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I'm starting a commercial cleaning company and I am baffled to how my competitors quote on places....For instance some of them quote on square footage, some of them quote without knowing the footage.

If for instance you have a 1000sqf and 1 employee or a 500sqf with 10 employees the janitorial company sometimes only asks the square footage and quotes more on bigger areas however there will be probably more work involved in the 500sqf.
 

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new member

:thumbup: Hi everybody just joined, as this is my first posting I'll keep it short and sweet but I will be back...
 

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My philosophy on price is this.. offer the highest level of quality, service and professionalism and then price as high as your market will bear. I think in the beginning it is best to price based upon square footage. This will keep you competetive and consistent. As you get more experience and buy better equipment you will get faster and your pay per hour will rise. As your business increases and you have capital reserve you will be able to buy in bulk thus lowering your materials cost and again increase your bottom line.

After you have ben doing this for awhile you will be able to look at a job, recognize difficulty factors and closely estimate square footage and start quoting prices from the top of your head.
 

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I am baffled to how my competitors quote on places....For instance some of them quote on square footage, some of them quote without knowing the footage.
The problem that I see so often is that many don't know what the hell they are doing when they price. Trying to follow the clueless will lead you into the same brick walls that they are destined to run into.

The first place that I recommend that you start is finding out exactly what your costs for running your business will be (IE: complete payroll with all taxes, insurances, benefits, etc....., operational costs - rent, advertising, liability insurance, supplies, etc.....) then add in a portion for growth and finally your intended profit margin. Planning your pricing this way guarentees you success.

BTW Jim and Lindon hello and welcome :D
 

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Don't get mad at yourself if you make a mistake-if you bid too low. Learn from it.
My wife would be so upset when I would bid on a job, and find out that the bid was too low, and I was stuck with it. I learned the hard way.
Just remember you are going to make mistakes, that is a part of the cost of doing busn. Every busn makes mistakes-even the big boys! Look at General Motors and Ford!!!
 

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When I first started out in the commercial cleaning business I bought a book online which gave a lot of information on starting a Janitorial business including industry standard production rates. It was a good starting point. I found after about the first year bidding on SQ/FT. alone using industry standard production rates does not always work. Every building is different. You have to learn, and you will, how and when to apply them. You will be able in time to look at a building and adjust those rates accordingly.
Also when you go look at a building NEVER GO IN THE MORNING. If you go in the late afternoon you'll get a good feel of the condition the building will be in when you arrive at night to clean. The management also plays a role in how long it takes to clean. Some companys are kept neat and clean throughout the day because of stricter policys and some don't care and are trashed when you get there.
 
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