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Saturday, October 25, 2014

Question

I have two places equaling 16,500 sq ft. One place is 11,000 sq. ft. and the other is 5,500 sq. ft. The larger one is cleaned 7 days a week, 6 restrooms with a person working for a few hours mid-day Mon.-Fri., 40 rooms. The other is cleaned Mon.-Fri. with 3 bathrooms and 25 rooms. The contract calls for mopping, dusting, vacuuming, restroom detailing, buffing (quarterly) and as needed, we supply the can liners. These are my figures. Please let me know if I'm wrong and if I am, what I should charge for this. 11,000 sq. ft. x $0.035 per sq ft = $385.00 per day 5,500 sq. ft. x $0.035 = $192.00 Total = $577 per day Is this too much? What would be a good price for this type of work?


Answer

Again we have one of those ďI donít knowĒ questions. You may be able to pull that off, but I doubt it. Those numbers look much too high.
If you can clean the 11,000 sq. ft. building at a rate of 3000 sq. ft. per hour, it will take 3.7 hours to clean each time. Using a service charge of $22 per hour, that adds up to $81 a day or $.0074 per sq. ft. per day. That is about $2.69 per sq. ft. per year as opposed to your proposed $12.74 per sq. ft. per year. That is a huge difference.
At $22 per man-hour, you are projecting your daily cleaning time for that building to be 17.5 hours or a cleaning rate of 628.5 sq. ft. per hour, which is ridiculously slow for normal daily work. I didnít add in a man for a couple of hours mid-day, but you get the point.
The problem is, I donít know your break even point, or your production rates, or your labor costs. You may have to charge $96 per hour for a 4 hour shift to cover your costs or you may be able to do it with an $18 per man-hour charge. I suspect it is much closer to the latter than the former, but I donít know for sure.
You are going to have to get some numbers together and find the hourly rate you need to charge so you can cover your labor and related costs, pay for supplies and supervision, and turn a reasonable profit. You are going to have to learn your production rates. None of that is uniform across the industry and it is up to you to set the figures where you want them to be to prepare a sound bid.

Lynn E. Krafft, ICAN/ATEX Editor