Prepare house-cleaning estimates.
If you own a home-cleaning service and inaccurately bid on your jobs, you could be losing money. Your revenue might not cover your hourly wages or supplies. Additionally, if you bid too high, you risk sending potential clients to your competition. Plus, you may not get the referrals necessary to grow your business. Your success depends on your ability to accurately bid your jobs. Does this Spark an idea?
Instructions
1. Calculate your volume supply costs by dividing the number of applications you get out of each bottle by the total cost of each bottle. For instance, if you typically use 1/4 bottle for each home, and your cleaner costs $4.95, then your volume supply costs equal $1.23 because $4.95 divided by four equals $1.23.
2. Add together the cost of your "per-job" consumables that includes the cost of rags, gloves, brushes, sponges or bags.
3. Add the total hourly salary for each employee that works on the house. For instance, if you have two cleaners that cost $11 per hour, then your total hourly salary equals $22 because $11 multiplied by 2 equals $22.
4. Calculate your break-even costs by adding together your volume supply costs, your per-job consumables and your hourly wages. If your total break-even costs equal $36, then you must charge this amount to at least break even.
5. Calculate your total bid by adding your profit percentage to your break-even costs. Your gross profit percentage represents the profit you want your company to achieve to grow your business or provide increases salaries or bonuses. For instance, if you want to achieve a 20% profit, you will add 20% to your break-even costs by multiplying your break-even costs by .2, then adding that result to your break-even costs.
6. Calculate your square-foot rate by dividing your total bid amount by the total number of square feet. Square footage estimates help you compete for houses of varying size. For instance, if you charge $75 for a three rooms totaling 700 square feet, your square-foot rate equals 10.7 cents because 75 divided by 700 equals .107.
Tags: break-even costs, your break-even, your break-even costs, Calculate your, your total
