Did I bid too high?
I just sent a proposal for a commercial job cleaning a gym. If they decide to have us clean 6 days per week, the price would be around $6k per month. I'm worried this may be too high.
I have a general idea of how much the gym brings in each month, and this price is about 8% of their monthly revenue. Also, I couldn't just charge per square foot, because some of the tasks are more time-consuming compared to a regular office cleaning. Also, the gym uses specific cleaning supplies that they would like us to use, which is a little pricier than what I normally supply.
The hourly rate I calculated was about $22 per hour, with the recommended cleaning schedule taking about 60 labor hours per week. After all expenses, and any discounts the gym and my company agree to, my profit margin will be about 20%; with no discounts, 30%. The building is 14k square feet, but we have to use special products on the floors (3 types of flooring), remove cobwebs and dust vents (which will require a 14 ft. ladder), clean the equipment and front lobby, clean all the interior windows and mirrors, and scrub the bathrooms and locker rooms. I broke the price points for each task, upon their request, too, so they have an idea of what it will cost to get what they want done. If I charged just per square foot, I would lose money on the job, or have to charge a ridiculous rate for the size of the building.