Looking to find a simple pricing formula for professional cleaning companies? Look no further! We know that finding the right price for any job can be difficult, time-consuming, and tedious. It doesn’t have to be. In fact if you download our FREE PRINTABLE, you will earn how to create the RIGHT price just for you.
This simple pricing formula for professional cleaning companies will help you create an hourly rate to bid on all house and office cleaning jobs. It doesn’t matter the location you provide the cleaning, the products you use, nor the system or strategy in which you clean. This pricing formula will guide you step by step to make your hourly price that works best for your company.
Let’s break that down, shall we.
We all know that there are 2 ways to quote professional cleaning. Right? Right. You can quote by the square foot or by the hour. So, let’s explore this “by the hour concept for professional cleaning estimating”.
There are 3 areas in which you must focus on when calculating professional cleaning rates by the hour.
Finding out the minimum wage for the service area, figure your overhead expenses, and determine your preferred profit margin.
Let me say that again in plain English and bring clarity to how we have submitted job proposals for our professional cleaning service.
1. First: Labor costs. No matter where your maid or janitorial service is located, there is a minimum wage or a prevailing salary set for our industry. Find out what it is, for the area in which you do business. This is very important!
Whether you are a solopreneur or an entrepreneur, a salary MUST be paid for all work performed. This is not negotiable. (If you are a union shop, then use the union’s prevailing wage).
2. Secondly: Calculate your overhead expenses. Business rent or mortgage, utilities, telecommunications, vendors, insurance costs, taxes, and supplies would all fit into this category. Anything you pay on a regular base outside of labor would fit into this amount.
Once you have this total, decide on a percentage per job to allocate to this total. It might be a challenge at first, but over time, you will get the concept. Nowadays, there are plenty of accounting software, apps, or bookkeeping programs or companies that can assist you with this.
3. Third: Profit margin. What do you want to set as profit? This amount or percentage will be whatever you decide it to be – 10%, 25%, 42%. The amount is all a part of your pricing strategy.
Side note: No 2 jobs are the same, so it would be wise to also factor in additional costs you may incur.
Some of these expenses could be on the job parking fees for your work vehicle, extra fuel due to ‘out of service area’ cleanings, or extra equipment rental fees and special supplies needed to complete a work order. Don’t forget to add these extras on before you give your final price for the job.
Are you still with me?
I know that it can be overwhelming when starting a professional cleaning service, so that’s why this pricing system is as simple as it can get.
Keeping it simple will help you or your team members to implement this process for every cleaning bid.
Sometimes complicating matters create unnecessary misunderstandings. Bidding too high is just as bad as bidding too low.
If you need help with how to use a simple pricing formula for professional cleaning companies, we have provided a template right here.
It is a FREE PRINTABLE that you can use for every job. This pricing estimator outlines the 3 areas mentioned above using a realistic percentage calculation.
This printable can assist you to break down each job’s income. It provides a portion of the total income and apportions it to each area as specified above. Essentially, you will know how much is spent on labor. You will know how much you have set aside for your business’ recurring expenses. And, you will know how much is put towards profit.
Trust me, this simple method really works!
It was how I learned to price my very first janitorial contracts 25 years ago. Yep, I have been at this simple pricing formula for 25 years. My husband came along about 18 years ago and has been in this business with me since. We have completed very small jobs and some very large ones using this simple pricing guide.
We used this pricing guide to acquire most of our regular customers. And when they wanted additional cleaning, we still used this method. It’s simple and it works!
There are plenty of benefits for systematizing your hourly rate for professional maid or janitorial services.
Developing a process for your hourly fee is honestly, telling your money where it should go. You will not have a second thought if you have enough money to pay your staff on payday. You will know based upon your bookkeeping.
Having a system such as this relieves the stress of not knowing where the money is to pay your bills. You will have it set aside. You will have a certain percentage, allocated from each and every job, to pay all of your bills. Well, at least you will know how much you have made from each job. 😐
Another benefit for breaking down your hourly rate with this simple pricing formula is that it sets you up the right way for your business’ accounting. At the end of the year, every business small and large has to have their bookkeeping in order to pass off to your accountant. So, before you log into a digital app, or software or website, you will have already categorized every dollar of your income.
Take it from me. It helps.
One more advantage for knowing your unique rate per hour is that, it allows you to charge appropriately when providing extra cleaning tasks.
Say for instance, your customer wants you to clean items not included in your cleaning contract. Things like the refrigerator, the oven, the carpet, lampshades, windows, or even wash pillows. You can give an estimated cleaning price based upon your hourly rate!
So, if you’re asked to perform deep or detail cleaning for any of your customers, you can give a quote based upon your hourly rate. Got it.
If you haven’t developed your own technique for an hourly rate, don’t be shy, grab the FREE 1-page download or the more comprehensive product available in our professional cleaner’s SHOP.
It can help you realize your true labor costs, set aside your business expenses, and maintain the profit margin that you desire.
“Simplicity is the ultimate sophistication” – Leonardo da Vinci
Until next time,
Creator of A Janitor’s Story®. I started my office cleaning side hustle at 20 years old. Years later, with the partnership of my husband and our amazing staff, my business grew to mid-six figures and fulfilled my wildest dreams! Now, 27 years STRONG, I’ve retired, and I help aspiring entrepreneurs to START and GROW their house and office cleaning service businesses to achieve their biggest dreams. I’d like to help you do the same.
Click here to join my email list for constant inspiration, deals and special offers EXCLUSIVELY for new cleaning business solopreneurs and small cleaning teams. I look forward to meeting you inside!