Bid On Janitorial Services
Posted by Empire Capitol at April 11th, 2013
Bid janitorial services is easy but yet very difficult for so many people to perform regardless of what kind of business they specialize in. The questions I get asked the most is how do I know what to charge? How much should I pay my staff? Should I charge by the square footage, flat fee, or labor fee? Well let me answer a few of these questions.
There is no standard rate to charge no matter where your located. Each location will be different rates, and it will also be different kinds of crews. It’s a good idea to talk and network with other cleaning business owners in your local area to get a feel for what the market is, and what kinds of rates are out there. You don’t want to be too high, otherwise you won’t secure any contracts, and will have a hard time when you bid janitorial services. But you also don’t want to be too low otherwise you won’t make any money, or you will be forced to pay your staff below minimum wage in order to keep servicing this account. This isn’t fair to your staff since they are the one’s doing the work every night. So talk to people to get a good idea and set your rates accordingly.
You should have a set number in mind on how much you need to profit on each account in order to build a good cleaning business. For example $5 per hour profit on 400 hours of labor every month will net you a profit of about $2000 per month. But this has to be the number after you pay your labor, insurance, supplies, and such. If you pay for instance $10 per hour to your staff that will be $4000.00 per month just in labor. You need to know for sure how much labor is going to cost you with certainty. If you determine a number higher then what it actually costs you that works out fine for you since you will make more money, or can even pay your staff more to keep them happy. In turn they will keep your clients happy.
If the number you calculate is lower, then you will have to dip into your profits in order to cover labor costs. If you charge a flat fee, you will still need to know your labor costs. If you charge by the square footage you are now in another ballgame and usually all labor costs and such are included. So to answer how should you charge.
When you bid janitorial services accounts that are small you can charge by flat fee, or labor fee. This works out best since you have already determined your costs associated with servicing this account and will have a precise idea of what kind of profits you will make. On larger accounts you should be charging by square footage. This will provide you with more leverage and allow for maximum profits.
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