Small Business Ideas Forum

Small Business Ideas Forum (http://www.smallbusinessbrief.com/forum/index.php)
-   General Small Business Issues (http://www.smallbusinessbrief.com/forum/forumdisplay.php?f=15)
-   -   I'm Back - How to price house cleaning service (http://www.smallbusinessbrief.com/forum/showthread.php?t=17400)

SqueakyKleen 10th February 2008 11:50 AM

I'm Back - How to price house cleaning service
 
Hello Everyone,
I was here back in September for ideas on a business I was wanting to start. Well now with tax time I will have the money to start it. But the only thing that stands in my way after a lot of research is How to price the houses I'm going to clean. This has stopped me for about two years now. But the job I'm at now has really made me want to start a business of my own. I see all the money they make off of me doing the hard work. And I myself not making anything. I am afraid of failing on my own but know I at least need to try this. And who knows I might be something one day. I have the cleaning part to a T. But the finance part I just cant seem to grasp. So what I'm asking is does anyone know a good point to start at pricing a house for cleaning. I have 10 years at cleaning houses and no years of pricing them. :scratchhe
Thank you all in advance and for your past help.

PressureProsInc 10th February 2008 12:25 PM

Squeaky, you are going to get better information from an industry forum but I will tell you this. You are looking at the money from a layperson's point of view. If I employed you and sent you out at $12 per hour I would have to bill the customer $45 per hour to make a few pennies myself. Direct and indirect costs for the job, tax matching, operational expense, downtime (you are paid for the time you travel betwen jobs, right), company profit margins.. these have to be added to your base salary. Marketing, selling, administration, analyzation.. these things all cost money and make up your expenses as a business owner. I then have to add what I want to make on top of all that. You may think you understand what it costs to just "clean" but you do not. That is not an indictment but I do hope it makes you think.

Before you do anything else, go out and buy a book called E-myth. It will help you understand the difference between owning a business and owning a job which one may THINK is a business. Once you understand your operating costs, you can utilize the knowlege you have about your efficiency rate and bill accordingly. As a one person show always bill more than a company that has more employees does. You may think you have less expenses than a large company but their efficiency is so much greater they will put you out of business if you try to beat them on price.

Corey Bryant 11th February 2008 10:13 AM

Do you get any of those Valupak ads or any local papers? I see scores of advertisements for housecleaning in them. Take a look at what they are charging. This would probably be something that is more specific to your location.

I see ads usually for around $60 - $120, ranging from 2 - 4 people in this area.

Amir W. 12th February 2008 03:47 PM

Like Corey says, look around and find out what others are charging. For a small apartment, it might be $50. For a 3-bedroom house, $65-$75, and then it goes up from there. That's what I have paid.

PressureProsInc 12th February 2008 06:15 PM

The problem with comparing prices to an overall market is often the apples to oranges difference in service level. You have to charge as much as you need to stay in business and grow. For service businesses there is no "going rate" any more than there is a going rate for buying a new car. Does the customer want a base model Hyundai or an SL600? You have decide where you want to sell. If you comepete in the Hyundai range, you better be razor sharp or you are history.

Biz Builder 18th February 2008 06:53 PM

House Cleaning Pricing
 
Your pricing should be a little higher than everyone else as long as you provide a valuable service. Don't undercut your pricing or go by what everyone else is charging, you'll be doing yourself a dis-service.

If your area going rate is $25.00 per hour then you ought to be charging $30.00per hr. Also put together packaging for your customers and let them pick which one they want to buy.

devotee 2nd May 2008 04:34 PM

i own a small business that offers house cleaning services in virginia. I agree with the post above. it would be better if you device your own service packaging. readers really find it convenient.


All times are GMT -5. The time now is 12:52 PM.

Powered by vBulletin® Version 3.7.3
Copyright ©2000 - 2020, Jelsoft Enterprises Ltd.
Copyright 2004 - 2018 - Privacy