Ozhouse Clean is based in Melbourne and offers professional, residential
cleaning services, including regular home cleans, as well as spring cleans.
The company was established in 2005 and is a family business. Currently
target customers are consumers located in the greater Melbourne area.
Target customers are people who want a professional, trustworthy and
immaculate cleaning service. Pricing reflects that of competitors.
The company employs 15 cleaners, all of whom are part-time contract staff
working between 10 and 15 hours a week. The company currently has
approximately 70 regular clients, based around Melbourne inner city. These
clients require regular home cleaning, either weekly or once every two weeks
for 3 to 6 hours. A standard hourly rate of $40 is charged. Staff receive an
hourly rate of $25 per hour. The cost of the products provided to staff for
cleaning, including equipment and ongoing supplies such as cleaning
products, works out to be approximately an additional $2 per hour on top of
the rate paid to staff. The company is also considering whether it may be
wiser to move to employing a number of full-time, permanent cleaning staff.
This is partly because there is a high turnover of casual staff and little loyalty
to the company. Staff costs for employing a full-time cleaner is $55,000 per
year, including superannuation payments.
All ongoing cleaning supplies are currently purchased from Total Cleaning
Supplies in Melbourne. However, as this company does not currently offer
environmentally friendly products for use in cleaning, a different supplier
needs to be identified. It is estimated that the purchase of these products will
be an additional $10,000 per month. The products cost doubles the amount of
the non-environmentally friendly products.
Sales revenue for the company for the financial year ending 2019 is $360,000
with a gross profit margin of $40,000. Labour costs are a significant part of the
business, representing 70% of total costs. Average debtor days are currently
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