Hey everyone, I am new to the site and we recently opened up a Commercial and Residential cleaning business. Things have been going good so far, except we have come across a few problems..

The major problem being pricing. Pricing for Homes is not too bad (even though I could use some advice for that also), but we are in a situation where we are about to basically partner up with a construction company(very expensive homes) to do the post construction cleaning..

We were told that we would basically have 30-50 hours of work on a home each week, depending on the week. So in a sense, it is like a partnership where we do all of their cleanings. Now, I have heard that they paid their last cleaner 15-16 dollars per hour.. which in a regular week would come out to lets say $640 a week on average...

Considering that we would have guaranteed business, I know that you are suppose to lower your price, but I have also heard that people charge by the sq. ft, which is anywhere from .10-.20 per sq. ft. But we cannot find estimates very good here in the Cleveland area(at lest over the internet)

Do you guys feel this is too low? And about how much should we charge? And should it be by the sq. ft. or like they did before on the hour?

It is our first major business deal outside of the small home cleaning gigs we had and I do not want to price it bad and be stuck with a small earning. I know we have to factor in how much we spend on travel, supplies, etc... But how do you guys feel about the price on the guaranteed work?

All help is appreciated.. and if anyone could send this question out to "Stringer", who I read knows a lot about this section, it would be great also.

Hi Talan,

It is Sunday evening around 11:45 PM and at the moment I am about to go to bed, I have an important meeting in the morning. However I would be more than happy to assist tomorrow, hopefully that will be OK?

Talk to you then. :)

Stringer

Awesome, thank you. And that would be fantastic, anytime that you get free time is good for me.

Also to add some details for my post construction situation Stringer, today I went to see the guy. Basically I was told that most of the clean ups would be post construction, which would be getting the homes ready for sale.

I told him I would clean out the garage and vacuum the basement and a couple other things Wednesday for $16 per hour for a house that was already cleaned(which I think is way under priced, what do you think?). When I gave them the price, he told me that that is a lot(even though he accepted it). Now, I will have to bid on homes very soon and I really want your help.. Maybe the guy thinks that I am young(in my early 20's) and that I don't know much about it. He has a lot of money as he constantly builds homes(million dollar homes to be more specific).

I don't want to be ripped off for the amount of work that we will be doing. I need help pricing him a fair price and also me a fair price. It is my first construction clean up. So to sum up what we will be doing for these cleanings:
1.Vacuum
2.Dust house
3.clean windows(removal of stickers also)
4.throw away all parts and take them to the yard(using his truck and his gas)
5.wiping down all counters and lighting
Etcc...

Probably upwards of 30-40 hrs of labor is my estimate but it is my first time and I'm not positive.

The Homes he builds range anywhere from 4000-10,000 sq ft, I would assume. And the price would be lower if I would constantly be working for him I would assume?

Sorry for so much information at once, but I have to get this right and thank you in advance

Quote:

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Originally Posted by Talan7528

Also to add some details for my post construction situation Stringer, today i went to see the guy. basically i was told that most of the clean ups would be post construction, which would be getting the homes ready for sale.

I told him i would clean out the garage and vacuum the basement and a couple other things wednesday for $16 per hour for a house that was already cleaned(which i think is way under priced, what do you think?). when i gave them the price, he told me that that is a lot(even though he accepted it). Now, i will have to bid on homes very soon and i really want your help..Maybe the guy thinks that i am young(in my early 20's) and that i dont know much about it. He has a lot of money as he constantly builds homes(million dollar homes to be more specific).

i dont want to be ripped off for the amount of work that we will be doing. i need help pricing him a fair price and also me a fair price. It is my first construction clean up. So to sum up what we will be doing for these cleanings:
1.Vacuum
2.Dust house
3.clean windows(removal of stickers also)
4.throw away all parts and take them to the yard(using his truck and his gas)
5.wiping down all counters and lighting
etcc...

probably upwards of 30-40 hrs of labor is my estimate but it is my first time and im not positive.

The Homes he builds range anywhere from 4000-10,000 sq ft, i would assume. And the price would be lower if i would constantly be working for him i would assume?

