[Karl Wheeler]

Hi Guys
Just out of interest what profit margins do you guys work at for Office Cleaning?

Karl

[Karl Wheeler]

Obviously nobody makes a profit 

[Tim Downer]

Is just what i was thinking. Was looking forward to various %'s of profit, and some comments on what they put for profit in the quotations, and if they get what they ask for or have to go lower.

Regards

  Tim

[Karl Wheeler]

Hi Tim
At least one persons plans too make a profit  Maybe others will follow?


Karl

[pdl]

Paying £6 per hour I would expect to make 42% after employers NIC and holiday pay.  This equates to Minimum £10.50 per hour charge.

[martin19842]

hi there

the problem is some people dont know the definition of profit.

and

are you talking nett profit, or gross profit. ??

some people on here talk about profit, when infact they mean there earnings per year.

regards

martin

[Jan K]

40% gross profit here, not much i admit but my overheads are very low 

[Karl Wheeler]

Hi Guys
Thats better , thanks for all you answers kepp them coming. I was talking about gross profit.

Karl

[Mike_Boxall]

Karl

Contractors margins can vary from one extreme to another. Generaly speaking the larger the contract the lower the margin. Some retail contracts appear to operate on as low as 4% net margins (that is after all expenses) although there are other areas where contractors make extra profit. Saying that, I'm also aware of a £4m contract where the contractor is making 30% net margin - nice if you can get it but they're few and far between.

Most people under price contracts and get confused about margins. For example, if you run the contract then you need to allow for your 'cost' as well as all the other costs. National Insurance, general insurance, travel costs, training costs, recruitment, sickness, etc should all be taken into account when you're working out your margins.

What you have to bear in mind is that a lot of contractors may claim to their customers that they only operate at 5% margin but if they have 15% unpaid absence then, all of a sudden, the contractor has quadrupled his profit.

A lot of the time it's smoke and mirrors. The best policy is to do a reasonable job and charge a reasonable price.

Regards

Mike



 

[drivewasher]

One of my sons was telling me today about the dragons den on tv. he said ther are guys going on there and were made fools of as one didn't know what "turnover" was, when asked what her turnover was last year she said "nothing" after pulling a few teeth it turns out she meant she made no "proffit" in the first year. Then the guy told panel he had orders in writing for 2 million litres of summut (a relish sauce I think it was) the panel's eyes lit up as there may be fisticuffs to get to invest in it, when asked was he sure re the quantities and the huge proffit he was going to make, the guy says yes heres the order, Can I see the order one dragon says, yes guy says and passes him a letter. After reading it dragon says, the order you have is for 2 thousand litres NOT 2 millon and your proffit is ***whater it was*** much less than anticipated

So if anyone gets on the Dragons Den, then make shure you know your proffit from your turnover, and where the zero's go in a millom lol................