Hey Stringer,

Thus far I've been taking your advice and it's been working quite well. Maybe you can help me out with this one. I'm creating a proposal for the common areas of an apt bldng complex and I was just wondering what the profit margin is on this type of job. Thanks.

Hi Venture,

Glad that things are going well, proud of you.

Remember to consider everything when pricing any job even who is also bidding and all your costs including travel to the site/s.

As always... some questions;

Do you have specs?

What type of flooring and are you responsible for carpet cleaning and/or stripping and refinishing them (extra charge?).

Windows?

Besides corridors, what other areas are involved? Laundry rooms? Lunch rooms? Conference rooms? etc.

How many days per week?

One building or more?

How many floors?

Please get back to me and we can proceed... as you know a lot depends on the particulars and nuances of each job.

Stringer

Do you have specs?. I do. 40 common area stair cases 5 half flights and 5 landings to be vac'd and dusted 1x week. 40 mini laundry rooms vac'd /dusted

What type of flooring and are you responsible for carpet cleaning and/or stripping and refinishing them (extra charge?).. . Carpet just vacuum for this proposal

Windows?. only entrance door

Besides corridors, what other areas are involved? Laundry rooms? Lunch rooms? Conference rooms? etc... Laundry

How many days per week?. 1x /week

One building or more?. 40, some are attached but need to walk outdoors to get to each one.

How many floors?. 2 with very small laudry at bottom of half flight

Thanks

Well... thanks that was a quick response.

Ok, so it seems that you have just light cleaning in all 40 buildings right? And should they want carpet cleaning or hard floor work that would be extra...

Remember Venture that in the end pricing is your decision.

Have you arrived at a per square foot rate so far for this type of cleaning? If so, what is it and what is the profit in that figure?

Stringer

Yep, I'm online now working on my taxes:)
I guesstimated a 20% profit... is that too much for an apt bldg?

Thanks

Well that depends Venture on what your total coast are that you added the 20% to.

Is this a property management company? If so, they are usually down and dirty and have a ton of companies bidding. That is why I asked that you answer my questions in post # 4 as this is the easiest way to a solution.

Stringer

I came to a rate of .04 sq ft with a 20ish % profit.

I think that you are extremely low.

My SUGGESTION is somewhere between $0.9 to $0.13 / sq ft in a very competitive bid process.

Now remember Venture that I am in the Chicago market and even though we have 'scabs' who low ball everything my price may be higher than your market, but in my opinion not $0.04. You are almost paying them to do the job my friend.

Good luck, and good luck with the taxes, remember to include them in all your bidding.

Stringer

I think my market is up there with yours... I don't mean to be a 'scab'... I guess I just don't have any idea when it comes to this type of job... it's much bigger than what I now have. Ok, I definitely have to recalc my numbers. Thanks so much.

Venture, you know me (a bit) and you should know that I never meant to say that you are a scab, you must be accurate and competitive in your bidding, it all starts there.

Like any business it is vital that you make money or it is not worth it. So, bidding is successful when you are competitive, make money and always cover all your costs.

Know your competitors, know your market, know your service and be successful.

That was the point that I was reaching for here. Many of those when starting learn quickly that they have to approach it this way or go out of business.

You are a smart person, be attentive to the prospect, try to make headway with them and as in our case we get bids even when we were not the low bid.

Again good luck,

Stringer

OK, I will be more competitive... I promise not to be 'scab' like... so, I'll need to go back and rethink it out. Thanks so much Stringer. You've been a great help.

Good luck.

Stringer

Hi Stringer
OK, after redoing my scabbish numbers:) and adjusting my spreadsheets, the .09 per sq foot ends up +/- $200 difference verses $31/ man hrs. for the job. Do my numbers seem somewhat accurate?. Thanks so much.

I didn't call you that Venture.

Go for it.

Stringer

I know you didn't call me that... Although, I'm thinking of changing my user name to that... only kidding!
So what does, "Go for it!" mean exactly?. is that your answer to my question... I'm not good at reading between the lines.
I just finished my proposal packet(digital version) they want it emailed.. wish you could review it.

In my area $0.09 is competitive Venture.

Stringer

Hi Stringer,

What's the best way to advertise cleaning jobs?

Please explain a little more Venture. Are you asking about advertising your company in general or something specific?

Stringer

Sorry, it's for hiring employees.
Thanks.

Word of mouth from your own employees and people them recommend. Number one.

Posters at supermarkets, stores.

Ads in local newspapers, but we never had much luck in finding good people here.

Stringer

For property management, it is usually .10 cents a sq ft.

Thanks CelticCleaner... what region of the country are you in? And does it depend on over a certain amount of sqft it decreases?

I am in the South region (Florida). As far as the amount of sq ft, it would depend on if you see a potential future business with the property manager and try to find out who they know. Use Facebook as a search for this information. If you think you can get more business out of them then cut them a deal or offer a discount on future business or multiple properties.

This was my first big bid... I didn't look into it in depth as far as potential future business(I'll keep that in mind for next time). I basically tried to focus on a competitive price and getting a proposal packet created which I think might've been too wordy.

wow! Got feedback from my proposal and I was told that my bid was 3x more than what they currently pay. How much does .09-.10 end up being per hour? Their existing company is definitely cutting out serious amounts of square footage... their rate is $9-$14 per/hr.

WOW! Seriously? That other company will see how much money they will end up losing. The way I see it, it was not meant for you. You never know, that company may have had some issues you may not want. I always run a check on anyone who is requesting services or I am wanting to bid on. Whether an individual or company. I want to be sure who it is I am dealing with, and if any negative feedback about them.

OK, how about 1x cleanings... I've had several and it seems like I always have to chase money down afterwards... What is the best to handle them before it's started and after it's complete?