Originally Posted by
Cleaningman23
Yes. I was also going to post your email but was unsure about what to post. You did say a few things in there I was unsure about hehe
No problem... Clean, here is what I think is pertinent:
Stringer........
"I do not trust property management companies (period). What you quoted will give them the job done properly and allow you manageable profit. That being said, you know that the choice is yours.
Answer this; Are you going to be doing the cleaning yourself? Or are you going to be paying someone to do all this? (Important in my calculations…..) Because, if you are doing this yourself then anything above your expenses (including all taxes) is profit for you, no payout to workers.
# 1: I would say this, in my opinion, figure how much time it will take you to complete EACH job on a daily basis.
# 2: With average density in the areas to be cleaned…you should be able to clean on average around 3,000 sq ft per hour. Divide this into the sq ft for each area and you will get the time it will take you to clean that specific area. If you are using workers to do this then minimum wage (loaded ) is just under $9.00 per hour in Illinois.
Example; say it takes 1 ½ hours to do a specific area = 1 ½ X $9.00 = $13.50 actual labor cost to clean it. Do you get the picture? I usually use about 17 to 25% for equipment and chemicals on top of this. For your administrative costs (taxes and other…): another 25 to 30%. See where that bottoms out for each job.
Then get back to me with your figures….in a break out for each and every one of these…
It is nice to know what their budget is and what the other company was charging….but I smell a dead fish here…. For her to be this NICE and to give you the 'present' pricing because she likes you so much and simply wants to work with you…..well, maybe? Their job is to cut or maintain all cost, especially now….she could be baiting you….because she knows you are new to commercial possibly…?
She is 'selling' you now…'buyer beware.' I can't say that this is true, but my experience of over 30 years doing this…….:(
Bottom line is: IF, you can work up your new total figures and compare them to hers and still make a decent profit (20 to 25% on smaller jobs like this) for each and every one of these…then possibly go with it. If for some reason after you do your due diligence and your figures are below hers then I would obviously use hers. I would tell her that you worked hard to 'squeeze' your figures and managed to match hers…tell her nothing else, the more info you give her the more she has to use against you if needed later.
If you are going to do this work yourself then you may have more wiggle room.
When we are finished with this email, I want you to 'copy' it and paste it on your thread please." - Stringer
Cleaningman23......
"Hi Lloyd,
I do understand where you are coming from, but for some reason they keep dangling more opportunities in front of my face. Which to me, can open up into other companies than them. I am in this business to make a profit though and will refuse to work for nothing. I have calculated that some days I would bring a worker and work besides him possibly cutting my labor cost by 20%. These are the figures I have calculated so far with your equation.
Suite 105= 1.67 HRS X 9.00 per hr= $15.03 labor
Same building(same day of cleaning) Network= .96 HRS X 9.00 = $8.64 labor
Those two would total to about $23.67 per week or $94.68 per month for labor
Suite A and B= 1.13 HRS X $9.00 per hr= $10.17
XXXXXX Building .82 hrs X $9.00 hr=$7.38
Those two would total $17.55 per day cleaned or $70.20 per month
Both of those together will be $164.88 Per month labor and less if I were to work along.
Now would the admin fees and equipment be on top of the over cost for all the jobs? Or individually?
Thanks again"
Stringer.....
"On top of…..simply take the percentage you want to add to the labor: (percentage??) X the labor for each thing….supplies, equipment, profit…. Then get a total monthly for each job. Then evaluate that against her figures. Then if hers is higher…use hers…if not then you have a problem."