Getting your prices just right is a bit like preparing a proper British roast. Too much heat, and you risk turning away potential customers. Too little, and you’re simply underselling your hard-earned expertise. The ideal price? Now, that’s the golden roast potatoes of your Sunday dinner.
Price it right or pay the price! As a cleaning company, nailing down the perfect price for your commercial cleaning services can be a make-or-break deal. It’s all about crafting the right commercial cleaning quotation. Stop shooting in the dark and hoping for the best. It’s time to crunch the numbers and calculate with confidence. In this article, we’ll unleash the secrets to help you determine the correct price for commercial cleaning. Get ready to level up your pricing game and watch those profits soar!
Indeed, the simplicity of business boils down to this – your income should outpace your expenses. But, how can you provide a commercial cleaning quotation if your costs are a mystery? Guess and hope? If so, you’re not alone!
The cleaning sector is its own beast, unique in its pricing and operations. Varied tasks, different frequencies, and occasional extras can make things complex. Price fixation is rife, and many firms claim to be the “best and cheapest”. New cleaning companies appear and disappear each year, and there’s a reason.
The common calculation tactics?
- Undercut the competitor.
- Estimate based on past quotes.
The Misconception of Starting with Price
Many cleaning businesses make the mistake of fixating on the price when formulating a commercial cleaning quotation. However, to determine the right price, it’s crucial to begin by assessing the task at hand. What are the customer’s expectations? How large are the areas to be cleaned? How dirty are they, and how frequently should they be cleaned? Once you have a clear understanding of the job, you can start calculating the associated expenses. Consider factors such as material costs, labor expenses, overheads, and desired profit margins. Accurate pricing leads to a better understanding of your profit margins and allows for sustainable growth.
The Need for Documentation
While it may be tempting to undercut competitors to secure clients, it’s important to remember that pricing alone is not the sole determining factor. In many industries, including cleaning, the demand for documentation and accountability is increasing. It begins with creating an accurate and detailed cleaning proposal. Without proper documentation, neither you, the client, nor the employees performing the work will know what has been agreed upon. For instance, the customer may expect the cleaning assistant to empty the dishwasher and trash bins, but if it’s not specified in the assistant’s cleaning plan, it may be overlooked.
The Consequences of Unsatisfied Customers
Failing to meet customer expectations can lead to dissatisfaction. So, what do you do if a client is unsatisfied? Do you ask the cleaning assistant to spend an extra 15 minutes on the task? And who should bear the cost of those additional minutes? If you pass the bill onto the customer, you risk losing them because the agreed-upon price is no longer valid. If you ask the assistant to work faster, you risk losing valuable employees or increasing sick leave. Ultimately, the cost will come out of your own pocket.
The Impact of Incorrectly Calculating Time
A 15-minute miscalculation can sting. You want to keep your customer and your employee. So you cover the cost. Spending 15 minutes too long on daily cleaning for a customer could cost you £100 per month, or £1200 a year. To cover that loss, you need to generate an additional annual turnover of £6.000.
The calculation above is an example of the consequences it can have if you spend 15 minutes more than predicted with one client with daily cleaning. Based on a contribution margin of 20% on new business, it requires an annual additional turnover of (1,200/20)x100 = £6,000 to cover the losses.
From Chaos to Confidence: 5 Steps to Mastering Commercial Cleaning Quotation
1. Know Your Task
Before you jump into pricing, understand the task at hand. What does the client expect? How big are the spaces to be cleaned? Are they just a bit messy or downright disastrous? And how often does the cleaning need to happen? Clear these details first.
2. Add Up the Expenses
Once you’ve got the task in your crosshairs, it’s time to tackle the numbers game. How much will you spend on materials and labor? Don’t forget to account for those unsung heroes like your bookkeeper and service manager. Oh, and that cozy office you call home sweet home? It needs to be paid for too. Plus, you deserve a slice of that profitable pie!
3. Ditch the Guesswork
Throwing darts in the dark might sound thrilling, but it’s not a sustainable pricing strategy. Comparing prices with competitors or blindly guessing based on previous quotes won’t cut it anymore. It’s time to wave goodbye to uncertainty and hello to accurate calculations.
4. Document, Document, Document
Don’t just leave your customers in the dark! In a world craving accountability, documentation is key. When preparing a quote, make sure every detail is crystal clear. Spell out the scope of work, expectations, and any additional tasks or special requests. No surprises, no disappointments, no room for miscommunication here!
5. Price it Right, Win the Fight
Armed with accurate calculations and a competitive edge, you’re ready to conquer the commercial cleaning world. Bid farewell to the chaos and say hello to organized operations. With a detailed cleaning plan and control over your tasks, success is within reach.
Conclusion: Say goodbye to finger-in-the-air pricing strategies and hello to profitability. By knowing your task, calculating expenses accurately, and documenting everything, you can avoid unsatisfied customers and financial pitfalls. Embrace the power of technology, leverage calculators like CleanCalculator, and bid farewell to pricing guesswork. It’s time to clean up your pricing game and watch your cleaning company thrive like never before. Remember, when you price it right,
Take Charge with Calculators
Now, for the grand finale – calculators to the rescue! Embrace the power of technology and leave the guesswork in the dust. Tools like CleanCalculator are here to save the day. Simply input the measurements, difficulty level, and any extra tasks, and voila! It generates a proposal with accurate time requirements, material costs, and a suggested price.
It works like this:
Enter the measurements and difficulty of each room.
2. Add any extra or periodic tasks.
3. CleanCalculator estimates your monthly time usage, material, and employee costs.
4, Once you adjust the time usage, CleanCalculator proposes a price.
5. Tweak your price to reach the desired profit margin.
6. CleanCalculator generates all necessary documents (quotes, contracts, cleaning plans, etc.)
Now you’re ready to send your commercial cleaning quotation. You’re not just giving a price, but detailing what it includes. You offer professional cleaning, and you show the customer you operate professionally from the get-go. If the customer accepts, you’re ready to go. You have a cleaning plan and a clear understanding of the task’s duration. You’ve won a new contract, one you know will turn a profit.