Clean It Up

UK General Cleaning Forum => General Cleaning Forum => Topic started by: Ian Rochester on February 03, 2006, 08:56:14 pm

Title: Labour only profit margin
Post by: Ian Rochester on February 03, 2006, 08:56:14 pm
We currently do a few very small daily and weekly contract cleaning jobs in our local area.  Our main business is carpets and windows.

However, I have just been approached by an operations manager asking to put in a tender for a new cleaning contract which would require Operators (210 hrs) and Supervisors (84 hours), 7 days a week, 364 days a year, with hours varying from 3 - 6 hours a day. 

This is a whole new ball game for me and I could do with some guidance from any of you guys before I throw in my tender.

Firstly, the ops are going to be on £5.50/ph and the sups on £7.50, having taken in the NI and the holiday entitlement (20 + 8 Stat) what mark up do you put on the labour figure?  I was looking at 25%

Secondly, this is a 7 day a week operation, do you pay your staff extra for weekend and bank hols or not, or can you make that part of their terms and conditions?

Thirdly, we have been asked to look at the supply of all the equipment, janitorial and expendibles, currently around £30,000pa!!  how do you work that out and what mark up on it? just read the other thread regarding divide by five times by six.

Any help would be greatly appreciated
Title: Re: Labour only profit margin
Post by: CMS on February 03, 2006, 09:09:21 pm
Go to our web site and look at the Cost Calculator. That will show you how the costs are split.

With regards to enhanced payments at weekends I do it as follows :

Supposing a job required 3 hours per day for seven days a week I would have two operatives covering it.

One would do the Mon-Thurs and the other would do the Fri-Sun. The week after they would swop and alternate every week.

That means that they would each work 21 hours per fortnight and they would find that they are working seven straight days with seven days off!

One rate of pay for all shifts!
Title: Re: Labour only profit margin
Post by: Ian Rochester on February 03, 2006, 09:37:03 pm
Karl,

Thanks, I like your cost calculator, so would you normally work on a 57% profit margin?
Title: Re: Labour only profit margin
Post by: CMS on February 03, 2006, 09:40:50 pm
Yes, normally but don't forget that it would be different if you were to take out the equipment and materials.
Title: Re: Labour only profit margin
Post by: Art on February 03, 2006, 09:48:00 pm
Karl,

 Does the calculator take holidays into consideration?


Arthur
Title: Re: Labour only profit margin
Post by: CMS on February 03, 2006, 09:59:11 pm
ooops! Had the wrong one up. Thanks.................it does now!