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Answer from Brett Krkosska:Pricing Your Commercial Office Cleaning Business Services
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Pricing your services when starting out can
seem rather difficult. The tendency is to feel that you've got to be precise right from
the start - but in truth you just need to be in the ballpark.
After you've bid on a few jobs you can adjust your pricing to accurately reflect your
place in the market.
You'll find that honing in on the right price for your services doesn't
take long. |
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When pricing your services, keep in mind these things:
Net Profit - You need to operate with a profit. Generally speaking, you
need to project your expenses, taxes you'll pay, and the salary you will draw. Your cash
flow should be enough to run the business and still have some left over for future
expansion, major purchases, etc.
Supply and Demand - Is the market flooded with commercial cleaners or is
there a shortage in your area? If you're stepping into a starved market, you can price
your services at a premium. If not, you may need to lower your prices or offer a specialty
service others are lacking to get your foot in the door.
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Top
Downloads |
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| Cleaning Business
Estimation Bid Sheet Price your cleaning services
accurately with an estimate that's fair for you and your customers.
Select from these Bid Sheet formats... it's free!
» Plain
Text (suitable for most computers)
» Word format
(for PC's with Microsoft Word)
» WordPerfect
format (for PC's with Corel's WordPerfect)
If you do not know how to download files,
please click here (a popup window will open
with instructions). |
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Here are a couple of ways to get specific pricing
information:
Check Out the Competition - What does your competition charge? You can
find out by calling other companies just outside of your area. This way you're not viewed
as a competitor. You can assume that companies in your area will have similar pricing
structures.
Visit with Supply Stores - Contact the janitorial supply stores in your
area. These people can provide a wealth of information. Let them know you're going into
business and you're calling to determine supply prices for your future needs. Since they
love to have new customers, you will be in a position to ask other questions about the
business environment that they otherwise might not be inclined to answer.
What should you expect to earn for your services?
The rates for commercial cleaning varies depending on your location. The cost of living in
your area, the types of cleaning services you provide, plus the points I mentioned above
all determine your price. Rates can range from earnings of $15 an hour up to $40 or more.
Of course, you will be charging your customer a set price, but your mindset when pricing
jobs should be to think in terms of the value of your time. If you think a job will take
about 2 hours and you think $30 an hour is a reasonable rate, then charge that customer
$60.Put together some financial projections, do a little research and set your price.
Remember, you don't have to be precise. Just be careful not to set your prices so low that
you're working for free or on a minimal profit margin. In the end, it's not unreasonable
for you to expect earnings of around $50,000 a year when you are in full swing. |
Search for more information about Pricing
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| Real-world, common sense strategies
for small and home based business success. Your issues... real answers. |
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| Perfect Pricing? Is there a magical price for your product? A price that
people will buy at rather than turn away?
Pricing software, such as Make Your Price Sell by Surefire, does a
very nice job of honing in on that magic price.
So, for the average small business owner,
technology is a great way for the budget conscious business owner to obtain maximum
product performance. |
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