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PGC Cleaning Services

  • Posts: 58
PRICING ADVICE URGENTLY NEEDED BY NEWBIE
« on: January 28, 2010, 09:05:15 pm »
Hi everyone,

I am in the process of putting together a quote for a 3 storey office complex.
I would like some advice on how to price. There are 3 cleaners required to clean a floor each.
2 of the cleaners would clean 2 hours per evening and one cleaner would clean one, Monday to Friday.
Therefore total hours 25 p/w. The current cleaners earn £7.00 per hour.

I need to price to make a profit once staff  & overheads are paid such as national ins and tax etc etc. Is it reasonable to charge double????
Obviously I supply sundries & and add one 10% is this feasible I wonder.

Any help would be extremley appreciated.

Thanks

Mark


 
PGC Cleaning Services

Ryan @ Transparent, Carlisle

  • Posts: 700
Re: PRICING ADVICE URGENTLY NEEDED BY NEWBIE
« Reply #1 on: January 28, 2010, 09:15:27 pm »
any profit is a good profit  ;)

especially if your going to hire 3 cleaners to do the work. even if you MAKE [after expenses] £50 then its been worth it

Ian Rochester

  • Posts: 2588
Re: PRICING ADVICE URGENTLY NEEDED BY NEWBIE
« Reply #2 on: January 28, 2010, 10:20:06 pm »
Basically in a nut shell you need to put a simple spread sheet together with the following infoL

Labour Costs - wages, NI, Holidays, Absence cover.

Material Costs - Consumables and Equipment (depreciation)

Management Costs - Supervisor, Admin, Paperwork, Training, H & S

Fixed Costs - Transport, Insurance, Premises, Insurance, Clothing

What profit margin do you want to make? Add that to your total costs and you have your basic figure for pricing.

Robert Parry

  • Posts: 535
Re: PRICING ADVICE URGENTLY NEEDED BY NEWBIE
« Reply #3 on: January 29, 2010, 01:26:30 pm »
Hi Mark,

A couple of things to consider first!

Are the staff you on about already in place? Will TUPE apply?

If so your costs will need to take your incoming liabilities into account.

Why 3 cleaners?

Much easier to supply two cleaners at 2.5 hours each, this will help make it worthwhile for each cleaner to actually turn up night after night, I think that the person only doing an hour a night would be much more prone to take time off, or leave when something better came along. Plus it would lessen your payroll costs etc.

Why is the prospect giving you the opportunity to quote?

To save money?

Not happy with the cleaning standards that are being attained at present?

Is 25 hours per week enough time for the cleaning staff to achieve the required cleaning standards?

Only you really know your own overheads, if by some chance you are unsure, ask you accountant.

Your profit margin could range from 5% to 30%, only you can decide the actual profit that you would like to make on this.

You also have to bare in mind that you have mentioned £9.50 per hour on your website, this maybe the level that your prospect is expecting to pay, £9.50 is really too low a price if you are intending to employ staff, unless the staff numbers can compensate for this.

Regards,

Rob
 
A world of difference....

PGC Cleaning Services

  • Posts: 58
Re: PRICING ADVICE URGENTLY NEEDED BY NEWBIE
« Reply #4 on: January 29, 2010, 05:24:22 pm »
Hi Rob,

Just caught your response, there are several variables to consider. Im just off out to view a job
but would love to chat as already in your response has helped me to look at
the whole quote process.

will be back in the office around 7pm.

Could we chat in private?

Thanks
Mark
PGC Cleaning Services

Adam P

  • Posts: 1448
Re: PRICING ADVICE URGENTLY NEEDED BY NEWBIE
« Reply #5 on: January 29, 2010, 05:25:43 pm »
perhaps a little unrelated but would people say that this company is a little too close to mine with too similar name that i might need to take some action? mine is 'Green Clean Solution' covering surrey, theirs is 'pro green clean solutions' covering surrey.


martin19842

  • Posts: 1945
Re: PRICING ADVICE URGENTLY NEEDED BY NEWBIE
« Reply #6 on: January 29, 2010, 06:27:24 pm »
hi there

how big is each floor??

regards

martin

Nick Head

  • Posts: 75
Re: PRICING ADVICE URGENTLY NEEDED BY NEWBIE
« Reply #7 on: January 29, 2010, 09:40:52 pm »

Another great post from Robert (Robert I really enjoy reading your posts) - the only thing I can add to reinforce all the above points about knowing your costs and ensuring they are factored into your pricing, it vital in my view.

