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emerald

  • Posts: 9
Break Down Of Costs
« on: March 02, 2006, 04:07:00 pm »
Hi,
i am looking for some help ;D
i have put in a quote for an office clean. The client phoned me today and asked me in for a meeting, she explained that we needed to break down our costs so they could compare it to their current contractors who they are not happy with. I am VERY new to all this so could someone guide me in the right direction please.
I have included janitorial supplies so i assume that would be part of the break down?
Thanks in advance

mxg

  • Posts: 187
Re: Break Down Of Costs
« Reply #1 on: March 02, 2006, 04:31:35 pm »
Without seeing what you actually submitted its a bit difficult

But whatever way you phrased it, you presumably specified an amount X per hour, per week, per visit of whatever

SO whatever it is X contains or should contain some or all of the following

- Labour cost ie what you will pay your employees
- Employer costs - NI contributions on above
- Materials - Chemicals etc
- Equipment - vacuum, scrubber dryer -
- Training
- Management Overhead
- Profit

etc

I have come across requests like this before but NOT in my cleaning experience

Actually, the more I think about, what I would do if I was you is go back to your prospect and ask THEM to specify how they want the costs broken down because whatever way you do it is likely to be different from the existing contractor and won't give them the ability to compare that they say they want.

I would also try to find out exactly what it is about the existing contractor that they are not happy with. If its the standard of cleaning then just getting him to reduce his price is unlikely to improve the quality of the cleaning. If its the price and the standard of cleaning is acceptable then you are possibly being used as a vehicle to get him to reduce his price.

As things stand its hard to see any up side for you

Mick

CMS

Re: Break Down Of Costs
« Reply #2 on: March 02, 2006, 04:45:05 pm »
I'm finding it difficult to see what it is you want help with. Presumably, to submit the quote in the first place you will have worked out your costs.

Why can't you just tell them how you arrived at their quote? That is what they want to know and only you can tell them that.

You say that you have included Janitorial supplies. Are you talking about cleaning materials or washroom consumables? If it's the latter, how did you arrive at your figures? Estimating washroom consumables is a VERY risky business if you're new to this game.

emerald

  • Posts: 9
Re: Break Down Of Costs
« Reply #3 on: March 02, 2006, 04:57:24 pm »
thanks for the advice. The current contractor has Polish people working for them and the client is not happy with their lack of the english language or their cleaning standards (clients words not mine)
CMS thanks for your advice. I am very aware this contract may be far too big for me i quoted £4k a month!! I was very honest with the client when i quoted i explained about my company. We are a group of friends (all cleaners) who have worked for other people and decided to try and make a go of it ourselves. I think the client liked the idea that we are local girls (all youngish mums) trying to make a go of something. I know i am out of my depth :'( but i feel i have to give it a go!

Prestige1

  • Posts: 332
Re: Break Down Of Costs
« Reply #4 on: March 02, 2006, 05:17:29 pm »
I agree with CMS they would only want to know how you arrived at the cost. on another note you are starting big! 4 k amonth. is that just labour costs or have you buffing machines floor scrubbers etc? Phil
Who Dares Wins

emerald

  • Posts: 9
Re: Break Down Of Costs
« Reply #5 on: March 02, 2006, 05:24:37 pm »
Its a massive three story office block.
Its fully carpeted and has three kitchens, loo's on each floor, three showers and one lift. The client told me today that my quote came in at about the same price as the other two quotes she got. its for six member of staff plus one supervisor five nights a week. All of the girls in our company have worked in large offices before but...we have never been in charge of the contract!
If we get it great if we don't hopefully we will learn something from it!
I never for a moment expected to get this far!

Prestige1

  • Posts: 332
Re: Break Down Of Costs
« Reply #6 on: March 02, 2006, 06:20:57 pm »
Yes you have done really well, but don't fall at the last hurdle, try and think of somthing you can offer that the others don't, what I have done before is offer "we can shampoo the carpets in the reception area once every 4 months" or tell them you can provide a gritting service for the car park at a cost of £10, all you need is rock salt and a small shovel, somthing like this may just swing it. good luck and let us all know inf you get it. kind regards Phil
Who Dares Wins

CMS

Re: Break Down Of Costs
« Reply #7 on: March 02, 2006, 06:26:41 pm »
Well done................but just a word of warning about gritting.

