One reason why many house cleaning companies are so successful these days is that they can balance costs with profits. Sloppy bidding on house cleaning jobs is a good way to run your business into the ground. Sometimes, the revenue might not suffice to cover the wages you pay the crew, or even the supplies you get them. This isn’t something you can relegate as a trivial concern.
But bidding too high can pose its own problems. One direct effect of this, which you’d dearly wish to avoid, is that potential customers run off to find cheaper alternatives. Besides driving the business to other house cleaning companies, this also serves to deprive you of the referrals your business will need in order to flourish. Consequently, it’s important to make sure you bid accurately on the jobs you acquire. Following are some guidelines which house cleaning companies can use in this regard.
Calculating the costs
Find out the volume supply costs for the job. This can be done by dividing the number of applications for each bottle of cleaner, by the total cost of one bottle. For example, if each home uses up a quarter bottle, and each bottle cost $5, then the volume supply costs come to $5/4 = $1.25.
To the figure you’ve worked out, add the “per-job” consumables cost. This includes such things as rags, gloves, brushes, and sponges.
Calculate the total hourly salary per employee, and add that to the cost heap. If two cleaners cost you 12 dollars each for an hour, then the total hourly salary comes to $24.
Calculate the break-even cost you will incur, which can depend on a variety of needs. This figure is the minimum amount you should charge, so that you’re not left at a loss. Add this to your total costs.
Arrive at the total bid by figuring in the profit percentage on top of the break even costs. Then find the gross profit percentage, which is the profit you need so that your company can grow a bit, or say, raise the salaries to its employees. This will be a percentage of the break even costs you’ve just calculated, and which you should add to the latter.
This is some of the basic calculation house cleaning companies can use to prevent making ill-advised bids on jobs. Neither too low nor too high, is what you should be aiming for.