How and how much should I charge?
Hourly or Flat Rate?
The first decision you have to make is whether to charge your clients by the hour or a flat rate.
Hourly rates are a better fit for companies that pay their cleaners by the hour, because they align the revenue unit with the cost unit perfectly. That way you'll know if you charge $40/hour and pay your cleaners $20/hour you know that you'll make $20 for every hour your cleaners work.
Flat rates are usually based on the number of bedrooms, bathrooms and extras. There is usually a base rate for a one bedroom/one bathroom home (say $100) and a rate for each additional bedroom or bathroom (say, $25 each), so a 2 bedroom 2 bathroom home would be $150.
Cleaning companies that pay their cleaners a percentage of the job find this to be a better fit for them because it allows them to calculate easily the profit on each job. For example, if your cleaners make 50% of a job, you would charge $150 for the two bedroom two bathroom job above and pay your cleaner $75, keeping the other $75. You don't have to worry about how long the cleaner spends in the home.
Your rate should be in line with what your competitors charge. You should do the same research your clients will do, because that's exactly what they will do.
Want us to help you do that research?
We have a research team that would love to help! Just contact us (chat bubble in the lower right corner) and we'll do a customized pricing analysis for your specific service area within a week.