what is your formula? - Cleaning Talk - Professional Cleaning and Restoration Forum
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post #1 of Old 03-07-2014, 01:17 PM Thread Starter
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Join Date: Feb 2014
Location: Jacksonville
Posts: 4
what is your formula?

Hello, am here again in the search for advise. I am really getting desperate on this charging issue. I get the concept, from hourly rate as well as adding direct and indirect expenses, payroll, etc. What I am really having a hard time is figuring out how to add all this so I can come up with a reasonable bid.
Ok, here is what I don't get: If I put the hourly rate at $10.00 an hour how would I add to this hourly rate taxes that i need to pay, direct-indirect cost, profit margin, and sales tax (this is the easiest).
I live in Florida, I know self employed taxes are 15.3%, for SS + Medicare.
how would i ADD the Federal Income Tax Rates that the IRS has and that I have to pay with self employed taxes? Please if you have a formula that you use and can share please give me an advise.
Also what about if it is a one time cleaning, how would you price this? would that be charging it on how much will it take me to clean it? How can I figure the rate for the time it take me to clean it?

I bought this janitorial bidding software online which is not bad but there is a part that ask me to add the percentage to the holy rate that i input. example: I place $10 and hour, what about is my expenses are 227 a month, what percentage is that added to $10? very confuse..

Thank you for reading and listening, have a great day to all.
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post #2 of Old 03-07-2014, 08:06 PM
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Join Date: Nov 2007
Location: New Jersey
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To keep it fairly simple, add 30% onto whatever you are paying an employee to clean and then figure out what to charge the customer after that. If you want to pay an employee $10.00 per hour then figure on $13.00 per hour which will include your portion of social security, state, disability, medicare taxes, etc. That should also cover your insurance costs. My goal is to make about 33% profit so I would charge my customer around $19.00 - $20.00 per hour for routine commercial janitorial services. One time only cleanings or once per week cleanings I could charge as much as $75.00 per hour. As far as your personal taxes, get an accountant as your business costs could offset what you may owe in personal taxes.
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post #3 of Old 04-23-2014, 02:24 PM
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Join Date: Apr 2014
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I agree with Jahra352. Making at least 30% is key...
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post #4 of Old 07-23-2014, 12:40 PM
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Join Date: Jul 2014
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30% or 40% seems to work best.
mark1st is offline  

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