What is Facilities Management National Pricing and Tips?
Did you know that most facilities management companies follow a national pricing for their services? Here's a breakdown on pricing (see above photo) and what you can get if you negotiate with a reputable facilities management company. When I worked as Operations Manager for a facility management company I negotiated with over 500 vendors (business owners) for fixed pricing per hour to take care of multiple client store locations. As you all know the more store locations that's in their area of service the easier it would be to negotiate better pricing and Net Terms of Service. I typically negotiated for Net60 (payment within 60 days of work order completed) and max payout 35% to the vendor. I kept the terms and hourly the same for every vendor to keep it simple for myself and my team. At times the pricing would change due to time of day, day of the week, if it was after 5pm and if they worked on weekends or holidays. Of course working after hours, weekends and holidays vendors charge time in a half to do emergency work on those days and times.
Questions and Answers:
- How did I get so many vendors? I used Craigslist, Thumbtack, Badger Mapping, Google Maps, general searches on the internet to name a few.
- What services are difficult to get on pricing? Locksmith, Plumbing, Restaurant Service and Signage Service.
- What would I charge on HVAC Yearly PM's? You can signup vendors for $60.00 a hour plus $15.00 per filter if its a HVAC unit less than 25k.
- If I was a vendor what would I charge and agree to Terms of Service? I would agree to the max payout of $35% and if it isn't enough charge a extra 30 minutes or 1 hour to make up the cost plus add extra percentage on materials when you do a work order. For the Terms of service, always go for Net30 because payments will always be late and you are not a bank.
- Any Other Tips: If the facility management company wants a "go to" make sure you get all the locations in the area, ask for travel time and better Net terms to have less than two hours for work orders responses.
To sum it, if you're a vendor try and get Net30 terms, 35% on pricing and make sure everything is written in contract. If its a emergency order have the service representative email you terms and pricing to cover yourself in case you don't have time to get your proper paperwork. If you're looking for a Facility Management company, look them up on the BBB, try to get references from their clients before you sign them up and make sure everything is on contract before they work for you. You can do a long term contract but if they are decent at what they do the facility management company will not ask for a one or two year contract. Finally, this is just a quick peak into facilities management pricing and terms, if you would like to know more contact me and I will gladly go into further detail.