lisa123

working out costs
« on: April 05, 2006, 08:50:22 pm »

Hi All
i have just won a new contract, very small, but more work for us which is good really.

It's confusing me.

It's office and kitchen etc on one floor for one company. and the communal areas for this one company and the communal areas are shared by another company, the communal areas are being billed as 50-50 between the two companys as it is shared.
Is it best to invoice the cost x52 weeks /12 mths? Its only a once per week clean. Like the other commercial one i do?

Company 1 offices 9.50p/h *1.5hrs p/w
company 1 communal areas 9.50 p/h * 30mins p/w
company 2 communal areas 9.50 p/h * 30 mins p/w

£82.33pm company 1 and 20.58 company 2 p/m
its 3 flights of small stairs, 2 loos for the communal.
offices are open plan room approx 4 to 6 tables, main boss office, another square office good sized, a small kitchen and entrance are/reception, and another small office room/storage room.

do you think the hours and figures are about right? We are supplying all equip and materials except hoover, which they have just bought.

Thanks for your advise

Re: working out costs
« Reply #1 on: April 05, 2006, 10:01:08 pm »
I think you are too cheap! Supplying equipment etc i think £12 per hour is fair? Especially as its only a weekly clean.

lisa123

Re: working out costs
« Reply #2 on: April 05, 2006, 10:27:28 pm »
i'd get laughed out of shrewsbury if i quoted £12 per hour for anything unfortunatly. ive already lost out to other companies by being too expensive and that was quoting 10 quid an hour and supplying everything.

i'd like to quote 12 quid an hour, maybe this time next year i can.
thanks

Prestige1

  • Posts: 332
Re: working out costs
« Reply #3 on: April 05, 2006, 10:28:51 pm »
If your making money and your happy with that good for you, but like RCS i think you are to cheap, one mistake I made when I first started was price low to get the job, then the accountant said to me "not all business is good business" And its true, I was running round like a headless chicken making very little money, Now I price to make the company profitable, and its not the end of the world if we don't get every job. I think your working out is fine kind regards Phil
Who Dares Wins

lisa123

Re: working out costs
« Reply #4 on: April 06, 2006, 12:20:28 am »
Hi phil, thanks for you opinion.
I'm happy to win the contract as it gets us closer to where we want to be, but i think i'll edge my prices up bit by bit over the next 6 months or so, try and quote a bit higher each time i get a chance to. the commercial world is much more competitive isn't it.
Thanks, Lisa

Tim Downer

  • Posts: 656
Re: working out costs
« Reply #5 on: April 06, 2006, 08:09:08 am »
Hi Lisa

It looks like you are there for 2.5 hours per weekly visit.

Why quote for £9.50 per hour....which comes to £23.75 per visit......Why not quote something like £30.00 per visit (and divide the bill between client 1 & 2 however you like....)

The client will not know your hourly charge, just the total.

If you divide the £30.00 charge by the 2.5 hours.......you have your £12.00 per hour mark  ;D

Just a thought, that was all, because a lot of cleaners out there in the forum world, seem to get stressed over how much to charge per hour. £9.00 per hour, £10.50 per hour or £12.00+ per hour.

You have to charge the best rate you can get it at......as long as you can do the cleaning to the standard you are selling them that you can do.

On the tenders I do, the only hourly rate on my breakdown of costs is the staff wages. The rest including ins., uniforms, profit, management fee, chemicals, equipment etc etc and the client sees a lump sum at the bottom which is divided into a weekly charge (divided by 52) and the per annum charge. I have never worked the whole quote by a per hour charge.

Kind Regards

Tim
Tim Downer
Manager

"The difference between Ordinary and Extraordinary.....is that little Extra"

Re: working out costs
« Reply #6 on: April 06, 2006, 09:04:18 am »
Yes i agree with Tim ( more than one way of skinning a cat!)
The secret is in the way you word your quote and i think Tim has summed that up really well.Please remember we are offering professional services and need to value our time etc accordingly.
Secondly please don't be offended by this its only meant to be encouragement to get more of what your worth.
Regards Rob.

Tim Downer

  • Posts: 656
Re: working out costs
« Reply #7 on: April 06, 2006, 09:30:51 am »
Yes, i second that. I should have added also that my comments were supposed to be words of encouragement to let you know that your hard work is worth paying for.....so don't always let the client and cowboy cleaners dictate how much you can or can't charge.

Kind Regards

Tim
Tim Downer
Manager

"The difference between Ordinary and Extraordinary.....is that little Extra"

lisa123

Re: working out costs
« Reply #8 on: April 06, 2006, 10:43:04 am »
Thanks guys, i dont mind your constuctive critisism  ;D
The guy kinda put me on the spot when we did the survey and asked "how much then" he wouldn't let me go do the figures, i'm afraid i let myself become pressurised as he was bigger than me  ;D
I'm trying to get out of the habit of hourly charging, but i keep getting caught in the trap of doing it.

I promise you, the next time i get to do an office quote, i'll charge by the job and not by the hour.