Tuesday''s Ask the Experts question from a cleaning professional on the International Custodial Advisors Network(ICAN) "Ask the Experts"page: I have a bid for a theatre with 8 show rooms, the area where popcorn and candy gets sold, 1 arcade area, 1 men''s bathroom with about 8 toilets plus the sinks, 1 women''s bathroom with about 12 toilets plus the sinks. We must vacuum the whole theatre area. I would say the whole place is about 20,000 sq. ft. I am thinking about charging $2,688.00 per month, but I honestly have no idea if I am charging a reasonable amount. I don''t know if I am undercharging or overcharging. With this rate I will pay for 2 employees at a pay rate of $8.25 an hour. The job is to be done 7 days a week, for 3 hours a day. Please give me your thoughts!
Run some numbers. You are paying $1534.50 (2x3x8.25x31) in basic wages in a 31 day month. Add 22% for labor burden and you get 337.59, which brings labor costs up to $1872.09. That leaves you a gross profit of $815.91 or $26.32 a day. Are you supplying liability insurance, cleaning supplies, transportation, vacuums and repairs, uniforms, office supplies, anything else that costs money for this account? Subtract these additional expenses and get your true profit. By the way... — Lynn E. Krafft, ICAN/ATEX Editorlekrafft@juno.com