Profit Margins - Cleaning Talk - Professional Cleaning and Restoration Forum
 
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post #1 of Old 02-27-2015, 11:52 PM Thread Starter
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Join Date: Mar 2014
Location: Philadelphia
Posts: 63
Profit Margins

Hey all:

I'm looking for some input on a bid that is due in a few days.

-The building is approx. 5000 sq ft
-4 BR's (one men's and two women's is a solo toilet with one sink each.) The last BR has 3 urinals, 2 sinks, and 2 toilets.
-VCT tile floor throughout sweep and mop
-5x/week cleaning
-dusting 2x/wk
-staff lounge
-1 conference room
-a few (3 I think offices)
-trash
*we will be supplying chemicals only

Now, I've priced this two ways:
T&M +35% gross profit = $1,614.52
$25/hr Hourly Rate = $1,746.88

*I work around Philadelphia*

The point of contact said he pays around $1,000/month right now so I'm not sure if my production rates are off or he is looking for a new service because he choose the 'cheap' option the first time. I don't want to blow his pants off. Do #'s look similar to what you charge??


TY!

www.a1cleaningtechnologies.com

"Success is not final, failure is not fatal: it is the courage to continue that counts." -Winston Churchill
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post #2 of Old 02-28-2015, 12:24 AM
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Based on fact all 5,000 sq. ft. are tiled flooring needing sweeping and mopping, I would estimate 3 manhours per night or 66 per month. We would be at $1,495.00 - $1,595.00 per month. They could be paying $1,000.00 per month but probably not very good cleaning. Did you see the facility to see how the current cleaning company is doing and point out ways that you are going to improve on the environment?
Peter Weiss
Total Maintenance Services
www.totalservices.org
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post #3 of Old 02-28-2015, 05:49 PM Thread Starter
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Location: Philadelphia
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Great - thanks Peter! I had 3 hours per night also but due to the distance I added in some padding for travel.

www.a1cleaningtechnologies.com

"Success is not final, failure is not fatal: it is the courage to continue that counts." -Winston Churchill
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post #4 of Old 03-01-2015, 04:33 PM
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Thumbs up Price

I would take a tour of each room and evaluate the man hours carefully. Based on the square ft. sounds like you have alot of floors to swept and mop, dusting each room and the 3 rooms are offices, dusting the office equipment is tedious sometimes.Bathrooms and kitchen take time. Your right to include travel time.
I would charge by square ft. because sometime you might have to pay attention to one half of the building, more so than other side.
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post #5 of Old 03-17-2015, 03:27 AM
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A/c to Jeananne Cleaning profit suggestion:

Start-Up Investment

Low - $4000 (solo operator)

High - $75,000 (buying a small operation or starting with a half dozen employees)

Break-even time - One month to two years



Estimate of Annual Revenue and Profit

Revenue $50,000 - $15 million (one person operation at low end, regional contractor at high end)

Profit (Pre-tax) - $35,000 - $1.5 million
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