Bidding a custodial job

Discussion in 'Lets talk Business!' started by steve_64, May 22, 2017.

  1. smastio
    smastio

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    What am I missing here? $40,000 / 365 days (assuming open 7 days) is $110 a day. If you think it's going to take 5 hours that means that you are getting $22 an hour. I don't know what you pay your people, but if you don't want turnover it has to be decent like $12/hour. So now your down to $10/hour profit. Start taking off expenses like chemical and supplies (maybe 3%), payroll taxes, insurances, etc. Is it worth it? What am I missing, or is everyone telling you to run correct? I had a Commercial Cleaning company for 10 years, I stayed so far away from dealerships because they were soooo cheap. Also, I can tell you that the smallest margin accounts take up the majority of your time. Think hard about this one! Unless I am missing something....
  2. Radar Foster
    Radar Foster

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    Apparently this on is 6 days a week, doesn't effect the math much.

    Not Missing anything Steve, I see it the same way
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  3. Jimmy L
    Jimmy L

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    I see it the same way. Big time waster
  4. steve_64
    steve_64

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    850 a week 6 days paying $10 to $12 per hour two employees and Genny. Probably an hour and a half to two a night times two.

    850 x 52 is $44200.

    I'd be ok with three employees and us just billing it weekly and taking care of payroll. Or two working 30 to 35 Hours a week total.

    Not big money but easy and steady. Helps the employee who want more hours. Not a big loss if we don't get it.

    Knowing my area and customers I bet they were only paying $300 to $400 a week. That's just a guess though.
  5. Old Coastie
    Old Coastie

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    Cut all gross figures by 25% for withholdings. Carry 2 million liability, minimum. Wait 60 days for payment, then try to track which check is for what period. Do a zillion bullshitty callbacks which only increase in number, while they ask to postpone or cut services.
    Remember the receptionist has a cousin who "does cleaning" and only charges half. She is banging the sales manager, who is married to the comptroller. Replace things that go missing even though you never saw it. Remember to add the "while you're at its" to your load just to be a good guy, only to find they somehow become expected. Etc, etc, etc..

    Aw heck with it, just clean Chinese restaurants instead.
  6. Derrick T.
    Derrick T.

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    Thats why i do not do big accounts...just dentists, shops and small engineering firms. They are nicer and pay well. I prefer cleaning shops, they pay the best and easiest to do..i think.
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  7. steve_64
    steve_64

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    I was lucky to break $40,000 working 50 plus hours a week in another life. This would be a piece of cake.
    Jimmy L likes this.
  8. Desk Jockey
    Desk Jockey

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    Stephen is just giving you a small glimpse of what to expect. People take advantage of the situation. Bored people set traps, money, bits of paper with dates, dumb stuff. Calls about missed this or that, light bulbs, non vacuumed areas. Its a rough gig!
  9. steve_64
    steve_64

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    I don't see this place being like all that. Not that some things won't happen but I'm really not concerned. I probably won't even get it lol.
  10. Desk Jockey
    Desk Jockey

    Pony Boy Curtis

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    I think they can be valuable accounts but you need to make sure you are making good money for the time spent. We always did better with the smaller ones that the giant ones.
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  11. steve_64
    steve_64

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    It would be our largest account. Our largest now is in the $30,000 plus range just for Genny. I do about another 5 or $6000 with them.

    I'm always looking for more work. I have always been pretty good at figuring out how to get things done efficiently.

    Genny said she could quit all her other nasty jobs and just work evenings. Maybe as a retirement plan, maybe lol.
  12. Old Coastie
    Old Coastie

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    Steve, I think the key in any service job is to be very specific about the scope of work.

    Be clear that any additions will be gladly performed for an additional charge. Then hold the line against the office manager who will absolutely add little bits to your list, but do not antagonize her.

    It sounds like a good account and I'd urge you to develop a disciplined work pattern, use utility belts and *watch the time*.
    Desk Jockey likes this.
  13. Small town janitorial
    Small town janitorial

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    Tons of good advice above. I've found too that frequent communication with employees and manager helps a ton. If the manager just thinks of you as "the janitor who makes 4k a month" they will whine and complain and never be happy. If they see your face often enough sometimes they like you more. Or they can at least tell you if there are things they want done differently. Many cheap companies never communicate, so the customer gets a bad taste about the cleaning company. We leave a "cleaning log" that all the managers can leave notes on. It's rare that we have problems.
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  14. steve_64
    steve_64

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    One of the things all of our accounts like is communication. We make it known when we are coming or if we need to come in later or the next day they are informed. Genny has always been extremely detailed in her invoices and on our bids. Almost always multiple conversations before during and after completion when they available. We don't like suprised not do our customers.

    Yes lots of great advice here even the negative stuff has merit.
  15. smastio
    smastio

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    I can tell you with 1000% Certainty - Communication is the key. It's not cleaning. It about communicating about cleaning on the commercial level. If not, you're have a blind date from a long distance - it's just a matter of time. Use what you want from my brochure if it helps. The company was sold recently. Good luck with the biz...https://training.fittlebug.com/images/brochure.pdf
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  16. Small town janitorial
    Small town janitorial

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    While I agree with the above post about communication, my clients would laugh at all the computer hastle and they hate the big contract company style of your business. They know me, the owner, personally and thats the kind of service smaller businesses like. Big enough cleaning company to be proffesional, small enough to be efficient.
  17. Radar Foster
    Radar Foster

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    Well????


    How much did you overbid the guy that got the contract?
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  18. steve_64
    steve_64

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    Haven't heard anything yet. We've talked about calling but haven't yet.
  19. steve_64
    steve_64

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    I stopped in today and was told our bid was in the running. No decision had been reached yet. Maybe a couple more weeks but I bet they stay with who they have because of price.
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  20. Old Coastie
    Old Coastie

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    Yep, they are just making sure they have a reserve. Meanwhile, they are sticking with their current guy.
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