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Pricing-Estimating

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How much do I charge?

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Pricing Office Cleaning

Office cleaning rates are based on several key factors
* size of the building
* frequency of cleaning
* types of floor coverings
* number of people working in the building
* cleaning specifications
* task frequency
* special or project work being included or not
* Time cleaning is to take place
* equipment storage space

You have to consider a large number of factors such
as these when formulating your price.
Having a good survey form that helps you ask the
right questions and get the best information on which
to base a fair price is key.  An example of this form is here.

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Pricing House Cleaning

Home cleaning pricing is based on a variety
of factors as well.

* distance to the home
* number of rooms
* services provided
* pets
* children (ages)
* extra's such as laundry/linen
* types of furniture
* types of floor coverings

All of these items will have an affect on
your length of time cleaning and your price

     

If you are new to this industry and out bidding jobs please stop and do some research! 

Just because you were making $12 an hour at Home Big Box does not mean that is how much you bid per hour on a job!  You will be broke, out of business and selling your Hoover on Ebay in less than a year.  Only the Jani-fries can get away with this.

You are starting a business! This means you will have direct and indirect overhead, insurance, vehicle, supply, equipment, marketing, advertising, adminstration and office costs just to mention a few items.  All of these need to be accounted for in your pricing.  If you charge $12 an hour, the first $2.50 will cover those items and I haven't even mentioned:  TAXES

A common mistake new service business owners frequently make is forgetting to take taxes into their calculations when pricing jobs or setting rates.  Every dime you make is subject to tax: federal, state and sometimes local.  Unless you keep very accurate records and receipts for your business you can end being taxed in the neighborhood of 39% of all the money your business makes.

Here is a Tax Insight:  If you worked for someone else, you had social security tax deducted from your paycheck and your employer matched that amount everytime.  If you work for you---YOU HAVE TO PAY BOTH!!! You're share and the employers share.

Knowing your tax rates for your business is essential in establishing rates that allow you to pay staff, pay suppliers, pay taxes and still have enough to hit the drive thru at McDonald's.

Staying with the same hourly bid amount of $12 an hour and deducting business operating expenses and taxes, your hourly earnings are now below Federal Minimum wage $7.19 per hour.  Is that really worth staying out cleaning toilets for?

For more information on Federal Taxes and how the IRS can actually help you, click here: www.irs.gov


Want some more help?  Click here.

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