Posted: December 27th, 2010 | Author: Admin | Category: Commercial Cleaning, Janitorial Services, Office Cleaning
Utah Cleaning always gets a lot of questions on how cleaning bids are calculated. In our effort to provide the best janitorial cleaning services in Utah, we have decided to explain how cleaning quotes are calculated. It's worth mentioning that we went through a lot of "trial-and-error" until we were able to rely on this formula.
Although our cleaning quote calculation makes perfect sense to us, others may have a hard time understanding, let alone applying its principles. This formula can be used for any type of job, being a commercial, industrial, or residential cleaning quote. It can also be used on carpet cleaning, office cleaning, any type of floor, or even a mix of every type of cleaning requirements combined for frequent or one-time deep cleaning quotes.
Here’s the heuristic cleaning quote formula:
It seems quite complicated, but it will make sense after the following explanation:
fc = fixed costs
sqft = total square footage to be cleaned
c = the price you will be charging per square foot
pm = profit margin (percentage of $ amount)
tx = local taxes
s = estimated daily, monthly, weekly or per job supplies
There are four variables that cannot be overlooked and it will require fine tuning in order to bid correctly without underbidding, at the risk of accruing expenses instead of being profitable, or overbidding which would cause you to not get the cleaning account. The most important variables are: fc (fixed costs), c (cost), pm (profit margin), and tx (taxes).
Why are these variables important?
First, fixed costs (fc) : determining how much it will cost to perform a job, or the fixed cost, is the major factor impacting the price that will be charged to customers; second, is cost (c) for cleaning the square footage keeping in mind the work and cleaning supplies associated with each different floor type; profit margin (pm): determined by a percentage or a fixed amount to be saved as part of the business reserves; and finally, taxes (tx) that cannot be forgotten to be charged, otherwise the business can take a big hit every April 15th when taxes are due.