Nick

Nicholas Head
Cleaning Intelligence

Daria Taylor

Re: PRICING ADVICE URGENTLY NEEDED BY NEWBIE
« Reply #8 on: January 29, 2010, 11:12:34 pm »
perhaps a little unrelated but would people say that this company is a little too close to mine with too similar name that i might need to take some action? mine is 'Green Clean Solution' covering surrey, theirs is 'pro green clean solutions' covering surrey.


depends what kind of action you are talking about?

regards
dash t

Adam P

  • Posts: 1448
Re: PRICING ADVICE URGENTLY NEEDED BY NEWBIE
« Reply #9 on: January 29, 2010, 11:44:23 pm »

depends what kind of action you are talking about?

regards
dash t

well i don't really know what to do in this kind of situation and if i should even be concerned. the website seems to focus on wheelie bins but obvioulsy also they do the same services as us. imo this can cause confusion as they are very close and sound almost like they'd be the same company but our "premium" service.

Pristine Clean

  • Posts: 1149
Re: PRICING ADVICE URGENTLY NEEDED BY NEWBIE
« Reply #10 on: January 30, 2010, 08:57:17 am »
I wouldnt worry about it. Competition is good and it keeps you focused.

We trade under the name Pristine Clean but out ltd is Kent Commercial Cleaning Services Ltd.

Down the road from us, About 2 streets there has been a company startup that has exactly the same name.

Am I worried? No not in the slightest. If I find we need to alter our approach we will do in the futue. We are always willing to adapt to new ways to keep moving forward.


Dave
"You have to except that some days you are the statue and other days you are a pigeon"

Adam P

  • Posts: 1448
Re: PRICING ADVICE URGENTLY NEEDED BY NEWBIE
« Reply #11 on: January 30, 2010, 11:31:21 am »
I wouldnt worry about it. Competition is good and it keeps you focused.

We trade under the name Pristine Clean but out ltd is Kent Commercial Cleaning Services Ltd.

Down the road from us, About 2 streets there has been a company startup that has exactly the same name.

Am I worried? No not in the slightest. If I find we need to alter our approach we will do in the futue. We are always willing to adapt to new ways to keep moving forward.


Dave
slightly different in this case as kent... is just a thoughtless generic name with no personlisation to it, but pristine clean is bit more unique and one you'd not expect to see in your area, or pro prisitine clean, which suggests that's the premium one and pristine clean is the cheaper company. with people shopping around a lot, chances are some will come across both, and which are they more likely to chose? the pro or the standard. 

Robert Parry

  • Posts: 535
Re: PRICING ADVICE URGENTLY NEEDED BY NEWBIE
« Reply #12 on: January 30, 2010, 11:47:59 am »
Hi Mark,

no problem about chatting in private, will send you an e-mail after i get a cuppa, with a number for you to call if you would like?

Regards,

Rob
A world of difference....

PGC Cleaning Services

  • Posts: 58
Re: PRICING ADVICE URGENTLY NEEDED BY NEWBIE
« Reply #13 on: January 30, 2010, 02:33:34 pm »
Rob,

I wish to take this opportunity to thank you for your extremley helpfull
and informative advice on all the topics spoken about.

Im pretty sure that this contract is in the bag because of your comments!!

Many many thanks & warmest regards

Mark ;D ;D
PGC Cleaning Services

Robert Parry

  • Posts: 535
Re: PRICING ADVICE URGENTLY NEEDED BY NEWBIE
« Reply #14 on: January 30, 2010, 03:05:12 pm »
No problem Mark,

Glad you found our chat useful, sent info to you as arranged, the 2 forms are NCR 2 parts, top copy white, bottom copy yellow, should be able to get them printed with your details for about £100 per 250, which means that your client can keep a copy as well as you.

Dont forget to remove the bottom right hand reference at the very bottom of the forms, as this applies to our QA System, which you dont have the certification for.

Regards,

Rob
A world of difference....

Pristine Clean

  • Posts: 1149
Re: PRICING ADVICE URGENTLY NEEDED BY NEWBIE
« Reply #15 on: January 30, 2010, 06:31:16 pm »
I wouldnt worry about it. Competition is good and it keeps you focused.

We trade under the name Pristine Clean but out ltd is Kent Commercial Cleaning Services Ltd.

