Q. How do I calculate larger janitorial contracts? I want to expand from 2,000 square feet to 12,000 square feet.
A. If you are satisfied with the price per hour that you are earning on the current 2,000-4,000 square foot jobs, then you can easily calculate a sliding scale. First, divide the monthly fee on the 2,000 square foot building by the exact square footage. Then, divide the monthly fee you receive on the 4,000 square foot building by the exact square footage. If both buildings are similar and cleaned five days a week, you will have your base rate for the monthly square footage charge.
For example, if the 2,000 square foot building paid $380 a month for five days a week that would equal $.19 a square foot. If the $4,000 square foot building paid $520 a month that would equal $.13 a square foot. If you are bidding a similar building, cleaned five times a week (just three times larger), you may consider bidding at $.12. The larger the building, the lower your square foot price must be to remain competitive.
There are many other variables to consider when pricing your bids.
If a building requires six days a week, you would add 16.7% to the price and for seven days add 28.6% to the square foot price. If the cleaning expectations and specifications are different, you must also compensate for that in your price. Cleaning demands can be affected by several variables including density of people, condition of building, layout, interruptions, cleaning equipment and skills, etc. Pricing by the square foot assumes you have kept records on other jobs to identify the variables, cleaning specifications, hourly earnings, and production times.
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