Startup

How Much to Charge for Commercial Cleaning Services?

September 9, 2024

Starting or managing a commercial cleaning business requires a range of decisions, but one of the most critical is setting the right price for your services. Understanding how much to charge for commercial cleaning can determine whether your business thrives or struggles. The key is to find a balance where your prices are competitive but also allow you to cover your costs and make a profit.

This guide aims to help beginners and established cleaning companies refine their pricing strategies. We’ll explore how to calculate commercial cleaning charges, discuss the factors that influence prices, and provide real-world examples to give you a clearer picture of how to set your rates.

Table of Contents

Understanding the Basics of Commercial Cleaning Pricing
Factors That Influence Commercial Cleaning Prices
How to Calculate Commercial Cleaning Costs
Competitive Pricing Strategies for Commercial Cleaning
Pricing Tools and Software
Case Studies: Real-World Pricing Examples
Common Mistakes to Avoid When Setting Your Prices

Understanding the Basics of Commercial Cleaning Pricing

To effectively price the right commercial cleaning service, you need a solid grasp of what commercial cleaning is and why accurate pricing matters. Understanding industry-standard pricing models can help you set competitive rates that reflect your service quality and market conditions. With this knowledge, you cover costs and maximize profitability.

What is Commercial Cleaning?

Commercial cleaning concerns the professional cleaning of businesses, offices, and other commercial spaces. Unlike residential cleaning, where individuals or small teams are usually enough to complete the job, a commercial cleaning assignment often requires a more structured approach, specialized cleaning services and equipment, and sometimes even compliance with health and safety regulations.

Importance of Accurate Pricing

Getting your pricing right affects your entire cleaning business, and here’s why. First, you’re covering all your costs, like labor, materials, and other expenses, while making a profit. Also, setting the proper price helps build trust with your clients because they get good value for what they pay.

You will lose money if you charge too little. But if you charge too much, you could scare away potential clients. Finding that sweet pricing spot where your business can steadily grow can be tricky. That’s why we’re here to guide you through the process.

Overview of Industry Standard Pricing Models

Several pricing models exist in the commercial cleaning industry. The most common ones include:

Hourly rates: Charging based on the number of hours worked. Best suited for jobs where the time required can vary, such as deep cleaning or post-construction cleanup.
Flat rates: A fixed price for a specific service, regardless of how much it takes to complete it. Optimal for standard cleaning tasks with a clear scope of work, such as routine office or residential cleaning.
Square footage rates: Charging based on the area size that needs cleaning. You can use it for large commercial spaces, warehouses, or retail environments where the cleaning needs are directly related to the area size.
Per room rates: Charging a set price for cleaning each room individually. It’s especially effective for residential cleaning services, hotel rooms, or offices with distinct rooms.
Package Rates: Offering bundled services at a discounted rate. Well-suited to regular clients who require multiple services, such as floor cleaning, window washing, and restroom maintenance. Think of commercial properties or businesses looking for a comprehensive cleaning solution at a better value.
Task-Based Rates: Charging based on specific tasks, such as carpet cleaning, window washing, or dusting. Useful when clients need targeted cleaning services rather than a full cleaning routine.
Subscription-Based Rates: Setting a recurring fee for ongoing cleaning services. Works for clients who prefer a predictable budget and need regular cleaning, such as offices, gyms, or retail spaces.

Factors That Influence Commercial Cleaning Prices

Several factors influence the pricing of commercial and cleaning supplies and services. Let’s explore each of them:

Client Location: Geography plays a significant role in pricing. For example, commercial cleaning companies’ services in major cities like New York or San Francisco generally cost more than in smaller towns due to higher living costs, labor rates, and demand.
Cleaning Space Size: The area size directly affects the cost. Larger spaces require more time and resources, which increases the job site’s overall price. For instance, a cleaning job for a 10,000-square-foot building will cost more than a 2,000-square-foot office.
Facility Type: Different facilities have varying cleaning requirements, which impact the cleaning frequency and pricing.
- Office Buildings: Typically require regular maintenance cleaning, including vacuuming, dusting, and sanitizing restrooms.
- Retail Spaces: These locations may need more frequent cleaning, especially in high-traffic areas, and require attention to detail to maintain a polished appearance.
- Medical Facilities: Cleaning in medical settings is more specialized and involves strict adherence to health and safety standards, often resulting in higher costs.
- Industrial Buildings: These facilities may require heavy-duty cleaning with specialized equipment in potentially hazardous conditions.
Service Frequency: How often the cleaning service is needed also affects pricing. Regular cleaning contracts, such as daily or weekly specific cleaning services, might come with a discount compared to one-time or less frequent cleanings. For example, a daily office cleaning service may be cheaper per visit than a monthly deep cleaning.
Level of Service Required: The scope of work also influences pricing. Basic cleaning services will cost less than deep cleaning, which involves more detailed and labor-intensive tasks such as carpet cleaning, window cleaning, or stripping and waxing floors.
Experience and Reputation: Experienced business cleaning companies with a strong reputation can eventually charge more. Clients are often willing to pay a premium for quality assurance and reliability.

