Hi David
Not sure I can answer all your questions but the following information taken fom MSI's research into the cleaning industry shows the segmentation of an 'average' cleaning contract by type of cost as follows:
74% Labour
7% Profit margin
6% Machines and equipment
4% Materials
4% NI Costs*
2% Training
3% Other (inc transport, uniforms, marketing & other costs)
____
100%
* NI was calculated before the recent rise although overall it would only make a fraction of a difference
From what I know of supermarkets contracts they are generally already under priced. There is a very high turnover of contracts and I know of 2 resonable sized companies that have folded because the margins are so tight. Most smaller contractors struggle to finance the deal because of the significant negative cashflow (wages paid weekly / payments in 30 - 90 days later)
There is a direct link between contract value and cleaning standards and the more you reduce the price the worse the situation becomes.
Just out of interest, are you happy with the standards the contractors currently provide?
Regards
Mike