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Pricing and payment plan questions.

February 11 2004 at 9:20 PM
Steve Kennedy 

As a newbie in this business, I'm still getting my feet wet in understanding how to price my work. With some outside guidance, I did set up a pricing structure; but am curious where others, who are cleaning smaller chunks of real estate (under 2000 sf-residential or commercial), are coming in at on a cost per sf basis.

Another question is although traditionally this business has a good track record for the 'cash-in-the-barrel payment plan', does there seem to be any growing trends towards payment prefences via credit cards? I'd still prefer to work on cash or check only basis. Did a small commercial job last week where I was handed a check on the spot, but understand that may not be the norm. Thanks - Steve

 
 
AuthorReply

Rick Gelinas

Re: Pricing and payment plan questions.

February 11 2004, 10:14 PM 

Most commercial work will pay by check. But we do have a few accounts that would NOT have us service their carpet if we could not accept their corporate card.

This is especially prevalent in government accounts. Credit cards are the departments spending cards within government agencies. So if you can swing handling cards it may be worth it as you grow.

There is no law carved in stone about pricing. If you do a search here you'll find that it's been discussed pretty thoroughly. But I would suggest on small jobs under 2,000 sq ft that your price per sq ft be in the .20+ range. Less than that would simply not be worth the trouble. Try to go for larger accounts, that's where the money is.





Rick Gelinas
ENCAPSULATION - How It Works

 
 
Steve Kennedy

Pricing

February 12 2004, 12:26 AM 

Thanks for the info. In reading some of the past postings, it was impressive to see the profits generated from the bigger jobs involving the Cimex and 2-3 body crews. Hope to be there someday....I won't worry about credit cards until it becomes an issue.

 
 
Emilio Martinez

Re: Pricing

February 12 2004, 10:41 AM 

Rick is right about government agencies. I use to work for the government and they do not have a commercial bank account to pay for anything. Every purchase is made via govt. credit card. I mean everything. I think they get to track things better this way and it keeps cash, checks and the possibility of internal theft out of their direct responsibility.

I use to be in charge of a fleet of 100 vehicles and one of the main criteria for hiring was the contractors ability to handle multiple credit cards. Even car wash expenses were tracked to the individual vehicle. On the bright side this guy made about $2000 to $3000 every month for working 3-4 hours a day, 5 days a week. You do the math...

I do caution everyone about government spending. If congress hasn't approved the new fiscal year budget, no spending is done. I mean it stops cold turkey. This was the norm every year from September to November and even as late as December. I would tell the guy to hang in there since I knew it was only a matter of time until spending was once again authorized. I recommend that anyone looking for government jobs do so with caution or at least with a buffer to carry them thru a 2-3 month break in income.

 
 
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