You have purchased all of your cleaning supplies and equipment, told everyone you know that you have started a cleaning business, and are now ready to start bidding for jobs and get down to business. So your next step is to meet with potential clients and make an offer on your cleaning services. But how do you know how much to charge for cleaning your potential client’s building?
Start by remembering that you are in business to make a profit and earn a living. Sometimes the tendency is to put a low price on our services in order to get a foot in the door. Pricing your services too low can mean you end up working for too little per hour. Most importantly, you will have little left to reinvest in your business growth. There are cleaning companies that charge more than others and have all the work they can handle, and there are companies that have lower fees and yet are struggling to find work! Don’t sell short 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 are doing the work yourself, and your business overhead and overhead. Monthly square foot rates can range from $ .05 to $ .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 price per square foot for medical facilities compared to office buildings due to more specialized cleaning needs. It is likely to offer a lower price in square footage for large buildings than for small buildings. For example, you can 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 customers a monthly price and you will need to calculate that price by estimating how long it will take to perform the services your customer has requested. The more productive you or your employees are, the higher the hourly production rate. If you can clean 3,500 square feet per hour, your profit will be greater than if you could only clean 2,500 square feet per hour, so adjust your price accordingly.
It is also a good idea to find out what the “current rates” are in your area. It may take a few phone calls to the competition to get an idea of the basic charges in your area. Use a script when calling so you can compare apples to apples. So what do you say when you call? Try something like, “Hi, I have a small business office that I would like to clean once a week. It is 3000 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 making a few phone calls so you have a ballpark figure of 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 owner or manager of the building. 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 is better to estimate your time and multiply it by your hourly rate. If you clean 3 or more times a week, you can estimate your time per square foot.
* Total square feet
* Types of floor surfaces and square footage of each (carpet, vinyl floor, ceramic tile)
* Types of rooms: general office, rest room, bathrooms. Also consider the number of toilets / cubicles and fixtures in each bathroom, as well as the types of bathroom supplies used.
* Any special considerations: high traffic areas, elevators, unusual requests, etc.
* Take note of the specific services the customer is looking for, such as emptying trash, dusting, cleaning restrooms, mopping, and vacuuming.
The following services are specialized services and you must offer them separately and include a service charge in your offer:
* Stripping and waxing (.25 ¢ – .50 ¢ per square foot)
* Polished / Honed (.03 ¢ – .07 ¢ per square foot)
* Machine cleaning ceramic tile floors (.12 ¢ – .21 ¢ per square foot)
* Carpet cleaning (.12 ¢ – .25 ¢ per square foot)
* Carpet staining ($ 20 – $ 40 per hour)
* Cleaning appliances (microwave, refrigerator) – $ 10 – $ 35 per appliance
* Window washing ($ 1.00 – $ 5.00 per panel)
Make sure you take enough notes so that you can put together a realistic price that is fair to the customer and one that you can profit on. After your first client meeting, go back to your office, review your notes, and decide how much it will cost to clean the building. You may need to refer to a table of production cleaning rates to determine how long it will take for 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:
* Calculate how long it will take using a production cleaning rate table or calculator.
* Determine your labor cost to clean the building once.
* Determine your monthly labor cost to clean the building.
* Estimate a monthly cost for supplies. This will be a fairly low figure, perhaps 1 or 2% of monthly sales.
* Be sure to add a markup!
Add up the numbers and you get your monthly cost. If you have access to a bid calculator, you will be able to enter a series of numbers and come up with a price. A bid calculator will also show what profit you can expect to make. It is also wise to add a cleaning charge for the first time. This is usually an hourly rate of perhaps $ 20- $ 25 an hour. The first time you walk 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, put your offer package together. Your bid package should specify what you are responsible for and what the customer is responsible for (buying your own trash can liners, bathroom supplies, etc.). It should also include the monthly charge for cleaning services, the length of the agreement, and the procedure to cancel the contract if either party is unhappy.
It is important to learn how to price your cleaning services so that your clients know that you are providing a professional service at a realistic price and so that you make a profit. After all, if you don’t make a profit, you won’t stay in business for long!
Copyright (c) 2006 The Janitorial Store