The Easiest Way to Price Foreclosure Cleaning Jobs

Author : Yuwanda Black

There are several ways to price foreclosure cleaning jobs The method discussed here is a very simple, straightforward one because all you have to do is figure out your costs and job markup

Add costs to markup and that will you give the “what to charge” amount The formula looks like this:

Direct costs (plus) indirect costs (plus) markup (equals) what to charge

Foreclosure Cleaning: Example of a Job Priced Using This Formula

Job Particulars: Say you are asked to submit a bid on a job for a simple trashout and cleaning of a house Cleaning particulars: not a white glove clean, but a broom-swept and major appliance clean (eg, clean tub, toilets, refrigerator; sweep floors; dust cobwebs)

The home is a 2-bedroom, 1 bath, 1,100-square foot ranch The job should take approximately 5 hours Once you look at it, you know that you need to rent one small dumpster for the day That will be enough to carry everything away

For the cleaning, as it’s not white glove, you only need one person For the hauling, you need at least two guys because there’s some heavy stuff — dressers, an old refrigerator in the garage, some mattresses, a bookcase, etc

Estimate Time to Complete Job: 5 hours

So to cost this job out, let’s look at what your direct costs will be:

Dumpster Rental: $300

Disposal Fee: $75

Cleaning Crew: $75 (1 person, $15/hour x 5 hours)

Moving Crew: $150 ($75/day rate x 2 workers)

Misc Cleaning Supplies: $50 (broom, garbage bags, gloves, pine sol, masks, etc )

Direct Costs Total: $650

Now, let’s add in your indirect costs

Let’s pretend that you know that all of your indirect costs are $2,000 per year (insurance, phone bills, gas, office supplies, etc )

And, let’s say you plan on doing at least one job a week, starting part time So, your indirect costs per month are $166 ($2,000 / 12 months)

So your indirect cost for each job is $41 66 So you would figure that into the job estimate

Indirect Costs Total: $41 66

Now you have two of the three figures you need Let’s say you decided that you want to operate at a 35 percent markup (that is, you want to make at least a 35 percent profit on every job you do) This is different for each person and is discussed in detail in the next chapter on soft pricing

To get the third figure — the profit — you multiply 35 x 691 66 (41 66 + 650) That’s $242 08 Not bad for four hours of work on the weekend

Percentage of Job Profit: $242 08

Totals: $242 08 + 41 66 + 650 = $933 74

Foreclosure Cleanup Job Bid Amount: $935 (rounded up to the nearest whole $5 amount)

The above was excerpted from The Pricing Guide for Foreclosure Cleaning & Real Estate Service Businesses: How to Price Jobs for Profit. Learn everything you need to know about how to price foreclosure cleaning jobs, which can be found in this ebook at http://start-a-foreclosure-cleanup-business.com.

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