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Dynamic Detail · May 3, 2009, 08:58 AM

Hi

I have a question about on how to find out what I should charge for small offices/retail spaces in CT/NY. I know it would probably go by sq footage but what's a good start? I want to make sure I do not go overboard w/ pricing and won't get a call back.

Fr_Chuck · May 3, 2009, 09:02 AM

In your years of experience and working for other companies learning the skills and business what were they charging

Stringer · May 5, 2009, 12:16 AM

Chuck's statement has a good point, please tell us how much experience you presently have in this business? Having a mop and a bucket isn't enough, I know that is an over statement but we need to understand you better.

Pricing is a variable and it is not always by the sq ft as so many think it is. There are so many other considerations.

If you are plannig on always being the low bidder and getting the jobs only in this way then you will eventually find yourself on a park bench.

Please return and fill us in a little about yourself and your experience level in the operations end and the business/sales end also.

Thanks,

Stringer

Clough · May 5, 2009, 12:19 AM

Hi, Dynamic Detail!

If you would like to work on ways to advertise your business without it costing you anything for advertisng, please let me know on this thread.

Thanks!

Dynamic Detail · May 5, 2009, 04:50 PM

Yes please let me know
Thanks!

Dynamic Detail · May 5, 2009, 06:12 PM

To answer the other questions, to make a long story short a few yrs ago at the age of 21 I co owned a successful resid and comm cleaning company in chicago. I was to immature and decided I would rather work a real job. Well moving to the east coast and growing up, receiving my mba, I have that entrepreneurial spirit that will not die so I am going at that this full force. When is a good time to leave your 9 to 5 and pursue this full time?

Stringer · May 5, 2009, 06:30 PM

Are you already set up formally as a business?

Have you set up a business plan as yet?

Initially, what size buildings are you going after?

Are you picking a niche market (retail, general offices, medical, etc) or are you taking what you can get? I ask this because as an example, cleaning medical is much more labor intensive...

Stringer

Dynamic Detail · May 5, 2009, 06:46 PM

Yes I am an LLC, and registered with the state. It's a resid and commercial cleaning service. I am officially starting in Jan, so now is the planning stages and I am almost done with my business plan. I plan on servicing office buildings, gov't buildings, etc. No to medical offices. I honestly really hate the 9 to 5 office job and tired of making others millions when I can have my own empire and have the motivation.

Any advise on how to leave my 9 to 5? I know I should make sure I have more than enough business to cover the income but I cannot give it my 100% while working this 9 to 5 which is really frustrating me

Stringer · May 5, 2009, 08:25 PM

Originally Posted by Dynamic Detail

Yes i am an LLC, and registered with the state. Its a resid and commercial cleaning service. I am officially starting in Jan, so now is the planning stages and i am almost done with my business plan. I plan on servicing office buildings, gov't buildings, etc. No to medical offices. I honestly really hate the 9 to 5 office job and tired of making others millions when i can have my own empire and have the motivation.

Any advise on how to leave my 9 to 5? I know i should make sure i have more than enough business to cover the income but i cannot give it my 100% while working this 9 to 5 which is really frustrating me

Well, I think that you hit it on the head Dynamic. I believe that to leave your present job you will obviously need to have your new company up and running with enough income to support yourself and your new company. The only way I know of doing this is to start with getting a few buildings that you (and your worker/s) can clean in the evening and try to expand. Along the way, try to save some cash as a back up so your new company will be solvent.

Before I started my business I worked for a janitorial company in Chicago for almost five years. Started as a salesman to Sales Manager and then to V.P. of Sales and Marketing. At one time this company was the largest Hispanic owned janitorial company in the nation.

When I decided to start my own company I had all the confidence that it would be successful. I second mortgaged my home for the needed cash. Not that I needed the extra motivation, but owing that money sure kept me moving...

If I recall in your original question you inquired about pricing. We price in about three ways; square footage, necessary hours to do the job properly and what my competition is currently doing.

The rule of thumb in the suburban Chicago area for general office cleaning is approximately $ .13 to $ .20 per sq ft for a 10 to 15,000 sq ft building / 5 nights per week. As always, any decision concerning pricing is yours alone, this is only a suggestion.

If the cleaning schedule is less (1 to 3 nights/week) then go to the higher price. Remember that 'volume dictates price'... the more volume (size) the price is slightly lower. This is usually dictated by your competition as they will normally bid this way.

More questions... let me know.

