When starting a new cleaning service business, pricing the services can be the most difficult task. The businessman feels that charging lesser than the actual market rate might help in attracting more customers or charging a bit might lead the customers to believe that they are getting some exceptionally good service.
Both these concepts can sometimes lead to problems. While charging lesser than the market rate leads the customers to believe that there is some problem with the quality of service, over pricing might scare them off for good. Thus, deciding on the right price to charge for your cleaning service business is a crucial and important decision that needs to be made very wisely.
This article focuses on charging the right price from the customer that is neither too high nor too low and keeps you and the customer happy and satisfied.
Deciding on the Right Price for Cleaning Service
The first thing to do before actually deciding on how much to charge, it is important tot have a detailed look at your business, its objective and what service are being offered. It will help you analyze the business situation and decide on the best prices.
When pricing your services, it is important to keep these factors in mind:
Profits – Every business is started for profit and unless you get profits, you will be running cost to cost with nothing to spare and no growth. Keep in mind the expenses, taxes and the money you will charge. The cash flow should be enough to pay the bills, buy the supplies and still have some left over for future expansion and yourself.As it is small scale home based business, you can expect 100% but al least 50% profits.
Competition – You will need to check out the competitive cleaners in your area. If there are too many cleaning services out there, you will have to keep the prices on the low side to attract clients with low costs. If there are no cleaning service providers in your area, you can price the services at a premium drawing good profits.You will have to work hard at drawing clients in a competitive market and offer them the best deal.
Competition Charges – Check out other cleaning services in the area and see what they are charging. Call the other companies and ask for their cleaning rates. It is better to plan the pricing structure wisely keeping in mind the services that are being offered.
The rates for cleaning services also depend on the location. The cost of living, the prices of tools, equipment and supplies also matter a lot in deciding the right price to charge. If you live in an expensive area where everything is priced more, then people are expected to pay more for the cleaning service.
If you are not sure about what price to quote to the customer, check out the location and decide on the price after you have seen the site and decided on the type of cleaning required. Instead of charging as per unit, you can also charge per room or per square yard that can save you from loss.
It is necessary that when starting your service, keep in mind the fact that you are new in the market and it will take time for people to accept your business and charges. Do not charge too less and it can overwork you, cause frustration and lead to almost no profit business that will only add to your problems.
