Resources if you’ve been impacted by Hurricane Ian - Learn More

The 7 Most Common Cleaning Pricing Mistakes to Avoid

Published on August 11, 2022

Avoiding the 7 most common cleaning pricing mistakes can help ensure your business maximizes profits so you can successfully grow in the long-term.

When you avoid these top 7 common cleaning pricing mistakes, you can:

  • Maximize profitability
  • Have enough profit for growth
  • Pay your cleaners what they’re worth
  • Only keep clients who are meeting profit goals
  • Stay ahead of the competition and remain the leading business

Use this article to sustain successful profitability, and make sure your business doesn’t make these most common cleaning pricing mistakes.

Fix Your Pricing in Under 10 Minutes

This audit will help you find your pricing averages. 
Identify which jobs are profitable – and which ones aren’t. 
Determine how high your prices should be to guarantee you make the profit you deserve.
DOWNLOAD NOW!

1. Copying the Competition’s Cleaning Pricing

Even though it’s important to be aware of the competition’s prices, copying their cleaning pricing is a huge mistake.

After all, there’s no way to ensure the competition is optimally pricing their services for the most profit.

In addition, every cleaning business is different with different profit goals, overhead costs, and break-even points.

For these reasons, it’s crucial to set your own prices. Then, loosely compare it to the local competition to see how your prices match up.

As a result, you’ll have a general idea as to whether you’re priced too low or too high in comparison to other cleaning businesses in the area.

2. Failing to Leave Room for Growth

Oftentimes, businesses will account for profit goals, yet fail to account for a percentage they can reinvest back into the business for future growth.

For example, you should have a set amount of profit you can use to:

By leaving ample room for business growth, you’ll ensure the long-lasting success of your cleaning business for many years to come.

How to Hire The Best Cleaning Employees!

Download Your FREE guide!

3. Inconsistently Reassessing Client Profitability

Failing to consistently reassess client profitability is one of the biggest mistakes cleaning businesses make.

By regularly assessing how clients align with your profit goals, you’re able to ensure you’re only servicing clients who are generating ample profits.

Then, after determining a client doesn’t align with your profit goals, you can either:

If the client is in a severe profit deficit or they’re unwilling to pay more, then it’s likely time to fire them.

However, if the client is close to meeting your profit goal and is willing to pay more, then it’s likely okay to keep them onboard.

Although, you should also reassess clients who are superficially meeting profit goals.

In other words, if they’re impossible to please, and you’re repeatedly re-servicing them, then it’s likely time to fire them.

4. Keeping Minimally Profitable Clients

Keeping minimally profitable clients is just as bad as keeping unprofitable ones. After all, you’re wasting valuable time and resources which can be spent on more profitable clients.

With minimally profitable clients, it’s likely time to increase their price.

If they’re willing to pay the new price, then you can keep them.

However, if they’re unwilling to pay the new price, then it’s likely time to fire them as a client. Instead, replace them with someone more profitable.

5. Not Recalculating Your Break-Even Point on a Routine Basis

In addition to regularly reviewing client profitability, it’s also important to recalculate your break-even point on a routine basis.

Due to inflation and other varying costs, you won’t know your current break-even point unless you’re regularly recalculating it.

By consistently revisiting your break-even point, you’ll ensure you always know how much profit you need to generate to optimally set prices.

6. Forgetting to Reassess Your Status on Meeting Profit Goals

Keep in mind, profit goals aren’t something you should just assess once a year.

After all, if you’re only occasionally assessing profit goals, then you can’t make improvements throughout the year to ensure you’re on target.

By routinely reassessing your status on meeting profit goals, you can adjust prices to make sure you stay on track.

7. Allowing the Fear of Losing Clients to Keep You from Raising Cleaning Pricing

Unfortunately, you’ll inevitably lose clients. However, it’s critical not to allow the fear of losing clients to prevent you from increasing prices.

Remember, it’s better to lose a minimally profitable client and replace them with a client who’s more profitable than it is to keep a minimally profitable client and allow profits to suffer.

ALWAYS either raise pricing or fire the client if a client isn’t aligning with current break-even points and profit goals.

By the way, you can easily assess client profitability with Service Autopilot.

Using the #1 cleaning service software, you’ll have the power to instantly access time on job, job costs, and more.

As a result, you won’t have to spend countless hours crunching numbers on client profitability. Instead, all of the information you need is easily accessible at the touch of your fingertips!

Grow Your Cleaning Business... Faster (and with Less Stress)

Instant invoicing

Better scheduling

Manage your clients and employees all in one system

Start Software Tour

Avoid These Cleaning Pricing Mistakes to Maximize Profits

By avoiding these cleaning pricing mistakes, you can maximize profitability, and:

  • Beat the competition
  • Consistently meet profit goals
  • Get rid of minimally profitable clients
  • Keep the best cleaners by offering competitive pay
  • Set your business up for consistent, long-term growth

Finally, you have the power to make sure your business doesn’t make these common cleaning pricing mistakes so you can be successful for many years to come!


Related: 3 Easy Steps to Get Your Cleaning Pricing Right


Originally published Aug 11, 2022 7:00 AM

Alyssa Sanders

Alyssa is a Content Marketing Specialist II at Service Autopilot. Her bookworming began after she discovered the Harry Potter series. Her love of books evolved into writing and creating content. When she's not writing, you can find her watching a new sci-fi series or shoving her nose into a book.
ALL POSTS

Tags: ,

Free Downloads

Pricing Calculator

Quick guide to fixing your pricing.

Wage Calculator

Quick guide to fixing your employee wages.

Win-back Email Bundle

Win back your clients with this "Done-for-you" Email Campaign!

Leave a Reply

linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram