Clean It Up

UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: Sunshine/Cleaning on September 13, 2010, 05:14:47 pm

Title: Cost per customer.
Post by: Sunshine/Cleaning on September 13, 2010, 05:14:47 pm
I've just worked out based on last years figures that for each job I did the cost of servicing it was £2.96. per job.

I used my expences (not inc subbies or wages) divided by the no. of jobs done in the year.

More than I thought per job!
Title: Re: Cost per customer.
Post by: darren clarke on September 13, 2010, 05:24:30 pm
i worked it out if i employ someone in a van working 8 hours day doing 20 jobs aday (i know it is low)  all in inc wages fuel insurance etc cost £3.22 per house
Title: Re: Cost per customer.
Post by: Sunshine/Cleaning on September 13, 2010, 05:26:59 pm
WOW £64.40 per day wages and running a van and other expences.

Thats keen!
Title: Re: Cost per customer.
Post by: darren clarke on September 13, 2010, 05:30:09 pm
i know it is low, but i was bored one night and worked it out done it on the miminum of everything  ie wages, jobs done, hours worked
Title: Re: Cost per customer.
Post by: Sunshine/Cleaning on September 13, 2010, 05:31:54 pm
Ahh. So it's theorerical rather than factual.  ;D
Title: Re: Cost per customer.
Post by: elite mike on September 13, 2010, 05:42:34 pm
 ;D ;D ;D
Title: Re: Cost per customer.
Post by: Sunshine/Cleaning on September 13, 2010, 05:52:25 pm
Careful Sunshine, you will start to see the purpose of having a minimum price.

I do Ewan, see my website.
Title: Re: Cost per customer.
Post by: darren clarke on September 13, 2010, 09:25:22 pm
Ahh. So it's theorerical rather than factual. ;D

yea,  wanted to know what i need work wise to employ someone
Title: Re: Cost per customer.
Post by: gto on September 14, 2010, 11:04:44 am
£64.40 is still more than an average days wage for most people
Title: Re: Cost per customer.
Post by: Jack Wallace on September 14, 2010, 01:17:23 pm
This is an interesting idea, I would be curious to find out the cost to service each of my jobs but how do I find out how many jobs I did over a period of time?
Will George give me the information I need? I have looked but cant see how.
Title: Re: Cost per customer.
Post by: darren clarke on September 14, 2010, 01:54:43 pm
just add up ur fuel, wages, materials cost per month, and divide it by how many jobs u got,  should give you a rough idea,
Title: Re: Cost per customer.
Post by: outdoor restore on September 14, 2010, 02:49:25 pm
This is an interesting idea, I would be curious to find out the cost to service each of my jobs but how do I find out how many jobs I did over a period of time?
Will George give me the information I need? I have looked but cant see how.
Reports-Income forecast-select period, George then details £income and no of jobs per day/week/month
Title: Re: Cost per customer.
Post by: Jack Wallace on September 14, 2010, 04:13:52 pm
  :o  :o  :o  :o  :o  :o  :o :o  I REALLY wish I had not done that.  I cant believe what its cost me per job over the last 6 months.  :(

I think some serious thinking is in order.
Title: Re: Cost per customer.
Post by: darren clarke on September 14, 2010, 04:24:51 pm
y whats up jack

what did it cost you
Title: Re: Cost per customer.
Post by: Jack Wallace on September 14, 2010, 04:46:51 pm
I dont like to discuss numbers on here darren so wont say how much but it did shock me. I am sure i can trim it down a bit with some work, so that is the target for the next few months.

 
Title: Re: Cost per customer.
Post by: gewindows on September 14, 2010, 04:52:34 pm
£64.40 is still more than an average days wage for most people

How did you work that out Einstein?

The office of national statistics shows that your thinking isn't as accurate as you'd like to think it is, apparently those in the know reckon its £98.00 a day.

Quote
The results of the 2009 ASHE show that median weekly pay for full-time employees in the UK grew by 2.0 per cent in the year to April 2009 to reach £489. Median earnings of full-time male employees were £531 per week in April 2009; for women the median was £426.

http://www.statistics.gov.uk/cci/nugget.asp?id=285
Title: Re: Cost per customer.
Post by: Sunshine/Cleaning on September 14, 2010, 05:02:22 pm
I guess it depends on whether you see average as mean, median or mode.
Title: Re: Cost per customer.
Post by: gto on September 14, 2010, 05:04:31 pm
most jobs pay the minimum wage now so £5.83ph, so that £46.64 per day earnings.
for a full days hard work for an agency around here, as there is no proper full time jobs.
Title: Re: Cost per customer.
Post by: Ian Lancaster on September 14, 2010, 05:04:44 pm
Working out a price per job isn't really relevant.  Because job prices vary, the cost per job ought to vary too.  What you are really doing is comparing your turnover with your net profit.  At the end of the year, you know your total income and your total expenses, you work out the percentage of expenses to total and that is the percentage each job costs you.  i.e. job value £100, profit as a percentage of turnover 75%, job cost £25.  Job value £10, same percentage, job cost £2.50
Title: Re: Cost per customer.
Post by: Sunshine/Cleaning on September 14, 2010, 05:07:41 pm
Working out a price per job isn't really relevant.  Because job prices vary, the cost per job ought to vary too.  What you are really doing is comparing your turnover with your net profit.  At the end of the year, you know your total income and your total expenses, you work out the percentage of expenses to total and that is the percentage each job costs you.  i.e. job value £100, profit as a percentage of turnover 75%, job cost £25.  Job value £10, same percentage, job cost £2.50

True Ian that is another way of working it out, this is ammo for the small jobs though.
Title: Re: Cost per customer.
Post by: gewindows on September 14, 2010, 05:16:41 pm
most jobs pay the minimum wage now so £5.83ph, so that £46.64 per day earnings.
for a full days hard work for an agency around here, as there is no proper full time jobs.

