How to Compare Janitorial Service Bids Effectively

Have you ever been surprised by the big differences in price when comparing cleaning service bids? It's not unusual to see significant price variation between different janitorial service proposals. So, what causes these differences?

The biggest factor is usually how many staff hours each company estimates it will take to clean your facility. However, other key aspects also affect the overall pricing. Here are six critical components that should be included in every cleaning proposal:

Labor Costs

The largest portion of your cleaning bill—typically around 60%—is the cost of labor. When creating their bids, cleaning companies should focus on answering two important questions:

1. How many hours will our staff need to clean this facility?

2. What is the going hourly wage in this market?

Providing clear details about your facility helps vendors calculate the number of staff hours needed for the job.

Pro Tip: Companies that ask for detailed information and take measurements tend to offer more precise estimates. Additionally, local or regional providers often have a better understanding of labor rates in your area compared to large, national companies.

Employee Taxes & Benefits

In addition to wages, other direct employee expenses should be included in the proposal. These may include payroll taxes, benefits (such as insurance and retirement plans), background checks, drug testing, and uniforms. These costs vary depending on the benefits the company offers and local tax requirements.

Pro Tip: Companies that offer good employee benefits typically have lower turnover rates and more satisfied staff, which can lead to better service.

Supplies

The cost of supplies is another important factor, broken into two categories: (1) cleaning supplies like rags, chemicals, and scrubbers, and (2) consumables such as toilet paper, hand towels, and soap. Most bids will include cleaning supplies in the overall price.

Pro Tip: Request unit pricing for consumable items from the vendor. Regional vendors often have access to competitive pricing for these products and may pass the savings along to you. They may also manage the inventory for you, ensuring you never run out of essential items.

Equipment

The cleaning company will also need specific equipment to handle your facility’s needs. The amount and type of equipment will depend on the scope of the work required. Vendors should account for the depreciation of their equipment in their pricing.

Pro Tip: Choose vendors who use well-maintained or new equipment. Companies with reliable, high-quality tools tend to work more efficiently and have happier employees.

Overhead Costs

Indirect costs, or overhead, are another element that should be factored into the price. These costs cover things like HR expenses, insurance, management, and accounts payable/receivable. Overhead costs should be fairly consistent across different clients and projects.

Pro Tip: Efficient companies keep a close watch on their overhead. Regional cleaning companies usually have lower overhead compared to large, national providers.

Profit Margin

Lastly, vendors need to include a reasonable profit margin in their bids. A healthy profit margin allows them to stay in business long-term and provide quality service.

Pro Tip: Be wary of companies that offer extremely low bids. They may not be factoring in all their costs, which could lead to poor service or unreliable operations. It's wise to choose a company with a strong reputation and several years of experience.

If a cleaning bid you're considering doesn't address these important components, make sure to ask about them. Skipping any of these factors might result in signing a low-cost contract that doesn’t meet your expectations in the long run.

2 Effective Ways to Reduce Costs in Your Janitorial Program

As a manager responsible for janitorial services, you're likely balancing multiple tasks and making various purchasing decisions. While I don't know your exact situation, it’s safe to assume you often face demands to reduce spending. In today’s business climate, controlling costs is more important than ever.

When it comes to janitorial services, as with many other operational areas, cutting costs can sometimes result in lower service quality. The key challenge for facility managers is finding a way to keep services high-quality while still reducing expenses. There's an old saying in the construction world: "You can have it cheap, fast, or high-quality—choose two." This concept often holds true in the cleaning industry as well.

But is it possible to trim costs while maintaining a high standard of cleanliness? Can you save money without lowering the quality of service?

Here are two strategies to consider:

1. Reassess the Cleaning Scope

In the janitorial industry, labor accounts for roughly 60% of expenses. To reduce costs, you need to focus on cutting down labor hours. One practical approach is to reassess the cleaning scope. Frequently, cleaning schedules are followed without questioning if they’re necessary. For example, some areas in your facility might not see much traffic and may only need cleaning once a week, even though the current schedule has them cleaned daily.

