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Most cleaning companies aren't charging what they’re worth. They've been taught that cleaning is a "cheap" service and so they refuse to charge what they're actually should. Most of the time, it’s because they’re scared.
The truth is, good cleaning is expensive. To operate a legitimate cleaning company takes money. You have to market, you have to hire, you have to train, you have to hire office staff. It's a lot!
So if you're running a cleaning company and you hire out the jobs, you need to be making at the very least 50% on each job. Ideally, you're making closer to 55% profit on every job.
This is kind of one of those non-negotiable. If you're not making at least 50% on each job, you're going to feel stressed out, overworked, and underpaid.
Example job: If you hire out the cleaning (let’s say you use subcontractors) and they are charging you $25/hr, you need to be charging at least $50/hr.
If you have an Airbnb that takes ~4 hours to clean. You know that you’ll need to pay that cleaner $100 to do this property. So what should you charge the host?
Not $150, not $175. Charge at least $200. You have to make at least a 50% profit margin on every job you do. Why? Because if you want to grow and want to stop running around like crazy making next to nothing, this is what it takes.
Yes, that means you won’t win every customer. Yes, that means some hosts won’t want to work with you. But if you don’t charge what you need to make a 50% margin, I can promise you that your business is not on a sustainable path.
One of my favorite features on the Same Day Turn platform is that you can see you profit margin on every job so you know if you're making as much money as you should be. If not, it's time to raise your prices!
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Until next time!
Logan
