Home – New Forums New here? Share your story have just started my sole trader cleaning commercial business

  • This topic is empty.
Viewing 8 posts - 1 through 8 (of 8 total)
  • Author
    Posts
  • #996915
    cat123
    Member
    • Total posts: 4
    Up
    0
    ::

    Have aquired 1 client first week in business and verbally stated hrly rate of $23 on phone before I looked at the premises which is two Story & includes- entrance foyer,reception areas,3 bathrooms & toilets, awaiting room. a boardroom 6 offices and a large employee work area cleaning floors windows all surfaces and computers .
    I think I have quoted way too low. However they are a non profit organization,hubby works for them ,and they let go of the two previous cleaners and employed me. Work there twice a week,time cleaning premises around 4,75 hours & 3,5 hrs so about 8 to 9 hrs weekly. No written contract just verbal They have supplies but i have to use my own vac as theirs is broken & are looking into buying another,Have bought a few low cost cleaning supplys. that I feel are important to do a good clean, Want to increase to $25 hr. Do I have to inform the receptionist who hired me or can I just add the extra $2 hr rate to my first invoice which is handled by the payroll employee.Want to be honest but not seen a staing one rate then asking for a higher rate.. Will possibly aquire another commercial client next week and feel i should rise my hrly rate Advice much appriciated about what rates to charge as a sole trader. Thanks

    #1209496
    bb1
    Participant
    • Total posts: 4,485
    Up
    0
    ::

    First to answer your main question, no you shouldn’t just invoice the higher amount because you now think it’s to low, they contracted you based on a $ amount, that would be deceptive to just invoice higher. If you just invoiced me the higher amount without discussion we would be in dispute very quickly, not a good way to start a relationship.

    If you want to increase your rate you should go back to them and negotiate a new rate and give them the opportunity to agree or disagree. Personally if you came back to me 2 days after we had agreed a rate it would be a case of take what you quoted or move on to the next person, sorry I am very much stick to an agreement.

    the next question I would ask is $25.00 enough anyhow, the Fairwork rates for cleaning employee’s is between $22 and $30 plus, depending on level, employment status, etc, etc. So effectively you are going in at the bottom level, but you have all of your business expenses to consider on top of actually drawing an effective wage for yourself. The ATO benchmark for cleaning business is 36% plus of overheads, so assume the lower level (it wont be), that will leave you around $15.00 an hour.

    My suggestion is before you offer another quote go back and do your sums, on what you need to charge.

    #1209497
    bb1
    Participant
    • Total posts: 4,485
    Up
    0
    ::

    Just a PS to that, I never give a verbal quote over the phone without inspecting the job first. In my industry every lawn is only 1cm tall, easy to do with no obstacles, manicured, it only takes them 10 minutes etc. But when you turn up the grass is knee high, obstacles all over the place, and even with my commercial equipment it will take 2 hours.
    Having helped a cleaning business, the situation in that industry is no different.

    #1209498
    cat123
    Member
    • Total posts: 4
    Up
    0
    ::
    bb1, post: 249947, member: 53375 wrote:
    First to answer your main question, no you shouldn’t just invoice the higher amount because you now think it’s to low, they contracted you based on a $ amount, that would be deceptive to just invoice higher. If you just invoiced me the higher amount without discussion we would be in dispute very quickly, not a good way to start a relationship.

    If you want to increase your rate you should go back to them and negotiate a new rate and give them the opportunity to agree or disagree. Personally if you came back to me 2 days after we had agreed a rate it would be a case of take what you quoted or move on to the next person, sorry I am very much stick to an agreement.

    the next question I would ask is $25.00 enough anyhow, the Fairwork rates for cleaning employee’s is between $22 and $30 plus, depending on level, employment status, etc, etc. So effectively you are going in at the bottom level, but you have all of your business expenses to consider on top of actually drawing an effective wage for yourself. The ATO benchmark for cleaning business is 36% plus of overheads, so assume the lower level (it wont be), that will leave you around $15.00 an hour.

    My suggestion is before you offer another quote go back and do your sums, on what you need to charge.

    #1209499
    cat123
    Member
    • Total posts: 4
    Up
    0
    ::

    Thank you for your informative reply. Was not keen of the suggestion of a friend (accountant) to up the rate in 1st invoice,.saying a verbal agreement means s…. in business. Will definitely take your advise I need to make a living and a wage of $1500 a fortnight.have 3 kids in Uni,a mortage.and basic expenses. Need to make more than the tax free threshold to claim business expenses and suvive/make a living. Had a major car crash that pretty much changed my life. going from a professional career to minimal low wage employment. Thats life, no complaints ,Again thank you ,and best wishes to you and your business

    #1209500
    cat123
    Member
    • Total posts: 4
    Up
    0
    ::
    cat123, post: 249949, member: 99649 wrote:
    Two weeks into my sole trader cleaning business. Thanks to positive replies on my first post They reaffirmed my approach to starting my business and communicating with clients. With my first client, I visited them personally, with my first invoice, my written office cleaning proposal for their organization, my business card & police clearance attached. Proposal contained info.about my business,info regarding cleaning clients premises and payment info. A professional bussines approach was needed in my negotiations. Client agreed without pause with my proposal. Rather than $23.00 hrly, I am now getting paid $150 fixed rate for each clean. No more phone quotes, inspecting size/shape of the area your going to clean is vital. Getting Client feedback after the first clean will get them on your side (but you have to do a great clean for this to happen and maintain the quality). Always work in a positive way with clien t As I want to remain a solo trader,I’ve decided to forgo expensive online marketing in favour of the good old word of mouth.Through workers at this premises,I have aquired aGovernment cleaning job and two further clients. Will not take on more than I can do. Comfortable with the decisions I have made. Happy to have found this site. and again, thanks to the members who responded to my first post Very helpful.
    #1209501
    Dave Gillen – Former FS Concierge
    Keymaster
    • Total posts: 2,566
    Up
    0
    ::

    Nicely done [USER=99649]@cat123[/USER] and thanks so much for reporting back as you go, I think it’s extremely valuable for our members to see how a new business unfolds (and a good way for you to consolidate what you’ve learned). :)

    Congrats and keep going!
    Dave

    #1209502
    Peter – FS Administrator
    Member
    • Total posts: 1,889
    Up
    0
    ::

    That’s so great to hear [USER=99649]@cat123[/USER] – look forward to hearing more progress! :)

Viewing 8 posts - 1 through 8 (of 8 total)
  • You must be logged in to reply to this topic.