Clean It Up
UK General Cleaning Forum => General Cleaning Forum => Topic started by: Jonny jones on July 31, 2008, 07:02:49 pm
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???
hi guys, been offered to buy a local office cleaning service, owner moving away,
its 22 hours a week, cleaning equipment supplied by myself, and his turn over is £8939 per anum,
the problem is there is a he wants £2.5k for the contracts,
is it worth it, as there is a few miles between the locations ,
thanx jonny
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That is £7.80 per hour :o
What do you think?
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Just wait for him to move
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hi ye ive done the figures and i dont know how he does it, and he still wants 2.5k for it, if i was to take someone on to do this i would,
1 person £6 per hour then thier tax and ni, est 7275.84per year
1 vehicle, and deisel and ins good cheap van, ins and deisel fro year 2500
and all the equipment 300 for the year
i dont know the exact figures but i would think that they dont match. i would never make a profit, ::) :P ???
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Have a word with the guy and try to come to some sort of deal.
I do some contract work and picked it up along the way doing general customers houses.
It is a good line to get into as the staff you meet along the way might want work doing also so you could win both ways :)
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Add in 4 1/2 weeks holiday and then work out the hourly rate.
It is not actually worth it even if he GAVE it to you ???
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Rough costings in reply to the figures listed below:
Cost of Employee and associated costs (Vehicle/fuel/equipment/holidays/ENIC etc)
= £11380, plus of course his selling price of £2500 = total 13880
I SUGGEST YOU WALK AWAY AND WAIT UNTIL HE LEAVES. ;) ;) ;) ::) ::)
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I would suggest walk away and if the customer offers it to you at that same rate, keep walking.
Two options with it really, staff it and make a loss, or do the work yourself and work for below minimum wage.
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I looked at one 10 years ago, the wanted 40p in the pound on turnover, most of the work was 2-3 hours, 3 days a week. I walked away.
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If you are supplying the equipment he is not selling you anything but his goodwill something that you cannot guarantee. Does he have contracts from his customers outlining their services, fees, duration, etc., without these what he is offering is worthless because there is no guarantee that those customers will stick with you once he has gone. Then you will be left working overtime to try and make it work to recoup your monies by spending more money.
You really need to look closer at what he is really offering. As a guide work on 10% of annual t/o and start negotiating upwards if he has secured contracts in place or downwards if there is no real substance to what he is offering. Evaluate your risk and if your not happy then walk away.
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got a call off the fellow today, he asked if i had thought about it and would i be interested, i said sorry but no one in would be able to take over from him as he was only chrging around £8 an hour to do the contract. i told him it wouldnt be worth it and if he doesnt get anyone to take the work from him, i told him to pass on my details and i will gladly quote the clients for the work in hand.
thanx for the info guys,
thanx jonny