Sorry for so much information at once, but i have to get this right and thank you in advance

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$16.00 an hour is fair Talan. I think your estimate of 40 hours per house may be high though. You will have to work well and detailed however more quickly. Remember that you will pick up a much better feel for how to do this properly after you do a few. $16.00 / hour too much huh? If you do a great job and it helps him sell his new homes what is a fair price; $17.00, $18.00... $20.00?

Also remember to walk him through the house to get his approval and it is worth trying to get him to 'sigh off' on the work. Put something simple together stating what you did briefly and that he is satisfied with your work. Should he have a few small things that need attention do them without hesitation, remember you want more of his work.

Use a box cutter with a single edge blade to remove the stickers from the windows... wet them first and let them soak a bit.

Don't forget sweeping and mopping all hard floors, wiping out the refrigerator (even if new)... smell.

Which brings me to the senses that help sell the job; not only does how it looks matter but how it smells clean. Don't make it smell too strong though, and pour water down all floor drains to trap any swamp odors.

Tell him that $16.00 is near the bottom of the going ranges per hour (which it is but fair). You may want to suggest that after you have cleaned so many homes per 6 months you and him can sit down to discuss pricing further.

Remember that you need references Talan, make him happy.

We are not the cheap guys on the block. We tell them up front that we are a 'penny or two higher' but our training is extensive and each project is supervised with experienced people. And our time to return requests, situations and calls is within one half hour. Many complaints are the companies don't get back quick enough and the situation festers. Our response time is part of our attitude towards our business.

P.S. Did you find out why he is not using the company he did before, always interesting to know. Plus make sure that you understand his payment terms Talan, net 30 days?

Stringer

Quote:

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Originally Posted by Stringer

$16.00 an hour is fair Talan. I think your estimate of 40 hours per house may be high though. You will have to work well and detailed however more quickly. Remember that you you will pick up a much better feel for how to do this properly after you do a few.

Also remember to walk him through the house to get his approval and it is worth trying to get him to 'sigh off' on the work. Put something simple together stating what you did briefly and that he is satisfied with your work. should he have a few small things that need attention do them without hesitation, remember you want more of his work.

Use a box cutter with a single edge blade to remove the stickers from the windows...wet them first and let them soak a bit.

Don't forget sweeping and mopping all hard floors, wiping out the refrigerator (even if new)...smell.

Which brings me to the senses that help sell the job; not only does how it looks matter but how it smells clean. Don't make it smell too strong though, and pour water down all floor drains to trap any swamp odors.

Tell him that $16.00 is near the bottom of the going ranges per hour (which it is but fair). You may want to suggest that after you have cleaned so many homes per 6 months you and him can sit down to discuss pricing further.

Remember that you need references Talan, make him happy.

We are not the cheap guys on the block. We tell them up front that we are a 'penny or two higher' but our training is extensive and each project is supervised with experienced people. And our time to return requests, situations and calls is within one half hour. Many complaints are the companies don't get back quick enough and the situation festers. Our response time is part of our attitude towards our business.

P.S. Did you find out why he is not using the company he did before, always interesting to know. Plus make sure that you understand his payment terms Talan, net 30 days?

Stringer

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Thank you so much Stringer, you don't even understand how much of a help you have been. Just having someone to say that my price is fair really made my night.

As far as a price per sq ft. quote.. what do you think would be a reasonable range for me for these types of homes, considering it is my first construction clean up job? 10-.15?

And also the guy mentioned something about "how are we gonna do this, contractor(or something to that extent)" and I wasent sure what he meant. Maybe having a contract with them?

Being new to the business, I do not know how contracts are written and who writes them. Getting the language right is really important. And also how would I bill him and what would be the process to do that because I have only accepted cash and checks for my other cleanings?(granted I will accept cash or checks if that is what he is okay with)
Thank you for all the help once again, it is greatly appreciated

Also I forgot to say, I hope your meeting went well today and your day in general was great

Quote:

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Originally Posted by Talan7528

Also i forgot to say, i hope your meeting went well today and your day in general was great

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Thank you for thinking of that Talan.

Yes we had a first meeting and did a walk through of a 90,000 sq ft corporate office building that needs 5 day/week cleaning, looks encouraging and we will tender a bid next week. I have another interesting meeting Wednesday to meet and greet and walk through another 150,000 sq ft corporate building. Corporate, regional and district office buildings are better, less competition and they want great service AND are usually willing to pay for it.

