Are you struggling with what to charge cleaning customers? Check out this guide on how to price commercial cleaning jobs. It gives you essential information to create accurate estimates.
In this article, we go beyond the basics by looking at factors that affect pricing. Learn how to price recurring contract jobs and how to ensure your business makes a profit.
You get real-world formulas and examples. Plus, read how to use software tools to make creating estimates easy and consistent.
Commercial Cleaning Pricing Models Explained
Commercial cleaning pricing typically uses one of four models. Not sure how much to charge for commercial cleaning? Take a look at the pros and cons of each model before giving your client an estimate.
Square-Foot Pricing
This pricing method charges the client by the square foot of the area being cleaned. Of course, you need to know the square footage involved, which the client should be able to give you.
This method is best when you have predictable cleaning jobs. Say you clean a 2,000-square-foot office every Friday. You know the level of cleaning necessary and the size of the space. You might also use flat-rate pricing for these types of customers (see more below).
Hourly Pricing
Charging by the hour is better when you don’t know how much time and labor is required. Examples include:
- Post-construction cleanups before tenants move in
- Medical facility and healthcare cleaning projects
- Factory, industrial, and manufacturing cleaning jobs
- Restaurant and hospitality jobs with varying conditions
- Rental property move-out cleaning (residential/commercial hybrid)
These jobs can also demand different supply needs from one week to the next. That makes them even more unpredictable.
Flat-Rate/Contract Pricing
This pricing model is somewhat similar to square-foot pricing. However, it might involve smaller spaces, where calculating square footage feels unnecessary.
The level of predictability is the same, though. You know exactly how much time and effort is required for every cleaning.
Hybrid Pricing
Hybrid pricing is a mix of methods. You could, for instance, charge a customer a flat rate for regular cleaning. Services you only do once in a while, like carpet cleaning, could be billed as an add-on (task-based pricing).
You might also quote a client a flat rate at their insistence. But anything over X number of hours for certain larger cleanups is billed hourly.
Conversely, you could bill a client for hourly cleaning services. If they’re nervous about you running up the clock to make more money, you could put a cap on it.
Tiered pricing offers levels of service to your customers. They might want basic service at your regular flat rate most weeks. But they upgrade to premium around the holidays, for example, for a deeper clean.
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How Much to Charge for Commercial Cleaning (Rates and Examples)
Office commercial cleaning rates per square foot average $161-402 per job. Retail cleaning is similarly priced. Rates tend to be higher for medical, industrial, and post-construction jobs.
At the low end of the scale, you’ll see fees as low as $84 per job. But at the upper end of the office cleaning pricing guide, $795 is the cost.
How does that translate to square feet? Up to 1,000 sq. ft., the average cost is $211. For 2,000 to 3,000 sq. ft., the cost is $435. And at 4,000 to 5,000 sq. ft, jobs price out at an average of $834.
For a recurring contract job, you might discount the total by 10%. Keep reading to learn what factors contribute to the ranges here and how contract jobs work.
Key Factors That Impact Commercial Cleaning Pricing
Commercial janitorial pricing has numerous factors that affect what you charge the customer. Some elements you should consider include:
- Facility size: Are you covering a large area or multiple floors? Is there height involved that requires using ladders?
- Frequency: How often are you cleaning the space? The more often you clean, the less likely it is to get messy in between. One-time or infrequent cleanings, though, are anyone’s guess.
- Scope of work: Are you performing a light cleaning like emptying trash and vacuuming? Or are you deep cleaning, perhaps moving furniture and hauling refuse? Are you cleaning bathrooms and kitchens, which requires more time and products?
- Labor required: How many people are necessary for the job? How many hours must each work to complete the cleaning?
- Supplies used: Do you have to purchase and carry your own cleaning supplies? Or are they provided by the client? What kind of equipment, like vacuums or floor polishers, is involved?
- Time of day: On the one hand, your labor costs may go up if you have to hire employees to work at night. But you can usually work faster without occupants of the space there to get in the way.
- Market rate: What is the going rate for the type of work you do? Be aware this can vary widely by geographic location in the US. Your labor pool and minimum wage laws may also play a role.
- Importance of client: Is this a client who offers a lot of work or provides a large source of income? Can they help you get other similar clients?
- Routing and proximity to other jobs: Does this job require extra travel time? Or is it near an existing client or maybe even in the same office building?
Step-by-Step: How to Price a Commercial Cleaning Job
Pricing janitorial contracts isn’t hard if you approach it logically. Follow these steps to prepare a bid:
- Figure out your baseline cost, depending on the pricing model you choose for the job. Give careful thought to the type of job and frequency.
- Include any add-ons, like window cleaning or disinfection services.
- Add in extra costs, like supplies and travel time. Consider adding extra time or labor if you’re unsure about a job.
- Add your overhead expenses. This is the cost of running your business. We list what should be included in your overhead below.
- Add your profit margin. This is how you make money on every job to build savings for emergencies and growth.
- Add up the baseline price + overhead + profit margin. Now, compare it to the going rate for your location and the type of facility. Do you need to adjust it upward or downward slightly to fit in your market?
- Write up the bid using a commercial cleaning estimate template. You can read more about this at the end of the article.
Calculating Overhead Expenses
Your overhead is what it costs to run your business behind the scenes. What’s commonly included in overhead?
