that. Just my opinion…
Dear Jean!
Thank you for your wise advice. I so appreciate it.
Best,
Tatyana
Tatyana,
I have been exactly in the same situation as you described. We had a large hotel for years, and we did not make money on it.
They just use you. Get customers who are willing to pay the price for your service.
It is dangerous to your cash flow as well. If they decide for whatever reason don´t pay you for 1-2 months, you still have to pay your employees. It could put you out of business.
Hope this helps
Janos from Sweden.