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Independent Contract Sweeping

 

Your Guide to Financial Success

  

This information is designed to give you some basic information about Parking Lot Sweeping. 

If you are thinking of starting your own business then study the examples closely and use as a guide in your home town.

 

Independent Contract Sweeping

Your Guide to Financial Success

 

You want the freedom of “Running the Show”; “Being the captain of the ship”, or most important, “Earning more money”!

 

The Contract Sweeping business can satisfy these dreams; however, there are some very important steps you must first consider.

 

Step #1 - Who are your prospects?

            Shopping Centers                           Apartment Complexes                    Universities/Colleges

            Restaurants                                     Condominiums                                Plants & Factories

            Parking Garages                             Golf Courses                                  Banks

            Hospitals                                        Airport Off Parking Lots                 Regional Malls

            School Districts                              Grocery Store Lots

 

Actually, anywhere people gather and leave unsightly litter is a prospect for the Contract Sweeper.

 

Step #2 - Whom do you call to offer your service?

 

In most cases, you will need to see the manager or the person in charge of grounds.

 

At this point YOU have to make a decision—

Do you have enough prospects close by who might want someone to help solve their cleaning problems?

Most parking lots are swept at night—Is this a problem?  How many hours do you want to work? 

How much do you want to earn? You have made up your mind that the independent Contract Sweeping business is for you.

NOW,

  

Step #3 - How much do you charge for your service?

               

Before you can answer this question, you need to make a decision on how to price your services. 

Most Contract Sweepers price their service by the hour; therefore, you need to determine how long it will take to sweep the prospective area.

 There are many factors that need to be considered before you arrive at a price. 

Here are some important questions that must be answered:

1.   Establish with the prospect the exact area to be swept.

2.   What kind of debris is on the lot? Is it typical every day?

3.   Establish with the prospect exactly what is expected. Write it down.

4.   How is the parking area laid out.  Example:  Is there a lot of islands, “V” shaped parking spots, speed breakers, how many corners and hard to get areas.

5.   Will you be picking up litter from flower beds, picking up limbs and leaves?

6.   Does litter blow from adjoining businesses?

It is very important to have answers to these questions before you establish a price. 

Make sure you and your prospects agree on what is expected - Write it down! 

If your prospect thinks your price is more than he wants to pay, you can agree to leave off some of your services or cut back on the frequency of sweeping.

 

Here is an example of price and billing:

A parking lot with 1,000 spaces should be swept in approximately one hour. 

You have established your price at $50.00 per hour and you have agreed to sweep this lot each day, 7 days per week.

                       

            Parking Space - 10’ x 20’ = 200 sq. ft.

                       

            1,000 spaces x 200 = 200,000 sq. ft. per hour

                       

            (1) One hour per day @ $50.00/hour x 7 days = $350.00 per week

                       

            52 weeks/Year ÷ 12 Months = $1,516.00 per month for this sweeping example.

               

Your monthly billing would be $1,516.00 for sweeping this example lot every day and spending an hour each day on clean up.

 

Fast food restaurants can usually be swept in 30 minutes and are usually only swept once a week. 

Contract Sweepers charge about $100.00 per month for this service; however, remember to establish exactly what service you will perform and keep it on file. Remember to be consistent in your prices and always do the job you agreed to do. 

The best advertising is a satisfied customer and the worst is a dissatisfied customer.

 

Step #4 - Sales Tips

 

First, establish a name for your business. 

You want your customers to remember who your are so pick something that is easily remembered.

 

You will need business cards, estimate forms, contract forms and invoice forms. 

You should visit a local printer and tell them what you need and keep your cost at a minimum. 