How to Calculate Commercial Cleaning Costs

Now that we’ve covered the factors that influence pricing let’s examine the methods for calculating your commercial space cleaning costs.

Calculating Hourly Rates

One of the simplest ways to price your services is by calculating an hourly rate. To do this, you’ll need to determine the following:

Labor Costs: This includes wages, taxes, and employee benefits. For example, if you pay your staff $15 per hour and add 20% for taxes and benefits, your labor cost is $18.
Overhead Costs: These are the expenses necessary to run your business, such as insurance, cleaning supplies, and administrative costs. If your overhead is $2,000 per month and you work 200 hours, your overhead cost per hour is $10.
Desired Profit: Determine how much profit you want to make per hour. If you aim for a 20% profit margin on top of your labor and overhead costs, you would add $5.60 to your hourly rate.

Example Calculation: If your hourly labor cost is $18 per hour, your overhead cost is $10 per hour, and the job’s total cost to your desired profit is $5.60 per hour, your total hourly rate would be $18 + $10 + $5.60 = $33.60 per hour.

Estimating the Time Required

The next step is to estimate how long it will take to clean the facility. This depends on the space’s size, the scope of work, and the efficiency of your crew. For example, if a 5,000-square-foot office space typically takes 4 hours to clean, and your hourly rate is $33.60, the charge for that office would be 4 hours x $33.60 = $134.40

Pricing Charts and Examples

Creating a pricing chart can help you standardize your rates and ensure consistency. You can use tables or a bullet point list for better readability. To make your pricing charts stand out, use contrasting colors to highlight key benefits and value propositions, and include a clear call-to-action like “Contact Us Today” to encourage direct communication. This will grab attention and prompt prospects to reach out for more details or to schedule a service.

Here’s an example of a basic pricing chart with commercial cleaning prices:

Office Cleaning
- Hourly Rate: $20–80 per hour per cleaner
- Flat Rate: $150–1,500
- Room Rate: $50–150 per room
- Sq Ft Rate: $0.10–0.40 per sq ft
Janitorial Service
- Sq Ft Rate: $0.10–0.40 per sq ft
- Hourly Rate: $20–80 per hour per cleaner
- Flat Rate: $150–1,500+
- Room Rate: $50–150 per room
Medical Office Cleaning
- Sq Ft Rate: $0.25–0.35 per sq ft
- Hourly Rate: $50–150 per hour
- Flat Rate: $200–1,500+
- Room Rate: $75–150 per room
Commercial Kitchen Cleaning
- Sq Ft Rate: $0.15–0.30 per sq ft
- Hourly Rate: $50–80 per hour per cleaner
- Flat Rate: $200–500+
Specialty Commercial Cleaning
- Sanitization & Odor Removal: $75–100 per hour
- Furniture, Upholstery, & Curtain Cleaning: $100 per hour
- Ceiling/Wall Cleaning: $0.50–0.60 per sq ft
- Floor Stripping & Waxing: $0.30–0.50 per sq ft
- Floor Buffing & Burnishing: $0.04–0.12 per sq ft
- Blinds & Window Cleaning: $2–5 per window
- Appliance Cleaning: $10–40 per appliance
- Disaster Restoration Cleaning: $1,000–4,000
- Tile Cleaning: $0.12–0.21 per sq ft
- Carpet Cleaning: $0.08–0.40 per sq ft
- Green Cleaning Supplies: $5–10 per cleaning job

Creating a Pricing Formula

To make the pricing process even more efficient, you can create a formula based on the factors we’ve discussed. For example, your formula could look something like this:

Total Price = Square Footage Rate x Square Feet + Additional Services Cost (extra tasks or requirements beyond the standard cleaning)

Example: For a warehouse with 10,000 square feet, a rate of $0.08 per square foot, and additional services costing $300:

Total Price = $0.08 x 10,000 + $300 = $1,100

This formula allows you to quickly calculate the price for any facility based on its specific requirements.

When providing estimates to clients, transparency is key. Break down the costs and explain how each component contributes to the final price. This not only builds trust but also helps clients understand the value of your services.

When giving estimates to clients, be clear and transparent. Break down the costs and explain each component’s role in the final price. This approach builds trust and helps clients see the value of your services.

