4 Things to Consider When Setting Your Cleaning Rates

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September 15, 2022

One of the most difficult decisions that cleaning companies and property managers have to make is what to charge for their services. You have to manage charging a fair price while also not cutting yourself short on profits. There are a ton of factors that go into choosing the right price, including competitor pricing, market wages, and much more. Here are 4 things to consider when setting your cleaning rates: 

1. Labor Costs 

One of the biggest things to consider when setting the price for your cleaning services is labor costs. You have to make sure that you have your charge set high enough to where you can comfortably pay your employees a fair wage while also maintaining a profit. Finding the right labor cost really depends on how big the property is and what the local wages are. When cleaning companies are first starting out, this is one of the biggest challenges they come across. You have to make sure you have the right number of employees to run a smooth operation while also having the revenue to pay them all a fair amount. 

2. Inspection Costs 

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After your cleaning crew has completed a job, you can choose to have the property inspected to ensure that everything is up to par. While this does add an extra expense to your total costing, you will learn that most companies find it necessary to ensure that customers are satisfied. There are many different levels of pricing when it comes to inspection costs, so you just have to figure out what works best for your business. If you know that your properties are staying clean, you are able to feel more comfortable when it comes time to grow your business. Driving high quality will ensure that your business continues to grow. 

3. Laundry and Disposables 

Two of the biggest expenses when it comes to maintaining a property are laundry costs and the price to replenish disposables. Between each guest, you will want to make sure that all linens are cleaned properly and switched out before your next customer arrives. The cost of processing laundry will obviously vary depending on how many properties you manage and how large the properties are, but you always want to account for this expense when setting your cleaning rates. You’ll also want to consider the tools you’re using to clean and the cost to replenish those. Another thing that people don’t often think about is the cost of all the small disposable items, such as paper products, soaps, shampoos, etc. Keep in mind that if you choose to use more high-end products, like gourmet coffee makers, you want to include that in your cost structure as well. 

4. Balance Margin and Costs

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At the end of the day, the goal of any business is to make money, and that applies to your cleaning company as well. There are many factors to consider when setting your cleaning rates, but the end goal is to make your revenue greater than all your costs so you make money. Your main source of income is going to be your cleaning services, which is why it is important to choose the right price. 

We know that balancing your expenses can be challenging, which is why we provide property management services that can help you manage your business and make more money. We have built a spreadsheet that you can download to help keep track of costs and everything else you need in one convenient form. If you are interested, send us an email to danny@resortcleaning.com and we will get you on the path to success!

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