Stringer

Quote:

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Originally Posted by Stringer

Thank you for thinking of that Talan.

Yes we had a first meeting and did a walk through of a 90,000 sq ft corporate office building that needs 5 day/week cleaning, looks encouraging and we will tender a bid next week. I have another interesting meeting Wednesday to meet and greet and walk through another 150,000 sq ft corporate building. Corporate, regional and district office buildings are better, less competition and they want great service AND are usually willing to pay for it.

Stringer

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That sounds fantastic, maybe one day our company will be able to give out bids for those types of buildings. Would you say that word of mouth is the best marketing tool in the business today?

Quote:

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Originally Posted by Talan7528

Thank you so much Stringer, you dont even understand how much of a help you have been. Just having someone to say that my price is fair really made my night.

As far as a price per sq ft. quote..what do you think would be a reasonable range for me for these types of homes, considering it is my first construction clean up job? .10-.15?

And also the guy mentioned something about "how are we gonna do this, contractor(or something to that extent)" and i wasent sure what he meant. maybe having a contract with them?

being new to the business, i do not know how contracts are written and who writes them. getting the language right is really important. And also how would i bill him and what would be the process to do that because i have only accepted cash and checks for my other cleanings?(granted i will accept cash or checks if that is what he is okay with)
Thank you for all the help once again, it is greatly appreciated

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Talan, let me ask you... are you incorporated and do you have liability insurance? Extremely important you know for your financial safety and that of you clients. It doesn't take much time or money.

As a contractor you provide services/product to your clients. You want to set your company up as a professional business and hire employees not sub-contractors Talan.

We have a written proposal which when agreed upon and is signed becomes a contract. This briefly states who we are, what we do, why we are different, what we are offering for this job (specifications), pricing, our payment terms, and the address to remit payment to.

If you Google Cleaning proposals you should be able to find something that 'fits' and possibly without cost.

By the way Talan, have we met before on this site? Your name sounds familiar. :)

Let me know,

Stringer

Quote:

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Originally Posted by Stringer

Talan, let me ask you...are you incorporated and do you have liability insurance? Extremely important you know for your financial safety and that of you clients. It doesn't take much time or money.

As a contractor you provide services/product to your clients. You want to set your company up as a professional business and hire employees not sub-contractors Talan.

We have a written proposal which when agreed upon and is signed becomes a contract. This briefly states who we are, what we do, why we are different, what we are offering for this job (specifications), pricing, our payment terms, and the address to remit payment to.

If you Google Cleaning proposals you should be able to find something that 'fits' and possibly without cost.

By the way Talan, have we met before on this site? Your name sounds familiar. :)

Let me know,

Stringer

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Stringer, thanks for the advice. We are planning to get incorporated and insured soon (though we have been told that we don't need to when we were cleaning only houses) and the guy did not ask me if we are, but we will make sure we are soon just to be safe.

And no I don't think so, unless my memory is not serving me well, I believe this is the first time I ever registered for this site. Though I have read a lot of your similar answers recently, which got me to sign up yesterday.
And thanks for the contract advice and how to get our agreement done, it is greatly appreciated and I will look more into it when I have time.

So what price per sq ft. range do you feel would be fair for these types of jobs? What range should I be in for the description that I gave you if I were bidding per sq ft? I know that's its really important to get this job so that I may use the person as a reference in the future. I am willing to pay on the lower end(but fair, like the $16 per hour price)..

Quote:

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Originally Posted by Talan7528

Stringer, thanks for the advice. We are planning to get incorporated and insured soon (though we have been told that we dont need to when we were cleaning only houses) and the guy did not ask me if we are, but we will make sure we are soon just to be safe.

And no i dont think so, unless my memory is not serving me well, i believe this is the first time i ever registered for this site. Though i have read a lot of your similar answers recently, which got me to sign up yesterday.
And thanks for the contract advice and how to get our agreement done, it is greatly appreciated and i will look more into it when i have time.

So what price per sq ft. range do you feel would be fair for these types of jobs? what range should i be in for the description that i gave you if i were bidding per sq ft? I know thats its really important to get this job so that i may use the person as a reference in the future. I am willing to pay on the lower end(but fair, like the $16 per hour price)..

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I feel the $16.00/hr is fair to both although we would all like to receive more Talan... (sigh).