- Office or storage rental
- Vehicle fuel, repairs, and maintenance
- Licensing and fees
- Insurance and bonding
- Administrative salaries
- Employee taxes and benefits
- Business taxes
- Legal and accounting fees
- Advertising and marketing
- Uniforms and PPE
- Equipment depreciation
- Computers, phones, and software
How do you add it to your pricing? There are two methods.
With the first, you add up all your overhead expenses for the year. Then, you divide that total by the number of hours you typically bill in a year. For every hour you bill a client, add one “overhead hour” to the fee.
Some businesses find it easier to add overhead as a percentage of every job. Divide your overhead expenses by your total annual sales. Multiply that number by 100. That’s your overhead percentage, which you can add to every bid.
Adding Your Profit Margin
Including your overhead in a job bid means you come out even in the end. However, you need to make a profit for your business to be truly healthy.
The average profit margin for a cleaning company is 10-15%. This should be added to every job bid as well.
But that percentage can vary based on price wars in your area and the state of the general economy. Streamlining your operation and reducing waste can help keep your overhead low. That way, if you need to tweak your profit margin, you won’t feel such a pinch.
How to Price Recurring Cleaning Contracts
Using a client contract offers multiple benefits:
- Quicker hiring process
- Reliable income stream
- Predictable scheduling
It’s possible that contract clients want to secure a large percentage of your time. They may also have multiple locations for you to clean.
They’re likely looking for a volume discount at this level. Think something on the order of 10-20%. So, you need to crunch the numbers to make them happy while still turning a profit.
Structure your contract carefully to cover the cleaning costs and profits. You could raise your baseline rate a bit to compensate for having to offer a discount in the end.
Be clear about the period of time in the contract. You might consider requiring several months’ notice if they cut your services. This eliminates some of the panic that comes with an all-your-eggs-in-one-basket customer.
RELATED ARTICLE — How to Get Commercial Cleaning Contracts
How to Calculate Commercial Cleaning Rates Per Square Foot
One of the most common commercial cleaning pricing tactics is billing by the square foot. Let’s take a deeper dive into how to charge this way, with a real-world example.
Think about factors that specifically affect square-foot pricing:
- Large contiguous spaces = lower rates for efficiency gains.
- Medical facilities require higher hygiene standards and disinfection.
- Office buildings are typically lower on the demand spectrum.
- Industrial jobsites may require training or safety certification.
- Repeat cleaning usually requires less work after the first time.
- Cleaning offices should take 1 minute per roughly 300 sq. ft.
- Bathroom cleaning takes about 10 minutes per 200 sq. ft.
Where are you operating? Cities like New York, Los Angeles, and Chicago pay more. They also sometimes go above that national average.
Let’s say you decide on $0.20 per square foot for a 2,000-sq.-ft. office job in San Francisco. For simplicity’s sake, you’re just cleaning the office—no bathrooms, kitchens, or add-ons. That’s $400 per cleaning.
Imagine your overhead percentage is 15%. That adds $60 to the job.
Your profit margin is also 15%. Fifteen percent of $460 is $69. So your total billed to the client would be $529 per cleaning.
Common Commercial Cleaning Pricing Mistakes to Avoid
If you’re not careful with your commercial cleaning cost calculator, you could lose money. Here are the four most common mistakes new cleaning businesses make. Don’t let them take a bite out of your revenue.
Underbidding
It’s easy to wind up bidding too little for a job. Then you barely break even or even lose money.
What are some key reasons cleaning companies underbid jobs?
- Not understanding the type of business or facility and what’s involved
- Forgetting to add cleaning supplies, equipment, or travel time
- Wanting to win jobs by being the lowest bid (not realistic)
- Being unaware of the going rate in high-cost-of-living areas
- Using flat-rate pricing and underestimating a first-time cleaning
- Failing to plan for the right amount of labor needed for the job
- Not adding your overhead expenses or profit margin to the price
The last few reasons are so common that we address them separately below.
Miscalculating Labor
It can be tempting to promise the moon to a new client. But do you really have the personnel to complete the job as bid and still make money?
You need to be realistic about how many worker hours are required for any cleaning project. Then, you need to figure out how long they have to work to complete the job profitably.
Depending on the client and level of unpredictability, you may want to build in a buffer. That means adding an extra person or a couple of hours in case the job takes longer.
Also, adding a labor buffer means employees can work thoroughly without rushing. They’ll appreciate it, and your client will see better results too.
Ignoring Overhead
Above, you read what’s included in your overhead expenses. You must remember to add your overhead to your bids.
Failing to include overhead means you won’t break even on jobs, much less make a profit.
Remember, you can add overhead as a supplement to your hourly rate. Or you can add it as a percentage to square-foot or contract bids.
Forgetting to Add Your Profit Margin
Breaking even means you just stay afloat. But you want to thrive and grow, right?
Adding a profit margin lets you do that. It’s there to set aside extra funds for rough times. And it lets you scale your business when the time is right.
How to Streamline Estimates with Cleaning Business Software
Business software for cleaning companies makes it easy to create estimates. Service Fusion lets you build accurate, consistent bids every time. And you won’t forget key elements.
You avoid underbidding, and your business looks more professional. Your business can even provide good/better/best estimates. These are popular with clients that have budgetary limitations.
Plus, you get other features to streamline operations and increase productivity, like:
- Routing and dispatching
- Fleet vehicle management
- Customer relationship tracking
- Online job payment
Get rid of old-fashioned pen-and-paper estimates with Service Fusion. Book a demo today to learn how the platform can help your cleaning business thrive.
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