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Commercial cleaning services play a vital role in the overall image of any organization, it is equally important for any commercial cleaning service to decide how much to charge for its services. There is no dearth of commercial cleaning services all over the United States, but there is still a clear demarcation between quality commercial cleaners and ‘ordinary’ commercial cleaners. If you are currently researching how to price your commercial cleaning services, here are a few tips to help you make a more informed decision:
Net Profit
Although calculating the net profit can be a complicated procedure, larger commercial cleaning firms usually employ the services of an accounting firm to get a better estimate of their ‘overheads’ and operating expenses. It is important to keep in mind the salary being distributed, the cost of materials used and other operating expenses while deciding on a price that will earn the organization a profit. If you are not confident that you have covered all the expenses possible, speak to a CA (Chartered Accountant) and get a detailed analysis of any additional expenses (like taxes).
Doing a market survey
Make sure you carry out a detailed market analysis before pricing any of your services. Find out exactly how many commercial cleaning organizations are present in your operation area and if you are entering a market that has very few or no commercial cleaning organizations (if this is the case you can definitely consider offering your services at a premium). If the market you are entering already has a number of commercial cleaners, you can offer speciality cleaning services or price your services competitively.
It is important to remember that sometimes you might need to work on a ‘no profit no loss’ basis also. It is difficult to establish a business in competitive markets, and a few jobs on a ‘no profit no loss’ basis can help you get your ‘foot in the door’.
What is your competition charging?
It is always a smart idea to get detailed knowledge of your competition’s charges. You can always contact commercial cleaning service providers to find out their rates. If you do not want to risk being exposed to your competition before hand, you can always contact commercial cleaning firms located outside your operation area.
Another fantastic source of information is supply stores, get in touch with a couple of supply stores and let them know you are going into business. After making a few inquiries about their pricing, don’t hesitate to ask about the competition in the market. In fact, you can always get to know your supply store a little better and find out about the volume of transactions being made and the number of commercial cleaners that are buying their goods from the same store.
It is important to remember that your final pricing should always be decided by the job at hand. For example, if your hourly rate is $30 and you are making a profit at $50 (for a two hour job) don’t worry about making a lower profit.
How to estimate the time required to complete a task
The simplest method to calculate the time required to complete a task is by performing the task at home. For example, a janitorial task can easily be timed by repeating the task at home and then multiplying it with the number of cubicles. What is equally true is that there is no substitute for experience, an experienced commercial cleaning organization can easily gauge the amount of time required to complete a task and thus offer a bid estimate for the task instead of an hourly rate. If you are not confident that you can make an accurate estimate of the time required, then you should ideally settle for an hourly rate instead of attempting to make a bid estimate.
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