Wednesday, 15 April 2020

Finding the Sweet Spot for a Cleaning Service Priced Right


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.


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