Figuring Price of Jobs

[csoldier 14]

Although we have been doing this for 3 years, I feel we need to rethink the way we figure our prices. We really need some advcie on how to accurately determine our prices. Some areas needing ideas:

- how do you determine your hourly rate- per unit, per man, etc. For example, we charge $60.00 hr/per unit. With 2 men working, one as a helper, how would I charge?

- how do I determine a minimum charge? a flat rate trip charge?

- while figuring costs, how do I determine how much of the insurance cost applies to the job?

Our system needs tweaking, and I value the opinion of those on this board. Any insight would be greatly appreciated.

Thanks!

Mark, La.

www.rolcleaningservices.com

[Littlefield 65]

Mark, first off, nice website. I used to work in Metarie, lived out in LaPlace. I did high rise in NO for 2 years, working for Cliffhanger, Ramelli, and Acme.

Second, a couple questions. When you say you charge by the unit, are you telling the customer what you charge per unit per hour, or is this just how you figure your bids?

I charge by the man-hour, not the unit, and I give fixed bid prices on all jobs. I find that the smallest crews seem to work better, so I use two man teams as much as possible. Why don't you figure up a crew/hr amount, with one experienced person and one helper? Then plan on having teams perform all work as much as possible. If I send a helper, I want to see an increase in time of at least 70%, otherwise, I send men solo. I've been killed in the past having large numbers of people on the job and not seeing the production increase I expected.

Minimum charges range all over the place. I would figure half day minimums for one man. If the job is bigger, you can then add a man to bring the job in quicker.

I would think the trip charge would be under minimums, unless you are charging for touchups, etc.

For figureing the insurance costs, average your last years gross income, and divide the last years insurance cost into it. this will give you a percentage amount to plan for insurance cost.

Hope this helps.