You need to be incorporated and insured Talan... (.)

Are you planning to stay with residential or eventually get into commercial? They are two totally different beasts.

Sq ft is easy to figure although residential is generally figured hourly. On some commercial cleaning construction jobs we bid 'time and materials' although they are few as most want a total $ price.

Figure how many approximate hours to do a job and the rate per hour you charge and divide that by the sq ft to arrive at yor price per sq ft.

Example: 40 hours@ $16.00/hr =$640.00 for a 4000 sq ft home. Divide the $640.00 by the 4,000 sq ft = $0.16 per sq ft.

:)

Stringer

Thanks for the 'agree' Talan.

Stringer

Quote:

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Originally Posted by Stringer

I feel the $16.00/hr is fair to both although we would all like to receive more Talan.....(sigh).

You need to be incorporated and insured Talan...(.)

Are you planning to stay with residential or eventually get into commercial? They are two totally different beasts.

Sq ft is easy to figure although residential is generally figured hourly. On some commercial cleaning construction jobs we bid 'time and materials' although they are few as most want a total $ price.

Figure how many approximate hours to do a job and the rate per hour you charge and divide that by the sq ft to arrive at yor price per sq ft.

Example: 40 hours@ $16.00/hr =$640.00 for a 4000 sq ft home. Divide the $640.00 by the 4,000 sq ft = $0.16 per sq ft.

:)

Stringer

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Thanks for the reply Stringer. Everything makes sense right now. I just have to figure out an estimate of how long a job would take, so that I can figure out a 'close' cost per sq ft. until I get better at it.

What are average hours on a post construction clean up home. I know it depends on what there is to do, but if you are getting it ready for sale and its, lets say 5000 sq ft. I don't think it would be more than 30, like you said

And also, we are labeled as a 'commercial and residential' cleaning company because we plan to get contracts in the future(hopefully). I know we have to get insured and incorporated quick

Hi Talan,

In the middle of 'busy' presently... scheduling problems and negotiations with a client.

Back atcha soon, possibly tonight or tomorrow.

Sorry Talan,

Stringer

Quote:

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Originally Posted by Stringer

Hi Talan,

In the middle of 'busy' presently......scheduling problems and negotiations with a client.

Back atcha soon, possibly tonight or tomorrow.

Sorry Talan,

Stringer

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Okay sounds good :)

Quote:

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Originally Posted by Talan7528

Thanks for the reply Stringer. Everything makes sense right now. I just have to figure out an estimate of how long a job would take, so that i can figure out a 'close' cost per sq ft. until i get better at it.

what are average hours on a post construction clean up home. i know it depends on what there is to do, but if you are getting it ready for sale and its, lets say 5000 sq ft. I dont think it would be more than 30, like you said

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You're right Talan this is not an easy question with all the invariables involved. Considering a house where everything has to be done; windows (also removing stickers), blinds, washrooms, kitchen, carpets being detailed, hard floors, etc plus removing any trash that the GC's people left which could be some large lift over drywall, wiring, wood, and so on.

Keep in mind that any figures that you arrive at presently should be flexed sometime in the near future as you get more experienced.

30 may be a decent number though.

Stringer

Quote:

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Originally Posted by Stringer

You're right Talan this is not an easy question with all the invariables involved. Considering a house where everything has to be done; windows (also removing stickers), blinds, washrooms, kitchen, carpets being detailed, hard floors, etc plus removing any trash that the GC's people left which could be some large lift over drywall, wiring, wood, and so on.

Keep in mind that any figures that you arrive at presently should be flexed sometime in the near future as you get more experienced.

30 may be a decent number though.

Stringer

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Thank you for all the advice. Im just going through a hard time right now with the way the commercial side of the business works. Im going to have to figure out:
1. How to price correctly
2. How to create a bid sheet/proposal that looks good
3. Incorporate for the right price
4. Getting the right insurance
5. Estimating hours for a job and calculating cost for the job on the site

Hey Stringer, one more quick question. Its really important. When I talked to the builder that we started doing work for, he told me to give him proof of insurance and the paper for "workers comp"...

What does he need workers compensation for? What is it? And how much would we have to pay for it? Is it worth it?

We are about to get insured through Geico's parter for 1,000,000 for only 400(a little less) for a year, which I think is a great deal unless I'm missing something