Competitive Pricing Strategies for Commercial Cleaning

Remaining competitive and proactive in the commercial cleaning industry ensures you attract and retain clients while adapting to market changes. It helps you stay ahead of competitors, respond to client needs effectively, and adjust pricing strategies to reflect industry trends. This approach maintains your market position and supports long-term profitability. Here’s how to plan your pricing structure:

Market Research: Conduct thorough market research to understand what competitors are charging for similar services in your area. This will give you a benchmark to confirm your prices are competitive. For commercial cleaning jobs, for example, if the average commercial cleaning rates in your region are between $20 and $40 per hour, you’ll want to position your pricing within or just above this range, depending on the value you offer.
Value-Added Services: Consider offering value-added services that justify higher prices. These could include eco-friendly cleaning products, specialized disinfection services, or a satisfaction guarantee. For example, offering green cleaning options could appeal to environmentally conscious clients and allow you to charge a premium.
Discounts and Promotions: Such offers can attract new clients and encourage long-term contracts. For example, you might offer a 10% discount on cleaning bids first month of service for new clients or a free deep cleaning after six months of regular service.
Building Long-Term Contracts: Long-term contracts provide steady income and can help you secure better pricing for supplies and labor. Offer incentives for clients to sign longer contracts, such as discounted rates or additional services at no extra charge.

Pricing Tools and Software

Using pricing tools and software can simplify setting and managing your rates. Several software tools are available to help you calculate and manage your commercial cleaning prices. Some popular options include:

Janitorial Manager: This tool helps you create detailed bids and proposals, track labor costs, and manage your cleaning schedule.
CleanGuru: CleanGuru offers a range of pricing tools, including calculators for square footage rates, hourly rates, and more.
Swept: Swept is a management tool that helps you track employee time, manage inventory, and ensure that your pricing is accurate.

The main benefits of using software for pricing include accuracy, efficiency, and scalability. These tools help you avoid errors in your calculations, save time by automating the pricing process, and easily adjust your rates as your business grows.

To integrate pricing tools into your strategy, start by inputting your labor costs, overhead, and desired profit margins into the software. Use the tools to create standardized pricing charts and estimates, which can be easily adjusted for different clients and services.

Case Studies: Real-World Pricing Examples

To better understand how to apply these principles, let’s look at some real-world examples.

Example 1: Small Office Building

A small office building of 2,500 square feet requires regular cleaning services. Instead of using a per-square-foot rate, an hourly rate is more suitable for this small office. If it takes 3 hours to clean the office, and your hourly rate is $35:

3 hours x $35 per hour = $105 per visit

If the client requests bi-weekly cleaning, the monthly cost would be:

$105 per visit x 2 visits per week x 4 weeks = $840 per month

Example 2: Retail Space

A retail space of 4,000 square feet requires daily cleaning. Retail spaces typically use a rate of $0.10 per square foot:

4,000 sq ft x $0.10 = $400 per visit

For daily professional cleaning services, the monthly cost would be:

$400 per visit x 30 days = $12,000 per month

Example 3: Medical Facility

A 5,000-square-foot medical facility requires commercial cleaning. The rate for medical facilities is generally higher, around $0.20 per square foot, due to the need for specialized equipment and procedures. After adding a 20% premium for specialized services, your rate is:

5,000 sq ft×0.20=$1,000 (Base Cost per visit)

20% of $1,000=0.20×$1,000=$200

Total cost: $1,000+$200=$1,200 per visit

For a bi-weekly service, the monthly cost would be $1,200×8=$9,600 per month

Common Mistakes to Avoid When Setting Your Prices

Pricing mistakes can hurt your business in the long run. Here are some common pitfalls to avoid.

Underpricing Services: Underpricing your services might help you attract clients initially, but it can lead to financial losses and an unsustainable business model. Make sure your prices cover all your costs and allow for a reasonable profit margin.
Overlooking Hidden Costs: Hidden costs, such as travel expenses, equipment maintenance, or supply restocking, can eat into your profits if not accounted for. Always include these in your pricing calculations.
Failing to Adjust Prices Over Time: The cost of labor, supplies, and overhead can change over time. Failing to adjust your prices accordingly can result in shrinking profit margins. Regularly review and update your rates to reflect changes in your expenses and market conditions.

Conclusion

Setting the prices for commercial cleaning services is about striking the perfect balance. You need to know how much to charge for commercial cleaning to keep your rates fair, competitive, and profitable. Consider each client’s unique needs and stay aware of market trends. This approach ensures your business has a stable foundation to grow. Whether you’re just starting or looking to refine your pricing strategy, our guide offers the insights and tools to make wise decisions and expand your commercial cleaning business.

Posted in

Startup