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Pricing Help

Posted: Wed Nov 05, 2014 11:39 am
by GEPW4
I am looking to expand my business and add in sweeping services. I currently have a very successful commercial powerwashing company. I have been asked by one of my customers to give a price to sweep all the road way curbs and parking lots on a quarterly basis. What is the best way to price a job like this? It's for a college campus of about 20,000 students. Any help would be greatly appreciated.

Re: Pricing Help

Posted: Wed Nov 05, 2014 3:58 pm
by Dwan
See if you can figure out how many hours it would take to sweep the total area you will be doing under contract. That along with the type of material you would be picking up will help you i determine what type of sweeper you need to do the job. Quarterly sweeping times 4 for a yearly total of hours.
Price out the type of sweeper you want and times that by 3 to get a 3 year payback.
then times it by 4 ( 1/4 for sweeper payments, 1/4 for repairs and overhead, 1/4 for labor and 1/4 for profit).
Compare your results with the local going rate then you can adjust the amount you will want to pay for a new or used sweeper.
After your 3 year payback you can divide the income by thirds. (1/3 overhead. 1/3 labor, 1/3 profit).
This has been the way I have done it for over 30 years and has worked out for me. Others have different formulas that may work for them.
Make sure your contract runs at least 3 years so you don't get stuck paying for a machine you do not use.

Dwan