How to Price Commercial Cleaning Contracts

In today's world, keeping a clean environment has become increasingly important. As businesses and public spaces strive to maintain cleanliness, commercial cleaning services are in high demand. If you are a commercial cleaning service provider, one of the key challenges you may face is pricing your contracts. In this article, we'll discuss how to price commercial cleaning contracts effectively and competitively.

1. Understanding the Market and the Client's Needs Before pricing a commercial cleaning contract, it's crucial to understand the market and the client's needs. Knowing the going rate for commercial cleaning services in your area will help you set a competitive price. Additionally, understanding the client's needs will enable you to tailor your services to meet their specific requirements. For example, a medical facility may require specialized cleaning services due to the high risk of infection, while an office space may only require general cleaning services.

2. Assessing the Scope of Work Once you have an understanding of the client's needs, it's essential to assess the scope of work. This includes evaluating the size of the facility, the number of rooms, and the type of cleaning required. A detailed scope of work will help you determine the amount of time and resources required to complete the job effectively. This information will be instrumental in determining the cost of the contract.

3. Calculating Labor Costs After assessing the scope of work, you'll need to calculate the labor costs. Labor costs include wages, benefits, and payroll taxes for your employees. It's important to ensure that you pay your employees fairly while remaining competitive in the market. To determine the labor cost, you'll need to estimate the number of hours required to complete the job, the number of employees needed, and their hourly rate.

4. Factoring in Material Costs Material costs are another important consideration when pricing commercial cleaning contracts. These costs may include cleaning supplies, equipment, and transportation expenses. To accurately price your contract, you'll need to estimate the quantity of materials required and their associated costs. Additionally, you'll need to factor in the cost of transportation, such as fuel and maintenance for your cleaning equipment.

5. Adding Profit Margin Lastly, it's important to add a profit margin to your contract. Your profit margin should reflect the level of risk and the quality of service you provide. The profit margin will vary depending on the complexity of the job, the level of competition in the market, and the current economic climate. It's important to strike a balance between pricing your services competitively and ensuring that you earn a reasonable profit.

In conclusion, pricing commercial cleaning contracts requires careful consideration of various factors, including understanding the market and the client's needs, assessing the scope of work, calculating labor and material costs, and adding a profit margin. By following these steps, you can price your contracts effectively and competitively, ensuring that you provide excellent service while earning a reasonable profit.

Source facts about how to price commercial cleaning contracts:

1. According to the International Sanitary Supply Association (ISSA), the average price for commercial cleaning services in the United States ranges from $20 to $50 per hour, depending on the type of facility and the services required.
2. A survey conducted by CleanLink found that most commercial cleaning companies base their pricing on the square footage of the facility. The average price per square foot for commercial cleaning services is $0.05 to $0.20, with the lowest rates for larger facilities.
3. The Bureau of Labor Statistics reports that the average hourly wage for janitors and cleaners in the United States is $14.56 per hour, as of May 2021.
4. According to the ISSA, labor costs typically account for 55% to 60% of the total cost of a commercial cleaning contract, while materials and supplies account for 5% to 10%.
5. When pricing a commercial cleaning contract, it's important to consider the overhead costs of running a cleaning business, such as insurance, marketing, and administrative expenses. The ISSA recommends that commercial cleaning companies factor in an additional 25% to 35% for overhead costs.