Down the road from us, About 2 streets there has been a company startup that has exactly the same name.

Am I worried? No not in the slightest. If I find we need to alter our approach we will do in the futue. We are always willing to adapt to new ways to keep moving forward.


Dave
slightly different in this case as kent... is just a thoughtless generic name with no personlisation to it, but pristine clean is bit more unique and one you'd not expect to see in your area, or pro prisitine clean, which suggests that's the premium one and pristine clean is the cheaper company. with people shopping around a lot, chances are some will come across both, and which are they more likely to chose? the pro or the standard. 


Oh well, you may want to reconsider how thoughtless our Kent name was, No one has Pro Kent Commercial Cleaning Solutions yet. So lasted a little longer than yours. ;D

Is that not like saying PC WORLD was thoughtless, no real personalisation. Its simple and effective. They sell PC's the names says what they do.

Ours shows people what we do and where we are based. We did not want to be called Maidstone Commercial Cleaning Services Ltd as we may relocate but stay within the Kent County. So it was not thoughtless.

GreenCleanSolutions does not inform the customer that you are actually a cleaning firm. You could be a maker of better engines for cars that run greener and cleaner. Or a solutions company but offering what? So was it thoughtless?

Everyone is trying to be Green, Well not everyone. But the write ups read its all a load of cobblers. Its just a big money spinner about being green. And also the papers write up a while ago now said its not taken off as big as they would have thought.

So not a great marketing angle.

Plus have you ever noticed that the people who are green, like hippies, tree huggers are always driving a beat up VW that burns more carbond dioxide poluting the air more than any bus on the road.

Dave
"You have to except that some days you are the statue and other days you are a pigeon"

Adam P

  • Posts: 1448
Re: PRICING ADVICE URGENTLY NEEDED BY NEWBIE
« Reply #16 on: January 30, 2010, 07:19:01 pm »
I wouldnt worry about it. Competition is good and it keeps you focused.

We trade under the name Pristine Clean but out ltd is Kent Commercial Cleaning Services Ltd.

Down the road from us, About 2 streets there has been a company startup that has exactly the same name.

Am I worried? No not in the slightest. If I find we need to alter our approach we will do in the futue. We are always willing to adapt to new ways to keep moving forward.


Dave
slightly different in this case as kent... is just a thoughtless generic name with no personlisation to it, but pristine clean is bit more unique and one you'd not expect to see in your area, or pro prisitine clean, which suggests that's the premium one and pristine clean is the cheaper company. with people shopping around a lot, chances are some will come across both, and which are they more likely to chose? the pro or the standard. 


Oh well, you may want to reconsider how thoughtless our Kent name was, No one has Pro Kent Commercial Cleaning Solutions yet. So lasted a little longer than yours. ;D

Everyone is trying to be Green, Well not everyone. But the write ups read its all a load of cobblers. Its just a big money spinner about being green. And also the papers write up a while ago now said its not taken off as big as they would have thought.

So not a great marketing angle.

Plus have you ever noticed that the people who are green, like hippies, tree huggers are always driving a beat up VW that burns more carbond dioxide poluting the air more than any bus on the road.

Dave

if it's just a big money spiner, why is it not a great marketing angle? what write ups say that green cleaning services are a waste of time? we have had great success so as much as you'd like to get back at me for saying kent commercial... is thoughtless, it hasn't worked  ;D no one copying you isn't something to boast about imo.

what i mean is kent commercial cleaning services is bound to be found, just is surrey commercial, surrey office, surrey dometic, surrey electrician, surrey dentist etc, people use this idea so much you can expect to find variations of this name. do you not agree that it's an obvious name to have where you are and what you do? no usp, used far too often, not great for expension, not very creative and therefore fairly thoughtless.

sorry to offend just my opinion, no need to try and attack my idea when it adds nothing to the discussion.

there is things in place to stop any issues with this so i'll have a look. if i can't do anything then great, hope that'll be because it's not considered an issue. thanks any way for the reply

PGC Cleaning Services

  • Posts: 58
Re: PRICING ADVICE URGENTLY NEEDED BY NEWBIE
« Reply #17 on: January 30, 2010, 08:24:25 pm »
Hi Guys,

I would like to thank everyone for the informative and helpfull comments.
You guys have really helped to move things along.

Mark ;D

PGC Cleaning Services