Evaluating Cleaning Bids: Making Sense of Price Differences

Have you ever been puzzled by the wide range of prices in cleaning service proposals? It’s not unusual to receive vastly different quotes from janitorial service providers. But what causes these discrepancies?

Typically, the variation stems from each company's estimate of the staff hours needed to perform the cleaning tasks. However, several other factors also contribute to the final bid. Here are six crucial elements that should be part of every cleaning proposal you review:

Direct Staff Wages

The biggest portion of your cleaning service cost—usually around 60%—is direct staff wages. When preparing their proposals, cleaning companies should carefully address two key questions:

1. How many hours will it take to clean this facility?

2. What is the going hourly rate for cleaners in this area?

Providing as much detail as possible about your facility helps vendors accurately estimate the required staff hours.

Tip: Vendors who ask thorough questions and take detailed measurements tend to provide more accurate bids. Additionally, regional providers often have a better grasp of local wage standards than national companies.

Direct Staff Taxes & Benefits

Beyond wages, there are other direct costs associated with staff that should be included in the proposal. These include payroll taxes, employee benefits such as insurance and retirement plans, background checks, drug screenings, and uniforms. These costs can vary depending on the benefits offered by the vendor and local tax rates.

Tip: Vendors that offer good benefits generally have happier employees and lower turnover rates.

Supplies

Supplies are another important cost factor, divided into cleaning supplies (like chemicals and rags) and consumable items (such as toilet paper and hand soap). Most proposals will include the cost of cleaning supplies in the base price.

Tip: Ask vendors for unit pricing on consumable supplies. Regional vendors often receive favorable wholesale prices on these items and can pass the savings on to you. They may also manage the inventory of these items for you.

Equipment

The necessary equipment is another consideration. The type and amount of equipment needed will depend on the complexity of the work. Vendors should include the cost of equipment depreciation in their pricing.

Tip: Look for vendors who use new or well-maintained equipment. High-quality equipment increases efficiency and leads to more satisfied employees.

Indirect Costs (Overhead)

Indirect costs cover a range of expenses, such as accounts payable and receivable, human resources, insurance, and management. These costs should be relatively consistent across customers. Vendors typically apply a standard overhead percentage to each client.

Tip: Reputable cleaning companies closely monitor their overhead costs. Regional companies often have lower overhead compared to national firms.

Profit

Finally, vendors need to ensure they are making a reasonable profit to maintain their business. Companies with a healthy profit margin tend to offer better service and have greater longevity.

Tip: Be cautious of companies offering prices that seem too good to be true. These businesses might not account for all necessary costs, leading to unsustainable operations. Look for companies with a solid history and positive references.

If a cleaning proposal you receive doesn’t include these components, make sure to ask about them. Otherwise, you could end up with a low-ball offer that fails to deliver the quality and reliability you need.