
By Ron Segura
Every building service contractor has faced the situation where a customer tries to negotiate price. In many cases, they’ll come out and say, “If you reduce your price to X, we’ll sign the contract right now!”
In these situations, it’s important to stick to your guns and lean on the facts. Here are a few suggestions:
1. Consult the Scope of Work
You have completed a facility assessment and identified the necessary staffing levels to maintain cleanliness standards, along with current issues. It's important to note that any price cut may reduce labor, jeopardizing service quality. This could lead to longer response times, less thorough cleaning, or reduced cleaning frequency, potentially compromising hygiene standards and risking customer dissatisfaction or contract loss.
It is crucial to communicate openly and effectively. Meet with the contact and ask to identify specific cleaning tasks or areas where the frequency of cleaning could be modified. This might include identifying places where cleaning can be performed less often or eliminated without compromising the overall hygiene standards. Collaborating with the customer in this way can help find a mutually agreeable solution that meets both their budgetary requirements and cleaning needs.
When meeting with the prospective customer, it is best to have the proposal open to the scope of work. This approach will empower you and make you feel more in control of the situation.
2. Showcase You Benefits
Highlight the advantages of your offerings and how they address current challenges, incorporating concerns raised in discussions. Showcase the integration of your solutions in the proposal to reinforce service value and boost confidence. This strategy solidifies your position in the bidding process, even amidst requests for price reductions.
3.Estimate Savings of Time
- Ask the prospective customer to estimate their weekly time spent contacting the current contractor about issues that need correction.
- Calculate the total hours spent each month by multiplying the weekly hours by the number of weeks in a month.
- Multiply the monthly hours by the hourly rate their company pays them (the contact can do this calculation).
- The contractor should add the total amount to the bottom-line price currently being paid.
These three strategies will show that your response to the RFP goes beyond merely quoting a price. You are presenting a proposal that consistently leads to customer satisfaction.
Ron Segura is the founder and president of Segura & Associates, a consulting firm for contract cleaning companies as well as building managers in North and South America.
posted on 4/16/2025