Most jobs advertised in job centres for dunderheads pay the minimum wage, that doesnt mean most jobs.
Title: Re: Cost per customer.
Post by: Ian Lancaster on September 14, 2010, 05:26:35 pm
£64.40 is still more than an average days wage for most people

How did you work that out Einstein?

The office of national statistics shows that your thinking isn't as accurate as you'd like to think it is, apparently those in the know reckon its £98.00 a day.

Quote
The results of the 2009 ASHE show that median weekly pay for full-time employees in the UK grew by 2.0 per cent in the year to April 2009 to reach £489. Median earnings of full-time male employees were £531 per week in April 2009; for women the median was £426.

http://www.statistics.gov.uk/cci/nugget.asp?id=285

As always, statistics can be made to show what you want them to show.  These figures include all employees - directors and senior executives are also employees so their wages will influence the average upwards.  The original statement was that £64.40 is more than a days pay for most people - still probably true as 'most people' wouldn't include the fat cat brigade.
Title: Re: Cost per customer.
Post by: Sunshine/Cleaning on September 14, 2010, 05:29:53 pm
It's the average of the majority then?

By the way the subject is : Cost per customer, any more comments?
Title: Re: Cost per customer.
Post by: gewindows on September 14, 2010, 05:32:57 pm
It would appear according to those statistics then that if yo pull your finger out in this game then you are a 'fat cat'!

I'd like to confirm that that is easily a possiblity.
Title: Re: Cost per customer.
Post by: Sunshine/Cleaning on September 14, 2010, 06:34:14 pm
Thats pretty much tru Ewan as my costs have stayed the same whereas my income has gon up so if this year my costs are the same again, and my turnover has increased the % will change. Ians way works backdated, I want something to work upfront and knowing it will likely cost £3.00 to service each tracsaction gives me something to play with.
Title: Re: Cost per customer.
Post by: darren clarke on September 14, 2010, 06:48:48 pm
i worked it out like this

40 h x 5.85   220
tank of fuel     60
water              15
insurance van  15
emp ins            15       
this comes to  325

325 divide by 100 houses +  3.25 a house
 
theres a few other things to add but nothing major,  so if the van turns over say 700 - 325  the van will make you  375  roughly
Title: Re: Cost per customer.
Post by: Nigel Lee on September 14, 2010, 07:20:26 pm
i worked it out like this

40 h x 5.85   220
tank of fuel     60
water              15
insurance van  15
emp ins            15       
this comes to  325

325 divide by 100 houses +  3.25 a house
 
theres a few other things to add but nothing major,  so if the van turns over say 700 - 325  the van will make you  375  roughly


£5.85 is employment costs? 
Title: Re: Cost per customer.
Post by: darren clarke on September 14, 2010, 07:22:43 pm
hourly rate
Title: Re: Cost per customer.
Post by: Nigel Lee on September 14, 2010, 07:27:02 pm
What about the other employment costs?

£5.85 for a decent employ is a big ask these days isn't it?
Title: Re: Cost per customer.
Post by: darren clarke on September 14, 2010, 07:30:57 pm
i went off what was the rate in cornwall,  where if any thing is over miminum wage u r lucky,

i just worked it out on night  so see weather it is viable as well as a wage, u have the fuel, water, public lia and employers lia, van insurance, once u have worked out what all these are then  add them up and divided by how many jobs u want them to do and it gives you the answer,
Title: Re: Cost per customer.
Post by: Smudger on September 14, 2010, 07:34:13 pm
is there some info missing here BM  ???

don't you as the employer have to pay towards the NI and what about holiday pay etc...

things are never straight forward,

back to the topic, interesting,  what about tax ? was that included

Darran
Title: Re: Cost per customer.
Post by: darren clarke on September 14, 2010, 07:37:06 pm
i will work something out as aint watching enders,  i just need to know what some ones employers liability is
Title: Re: Cost per customer.
Post by: Nigel Lee on September 14, 2010, 07:43:30 pm
I am not up to speed with wage demands down there, but if your thinking of taking someone on self employed I don't think £5.85 is viable.  He will move on first chance he gets.  Factor in down time, lots of rain down there isn't there?

You can do it, but I think your margins are tighter than your forecast.
Title: Re: Cost per customer.
Post by: darren clarke on September 14, 2010, 07:46:10 pm
they wont be self employes,  they can only be self employed if they use there own van put in there own fuel and use there own gear and rent a round,  i was looking at some one working on a van with me,
Title: Re: Cost per customer.
Post by: gewindows on September 14, 2010, 10:36:28 pm
Holiday pay, sick, down time, bad weather, maternity/paternity pay, employers N.I contributions, equipment outlay, equipment maintenance, equipment replacement, vehicle depreciation. Darren your list is more than hopeful mate.
Title: Re: Cost per customer.
Post by: darren clarke on September 14, 2010, 10:59:49 pm
i know it was only something i did one night when i was bored and trying to work out what it would cost to employ someone, as only wanted to know roughly what each job cost me to also help work out a basic price, 
Title: Re: Cost per customer.
Post by: AuRavelling79 on September 14, 2010, 11:28:31 pm
i worked it out like this

40 h x 5.85   220
tank of fuel     60
water              15
insurance van  15
emp ins            15       
this comes to  325

325 divide by 100 houses +  3.25 a house
 
theres a few other things to add but nothing major,  so if the van turns over say 700 - 325  the van will make you  375  roughly

40 x 5.85 = £234 not £220
Title: Re: Cost per customer.
Post by: darren clarke on September 15, 2010, 11:46:19 am
dont know where i got 220 from