How to Increase the Prices You Charge Your Cleaning Clients

Website design By BotEap.comHe started his cleaning business to make a profit and earn a living. Most cleaning businesses, whether they do residential or commercial cleaning, start with the owner doing everything: marketing, cleaning, purchasing supplies, and even book work. As your business grows, hires, and adds more clients, your expenses increase as well. When you started, you may have underestimated the price of your services, either to gain new clients or because you had no tender experience. So now that your expenses are increasing and you’ve found that your services are underrated, what can you do?

Website design By BotEap.comFirst of all, understand that raising prices is necessary in any business. Just take a look at the things you routinely buy: gasoline, milk, cleaning supplies, electricity. Prices go up and sometimes they take a big leap!

Website design By BotEap.comBefore you raise prices to your cleaning clients, go back and take a look at your original contract. Does your contact indicate that the original offer price will be valid for a specified period of time? If you do, you will not be able to increase your price until that period has expired. If not, how long have you been cleaning for that client? Even if you originally underestimated the price of your services, you may not want to increase your price if you have only been cleaning for the client for a short period of time. Most cleaning companies wait at least a year before raising prices. If you don’t have anything written in your cleaning contract about price increases, you should start adding a clause about it with your next client. Many companies guarantee their price for one year and claim that they charge cost-of-living increases every year (for example, 4%). Or they can say something like “we reserve the right to increase prices after one year.”

Website design By BotEap.comBefore calculating a new price, review your original offer and make sure you have everything covered to make a profit. If your supply costs have increased dramatically or if you have added expenses (workers compensation or more insurance due to hiring employees), make sure the price increase covers the additional expenses.

Website design By BotEap.comAnother factor to consider before raising prices is your current customer satisfaction level. Are they happy with the work your cleaning company is doing? Most people understand price increases and will stick with your cleaning business as long as they are satisfied with the work you are doing. After all, looking for a new cleaning company takes time and your client may not get a better price or the quality of work they want from someone new.

Website design By BotEap.comBut don’t be afraid to raise the price to a customer who constantly complains, especially if their complaints are not justified. You may need to increase the price to cover the additional time you spend in your office (or home).

Website design By BotEap.comOnce you have all the details and the new price to charge, send a letter to your client. Let them know that you are increasing their prices, why you are increasing their prices, and the benefits to them of continuing to use your cleaning business. Make sure to inform your client at least 30 days in advance that the price will go up. Note that large corporations and government agencies may need more time if they have to execute the price increase through a committee or get approval from a board.

Website design By BotEap.comThe phrase “you get what you pay for” is often true when it comes to cleaning companies. Too low a price may mean that the company is not doing a satisfactory job or that the company has underestimated its services and will soon be closing.

Website design By BotEap.comPricing your services for profit is not a bad thing! The survival of your cleaning business depends on charging your customers appropriately so that you can stay in business and make a profit. Good customers will understand a price increase and will be happy to continue using your services. And don’t be surprised if a customer who leaves due to a price increase returns soon! Many people eventually find that a lower-priced offer from another cleaning company means that their building (or home) is not as clean as when their company provided their cleaning services.

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