When it comes to pricing jobs in a Foreclosure Cleaning Business there are a good many factors to take into consideration. Pricing correctly is as much an important part of getting and keeping new clients, as it is an essential aspect of ensuring the profitability of your business over all. Set your prices too low and your profit margin will resemble a shriveled up raisin. On the other hand, if you set them too high, your client list will not have much more on it than a couple of names. In order to accurately price the services you provide through your Foreclosure Cleaning Business, you will need to look at both the direct and indirect costs of doing business.
Direct costs are typically defined as the expenses that are solid in their relation to each job you complete. For example, if you employ a crew for trash-out services (removal of trash from the interior and exterior of the properties) and you pay them a set rate for each job, the cost is considered to be direct. The standard cost of supplies you need in order to provide particular services is also something to be considered as a direct cost of doing business. Since you know the exact costs for these expenses, the amount can easily be factored in when you are preparing a bid or quote for a potential client.
Indirect costs are a whole different species all together. Costs such as these are absolutely necessary business expenses that must be covered in order for you to remain in business. However, indirect costs are not normally accounted for in a way that is specific to a certain job. While adding them into your estimates is not a cut and dry process, it is necessary to find a way to do so. Business licenses, vehicle expenses (repairs, insurance, maintenance and operation costs, such as gas and oil) office supplies, utilities and office rent, cell phones, advertising expenses, insurance and other operating costs must be paid for by the revenue you generate from your Foreclosure Cleaning Business. When it comes down to indirect costs, the failure to figure these expenditures in when pricing will lead to financial woes for your business sooner or later.
At first it will be much harder to get your prices to where they may need to be. Once you walk your way through a few estimates as a Foreclosure Cleaning Business owner, you will get much more adept at making the numbers work like magic. When you accomplish this you will most likely see a steady rise in your profits.
