How to Price Commercial Cleaning
Posted by Suji Siv @Clean Group on 2023-04-11
How to Price Commercial Cleaning
Are you a professional cleaner struggling to figure out how to price your commercial cleaning services? You're not alone. Pricing can be a tricky business, especially when it comes to commercial cleaning. However, understanding the factors that influence pricing can make the process easier. In this guide, we'll cover everything you need to know to determine the right price for your commercial cleaning services.
1. Know Your Market
The first step to pricing your commercial cleaning services is to know your market. Do some research to understand the average rates for commercial cleaning services in your area. Factors like location, size of the business, and type of services offered can all influence pricing. By understanding your market, you can ensure that you're offering competitive rates while still maintaining profitability.
2. Consider the Type of Cleaning Services
Commercial cleaning services can vary widely in terms of the types of services offered. Some common services include dusting, vacuuming, mopping, restroom cleaning, trash removal, and surface disinfection. More specialized services, like carpet cleaning, window washing, and pressure washing of exterior surfaces, can also impact pricing. Determine which services you offer and how much time and effort each service requires.
3. Calculate Your Overhead Costs
Overhead costs are the expenses that come with running your business, such as employee salaries, equipment, and supplies. To ensure profitability, it's important to factor these costs into your pricing strategy. Determine your overhead costs, including both fixed and variable expenses, and factor them into your pricing calculations.
4. Determine Your Labor Costs
Labor costs are a significant factor in pricing commercial cleaning services. It's important to accurately estimate the time required to complete each cleaning job and calculate the associated labor costs. Consider the number of employees needed to complete each job and their hourly rates.
5. Don't Forget Profit Margin
Profit margin is the amount of money you earn after deducting all expenses. It's important to set a profit margin that is both reasonable and sustainable for your business. While it can be tempting to set lower prices to win contracts, it's essential to consider the long-term profitability of your business.
6. Get Creative with Pricing Strategies
There are various pricing strategies that you can implement to win contracts and maintain profitability. For example, you might consider offering discounts for ongoing contracts or bundling services to make pricing more attractive to potential customers. Experiment with different pricing strategies to see what works best for your business.
By following these steps, you can ensure that your commercial cleaning services are priced competitively and sustainably. Remember to regularly review your pricing strategy to adjust for changes in your market or business expenses. With the right pricing strategy, you can attract new customers and build a successful commercial cleaning business.
Source facts for how to price commercial cleaning:
- According to Thumbtack, a platform that connects customers with service providers, commercial cleaning services can be priced by the hour or by the square foot. Hourly rates typically range from $25 to $60 per hour, while square footage rates range from $0.05 to $0.20 per square foot. (Source: Thumbtack)
- Other factors that can affect the pricing of commercial cleaning services include the type and size of the building, the frequency of cleaning, the level of cleaning required (basic cleaning vs. deep cleaning), and the geographic location. (Source: CleanFreak)
- Some commercial cleaning companies may offer customized pricing based on the specific needs of the client, which can include a combination of hourly and square footage rates, as well as additional charges for specialized services such as window cleaning or floor waxing. (Source: Business)
- It is important for commercial cleaning companies to accurately estimate their costs and expenses when setting prices, including labor costs, equipment and supply costs, insurance and liability costs, and overhead costs such as rent and utilities. (Source: Entrepreneur)
- In addition to competitive pricing, commercial cleaning companies can differentiate themselves from competitors by offering exceptional customer service, using eco-friendly cleaning products and practices, and having well-trained and professional staff. (Source: Building Services Management)