Figuring out how to price your cleaning services is no easy task. It’s all about finding that sweet spot—you don’t want to scare off customers with high prices, but you also want to ensure you’re not selling yourself short. Striking a balanced cleaning business pricing structure is crucial for your cleaning business to thrive.
To succeed in a competitive market, understanding what affects cleaning services pricing and using smart strategies is a must. Below, we explain how to price your cleaning services and the four steps you need to take to help you nail the pricing game and protect your cleaning business’ financial success.
Setting Your Price
Finding the right cleaning business pricing structure for your services is essential; that’s why we will walk you through the pros and cons of each pricing model you can use! Check out our simple guide that highlights the different cleaning services pricing models.
1. Per Square Foot
Pricing your business by square feet can give you the best profit margins. Setting a rate per square foot lets you quickly offer a quote when customers know the size of the space they need cleaned.
The average rate for house cleaning services in 2023 was between $0.10 and $0.17 per square foot. Consider higher rates to deep clean a house when booking move-out cleanings or spaces with hoarding. The average rate for these can double; consider charging up to $0.22 per square foot.
One of the challenges of booking by square feet is that you don’t have an opportunity to walk the space to understand areas of concern. Clients will expect that your cleaning services pricing gives you a margin of error for tough jobs or deep cleaning.
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2. Per Room
Setting your cleaning business pricing structure on a per-room basis works best when working in residential or commercial properties. To calculate these accurately, having time and experience in the cleaning industry is an essential factor when trying to build a profit margin. Figuring out how to price your cleaning services per room is easy enough: take the average time per job and how many rooms you cleaned.
For example, residential cleaners understand cleaning the bathroom will take longer than the living room, so averaging the time between them is how you calculate the cost. If the living room would cost $40.00 to clean and the bathroom would be $60.00, then your average room cleaning cost would be $50.00 per room, calculate this based on how long it takes to clean that space for your particular employees or team.
The downside of cleaning services pricing on a per-room basis is that you might find you are spending longer in spaces than you calculated. This approach can hurt profitability, especially when cleaning large commercial spaces.
3. Hourly Rates
One way to ensure your time is valued is to charge customers by the hour. Some customers may be skeptical that hourly rates will benefit your cleaning business and not them. However, this cleaning business pricing structure allows you to customize their cleaning plan fully.
For example, there is a high demand for professional Airbnb cleaners willing to clean short-term rental spaces between visitors. Charging by the hour allows you to add small tasks like counting silverware or laundering bedding. Make sure to outline detailed tasks for hourly rates to illustrate your value clearly.
Hourly pricing rates depend on the location you service. Comparison shop or discuss rates with clients to find a sweet spot for your service.
4. Flat Rate Pricing
Many professional cleaners prefer pricing their services on a flat rate basis. Consider the variables we have discussed with other methods on how to price your cleaning services, including the type of property and condition of the space.
Charging a flat rate or fee is when you perform a service for a set price, making the same amount of money no matter how fast you get the job done or how large the property is. This cleaning business pricing structure solves the problem of the client feeling like they are paying for your time.
What to Consider Before You Price Cleaning Services
There are some things to take into consideration when you are setting your cleaning services pricing, whether hourly, flat rate, or by the square foot. Customers appreciate it when you’ve done your research and know how to price your cleaning services properly.
1. Location
The average cost of cleaning services in 2020 was between $25 to $90 per hour. Do you know why the range is so large? Location, location, location. It all comes down to where you work and service clients.
Consider factors such as the cost of living for your area, median household incomes, and competition availability. You should also consider that location drives demand—certain areas will have a higher percentage of people looking to hire professional cleaning services.
Here is the average median household income in the United States in 2022, provided by the Census Bureau.
2. Competition
It can be helpful to check local competitors’ cleaning services pricing, especially as you are talking with customers who have likely price-shopped. When you peruse their site or call their team, find out which cleaning business pricing structure they use. This research can be helpful if you do not understand the cost of living in the area because you are new to it.
Steps to Competitive Research
- Identify Your Main Competitors
- Analyze Their Online Presence, Cleaning Services Pricing, and Offerings
- Read Their Online Reviews
- Identify Areas for Improvement or Unique Selling Points
If you are in an area with steep competition, one of the most important things you can do is find a unique selling point for your business. With the research you have done, it is easy to find a unique benefit you can offer to clients.
