INTRODUCTION
The cost of house cleaning varies throughout the world depending on the region and the city. After comparing the costs of several cleaning services, we see that they span a broad spectrum. Of course, there is an average wage for each region, and some companies offer location-based hourly rates. Get a copy of "The Cleaning Guide" which is real lifesaver in your cleaning business.
The market research we discussed in subject 1 in our book "The Cleaning Guide" should help you understand how others are pricing in your neighborhood. You can check how much other people in your industry are making thanks to this information. To assist you in determining how much to charge for your house cleaning services, we have examined the overall picture and broken it down.
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Methods for Calculating House Cleaning Service Rates
There are many different methods to bill customers for house cleaning services. What matters is that you pick the approach that works best for you.
There are four strategies that home cleaning companies most frequently employ when determining how to charge for their services. They consist of the house's square footage, a per-room rate, an hourly cost, or a flat price.
The Floor Size Method
The size of dwellings and structures is measured in square footage. You must select a price per square foot for this pricing strategy. You may, for instance, charge $0.10 per square foot. You would multiply 10 cents by 2,000 if the house you are cleaning has a square footage of 2,000. Consequently, a 2,000-square-foot home costs $200.00.
Per-Room Rates
According to how long it takes to clean each room, you must charge each room individually using this pricing strategy. Cleaning a kitchen will take more time than cleaning a bathroom. As a result, your average room rate would be $75.00 if you charged $100 for the kitchen and $50 for the bathroom.
Per-Hour Rates
As previously said, the typical hourly pay for house cleaning in the United States is between $25 and $50. Your pricing needs to be determined by your location and what comparable companies are charging.
To attract more customers, don't price your services too low. Set your fees based on what it will cost you to do the task, leaving an opportunity for profit. While there is some leeway with an hourly fee, keep in mind that as you gain experience and clean homes more quickly, your profit may decline.
A Flat Fee
When you provide a service for a predetermined amount, you are charging a flat rate. For instance, cleaning a house would cost $100 a week. No matter how quickly you do the task or how big the property is, charging a flat rate ensures that you always make the same amount of money.
By using a flat fee price structure, the drawbacks of using an hourly rate are removed. The problem you are tackling is what the client is paying for, not your time. Additionally, it ends any disputes or price matching between you and the customer.
A system for cleaning service pricing is not selected in a single afternoon. When determining your house cleaning charges, there are several things to take into account.
FACTOR TO CONSIDER WHEN CHOOSING THE METHOD TO USE
Location
It's crucial to take into account where you reside. How high or low your rates are will depend on your cost of living. The cost of living is going to be greater in places like New York City and San Francisco, California. More rural parts of the country have lower cost of living.
Demand is also influenced by geography. There are more people seeking house cleaning services in some regions of the nation than in others. The cost of your services should be determined by local market demand.
Experience
You shouldn't charge more than seasoned house cleaners do if you're new to the cleaning business. You won't be able to support your experience with references. You'll be able to demand a higher price after you get more expertise.
Frequency
Because it takes so long to clean a property, frequency affects pricing. Cleaning homes more frequently takes less time. The initial cleaning may need more time, with future visits requiring less time. As a result, you may choose to charge for the initial cleaning while reducing the fee for subsequent appointments.
Size of the Home
Cleaning will take longer on a larger property. If you have a flat rate, you might choose to raise it for a big house.
State of the Home
Before determining a price, some house cleaning services need a walk-through. A walk-through will enable you to determine a home's condition. The cost should be greater for residences that require more cleaning than what is typical.
Cleaning Type
Your pricing may change depending on the sort of cleaning you do. Housekeeping companies will provide packages that include a variety of cleaning services.
Here are some examples of cleaning service packages:
- Standard cleaning
- Deep cleaning
- Event cleaning
- Move-out cleaning
Clients may want extra services such as window cleaning, changing bed linens, or laundry completed from time to time. You should include any extras in the price.
How Much Should You Charge to Make A Profit?
As stated in the prior discussion, here are some factors to consider when costing
- Labor cost
- Consumables cost
- Transport cost
- Profit margin
Don't undersell yourself while setting the price for your services. Just paying the bills is insufficient. You should consider making a profit and expanding your firm. You'll see that labor costs account for the majority of the cleaning budget, but don't worry; you work in the service sector, therefore treat your cleaners well.
EXAMPLE
Here is an example to give you a better idea of how to calculate your house cleaning rate.
If the size of the house is 1,000 square feet, and it takes 1.5 hours to clean it, how much should I charge to clean a house?
METHOD 1: DIRECT COSTING
In this case, you merely total up all of the direct costs associated with that particular job. This approach is one of the finest since it prevents short-term undercharging. It can take you a while before you break even though because it includes overhead and fixed expenditures that aren't directly tied to that particular work. Here are the calculations:
|
1. |
Labor cost |
$29.86 |
29.2% |
It depends on how many cleaners you will engage |
|
2. |
Transport and other logistics; eg machine hire |
$20.15 |
19.7% |
It depends on the mileage and the mode of transport used |
|
3. |
Consumables |
$3.19 |
3.1% |
It depends on the kind of cleaning and whether the client is providing some cleaning supplies |
|
4. |
Margin |
$30.44 |
30% |
Maintain it at 25% to 50% of the total cost to avoid unforeseen loses |
|
5. |
Tax |
$18.36 |
18% |
It differs from country to country |
|
|
TOTAL COST |
$ 102 |
100% |
|
METHOD 2
STEP 1
Start with an estimated hourly rate. If you decide to charge $30.00 an hour, multiply the time it takes to clean the house by your rate.
$30.00 x 1.5= $45.00
OR
If you decide to charge per square foot, decide your rate. Let's say you charge $0.045, multiply the total square feet by your rate.
$0.045 x 1000= $45.00
STEP 2
Next, you need to add FICA and taxes required by your state. We will use 18% for our example.
$45.00 x .18= $8.10
$45.00 + $8.10 = $53.10
Your hourly rate has now become $53.10. At this point, you will need to add the cost of supplies. For our example, let’s say supplies will be an estimated 6% of your business costs.
$53.10 x .06= $3.19
$53.10 + $3.19 = $56.29
It is important to add your overhead costs. Overhead costs are anything that is an employee-related cost but not part of the job itself. These constitute travel expenses, marketing, and website maintenance. Let’s say these expenses correspond to 50% of your hourly rate.
$56.29 x.50= $28.15
$56.29 + $28.15= $84.44
Lastly, add in your markup. Markup is the amount of profit you are looking to make. Say you want to make a 20% profit, then your numbers will look like this. Of course, you can alter your markup depending on the client and job requirements.
$84.44 x .20= $16.89
$84.44 + $16.89= $101.33
You can round this final number up, and you’re at $102 per that work. To sum it up, if you charge $102, then you can expect to earn a profit of $16.89 per work.
Price Altering Extras
Things can change your prices, just like they might in any firm. Let's look at a few elements that could have an impact on cleaning business costs.
Cleaning products can, first and foremost, raise your expenses. You may need to buy alternative products if your clients want an eco-friendly atmosphere in their houses. It might be expensive to use items with organic or eco-friendly labels.
Second, as was previously said, things like scrubbing dishes or changing linens might affect cleaning service costs.
Thirdly, you will need to change your pricing if a client has goods available for you to utilize.
Asking inquiries and performing a walk-through of the house is crucial. You will have a better understanding of the cleaning services the client is searching for and the time required to clean their house.
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