One of the biggest problems cleaning companies face is
setting a price that hits the sweet spot that lies between what the market will
bear and profitability. Using the right janitorial management software is the
best way to ensure that the proper price point is maintained.
Along with that issue, here are some misconceptions about
pricing that profitable businesses avoid:
The False Idea That
All a Business Needs to Consider Are the Basics of Janitorial Prices
Yes, there are some hard and fast rules that apply to
every cleaning business, such as considering the building type and customer
expectations. Knowing the competition charges is always important too.
But pricing goes
far beyond those basics.
The False Idea They Can Compete with the $10 an Hour Individual
If your business is
trying to match what an individual charges, you are already far out of that
sweet spot. A cleaning business will attract customers who are looking for a
company with employees, uniforms, and insurance.
The False Idea
Their Client Base Won’t Pay for Fair Wages
Successful
businesses are in charge of how potential clients find them. Janitorial
management systems help a cleaning business keep track of the demographics and
pricing trends among competitors.
The False Idea That Setting Prices Higher is Always Unethical
A good model for
the cleaning business owner is the 50/30/20 rule. The percentages of a cleaning
customer’s bill should be:
·
Cost of goods sold—50%.
·
Overhead—30%.
·
Profit—20%
Without this
balance, a cleaning business can’t properly support its employees or deliver
the excellence its customers expect.
There several
business practices that are unethical including:
·
Lying about charges
·
Doing sloppy work because there isn’t enough money to do the job
right
·
Not giving the results promised
·
Not having insurance
The False Idea That
the Only Thing a Cleaning Business Sells is Cleaning Services
In the whole scheme of things, cleaning and talking on a
phone are low wage aspects of a cleaning job. However, solving problems and
building a healthy business are not. Setting prices right allows cleaning
business owners to afford the right resources to please demanding clients and
find more clients.
Before a business starts looking for right janitorial
management solutions, both management and staff need to have the right mindset
about what makes for a profit over the longs haul. A business sets itself up
for success by ensuring there are enough resources to build a system, identity
and attract the right clients, and exceed expectations.
Look for janitorial management software that was built by
cleaning industry professionals who understand from real world experience the
kind of issues their industry faces. It is essential to every cleaning business
to track performance with client, employee, work order, workloading, and
inventory management.
For more info:- cleaning management software