D4ch0l

  • Posts: 85
What is the minimum acceptable profit
« on: June 30, 2013, 03:21:07 pm »
Hi,

I am running a small cleaning business with domestic customers mostly. I was thinking about getting into commercial cleaning, hence the question.
What do you guys think is the minimum acceptable profit per hour for one cleaner? If I charge £10 per hour, will it make enough profit, after taking off revenue and insurance contributions?

Do I always have to pay those above, or is there any way I can avoid them, by for example limiting the hours my employees work?

Thanks,
Adam


cml

  • Posts: 181
Re: What is the minimum acceptable profit
« Reply #1 on: July 04, 2013, 06:25:58 pm »
Hi there,  aah, well I'd tread very lightly on this one.?????

The question on profit is one that needs to be decided by you.  I.e you need to decided whether the amount charge for X jobs over a period of X hours is going to cover your overheads as well as wages etc if you have staff.  In all honesty no one can tell you how much profit to make.  You need to decide what you need to make for your company to operate and make profit in a competitive market place.

You have not given enough details for anyone to give you a reasonable answer.  i.e how may hours does your cleaner work, who supplies materials, expenses  etc.,  which are all needed to give you an answer worth considering.

As for the HMRC comment at the bottom you must pay the required contributions where staff have met their weekly or monthly thresholds.

I would suggest you seek advice on employment matters free from Acas or your local business advisor.  This is because recent legislations surrounding payments to staff in real time etc., needs to be considered.

I hope this helps.  Give them a call you will be given good information that will help you make the decisions you wish to make.

Good Luck

Drewheald

  • Posts: 106
Re: What is the minimum acceptable profit
« Reply #2 on: July 07, 2013, 09:13:03 am »
Hi

It might be worth having your team as self employed

But In general your margin will depend on you, I used to be on 50% , now I'm lucky if I can get 37 - 40% .

Your competition in your local area will decide for you what your margins will be.

Keep smiling

dsclean

  • Posts: 11
Re: What is the minimum acceptable profit
« Reply #3 on: July 24, 2013, 08:05:55 pm »
So what is the average price that a cleaning company charge's for a cleaner on  commercial jobs ?

Drewheald

  • Posts: 106
Re: What is the minimum acceptable profit
« Reply #4 on: July 24, 2013, 08:54:39 pm »
to many variables to easily answer that one.

but something like average ( unless your in London)

the less weekly hours the higher the rate, the higher the weekly hours the lower the rate.

In my area I use (just a guideline)

Hours        rate

1-4          £15 per hour
5-14        £10.32 per hour
15+        £9.50 per hour

again you will need to do some demographic analysis to get your local rates.

hope this helps

drew

D4ch0l

  • Posts: 85
Re: What is the minimum acceptable profit
« Reply #5 on: October 21, 2013, 07:52:55 pm »
Would that be just a labour Drew, or did you include supplies as well into prices?

Thanks,
Adam

Drewheald

  • Posts: 106
Re: What is the minimum acceptable profit
« Reply #6 on: October 21, 2013, 08:40:04 pm »
Usually for me thats all in.

I really have a cost on black sack as the rest of materials is so small its not worth worrying about.

Some companies charge all in except for the black sacks which they would charge extra for.


D4ch0l

  • Posts: 85
Re: What is the minimum acceptable profit
« Reply #7 on: October 22, 2013, 06:23:04 pm »
Thanks alot. I thought so, but just making sure ;].

Regards,
Adam

D4ch0l

  • Posts: 85
Re: What is the minimum acceptable profit
« Reply #8 on: December 20, 2013, 04:57:51 pm »
Getting back to the subject Drew. What about, vacuum cleaners, buckets, mops, clothes and signs. Do you normally supply these within the price.

Has anyone else different view on the subject?

Thanks,
Adam

Drewheald

  • Posts: 106
Re: What is the minimum acceptable profit
« Reply #9 on: December 20, 2013, 05:17:56 pm »
hi Adam

People think in different ways, the way I look at machinery is that once its bought Its mine and if I lose the job the kit comes with me to another one (although I build in a small cost to the clients), so I don't usually worry about it much.

Go onto www.cleanquote.co.uk and download the free demo app it has a full breakdown of costs on there.

If you do this you can give me a call and I will talk you through it, don't pay to much attention to the costs, I will explain this if you call.

drew