When it comes to owning a cleaning business, one factor that you will more than likely spend a lot of time considering and possibly even changing is the house cleaning hourly rate that your company charges. When evaluating your current rate, you may find that your company is undercharging and therefore not making the best profit possible. On the other hand you could also be overcharging which could lead to a loss of business as customers will seek out lower prices offered by your competitors. Customers are willing to pay for quality service but this doesn’t mean that you want to undercharge or overcharge. In the cleaning business you’ll want to find a happy medium that keeps your profits at a steady or growing level and your customer interest continuously growing.
Picking a rate that works
So how much should your house cleaning hourly rate be? While there is no one right answer, there are a few factors you’ll want to consider before putting your prices on paper. Think about the following before setting your hourly charge:
- What services do you offer? – The services you offer may sway how much you want your rate to be. If you only offer domestic cleaning services than a flat hourly rate across the board may be ideal. However, if you offer a variety of services, some more grueling than others, you may want to consider offering different hourly rates per the job at hand. The more work involved the more you may want to consider charging.
With cleaning services you’ll find that customers are usually willing to pay a bit more for higher quality. No one wants to hire a cleaning company that leaves behind dust and spider webs.
- What are your competitors charging? To ensure that you aren’t undercharging or overcharging, you’ll want to see what competitor cleaning companies are charging their customers. To find local competitors, use the YellowPages online or Yelp and then see what local companies have their rates set at. Usually you’ll find that most companies are charging $15-$40 an hour. Once you have an average rate that others are charging, base your house cleaning hourly rate on that number. Remember you can choose to go a little higher or a little lower, but you don’t want to go towards the extreme on either side of the spectrum. If you find that your competitors are charging about $30 an hour, you could safely charge $28-$32 an hour.
- Track your success – When you have a rate set, see how customers react to it. If you find that your monthly profits are on or above target, more than likely the rate you’ve chosen is ideal. However, it’s important to keep tabs on your success over a long time period. Take a couple of month’s worth of data and see what your business has been doing. Then determine if you are hitting your profit targets or if you need to adjust your rate to meet them.
Discounts and Specials
Besides choosing an efficient house cleaning hourly rate, you’ll want to also consider certain discounts and specials that your cleaning company can run throughout the season. The types of discounts you choose will depend on the services your company offers but most cleaning companies offer discounts that involve a percentage off. Let’s say a customer wants the windows in his home cleaned. As a first time customer you could offer a discount of 10%. Some other discounts you can run include:
- Repeat customer discount
- First time customer discount
- Referral discount
- Monthly email club discount
As for cleaning specials, run a special campaign where customers can save money off of a certain service. For example, you can run specials that include carpet cleaning in one room and the other room is free. Your company could also choose to run specials around a certain time. An ideal season for this would be spring when the weather is turning and customers are looking to have a clean home after months of cold weather. Spring cleaning discounts are a great way to boost your profits and draw in new customers to your business!