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Post by Roman Cleaning Services on Jan 31, 2006 22:33:15 GMT -5
How do I figure insurance, supplies and taxes into bids?
As far as insurance, am I suppose to add my monthly bill into the clients monthly price? Same question for supplies and tax. Do u get what I'm saying? Lastly, what percentage of a bid should be my profit?
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Post by tcmb04 on Jan 31, 2006 23:13:22 GMT -5
Good question i'd like to know the answer to that one.
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Post by High Quality Janitorial Servs on Feb 12, 2006 1:54:48 GMT -5
ME 3  |
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Post by Grizzly on Feb 12, 2006 15:00:54 GMT -5
Okay I'll take a shot at this, First , what are your employer expenses, for example, in Ontario the employer must pay $1.00 for every dollar of Canada pension theemployee pays, (around 1.95%) . he must pay $1.40 for every $1.00 of unemployment insurance and he must pay for workmen's comp. (depending on your company experience and the group you are in) $3.10 for every 100.00 of payroll. CPP is around4.95% . Therefore when I calculate the labour hours for the job i will add these expenses to that cost. for materials, (and I've taken flack for this) I add around 10 to 15 % , things are more expensive in Canada ) but remember this is a cost to you no matter how small it must be taken into account. Your insurance is going to run you x number of $ per year, that is an operating expense , not a cost of sale expense, but you should add a small percentage to cover from EACH CONTRACT. iF you are leasing equipment to do a particular job, I make sure and expense the cost of the lease to that job, for example. We are leasing a burnisher to leave on one job site. The cost of that lease was included in the proposal. When you bid a new contract, look at the equipment you are going to have to buy to set it up, amortize the cost of the equipment over the term of the contract and include that in your expenses.
Okay that pretty much takes care of the expenses side i think, for profit, you need to be aware of what your competition charges, NOT JUST THE LOWBALLERS and put yourself in a position to get the job. DO not lowball your bids, all these expenses need to be coverred and you need to make a profit or you are better off working for someone else. I include a minimum of 20% NET PROFIT margin on all jobs. I hope this helped , e-mail me if I can be of any further assistance.
Bill
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