Cleaning estimate feedback..

CptnD

New Member
May 7, 2020
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Dommy Arlington
My wife and I have owned and operated a residential and commercial cleaning business for the last 5 years. When we were first starting out we were offering way too much for way too little. After a few months a client pulled us a side and told us that if we didn't raise our rates she would consider (with much regret) letting us go. We took her advice and the clients that respected us as business owners stuck around through our rate change and were happy to see us grow. Others dropped us, some of which asked us to return at the new rates.

Fast forward to this year (2020), everyone has experienced a jolt in the job/service market. We're getting a few inquiries here and there, but nothing like pre-2020. Before I was turning down business literally 3-5 times a day. We took on a partner last year who is putting the pressure on us to lower prices for new clients. That being said, the last job we were contacted about was a 6,000 SQFT residential property (5B 6 BA) looking for a deep cleaning. We quoted them like any other property of that size, totaling around $1,000+/-. We've always charged around $30-$40 per man hour for this type of cleaning. The owners assistant contacted us back stating that the last company they hired had charged around $650 and did a terrible job. She added that we were probably worth that price, but it's a lot of money to swallow and take a chance on another cleaning company that they may/may not be pleased with. However, said she would be in contact in the next month if she could get her boss on board with that price.

I'm looking for some feedback on current pricing right now. What is everyone charging, what's working and what's not for you? If I need to adjust, I'm willing to do so but would appreciate feedback regarding my price points. We're beginning to butt heads with our partner which isn't productive, so I'm looking to come to happy medium (if anything) with them. I know these are confusing times for everyone, but I'm doing my best to be fair for what I think our time is worth and at the same time remain competitive without backtracking 4 years.
 

U. S. Vet.

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Jul 8, 2020
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Sanis Sanis
Absolutely no one else is charging less. McDonalds,
Home Depot • • our chemicals cost more now than ever • • no one cuts us a break with Gasoline, Groceries, Mortgagees, etc. A compromise is easy but • • does it make sense ? ? ?
 
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PistolPete

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Sep 28, 2014
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Peter Dymond
When the phone is ringing off the hook and you have more work than you can do, raise prices.
When it slows down then lower prices.

I would rather have 75% of something rather than 100% of nothing.

Have you done a cost analysis to determine your actual costs per hour for each task?
If you come up with your absolute lowest price in order to remain profitable then you know you're lower limit.
The problem is bottom feeders are entering the market with unsustainable low prices and they get the job even though they won't keep it due to poor quality or they go broke.
 

U. S. Vet.

Active Member
Jul 8, 2020
919
207
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Sanis Sanis
When the phone is ringing off the hook and you have more work than you can do, raise prices.
When it slows down then lower prices.

I would rather have 75% of something rather than 100% of nothing.

Have you done a cost analysis to determine your actual costs per hour for each task?
If you come up with your absolute lowest price in order to remain profitable then you know you're lower limit.
The problem is bottom feeders are entering the market with unsustainable low prices and they get the job even though they won't keep it due to poor quality or they go broke.
You have correctly assessed your competition. You have not addressed your roll in the scheme. Building your business and maintaining a customer base are not mutually exclusive; on the contrary. Customers will buy cheap coffee once in a while and put up w it; they’ll do it anyway. When they’re ready for Starbucks they want Starbucks. Are you Starbucks or
• • • the cheap alternative ?
 
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JCCS

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Nov 6, 2020
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Robert Ritchie
$30 to $40 an hour is not unreasonable at all. Focus on sales. Pound the pavement and get in the owners faces. It’s much harder to say no to someone in person.
 
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JCCS

New Member
Nov 6, 2020
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Robert Ritchie
Another tip: Follow your competition with the worst reputation in town and build a sales list. You already know their clients pay for cleaning and they are probably not happy. Most of our business is from our competitors displeased customers.
 
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