3. Years of Experience
One thing new businesses often forget about is the value of experience. Price yourself to make a profit once you calculate the cost of cleaning supplies and tools, but be fair in your assessment of your professional skills and understanding. People will pay more for seasoned professionals, which is never something you should falsify in your advertising.
As your business grows, you will find you can charge more for your services based solely on how long you have been in business. Your experience, number of employers, and a busy schedule will all contribute to your cleaning services pricing.
4. State of Home
We hear this time and time again from janitorial staff and maids. When starting out, they forget to consider how much work some jobs can take solely because of their condition! Don’t forget to factor in one vital thing: the state or condition of the space you are cleaning. Pricing should vary based on things like “move-outs” and foreclosures.
Clearly list that “deep cleaning” prices will vary. The typical increase for a residential deep clean is at least $60/hour. But, always factor in actual circumstances to your cleaning services pricing, as we have discussed. There is so much that goes into how to price your cleaning services. Take your time and do it right!
5. Size of Cleaning Space
Probably the most obvious is the size of the space you are cleaning. Do your math here to ensure you understand each job’s complexities (e.g., will there be more carpet than hard-surfaced floors to clean?).
Not all office janitorial jobs will be the same, nor will housekeeping jobs. You will have to factor the size by the number of rooms or square footage when trying to figure out how to price your cleaning services.
6. Types of Cleaning Services
Understanding the nuances of various cleaning services is essential not only for tailoring your offerings but also for establishing a cleaning business pricing structure that accurately reflects the scope and complexity of each service. Here’s an overview of different types of cleaning services and how they could vary in pricing:
Residential Cleaning
Residential cleaning, also known as house cleaning, focuses on individual homes and apartments, covering tasks like dusting, vacuuming, and bathroom cleaning.
Cleaning services pricing can depend on home size, cleaning frequency, and additional services. Residential cleaning services often charge per hour or provide flat rates for standard packages.
Commercial Cleaning
Geared towards businesses and commercial establishments, commercial cleaning often involves larger spaces and specialized equipment.
Cleaning services pricing can be influenced by factors like facility square footage, specific cleaning needs, and service frequency. Commercial cleaning services may offer customized quotes based on these variables.
Carpet Cleaning
Carpet cleaning is a specialized service for the thorough cleaning of carpets and rugs using various methods like steam cleaning or dry cleaning.
Cleaning services pricing is often determined by carpeted area size, carpet type, and cleaning method. Additional services like stain removal may incur extra charges.
Window Cleaning
Window cleaning concentrates on cleaning and polishing windows and glass surfaces.
Prices may vary based on factors like window number, size, accessibility, and whether interior, exterior, or both types of cleaning are needed. Some cleaning services charge per window, while others offer package deals.
Specialized Cleaning Services
Specialized cleaning services include deep cleaning, move-in/move-out cleaning, and post-construction cleaning, tailored to specific situations.
Cleaning services pricing is often higher due to the intensive nature of the work. Factors like cleaning level, space size, and unique challenges contribute to the final cost.
Janitorial Services
Janitorial is a comprehensive cleaning service for maintaining facility cleanliness, involving routine tasks like trash removal and restroom cleaning.
Quotes based on facility size, service frequency, and janitorial task scope. Some cleaning services offer fixed pricing with monthly or annual contracts.
Green Cleaning
Green cleaning emphasizes the use of environmentally friendly cleaning products. Cleaning services pricing may be slightly higher due to eco-friendly product costs. Marketed at a premium, appealing to environmentally conscious customers willing to pay extra for sustainable practices.
Cleaning Business Strategies for Success
Offer Discounts & Promotions
As you consider your cleaning business pricing structure, always be conscious of what offerings or promotions you can offer while still making a profit on each job. Offer free estimates to new customers while also giving discounts for referrals or returning clients.
One great way to provide value to customers is by knowing where you can afford to offer a discount. By understanding how long a job will take to fulfill or knowing which cleaners you can get at a better price, you can tailor an offering that will benefit your business’s bottom line.
Easy offerings you can provide based on your business goals:
- Returning customers receive 10% off a service
- New appointments get a FREE window washing treatment
- Carpet cleaning appointments come with a free pair of house slippers
- Refer a friend for 20% off your next appointment
Insure Your Business
As you work hard to set up your business and consider how to price your cleaning services, we suggest you look into cleaning business insurance for protection against claims.
