Business Tips

Quote Disasters: How You Can Blow Up Your Cleaning Business With Incorrect Estimates

Getting quotes right is challenging. You never quite know what you’re going to get when you walk into a job. 

Unfortunately, many cleaning companies don’t have proper structures in place to estimate costs adequately. Many go into a deal blindfolded, not understanding the true cost of the operation. 


The Consequences Of Getting Quotes Wrong

The consequences of getting estimates wrong can be substantial. 

Underestimating The Cost

For instance, you might underestimate the cost. Not understanding your business can lead you to believe that the price of materials or labour is lower than it is in reality. You could suffer significant losses and be unable to meet your financial obligations. 

Overstating Costs

You could also overstate the costs. Quoting too high could create an impression among customers that you overcharge and that they should seek lower-price options. You could find that you lose business and people don’t want to invite you back. 

Damage To Client Relationships

You might also damage your relationship with clients if you get estimates wrong. Specifying the wrong time horizon could cause frustration and lead to costs on the customer side. 

There’s also the risk of a loss of trust. If you overstate or understate the cost, they may not be as willing to recommend you via word-of-mouth marketing. It may also lead them to warn other people against using you. 

Reduced Employee Morale

Getting estimates wrong could also lead to reduced employee morale. Cleaners may tire of having to work harder on projects for the same pay, just because the price is incorrect. 

Problems With Resource Management

Finally, you might encounter problems with resource management. Failing to understand the cost of cleaning work can force you to constantly return to your customers to ask for more money to complete the project, which isn’t professional and not what you want. 


How To Get Estimates Right

Getting estimates wrong obviously causes your business to incur some severe costs. Fortunately, there are ways you can get it right, once you understand what you’re doing. 

The first step is to gather as much data about the project as you can. The more you understand it, the less likely you are to overlook issues that will affect the final price of the work. 

Using job costing software for your cleaning company can help you price up each job. Having a more accurate estimate means a lower differential between the price you pay for the work, and what you collect in revenue. 

These tools also sometimes include features that let you communicate with workers on the ground and pay them for their time. Once you have these mechanisms in place, you can get real-time feedback to improve your operations and make better decisions. 

Finally, you want to constantly review your estimating process. If you constantly get quotes wrong, it usually means there is an issue with the system you are using.

Changing how you price up a job can improve accuracy significantly. Don’t just follow the industry standard if you find a better way to quote.

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