Property preservationists and large HUD contractors have been getting a field day since the number of foreclose properties have skyrocketed to over 3 million a year. There are rumors that the figure will even double before the financial crisis charging the economy is over. The halo effect has been felt even by small neighborhood handymen who do odd jobs for home owners in their communities. There are those who stepped up and organized their own companies offering foreclosure cleaning services to take advantage of the surging demands and opportunities in this industry. These opportunities can be clearly translated into profits. The only question is how to sustain the income from this business.
This is literally true in the case of those entrepreneurs who run foreclosure cleaning services. They literally clean up the trash and the mess to give the foreclosed properties a face lift to improve its seeming worth to prospective buyers. Appearances can be deceiving, but in the industry of selling foreclosed properties, enhancing the visual appeal of a property means so much.
If you are contemplating on joining the bandwagon, you must be wondering what’s in it for you. You must be asking yourself how you can make money from foreclosure cleaning services. You make money by cleaning the trash and by doing of odd jobs to make a foreclosed property look more appealing. It may just entail rendering dimple janitorial jobs – sweeping the floor, polishing the surfaces, mopping, cleaning the windows and counter tops. It may also take some repairing and replacing some damaged structures that can range from simple jobs to complex ones. The truth is, there is a plethora of jobs and it is never predictable.
Your foreclosure cleaning services business stand to earn more with a steady stream of jobs. Your goal is to keep your customer satisfied with the quality of your work and your price.
As far as the prices are concerned, it is hard to jack up the prices because there are standard rates. Your client who can be a large and seasoned HUD contractor or a real estate company must be using some services for quite a while now. The only reason that they may take you as a subcontractor is if you can offer lower prices so that they stand to earn more. If you can ensure quality control and the client is happy and satisfied each time, you may gain your clients’ respect and keep you as a more or less permanent subcontractor.
If you have big names for clients, this is a good opportunity to build your credibility and reputation in the industry. Despite vicious competition, you will never run out of jobs to do if you have gained a position in the industry. As your cleaning foreclosure services business becomes a word by mouth, increasing your prices a bit will not hurt because what you offer is a guaranteed job.
When you are structuring your price, there are certain considerations that you need to factor in.
First: Be knowledgeable about standard service costs. If you are new in the business, you can stick to a standard rate. Offer introductory or promotional discounts so that the price will go lower than the standard service prices. You need to do this to make people and companies try the quality or your services. It is hard to start with rock bottom prices because it is harder to raise it. Starting with a standard price that can give you a decent markup and giving discounts is easier because you can easily end a promotion so that you can apply the regular price. Remember that you are dealing smart and professional clients, so be honest with your prices. You can set your company apart by delivering top quality work.
Second: Structure your price according to the prevailing prices in the area. This means undertaking marketing survey to be aware how your competitors are pricing their services. Try to find out too the “extras” that your competitors are offering so you can factor that in your promotional packages.
Third: Get more estimates when canvassing the costs of certain services. If you keep a pool of skilled workers, then you must know more or less how much you should be budgeting for labor. If you happen to handle more than one project at a time, you may need additional labor. It is always best to have more estimates to continue making decent profits.
Always remember that cheaper does not always mean better. Your clients know that as well if they have been in the industry for a while now. The key is to deliver a quality job in a timely manner and you will continue to make a steady income from your foreclosure cleaning services business.