What happens when you don't grit one winters day  and someone falls?

Perhaps the weather catches you by surprise, you forget,  or a member of staff doesn't turn up to do it?

I can see major problems arising there.

*Chris Browne

  • Posts: 863
Re: Break Down Of Costs
« Reply #8 on: March 02, 2006, 06:41:29 pm »
I agree, forget the gritting but  include a free carpet shampoo every quarter,(make sure its the easiest!) and good luck with your venture! i really hope you do well ;D we were all there once , including me not long ago.

chris ;)




www.scsf.co.uk

emerald

  • Posts: 9
Re: Break Down Of Costs
« Reply #9 on: March 02, 2006, 06:45:01 pm »
thanks for the support :)
I will let you all know how i get on. My meeting is on Monday at ten.

Tim Downer

  • Posts: 656
Re: Break Down Of Costs
« Reply #10 on: March 02, 2006, 07:06:50 pm »
Let us all know how you get on in your meeting on monday.

Quite often we get people asking questions on the forum - especially when they are new to the cleaning business, or something big comes up!! We get a thanks for the replies people.......then we hear nothing further from them about the job.

It would be great to get closure on such postings.....even if people don't end up winning the tender.

All the best.

Tim
Tim Downer
Manager

"The difference between Ordinary and Extraordinary.....is that little Extra"

blacksheep

  • Posts: 387
Re: Break Down Of Costs
« Reply #11 on: March 02, 2006, 08:16:45 pm »
mxg makes a lot of sence, find out what cost they want broken down,i put in a quote for some buildings , same sort of thing. Not happy with who they had, went up againest two other contractors, asked for a detailed quote and been my first well. Had not heard anything for a few weeks so went around for feed back and was told i had given to much detail, go figer

emerald

  • Posts: 9
Re: Break Down Of Costs
« Reply #12 on: March 06, 2006, 07:40:58 pm »
Hi,
I had my BIG meeting today!
I think it went well. The company like the whole concept of us.
They have asked me for a full break down of my costs on paper.
I have until wednesday to submitt it.
They explained they needed to justify my costs up to their current contractors costs.
I was slightly surprised to see another cleaning company in reception so i assume they were also called in to break down their costs.  ??? oh well i can but try.

CMS

Re: Break Down Of Costs
« Reply #13 on: March 06, 2006, 07:57:33 pm »
It is very normal to bump into other cleaning companies especially if they have arranged a joint 'walkround'.

*Chris Browne

  • Posts: 863
Re: Break Down Of Costs
« Reply #14 on: March 06, 2006, 08:02:07 pm »
good luck emerald, keep plugging away ;)


chris

HQCS (John Kastrian)

  • Posts: 272
Re: Break Down Of Costs
« Reply #15 on: March 07, 2006, 11:41:45 pm »
Emerald,the very best of luck to you in your new venture.
Not wishing to put a spanner in the works but no one has mentioned TUPE,you may find yourself in the position of having to legally "inherit" the existing cleaning staff.
Check into this fully before you sign on the dotted line.
If a client is unhappy with the standard of cleaning they assume that getting a new company in is the answer,they do not realise that although a new company takes over they very often have to take on the existing cleaners at the same terms and conditions that they are on now.Be careful.
John

emerald

  • Posts: 9
Re: Break Down Of Costs
« Reply #16 on: March 08, 2006, 08:32:28 pm »
Thanks for the advice John i have put a section on tupe in my terms and conditions. I understand from the client that i won't be taking on the staff however as you have said i will check into this fully.
To be honest i don't think i will get the contract but it has been a fantastic learning experience and has really boosted my confidence and i have really enjoyed the whole experience.
Thank you to everyone for their support this forum really is a fantastic place.
I sat down with a bottle of wine last night and read about 50 pages of posts.  I have learn't so much so thank you

CMS

Re: Break Down Of Costs
« Reply #17 on: March 08, 2006, 08:42:20 pm »
Don't worry about TUPE. I have taken on cleaners that the Client thinks are rubbish. With the proper equipment, materials and supervision they have turned out great.

Just protect yourself regarding costs.