Here are some examples you might consider:

 

 

Business Card

Your Company Name  LOGO Your Name                            Addresss Phone Number Fax Phone       

   

 

Estimate Form

 Your Company Name  LOGO Your Name                            Addresss Phone Number Date: _________________________     Estimate For:_____________________________________________________________________   Name:__________________________________________________________________________ Address:________________________________________________________________________ City:______________________________________   State: ___________     Zip:_______________   Key Contact: ____________________________________________________________________   Fax Phone       Service to be performed                                                                                                         Cost                                         Describe in detail             Your Company Name Address Phone Numbers                                                Your Signature _____________________________  

  

Contract Form

 

Customer Name ____________________________________________________          Date _________________   Address __________________________________________________________        Phone ________________   City ______________________________    State ______    Zip ______________          Fax _________________                                                                                                                                                                                               Monthly                                                                                                                                                                   Amount           Billing                    Complete description of service to be performed         Date service to begin: ________________              Authorized by: ______________________________________                                                                                                                                                                                         Title: ___________________________    Date: ____________   YOUR COMPANY NAME Address Phone/Fax          

 

 

Invoice Form

 

Customer Name                                                                                                                                    Date   Full Address                                                                                                                                         Invoice #                                                                                                                                                                                                 Monthly                                                                                                                                                                   Amount           Billing                              Complete description of services performed         YOUR COMPANY NAME Address Phone/Fax  

Be sure that you and your prospect have a copy of all information and establish “key contacts” for all customers for answering specific questions that may arise. 

Remember—A job is not complete until payment has been received for services rendered. 

Establish a date that you can expect payment, and a person to discuss any questions with.

 

 

Step #5 - Record Keeping

 

As a business person you need to set up your books so you can monitor your growth and profits. 

You need to establish the monthly cost of operation for your company so you can plan for the future and for tax information.

 

Here are some basic costs to consider:

      1.   Equipment Payment

      2.   Insurance/Equipment & Liability

      3.   Fuel/Oil

      4.   Maintenance

 

Some of your costs are “fixed costs” and some will depend on how much sweeping you do.  Example:

 

Your sweeper and insurance costs are established before you do any work. 

Your sweeper payment could be $1,000.00/month and your insurance $200.00/month. 

You can use an estimate of 10% of your billing amount for fuel and oil cost and 3% for maintenance.

 

If you establish contracts for $6,000.00 monthly billing, you can figure your basis cost.

 

            Sweeper Payment                               $1,000.00/month - Fixed Cost

            Insurance                                               $200.00/month - Fixed Cost

            Fuel/Oil                                                  $600.00/month @ 10%Billing

            Maintenance                                           $180.00/month @ 3% Billing 

            TOTAL ESTIMATED COST          $1,980.00/month

 

You divide the number of hours to do $6,000.00 in billings, approximately 100 hours, by your estimated cost of $1,980.00; your cost would be $19.80 per hour for operating your sweeper. 

To figure your actual hourly rate, divide $6,000.00 (billings) by 100 hours (time to sweep), equals $60.00/hr.

 

As your monthly billings grow and your fixed cost remains the same, your profit increases. 

You may want to consider hiring a driver after you get established. 

Here is an example to help you determine your hourly cost:

                        Hourly operation cost                                 $19.80/hour

                        Wages                                                            9.00/hour

                        Insurance/Fringe Benefits                                2.00/hour

                        TOTAL HOURLY COST                        $30.80/hour

 

If you charged $50.00/hour and your costs were $30.80 per hour, your gross profit would be $19.20/hour using the above example.

 

  

Step #6 - About TYMCO, Inc.

 

 

We manufacture the patented REGENERATIVE AIR SWEEPERS for Contractors and Municipalities. 

We are proud of our reputation as manufacturers of top quality sweepers for the past 30 years and have been the #1 choice of Contract Sweeper companies over the years.

 

TYMCO was the “first” company to build a truck mounted sweeper for the contractor market and continues to be deeply committed to working with independent business people.

 

Enclosed is literature on our different model sweepers and we stand ready to assist you in any way we can.

 

Please call us with any question you may have.

 

From the desk of:
Mike Thomas
TWIN STATES EQUIPMENT, INC.
P.O. Box 238
Marshville, N.C.28103
1-800-222-3686  Fax: 704-272-0175 Cell: 704-591-0841  www.2sei.com
Office: 704-272-7209 mthomas444@aol.com  Verizon: 704-989-5328

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