We have a lot of new house cleaning business owners ask how they should price their services. Too many tend to price low in order to get the job. Below is how one business owner prices her house cleaning services. In many areas these prices may seem high, but she's able to get it. She's also able to explain why the prices are what they are...
I have a little chart that I made up to help me with bidding on jobs and I came up with a simple price between square feet (not based on square ft. per hour) It's like this:
- 1000 - 1500 is $100.00
- 1501 - 2000 is $120.00
- 2001 - 2500 is $140.00
- 2501 - 3000 is $160.00
- 3001 - 3500 is $180.00
- 3501 - 4000 is $225.00
- 4001 - 4500 is $250.00.
These prices are per visit and believe it or not, the people actually pay it. They know that they are paying for the "slot". If they want it cheaper, then we knock off some rooms. If they want a detail first, I add about $150.00 to those numbers.
When they question my pricing, I tell them that I do NOT charge by the hour, I charge by the job and what they are paying for is a great cleaning and great protection. I pay for insurance and bonding and advertising and all taxes, etc. Also, I have several employees that I have to pay at least 44 1/2 cents per mile to drive to each customer's house, so I tack that on as well. I also tell them that my prices are above the little ladies who take cash and cannot afford to buy them new carpet if they spill a bucket of bleach and I'm below the national franchises. That usually satisfies them.
I used to charge $80.00 for large houses and discovered that I was way behind when it was time to renew my insurance policy and pay my self-employment taxes. Another thing I did was use my Excel program and made a chart showing all my customers, how much I charge them, subtracted employee wages, taxes, self employment taxes, FUTA taxes, etc. That was an eye opener for me. After figuring all that information, then subtracting my business and personal bills per month, I found that I was not making ANY money at all. That let me see how much I needed to charge in order to take care of my monthly bills and make some profit.
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