Review your facility’s specific cleaning needs for each area. What tasks truly need daily attention? How often does the trash need to be taken out? Is daily vacuuming required everywhere, or just in common areas? Work with a knowledgeable cleaning contractor who can help you find the most efficient cleaning methods for your building.

2. Unbundle Project Work from Monthly Fees

Many businesses end up paying more than necessary on their cleaning contracts due to project work like floor buffing, stripping and waxing, and window cleaning. These tasks are vital to maintaining a clean environment, but some contracts include a fixed amount of project work per year, billed monthly. Often, this work isn’t needed as frequently as outlined, or it might even be skipped, which means you’re spending money unnecessarily.

Instead, consider negotiating a unit price for these extra services and scheduling them only when needed. This method can lead to significant savings over time.

By reassessing your cleaning scope and unbundling project work from your monthly fees, you can effectively reduce costs while still ensuring the quality of your janitorial services remains high. Collaborating with an experienced cleaning contractor can help you implement these cost-saving measures successfully.

"When Can You Get Started?"

Understanding the Realities of Janitorial Service Startups and How to Avoid Running Out of Toilet Paper

When a potential client contacts us, it’s often because they’re dissatisfied with their current cleaning service. After listening to our pitch on why we’d be an excellent partner for their custodial needs, most prospective customers ask two key questions:

1. “How much will this cost?”

2. “When can you get started?” For details on the first question, click here. This article will focus on addressing the second question.
   

“My current cleaning vendor quit! Now what?”

Here’s a typical scenario: Facility Manager: “Bob, we’re still not getting the results we need. We’ve decided to switch cleaning companies. I know our service agreement has a 30-day termination notice, and I’m informing you today that we’re contracting with a new janitorial service.” Bob: “Alright, I’ll inform my team. I just wish I had more notice.”

A week later, Bob leaves a voicemail for the Facility Manager: Bob: “Hey, after I told my team they wouldn’t have jobs in 30 days, they all left quicker than Gladys Knight and the Pips on that midnight train to Georgia. I also cleaned out my stuff over the weekend. If you ever need anything, give me a call. Hope we can do business again in the future!”

After hearing Bob’s message, the Facility Manager urgently calls the newly contracted janitorial company: Facility Manager: “ACME just notified me they’re not coming back, and the plant manager just told me there’s no toilet paper in the main restroom. I need you here now!”

Custodial Startup Realities

Reality # 1 - Hiring the Right Team Takes Time A common misconception is that janitorial companies always have a large pool of ready-to-go employees, like a staffing agency. This is not true. We need to consider the right mix of male and female team members, and part-time and full-time staff for each customer, and then start our recruiting efforts.

Reality # 2 – Janitorial Work Requires a Detailed Plan While janitorial work isn’t overly complex, it does require a detailed work plan to be done effectively. This plan includes specific details on how and when the scope of work will be accomplished, including cleaning sequences for each team member, checklists, and other items to ensure consistent results.

Reality # 3 – Proper Training is Essential Many people think they know how to clean, but most do not understand the specifics. It’s crucial that every team member knows how to use equipment correctly, which chemicals are safe for different surfaces, how to sweep, mop, and dust efficiently, and how to work safely.

So, When Can You Get Started?

Realistically, it takes about three to four weeks to get started. This period allows us to find the right people, train them properly, and establish a good work plan.

But What About the Immediate Needs?

If you’re facing an urgent situation, like running out of toilet paper, here are some steps you can take to manage the transition:

1. Ask your current cleaning company to honor their commitment. Remind them of their obligation to provide service through the end of the 30-day agreement.

2. Check if your new cleaning company has a “floater” team member. This person can provide minimal coverage if your current company fails to meet their obligations.

3. Contact a staffing agency. They might be able to supply someone to cover essential tasks during the transition, such as emptying trash, cleaning restrooms and break areas, and ensuring there’s always toilet paper in the main restroom.
   

By following these steps, you can ensure a smooth transition without compromising the cleanliness and functionality of your facility.