You’ve bought all your cleaning supplies and equipment, told everyone you know that you’ve started a cleaning business, and now you’re ready to start bidding on the jobs and get down to business. So his next step is to meet with potential clients and make an offer for their cleaning services. But how do you know how much to charge to clean your prospect’s building?
Start by remembering that you are in business to make a profit and earn a living. Sometimes the tendency is to price our services low to get our foot in the door. Pricing your services too low can mean you’ll end up working for too little per hour. More importantly, you’ll have little left to reinvest in growing your business. There are cleaning companies that charge more than others and have all the work they can handle and there are companies that have lower rates but are struggling to find work! Don’t underestimate yourself or you won’t be able to make a living from your cleaning business.
Commercial cleaning fees vary widely depending on the area in which you live. Hourly rates range from $15 to $40 per hour, depending on the type of services you provide, whether or not you’re doing the work yourself, and your company’s overhead and expenses. Monthly square foot fees can range from $0.05 to $0.20 per square foot, depending on the type of building you are cleaning and the frequency of cleaning. You will be able to bid a higher square footage price for medical facilities than office buildings due to more specialized cleaning needs. You are likely to offer a lower square footage price for large buildings than for small buildings. For example, you might bid $.08 per square foot for a 50,000-square-foot building versus $.12 per square foot for an 8,000-square-foot building.
You will most likely charge your clients a monthly price and you will need to calculate that price by estimating how long it will take to perform the services your client has requested. The more productive you or your employees are, the higher the production rate per hour. If you can clean 3,500 square feet per hour, your profit will be higher than if you can only clean 2,500 square feet per hour, so adjust your price accordingly.
It’s also a good idea to find out what the “going rates” are in your area. A few phone calls to competitors may be necessary to get an idea of basic charges in your area. Use a script when you call so you can compare apples to apples. So what do you say when you call? Try something like “Hello, I have a small business office that I would like to clean once a week. It is 3,000 square feet and has two small bathrooms. Can you give me a rough estimate of what you charge per month?” The person may or may not give you an estimate. Most contractors will insist on walking through the building, but it’s worth a few phone calls so you have a ballpark figure for what cleaning companies in the area are charging.
To estimate what you should charge for cleaning a building, start by taking a tour with the building owner or manager. Keep a record of the following:
* Cleaning frequency (once a week, three times a week, five times a week). If the frequency is once or twice a week, it’s best to estimate your time and multiply it by your hourly rate. If you clean 3 or more times per week, you can estimate your time per square foot.
* Total Square Footage
* Types of floor surfaces and square footage of each (carpet, vinyl flooring, ceramic tile)
* Types of rooms: general office, rest room, bathrooms. Also consider the number of toilets/stalls and fixtures in each bathroom, as well as the types of bathroom supplies used.
* Any special considerations: high traffic areas, elevators, unusual requests, etc.
* Make a note of the specific services the customer is looking for, such as emptying the trash, dusting, cleaning bathrooms, mopping and vacuuming.
The following services are specialized services and you must bid them separately, and include a service charge in your bid:
* Stripping and Waxing (.25¢ – .50¢ per square foot)
* Polished/Burned (.03¢ – .07¢ per square foot)
* Machine Cleaning Tile Floors (.12¢ – .21¢ per square foot)
* Carpet Cleaning (.12¢ – .25¢ per square foot)
* Carpet Installation ($20 – $40 per hour)
* Cleaning appliances (microwave, refrigerator) – $10 – $35 per appliance
* Window Washing ($1.00 – $5.00 per panel)
Be sure to take enough notes so that you can put together a realistic price that is fair to the customer and one where you will make a profit. After your first meeting with the client, go back to your office, review your notes, and decide how much it will cost you to clean the building. You may need to consult a table of production cleaning rates to determine how long it will take you and your staff to clean the building. Once you have an idea of how long it will take to clean the building, you can put together your cost estimate:
* Estimate the time it will take using a production cleaning rate table or calculator.
* Determine your cost of labor to clean the building once.
* Determine your monthly labor cost to clean the building.
* Estimate a monthly cost of supplies. This will be a fairly low figure, perhaps 1-2% of monthly sales.
* Be sure to add a markup!
Add up the numbers and you’ll get your monthly cost. If you have access to a deal calculator, you can enter a series of numbers and get a price. A bid calculator will also show you the profit you can expect to make. It is also recommended to add a cleaning charge for the first time. This is usually an hourly rate of perhaps $20 – $25 per hour. The first time you go through a building it will take longer and the previous cleaning service may have left dirt in the cracks and crevices that you will have to clean the first time.
Once you’ve set your price, prepare your offer package. Your offer package should specify what you are responsible for and what the customer is responsible for (buying their own trash bags, bathroom supplies, etc.). You should also include the monthly charge for cleaning services, the length of the contract, and the procedure for canceling the contract if either party is dissatisfied.
It’s important to learn how to price your cleaning services so your clients know you’re providing a professional service at a realistic price, and so you make a profit. After all, if you’re not making a profit, you’re not going to stay in business for long!
Copyright (c) 2006 The Cleaning Shop