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Friday, October 31, 2014

Question

I am in the process of preparing a bid for an office building in Miami, FL. They have requested a quote as a per hour/porter rate. They need one porter from 2:30 pm-10 pm and an additional porter from 6:00 pm-10 pm. I will be paying the porters $9.00/hour. What would be an appropriate rate to charge the building per hour / porter?


Answer

By adding your total hourly overhead rate to the $9.00 an hour you will know your hourly break-even point. For example, if payroll costs are 20%, you will add $1.80 an hour more to produce your true labor cost ($10.80/hr.). Then, add all of your other expenses in the same manner. Your final hourly rate should cover things such as travel time and the amount of management time required, so you may want to include an additional 4-5 hours a week for supervision, training, QC, etc.
If you supply approximately 60 man hours a week, then a 16%-25% markup should earn you a good profit and yet be a competitive price. .

Gary Clipperton
National Pro Clean Corp.
(719) 598-5112
www.nationalproclean.com