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AndreCollison
Advanced Member
USA
56 Posts |
 Posted - 10/15/2009 : 04:24:59 AM
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One is complete with the equipment and has hired the staff to clean up for the business. One has already provided flyers and met with clients for potential business. Bidding for services would be the best step for one to undertake, and the main issue would then be how much would one charge the client for the services?
The first area of concern is that the business is for profit. With the very stiff competition in the market, one would tend to take a dive in pricing in order to get contracts. When one prices too low, then the margin for the business would be too low and thus earning would be nearly nil. Without this revenue, there would be not much earnings that can be used to reinvest because one would be operating at a loss. This means that the revenue earned would be too low and one would actually earn less than what can be realized. Always remember that there are companies willing to pay for the services offered at a higher rate. Finding these clients may take a bit of more work but one should not work for a loss because one needs to earn for the business.
Commercial cleaning rates differ according to one’s geography. Rates can vary from $15 up to $40 depending upon the service offered, either being done by one’s self including all the company’s expenses. Rates can also be based on the square feet of cleaning space, which can run from $.05 to $.20 per square foot, and this increases depending upon the frequency of cleaning and the type of cleaning. Medical facilities are priced higher than office buildings due to its higher cleaning requirement. For building space, one would price lower for volume as compared to smaller building areas. An example would be a large disparity between pricing for a 10,000 square foot office space as compared to a 500 square foot space to clean. In this aspect, the larger the area, the lower the price would be. If one is retained as an office cleaner, billing would be done monthly. This price can be reached by estimating the length and duration of the services to be rendered. The more work that can be done, then the higher the rate
of production can be done and with that the greater earnings realized.
It would also be prudent to find out the market prices for the services being offered in the area. A bit of research by phone calls would be enough to get the going rate for the services rendered. Making a few phone calls would be good so that one can actually get a listing of the costing for the services similarly offered. With this information and comparing the same to the cost of overheads, one can make a rough estimate of what can be charged per month. Though some would insist on a site visit, with a few inquiries one can have an idea of the market prices prevalent in the area.
For more information: http://www.howtostartcleaningservice.com
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