To run a profitable commercial cleaning service business you to need to know how to price commercial cleaning jobs so that you can earn good profits and stay ahead of the competition. Learn how to set the right pricing for your cleaning jobs.

Pricing for commercial cleaning jobs can be a complex task. But if you can learn how to price commercial cleaning jobs then that means you have mastered the game. It is essential for ensuring profitability and client satisfaction. Sometimes the pricing strategy becomes a deciding factor if you will get a cleaning contract or not, so finding the right balance is very important. You need to set a price where the client is happy and you are not losing any money as well.

This guide will provide a detailed overview of the methods and factors that influence pricing. And not only that you will learn the average rates in the industry and tips on running a profitable cleaning business. By the end of this blog, you will have a clear understanding of how to set prices for your commercial cleaning services effectively. And then you can focus on running a successful cleaning service that will surely gain profits!

Understanding Pricing Methods

Pricing methods for commercial cleaning services vary depending on several factors. The pricing method you choose depends on you. Your preferences, scope of work, and type of cleaning services you provide. Here are the most common methods used in the industry:

1. Hourly Rates

Hourly rates involve charging clients based on the number of hours spent cleaning their facility. This method is straightforward and ensures that you get paid for the actual time spent on the job. However, it requires an accurate estimation of the time needed to complete the cleaning tasks.

This method of pricing is ideal if you are new in the cleaning industry. You are not sure of the scope of work so you will charge by the time. Make sure you charge the correct time you spent on the site. One issue you might face is the trust issue of the client. They might feel that you are working slow to charge more. But worry not, you can win them over by giving exceptional services.

Some figures that might help - 

2. Square Footage Pricing

Square footage pricing is one of the most common methods used for commercial cleaning jobs. In this method, you charge a rate per square foot of the area that needs to be cleaned. This method is particularly useful for larger spaces, as it provides a clear and transparent pricing structure for both the cleaning company and the client.

You charge based on the size and type of surface too. Now imagine you are cleaning a big building, lower will be the square foot rate.

3. Flat Fee Pricing

Flat fee pricing involves charging a fixed rate for the entire cleaning job. In this, the time or effort comes secondary. This method is beneficial when you have a clear understanding of the scope of work and can accurately estimate the resources needed. It simplifies invoicing and helps clients know upfront how much they will be paying.

The clients feel in control of the budget and the money they will pay you at the end of the cleaning job. They are more likely to pay you faster and you can avoid any delays in the payment. But one drawback can be that you underestimate the cost and then you will have to absorb them. As the pricing is already fixed and you have shared the quote, there is much less you can do about it.

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How to Charge for Commercial Cleaning Services

When determining how to charge for commercial cleaning services, it’s essential to consider the type of building, the scope of work, and the client’s specific needs. Here are some steps to help you set your prices:

Step 1: Research the Market

Researching the market is crucial to understanding the going rates for commercial cleaning services in your area. Look at what competitors are charging and the types of services they offer. This will give you a benchmark for setting your prices competitively. 

You also need to make sure that you are aware of the site where you will be working. The best practice is to go on-site and check out the space or speak to the client.

Step 2: Assess the Client’s Needs

Every client has unique needs, and understanding these is key to providing accurate pricing. Ask clients about the size of their property, the type of cleaning they require (e.g., regular cleaning, deep cleaning), and how often they need the service. 

This information will help you tailor your pricing to their specific requirements. You can use a CRM software that will help you track every clients and their needs so that you can run the operations better.

Step 3: Calculate Your Costs

Calculate the costs associated with providing the cleaning services, including labor, supplies, equipment, and overheads. Make sure to include a margin for profit. This will ensure that your business remains profitable while offering competitive rates.

• Firstly, calculate the number of labor hours

Calculate the number of hours it will take to complete a job. And then the number of employees you need. Then multiply them both. For example - if it takes 20 hours and 3 employees to complete the cleaning job then the labor hours are - 60 hrs.

• Secondly, Calculate your hourly labor cost

It usually means the hourly wage and extras like worker’s compensation, taxes, and other employee-related expenses. People generally keep 20% of such cost while providing cleaning services. For example - if you generally pay $10 to you staff then your hourly wage is actually $12.

• Lastly, Multiply labor hours by labor cost

Your total labor cost for the job is now $720.

Step 4: Choose the Right Pricing Method

Based on your research and cost calculations, choose the pricing method that best suits the job. For example, use square footage pricing for large office spaces and hourly rates for smaller, more specialized cleaning tasks.