You may not initially consider this as you set or revise your cleaning prices, but liability insurance can give you the peace of mind you need to focus on your cleaning company. If your business were to face any damages or accidents, your cleaning business insurance might help you cover the costs. This way, you don’t have to worry about paying for liability claims out of your own pocket!
Even better, you can use insurance as a marketing tool for your business! Find out how to promote your cleaning business with insurance right here, and to learn more about insurance, check out this complete guide to cleaning business insurance.
Boost Your Profit Growth
Letting Go of High-Maintenance Clients
If you regularly have issues with a client, it is okay to part ways. If you get into a tense conversation about the value of your services, remember that you can work to replace the revenue.
There are countless ways to find the support you need when letting go of long-time customers. Talking with people who have the same struggles and are willing to discuss them can help with perspective. We find that being a part of Facebook groups can make it a little easier.
Building A Staff
When your cleaning business is ready to take on employees, you will experience new challenges with your business. These include additional managing and scheduling employees, adjusting your cleaning services pricing, taking on new risks and liabilities, and meeting new business insurance requirements. To ensure that hiring a cleaning staff is a positive next step for your cleaning business, make sure to observe the following points below.
- Tackle Expectations of Time Spent on Jobs: Make sure your employees understand your expectations for professionalism, timing, and service quality. Your employees reflect your business and will affect what customers think of you. On-the-job training is usually best to combat this as it allows you to communicate standards and check their work.
- Coverage Check: Review your cleaning business insurance to ensure all parties of your business will be covered. Sometimes, this can look like a janitorial bond outside of your general liability, while other companies might offer similar coverage with Employee Dishonesty insurance coverage. Make sure to list the number of employees or contractors, as this can affect your ability to file a claim. Luckily, though, there are affordable coverage options for many types of cleaning business services.
- Workers’ Compensation Coverage: Workers’ compensation is often required for part-time and full-time employees—there are very few exceptions to the rule. Check local requirements for contractors as well, as some areas may still require coverage to be extended there.
Raising Your Cleaning Rates
Don’t be afraid to raise the price of your cleaning services if you have been in business for several years, even with your regular clients.
A best practice is to give your clients a 30-day notice before raising rates, typically via email or in person. Give them a flat percentage or a new customized quote for their property based on how you price your cleaning business so they know what to expect.
Expanding Your Offerings
If you are experiencing tough competition where you can’t seem to land basic cleaning jobs based solely on cleaning services pricing, one way to start closing gigs is by expanding your offerings. Now, some insurance providers do prohibit certain activities, so check your coverage exclusions before you expand your offerings.
Here are general ideas for expanding your cleaning services to close more jobs:
- Power Washing
- Gutter Cleanup
- Ducts & Vents Blowout
- Mold Remediation
FAQs About Cleaning Services Pricing
Can I Charge More for Cleaning Services if I Have Insurance?
Certainly, having insurance can elevate the perceived value of your cleaning services. Clients may be willing to pay a premium for the added assurance and credibility that insurance brings.
However, don’t forget striking a balance is key, so consider local market rates and customer expectations. Clear communication about the value of your insurance coverage can also distinguish your services in the market.
Are There Specific Insurance Considerations When Pricing Cleaning Services?
When structuring your cleaning services pricing, it’s crucial to factor in the costs associated with insurance, including general liability coverage against accidents and damages. Aligning your coverage with industry standards and customer expectations ensures that your pricing accurately reflects the comprehensive protection you offer.
Is Insurance a Requirement for Cleaning Contracts?
The inclusion of insurance requirements in cleaning contracts varies based on client preferences and industry standards. Some clients insist on insurance coverage as a standard part of risk management and liability protection. Understanding your clients’ expectations and staying informed about industry norms will guide whether insurance becomes a contractual prerequisite.
Earn More When You Protect Yourself From Risks
Your cleaning business is your livelihood, so don’t leave it unprotected. Even with the right cleaning business pricing structure, one disaster or incident could leave you with a mountain of financial responsibility.
Secure your assets with the right coverage at Insurance Canopy. Learn more about cleaning business insurance and get a quote today by filling out our quick and easy online application! Build your policy with tips and advice, starting at just $26.67/month for quality insurance you can trust.
