Securing contracts in the competitive commercial cleaning industry can be challenging, especially when balancing competitive pricing with profitability. Natural Green Cleaning Services, LLC, a commercial cleaning company, faced these challenges head-on and achieved a major milestone by winning a contract at the Columbus International Airport. In this case study we will highlight how they turned lessons from previous bids into success and set the stage for long-term growth.
If you're looking for ways to scale your business and win competitive contracts, this case study offers valuable insights. Read on to discover how Natural Green overcame industry challenges and emerged stronger than ever!
Understanding the Challenges
Natural Green started with a vision to expand its commercial cleaning services by bidding on government and corporate contracts. However, at client intake, they faced several hurdles, three of the primary challenges were:
Pricing Complexities
Finding the right balance between competitive and profitable pricing was a recurring issue.
Competition
Competing with established vendors required a strong proposal and unique value proposition to secure contracts.
Business Model Shift
Shifting from residential to commercial cleaning meant redefining their services and processes.
Key Strategies and Solutions
To overcome the hurdles of competitive pricing, differentiation, and strategic growth, Natural Green adopted a structured approach. By refining their business model, testing pricing strategies, and securing financial resources, they positioned themselves for long-term success. Here’s a closer look at the key strategies that helped them secure a major contract and set the stage for future growth.
Developing a Strategic Business Plan
In June 2024, we worked with Natural Green to refocus their efforts on commercial cleaning. By conducting a thorough breakeven analysis, we identified niche services like post-construction cleaning and move-in/move-out cleaning as high-growth areas.
Outcome: A comprehensive, funding-graded business plan was developed that became the foundation for future bids and operations.
Testing The Market
With our help, the company tested various pricing strategies by responding to RFQs, preparing proposals, and submitting three bids. Key Strategies included offering discounts to remain competitive and using detailed cost estimations based on service hours rather than square footage.
Lesson Learned: Feedback from client debriefs emerged the need for a pricing calculator to streamline future bids.
Access To Capital
The company leveraged the business plan for a loan to support anticipated growth and expansion. By accessing capital, the company was able to invest in essential resources such as hiring additional staff, purchasing materials in advance, upgrading technology, and covering operational costs before receiving contract payments. The cash injection also helped improve the company's cash flow management, preventing delays that could have hindered project execution.
Outcome: A $95,000 loan was secured to fund the purchase of a company vehicle and cover payroll expenses needed to fulfill the contract.
Results
In December 2024, Natural Green reached a major milestone by securing its first corporate contract at the Columbus International Airport's new Midfield Terminal within just three months. This achievement was backed by a well-developed strategy for testing and refining pricing models. Winning the contract not only validated their pricing approach but also strengthened their market credibility.
What Worked and What Didn’t
Every success story comes with valuable lessons. While Natural Green achieved a major milestone, their journey involved trial and error, strategic adjustments, and continuous learning. Here’s a breakdown of the key factors that contributed to their success, as well as the lessons they learned along the way.
Success Factors:
A seamless proposal-writing process with early submissions.
Excluding high-cost items to reduce overhead.
Requesting debrief meetings after proposal losses to gather feedback for improving pricing strategies.
Focused service offerings based on cost insights and market demand.
Lessons Learned:
Competitive pricing is crucial but must align with perceived value.
Ongoing analysis and tools, like a pricing calculator, are necessary for consistent bidding success.
Conclusion
Natural Green Cleaning Services’ journey from missed opportunities to a major contract win highlights the power of adaptability, strategic planning, and persistence. By learning from past experiences and making data-driven adjustments, they’ve set the stage to pursue larger contracts and expand its market share the competitive commercial cleaning industry.
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