Average Commercial Cleaning Prices

Understanding the average prices in the commercial cleaning industry can help you set competitive rates. Here are some general guidelines:

Hourly Rates: Typically range from $50 to $100 per hour, depending on the complexity of the job and the region.

Square Footage Pricing: Usually ranges from $0.07 to $0.15 per square foot. Specialized services like carpet cleaning or window cleaning can cost more.

Flat Fees: Vary widely based on the scope of work but generally provide a clear and fixed cost for clients.

Then there are rates that will vary from the types of services you will provide as well.

• Carpet cleaning: $0.20–$0.40 per sq. ft.
• Stripping and waxing: $0.30 – $0.50 per sq. ft.
• Tile and concrete floor cleaning: $0.12 – $0.21 per sq. ft.
• Stain and spot cleaning: $25-$40 per hour
• Office appliances: $10-$40 per appliance
• Ceramic tile cleaning: $0.12 – $0.21 per square foot.
• Window cleaning: $2 – $5 per window pane.

Factors that Influence the Commercial Cleaning Service Price

Several factors influence the pricing of commercial cleaning services. Befor you decide on how much to charge for commercial cleaning jobs you need to consider some factors. Here are some of the most important ones:

• Building Size and Type

Larger buildings often have a lower cost per square foot due to economies of scale, but the overall cost is higher because of the larger area. The type of building (e.g., medical facilities, offices, manufacturing plants) also affects pricing due to different cleaning requirements. 

The larger the building is more time it will take to clean it. Hence the overall work is increased and hence so will the price.

• Scope of Work

The extent of cleaning required significantly impacts the price. Regular cleaning services cost less than deep cleaning or specialized services like floor waxing or upholstery cleaning. As you grow you commercial cleaning services, your expertise will increase too. When you start giving specialized services to the clients, you can easily charge more.

• Frequency of Service

How often a client needs cleaning services also affects the price. Regular, frequent services might be offered at a lower rate per visit compared to one-time or occasional deep cleaning jobs. Client retention is very important in the cleaning industry. 

If you have a recurring client then that means that they are happy with your services and they will choose you over others. To retain more happy happy clients you can offer discounts or coupons that will keep them coming back to you.

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• Labor and Overhead Costs

Labor costs, including wages, benefits, and taxes, are a significant part of the pricing. Overhead costs such as supplies, equipment, insurance, and administrative expenses also need to be factored in. There are monthly costs you need to consider while fixing the pricing. Pieces of equipment will need cleaning and maintenance and you need to provide a bonus to the staff as well. If you are using any software to run your commercial cleaning business then you need to pay that subscription too.

• Your Average Markup Per Job

This includes the margin you will keep while giving the cleaning services. After all you need to make some profits to run your business. This amount will depend on your industry and location, so ensure that you study service demand within your area. Without markup, your company will not generate any profit.

Run a Profitable Commercial Cleaning Business

To run a profitable commercial cleaning business, you need to balance competitive pricing with maintaining healthy profit margins. Here are some tips to achieve this:

• Optimize Operations

Streamline your operations to reduce costs and improve efficiency. Use software tools for scheduling, time tracking, and route optimization to minimize travel time and labor costs. Running a cleaning business surely can be tricky. That is why it is always a good idea to invest in software that will take care of most of the operations. It will empower and encourage business owners to run their company more smoothly.

Novagems is designed to take care of your commercial cleaning services from start to finish. From sending quotes to getting paid by invoicing, it takes managing to another level. Commercial cleaning companies need to understand that they need to stay ahead of the game. And once the step of mastering the pricing is finished, they need to move on to the next step. Such as -

• Offer Value-Added Services

Differentiate your business by offering value-added services such as eco-friendly cleaning, specialized disinfection, or bundled service packages. These can justify higher prices and attract more clients.

• Maintain High Standards

Consistently delivering high-quality cleaning services will build a strong reputation and lead to repeat business and referrals. Satisfied clients are more likely to pay premium prices for reliable and excellent service.

• Monitor Finances

Keep a close eye on your financials, including costs, revenues, and profit margins. Regularly review your pricing strategy and adjust as necessary to ensure profitability.

By following these guidelines and understanding the various pricing methods and factors, you can effectively price your commercial cleaning services, attract more clients, and run a successful and profitable cleaning business.