Make Or Break With Cleaning Foreclosure Pricing

Sailing out totally incognizant of the many “ins” and “outs” of cleaning foreclosure business is risky. After following all suggestions from planning to creating pool of skilled labor, you may wonder if there is anything g else that you must critically do. There is; you need make sure that your cleaning foreclosure pricing is acceptable and competitive. Too many contractors will offer you jobs for less so that they can get the lion’s share of the profit. Remember that you have overhead expenses to pay and a margin of profit to protect. You can easily be manipulated when you are new in the trade. So make it a point to know about fair practices about pricing.

The Money Trail

Pricing is very critical because it is the basis for landing jobs, contracts, and bids. The key is to outbid competitors and to understand how the money flows. Of course, that is easier said than done.

One of the most important things you need to do is find out whom you are bidding against or dealing with. Experience can tell you much how much to quote to outbid competitors. Competitors are not sitting ducks; they will also try to gauge what you and the other bidders are capable of. Find ways to get inside information to have a strategic basis when determining cleaning foreclosure pricing.

Using Cleaning Foreclosure Guidelines

Pricing for profit in bidding is tricky. It can make or break your business. While you want to win in bidding, always protect your profit. If you are not very familiar with the ins and outs of how contracts are won, get down to the basic; learn about HUD’s pricing guidelines. Experts, though, will tell you that this tool can’t be enough.

HUD’s pricing guideline is useful and has been written to provide upstart a good basis in pricing their services. It intends to protect their profits to keep the business afloat. It is important to decide what services to offer an the approach to use in determining the price that best protects the profit, but still managing to keep the price at par with competitors.

Find out what elements to factor in before blurting out your prices. There are generally three ways to price: a.) by cost; b.) by competition; and c.) by market perception. Understand these and you will have an easier time figuring out how to price the various services you are planning to offer your clients. These can provide you a systematic way to approach cleaning foreclosure pricing.

Things to Remember when Pricing

• There can be several intermediaries between your company and the pricing caps; think of these when making the quotation. If you have doubts, then it is better not to quote a bid price rather than make one that wins, but which you can’t deliver because the price you quoted is a losing proposition when all the involved intermediaries are considered.

• Determine the prevailing rates in the place where the property is located and you live or operate somewhere else. There can be some discrepancies in the rules and rate. You must be aware of these factors before citing a price.
• Know who you are dealing with. You need to know who is writing the check and what they want. Quite typically, the lowest bid is not necessarily the best. Large contractors who want value for their money, generally prefers quality to quantity. However, that is not to say that every contractor wants that. There are also contractors who are looking at even cent differences.

• Consider every other soft factor that can affect the cost of cleaning and delivery of services like the rental of equipment, cost of transporting skilled labor and plain cleaners.

When you get down to finalizing your cleaning foreclosure pricing, use every tool and information that can help you tactically develop pricing. Nevertheless, it is also important to be flexible especially when you get some useful inside information.