When and why to raise your office cleaning prices is important for these 3 reasons. Your professional commercial cleaning business must increase rates to not only survive but to thrive in an ever-changing industry.
Think about it.
The price of milk will always increase, right? The price of gasoline for your vehicles will always rise. The cost of a good education will go up too. And, well, so should the rates for business owners.
This definitely includes professional cleaning business owners as well.
No business can survive staying the same and certainly not at the same prices. As the rates for everything increases, so must your rate to your customers.
It will be the only way for your business to make it.
3 reasons when and why to raise your office cleaning prices
Inflation is the #1 reason to increase your office cleaning rates.
Inflation is when the general level of prices for services or products increase by an annual percentage. All in all, year after year, the purchasing power you have with currency diminishes. According to this information, the cost to run an office cleaning business will increase. The average rate of inflation is 3% per year.
Does this mean your cleaning rates should increase annually by 3% as well? That would be wise, but it is completely up to you to decide how to implement that change with your commercial cleaning customers.
Whether you increase at 3% at the annual cleaning contract renewal. Or, at 5% – 8% at a contract renewal every other year is completely up to you. (I will explain how we did our contracts with our professional office cleaning service for the past 25 years in a little bit).
Payroll, insurance costs and liabilities, cleaning material and supplies are a reason to raise office cleaning rates.
In addition to payroll, insurance and supplies, general business expenses may receive a price hike every year including your office rental space, warehouse storage fees, office supplies and equipment.
Inflation is across the board and you have to adjust with it or you and your cleaning maintenance service will suffer.
Most companies feel this “pain” with their business in the profit margin. But, this does not have to be you. In fact, that’s our 3rd reason of when and why to increase your professional cleaning rates.
Investing more into your professional cleaning business and yourself is yet another reason to raise your rates for cleaning offices.
If your cleaning business is not raising rates due to the rising costs of your bills, it will impact your profit margin.
Make no mistake about it!
Give this some thought….
Why are you in the professional cleaning business? If you have 1 or 2 answers, I’m willing to bet that one of them is to make money. Well that won’t happen if your business expenses are eating away at your profits.
This doesn’t have to happen!
No one wants to experience loss with their business.
Nobody expects their business to fail. We all want continued growth with our janitorial businesses.
It’s simple – you have to pay the bills, but you can’t take the allocated portion of profit to pay bills.
And no, it won’t “balance itself”.
You have to do what’s necessary and increase rates for your commercial cleaning company to keep steady with your profit margin.
Using your business’ profits to pay bills is not good, and it is a huge reason why businesses fail.
It happens in every industry with every type of service and business model. According to this article, only about 50% of businesses make it past 5 years.
Be one of the businesses that survives! Don’t be afraid to increase your rates.
I will be honest with you, things have changed with our company over the past 25 years of being in the professional cleaning industry. In fact, my very first cleaning contract was cleaning for 30 days FOR FREE as a way to secure an office cleaning contract.
It was a sales tactic to get cleaning contracts. At that time, I had nothing to lose, and everything to gain.
Since then, I got married and my husband became my cleaning business partner. We learned a lot and grew our cleaning service. We settled on renewing our commercial cleaning contracts about every 3-4 years. Once a year for us seemed too frequent.
At the time of renewal, (the customer’s anniversary), we would add anywhere between 15% – 20% rate increase. We chose these amounts to bring our business current, (considering inflation), and to consider the impending increase of costs with our business.
It worked for us. And it still works!
In fact, our customers appreciated us not hassling them once a year with a very small amount as opposed to a substantial increase every few years.
If your method doesn’t work, try ours. 😉
HOMEWORK: For your commercial cleaning service, try this method on 1 or 2 of your office cleaning customers. When you renew a contract, apply an increase of 3% – 8% for the same contract. But spell out to your customer that the terms have changed and that it is for a 2-year agreement. This strategy will give you a longer amount of time with the agreement and your customer can be rest assured that you won’t hassle them next year. See how it works and let us know in the comments below.
The 3 main reasons when and why you should raise your office cleaning prices are keeping up with inflation, meeting the need to care for the rising costs of your business expenses, and to hold onto the profit margin you designated with your company. Additionally, challenge yourself to increase your commercial cleaning prices every couple of years instead of increasing rates annually.
“Until you value yourself, you won’t value your time. Until you value your time, you will not do anything with it. ” – M. Scott Peck
Until next time,
P.S. We have a great FREE Commercial Cleaning Resource we can deliver right to your inbox if you like. Check it out… Commercial Cleaning Customer Profile Worksheets. Also, if you want a sample office cleaning schedule, visit our shop and purchase the Commercial Customer Profile Worksheet PRODUCT.
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.
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