How do I price a cleaning service?

Question

I started a cleaning services company, but I need to know what are the average prices, or how to price an office building, or houses. How do I get those?

Answer 1

I know that in the US anywhere from $80- $120 for a 3 bedroom house is the norm.

Answer 2

I will try to answer your question as simple as possible.

PRICE = Direct Labor Cost + Indirect Labor Cost + Material cost  

              + Overhead Cost + Mark-up

Steps:

1. Estimate how much will be the total cost in cleaning an office  

     building or a house.

    For example:

                               Total cost  =  $2/sqm.

2. Add your "mark-up" (in percentage) to the total cost.

    For example you want to earn an ROI (return on investment) of 50%.

    mark-up:    $2/sqm X  50%     =    $1/sqm    

    price     :    $2/sqm + $1/sqm  =  $3/sqm

    You now have your tentative price.

3. Find out if your pricing is competitive.

    If not, adjust it to a price level where you could sustain a profitable

    business operation.

    If your pricing is very competitive you can increase it a bit for more

    profit or let it stay that way to attract more business.

Good luck!