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Foreclosure Cleaning Business

Updated on June 4, 2009

In Time of Recession

Tough times call for brilliant solutions, as with the on-going recession being felt worldwide; almost everyone now is struggling to cash in any opportunity that may come in the way.

And there’s no better way in turning the negative effect of foreclosed properties into a profitable business like foreclosure cleaning business.

As they say, "opportunities are born amidst crisis"

Foreclosure cleaning business is probably the hottest growing industry in the states right now. Almost everyone who wants to cash in on this hot business opportunity is open to the idea.

However, they hit a wall when they start to decide on cost management and pricing strategies.

In this hub I'd like to present the top three things you need to keep up with if you decide to put up with a competitive pricing for your foreclosure cleaning service.

First of all, know how much each service will cost you.

Foreclosure cleaning services may include one or all of the following: waste removal, lock changing, repairs for damages, and the tedious job of boarding doors and windows.

If you are doing these services or hiring someone to do them for you, getting rates from various contractors will help a lot.

Compare the price ranges and estimate how much the cost for each task.

Factor in the market prices for both product and labor costs. If a client needs to have the new windows put up, you should know the costs of both windows and installation service.

Next, consider all the factors involved in doing the service. Do not forget that labor costs include the amount of time you need to complete all the necessary steps to complete the service requested or ordered.

Another example is when you need to change locks. Keep in mind that you not only need to know the price of locks and/or bolts but also the amount of time you need to do it.

Factor in the incurred expenses you have before and after doing such service. Mark-up accordingly so that you can make the most profit within reason and value.

Creating packages also help because you can increase or decrease the inclusions and prices to cater to particular client needs.

Do your homework.

You need to be able to sell your service in such a way that you will not lose a client just because you priced the cost of cleaning up debris higher than another foreclosure cleaning business.

Search the Internet and call the companies. Build good relationships with your contractors and suppliers. Shopping as if you are also a client will help. This will enable you to get vital information on how much various contractors are offering; price and value-wise.

One supplier may offer you the cheapest price for a paint job and offer free cans of paint on the side while another will offer a higher rate but with advantage since their service includes retouches and shorter lead time to finish the job.

Start Your Own Cleaning Business

There is no substitute for experience. As you grow bigger with your foreclosure cleaning business, you will definitely learn the tricks of the trade.

The simplest mistake could mean a lost deal and tarnish your reputation as a reliable foreclosure cleaning company; even an ignorance of the current prices of the various services could harshly affect your business in the long run.

Success in the foreclosure cleaning business is possible if you manage your costs to maximize profits.

But also remember to prioritize quality service above all and make profit a secondary consideration if your goal is towards a long term relationship with your clients - as it should always be.

Foreclosure cleaning business is here to stay and make all possible actions to keep up with the industry.


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