Stringer

Clough · May 6, 2009, 01:10 AM

Hi again, Dynamic Detail!

I'm here again, if you would like to know how to advertise you business for free!

Thanks!

Dynamic Detail · May 6, 2009, 02:43 PM

Originally Posted by Stringer

Well, I think that you hit it on the head Dynamic. I believe that to leave your present job you will obviously need to have your new company up and running with enough income to support yourself and your new company. The only way I know of doing this is to start off with getting a few buildings that you (and your worker/s) can clean in the evening and try to expand. Along the way, try to save some cash as a back up so your new company will be solvent.
Stringer

Thanks! Ha my first cleaning company was in chicago. Our first contract was People's Energy on division street. Thanks again stringer. This helped a lot

Dynamic Detail · May 6, 2009, 02:44 PM

Originally Posted by Clough

Hi again, Dynamic Detail!

I'm here again, if you would like to know how to advertise you business for free!

Thanks!

How do I find out?

Cleaningman23 · May 12, 2009, 07:07 PM

Originally Posted by Dynamic Detail

Yes i am an LLC, and registered with the state. Its a resid and commercial cleaning service. I am officially starting in Jan, so now is the planning stages and i am almost done with my business plan. I plan on servicing office buildings, gov't buildings, etc. No to medical offices. I honestly really hate the 9 to 5 office job and tired of making others millions when i can have my own empire and have the motivation.

Any advise on how to leave my 9 to 5? I know i should make sure i have more than enough business to cover the income but i cannot give it my 100% while working this 9 to 5 which is really frustrating me

Lol I admire your "empire" statement

I am driving for the same thing right now!

The sky is the limit brotha

Stringer · May 12, 2009, 07:28 PM

Dynamic,

Having a business plan is essential to your success I am glad that you realize this. It is obviously a living document that changes as needed.

Stringer

Clough · May 12, 2009, 11:19 PM

Originally Posted by Clough

Hi again, Dynamic Detail!

I'm here again, if you would like to know how to advertise you business for free!

Thanks!

Originally Posted by Dynamic Detail

How do I find out?

Hi again, Dynamic Detail!

We Could do that right on this thread or maybe you could start a new one. Please let me know on this thread what you would like to do.

I can show you all about advertising for free on the Internet.

Thanks!

jddollen · Aug 8, 2009, 06:01 PM

Stringer when you say 13 to 20 cents lets say times 10k Square foot is that the daily bid or the monthly bid?

In other words do you take that times the number of nights you are cleaning?

Sorry if that seems like a noobie question but it could make a huge difference in bidding...

Stringer · Aug 8, 2009, 07:41 PM

Originally Posted by jddollen

Stringer when you say 13 to 20 cents lets say times 10k Square foot is that the daily bid or the monthly bid?

In other words do you take that times the number of nights you are cleaning?

Sorry if that seems like a noobie question but it could make a huge difference in bidding...

Yes it certainly would, price it daily this way and they won't even consider you.

10,000 sq ft X $0.13 / sq ft = $1,300.00 per month is the correct answer here.

jddollen · Aug 8, 2009, 08:32 PM

Thank you now my other question is if it takes 1 manhour to clean 3k sq ft and you have 10 k that would mean a minimum of 3 man hours times 5 times per week that is 15 man hrs per week are you making any profit on this project?

At 1300 that is about 21 bucks per hour are you making anything after your overhead?

Stringer · Aug 8, 2009, 08:48 PM

Remember that you will not get 'rich' on any job unless it it several million sq ft...

65 man hours per month X (say) $9.00 per hour = $585.00 total labor per month.

$1,300.00
- 585.00
$ 715.00 difference: Gross profit

Of course some of that $715 will be for insurance, supplies, equipment, cleaning chemicals, etc. On the high end figure 30% of the $1,300.00 or $390.00

$585.00
+390.00

$975.00 Labor/costs

$1,300.00
- 975.00
$325.00 profit (not too bad)

Now go and add 10 more like this and your total monthly profit will then be: $3,250.00 per month.

Strigner

Stringer · Aug 8, 2009, 08:52 PM

ALWAYS figure your labor as follows:

Total hours per week X 52 weeks, divided by 12 (months) = equals your total monthly hours. Then figure how much the hourly rate will be.

If you use any other method such as a factor of 4.3 weeks (average) in a month you will not have accurate figures. And over the year it WILL affect your figures.

Stringer