Factoring Jobs In Australia
Product ‘X’ has a standard industry dilution and for 20 litre sizing, is 66% cheaper than the more expensive PowerClenz Ultra. Sounds like a significant saving. However, lets keep investigating. To find out the true cost of use, we need to do the following calculation….
Product cost ÷ Size ÷ Dilution ratio (you need to add both ratio digits together to get an entire unit eg 1:16 = 17 whole parts).
So to calculate Product ‘X’ true cost of use the math will look like this…
125 (cost) ÷ 20 (quantity/size) ÷ 17 (dilution ratio combined 1+16 = 17) Product ‘X’ comes to 36 cents per litre ready to use.
However, let’s look at PowerClenz Ultra.
208 (cost) ÷ 20 (quantity/size) ÷ 51 (combined dilution ratio 1+50= 51) and the true cost quickly becomes apparent. PowerClenz Ultra comes in at 20 cents per litre ready to use.
That means that PowerClenz Ultra, although being $83 more expensive than it’s competitor, is actually 44% cheaper to use by the time it hits the carpet! Amazing isn’t it! On top of that, it will also remove more of the stains and soiling due to having better chemistry, therefore saving you money not only at ready to use rates, but also can save you from using some of your spotting chemicals you may have reached for if you were using the cheaper Product ‘X’.
Why Cheap Chemicals Are Not Right for Your Cleaning Business?
Everyone knows that shortcuts are never the path to success. For professional cleaning companies, using cheap chemicals can cost more dollars on the job than they would have ever thought of!
- Increase in Cleaning Time: By using cheap chemicals, you may reduce cost but this will be proportional to your cleaning time. Cheap chemicals may clean something in an hour which can be cleaned in a half hour by using expensive chemicals. Hence, you lose your biggest investment, i.e.; your time.
- Less Chemical Won’t Do The Job: So, it’s not just your valuable time which you’re wasting while using these cheaper chemicals. If you’re using cheap chemicals you need more of them to clean properly while a little quantity of slightly expensive chemicals can equally do the job and will still be reserved for other jobs as well. Sometimes, the added costs for getting the cheap chemicals are more than buying one quantity of expensive chemicals!
- Cheap Chemicals = High Labor Costs: The most expensive part of any business is its labour costs. If you use cheap chemicals; the labour will take more time to finish the job and hence will cost you more. And irrespective of what you think, it isn’t the labour cost or the tardiness of your employees but rather it’s the cheap chemicals which are translating into lost revenue for your business!
The bottom line is – in order to make sure your labour works efficiently and that their time is utilized properly, you have to spend more up front (but work out cheaper when factoring in ‘cost in use’) on quality chemicals rather than falling for the false security that cheap chemicals give. This will make your cleaning company get more contracts and repeat business, therefore keeping you as the business owner more happy and profitable. Think about it!
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