For All The Janitors....

[TheCleaningDude]

Yes, you're right.

I used the numbers to keep the math simple.

The new accounts is at $19.60 per hour billable. The two other accounts are at $24.00 and $27.00 per billable hour.

Assuming I bid the work correctly of course....

JMO, but I think your rate is at least a little low for janitorial. That pricing might be OK at paying $8.00 per hour; I would be more comfortable if you bid based on $19.00-20.00 per billable hour if you're paying out $10.00 per hour. You might lose bids to the large players in town, but you should be able to get some medium sized offices that care about quality. There are still a FEW out there!

But I haven't been in janitorial for almost half my lifetime now...just what I've heard from some networking partners that are pretty successful.

Back when I started in 1980, you could get some pretty good sized janitorial accounts at $35.00-$50.00 per billable hour. The last medical office I bid on about 10 years ago, my price was undercut by half! The doctors said they knew it wouldn't work, but they had to TRY the other co. The next year, they called me and wanted us back. But by then, we were CC only, and referred them to someone else.

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Thank you, sir!

JMO, but I think your rate is at least a little low for janitorial. That pricing might be OK at paying $8.00 per hour; I would be more comfortable if you bid based on $19.00-20.00 per billable hour if you're paying out $10.00 per hour. You might lose bids to the large players in town, but you should be able to get some medium sized offices that care about quality. There are still a FEW out there!

But I haven't been in janitorial for almost half my lifetime now...just what I've heard from some networking partners that are pretty successful.

Back when I started in 1980, you could get some pretty good sized janitorial accounts at $35.00-$50.00 per billable hour. The last medical office I bid on about 10 years ago, my price was undercut by half! The doctors said they knew it wouldn't work, but they had to TRY the other co. The next year, they called me and wanted us back. But by then, we were CC only, and referred them to someone else.

I agree with Kevin. At least $20 per hour will be necessary to be even remotely profitable. Carpet cleaners typically average a gross return of $100 per hour or more. Does that sound high? It isn't. After factoring all of the legitimate business expenses into the equation that is what's required to make a profit and live to see another day. If we're in business but not making a profit - then we have a problem. We might as well go and take a 40 a week job rather than experiencing the hassle of being in business. I would recommend finding a way to rethink the cost/profit ratio.

Here is a message board that may be helpful to ask this question to since there are more people in the maintenance field on that forum... http://forums.cmmonline.com/forums/1-community

Wishing you success!