Do YOU Know How to Price Cleaning Services?
Episode 145 Heather Clark Custom my Closet
Today, Mike coaches Heather Clark owner of Custom my Closet on how to price cleaning services. Currently Heather does the cleaning herself and wants to know how to price cleaning services differently when she hires employees.
The first step is to clarify your goals for your company. Are you looking for a part time side job or to create a sustainable business that works without you doing the work? If you just want to clean on the side and make some extra cash, charge whatever your time is worth to you.
If you want to build a true business like Heather, you are going to need a clear, consistent strategy to price your cleaning services. That strategy charges the same rate whether you or your employees are cleaning.
KEY POINT: Price Cleaning Services the same whether you OR your employees are performing the service
Many newer owners get confused on this issue thinking if they charge $30/ hour they are making $30/ hour and that is too much for cleaning services. What they fail to consider is the cost of acquiring the account, buying the supplies, travel time, gas, vehicle maintenance, billing, collections, insurance. Basically all of the costs associated with running a cleaning business.
REMEMBER: The customer doesn’t care WHO provides their cleaning services, they just want the result
Now that you have a foundation to price cleaning services, here is an overview of the steps you will take next:
Step 1- Determine how many hours it will take to clean
Step 2- Add a percentage (often around 20% depending on what state you are in) to cover workers comp and the various employment taxes you are responsible for
Step 3- Add overhead (minimum of 20%) based on your additional expenses like office, salaries, insurance, transport, phones, marketing, etc.
Step 4- Add profit (make sure you have a minimum amount of profit you will take)
That’s it! It’s that easy.
Just in case you have questions like Heather did on the podcast, lets give just a little more details on the process.
How to Price Cleaning Services- The Details
If you have two people cleaning for two hours, that would be four man hours. Always think in terms of “man hours” or the total hours required.
Another mistake newer owners make is to undervalue the service they provide. In addition to making your business much harder, it makes it impossible for your to deliver an amazing customer experience consistently.
Cleaning toilets is a low value proposition. Solving problems for your customers is much more fun (and profitable). Their problem isn’t their toilet is dirty. They know how to fix that. Their REAL problem might sound more like…
- “ I don’t have enough time to be with my kids”
- “I just get so overwhelmed”
- “We both work so hard and hate coming home to a chaotic mess of a house”
KEY POINT: Don’t talk hours with customers- always communicate in terms of solving problems
Never talk hourly pricing with the customer. Ask questions. Listen. Understand their pain. then and only then present a solution to their pain and the monthly investment for that solution. People will not be good high paying customers for cleaning services. They will be extremely loyal and profitable when you are solving their pain!
BONUS LOVIN: Wanna make more money on the bids you are already giving? CLICK HERE
Final point. Your customer doesn’t care how many hours or how many people are there to do the work. They just care that they get the result they want. And they want it to be as easy as possible.
Before Mike signs off, he gives Heather a chance to share her wisdom in the…
Best piece of advice you have ever received?
Be honest and be nice
Biggest mistake you’ve made in the cleaning business?
Not knowing from the beginning where you want to go
One idea Cleaning Nation can implement TODAY to improve their lives or business?
Just be nice – to your cleaners, your customers, anyone
Remember all of us are smarter than any one of us, so continue this discussion by Joining our FREE Facebook group as well as commenting below with any tips or questions you have on how to price cleaning services.