How to Price Commercial Cleaning Services for Maximum Profit

Pricing your commercial cleaning services correctly is crucial for both attracting clients and ensuring your business remains profitable. Too high, and you might scare potential customers away; too low, and you could be undercutting your own value and cutting into your margins. Here’s how to set competitive prices while maximizing your profit.

1. Understand Your Costs First

Before you can set prices, you need to understand what it costs you to provide your services. These costs fall into two broad categories:

Direct Costs

  • Labor: Wages for your cleaning staff, including overtime and benefits.

  • Cleaning Supplies: Detergents, gloves, brushes, cloths, vacuums, and other equipment.

  • Transportation: Fuel costs for getting to and from job sites, and maintenance of vehicles.

  • Waste Disposal: Fees for getting rid of waste generated during cleaning.

Indirect Costs

  • Business Overheads: Rent, utilities, insurance, marketing, and office supplies.

  • Administration: Costs of scheduling, customer service, and accounting.

  • Training and Development: Costs for training new staff or ensuring quality control.

By calculating your costs accurately, you can determine your break-even point and ensure you’re not pricing too low.

2. Factor in Profit Margin

Once you’ve established your costs, you need to add a profit margin. Typically, commercial cleaning services aim for a profit margin of 10% to 30%—depending on the industry, service level, and competition.

For example:

  • If your total cost to clean a commercial office is £500, and you want a 20% profit margin, your price should be £600 (£500 + £100 profit).

Don’t forget to adjust for market demand and competition when choosing your margin.

3. Price by the Type of Service

Different types of cleaning services will require different pricing strategies. Consider how much effort, time, and expertise each service will take:

  • Standard Cleaning: This involves basic tasks like vacuuming, mopping, trash removal, and surface dusting. It’s typically the most affordable.

  • Deep Cleaning: Deep cleans require more time and specialized equipment. Think of tasks like cleaning carpets, sanitizing restrooms, and washing windows.

  • Specialty Services: Carpet cleaning, pressure washing, or post-construction cleaning are niche services that require higher pricing due to expertise, equipment, and labor intensity.

  • Sanitization and Disinfection: This service has become more in-demand, especially post-pandemic. It often justifies higher pricing due to the use of specific cleaning agents and equipment.

Example Pricing Breakdown:

  • Standard Cleaning: £0.10–£0.25 per square foot

  • Deep Cleaning: £0.25–£0.50 per square foot

  • Post-construction: £0.50–£1.00 per square foot

  • Sanitization: £30–£50 per hour

4. Consider the Size and Frequency of the Job

Larger spaces require more time and labor, so pricing should reflect this:

  • Per Square Foot: Most commercial cleaners charge based on the size of the space. Pricing per square foot gives a clear, scalable way to charge for larger jobs.

  • Per Hour: If the space is smaller or the task more specific, you might charge by the hour. For example, hourly rates could range from £15–£40 per hour, depending on location and expertise.

  • Frequency Discounts: Offer discounts for regular contracts. For example, clients who book cleaning services weekly or monthly could receive a discounted rate, ensuring repeat business.

Example:

  • A 1,000 sq. ft. office space might cost £100–£200 for standard cleaning, but a large 5,000 sq. ft. office could range from £500–£1,000, depending on the type of service and frequency.

5. Research Your Local Market and Competitors

Check your competition’s pricing to ensure you’re within a reasonable range. While you don’t want to copy their pricing exactly, understanding the local market helps you stay competitive.

  • Direct Competitors: See what other cleaning companies in your area charge for similar services.

  • Indirect Competitors: Also consider what businesses charge for specialized or luxury cleaning services that may overlap with what you offer.

If you’re just starting out, you may want to be slightly more competitive or offer initial discounts to attract clients.

6. Adjust Pricing Based on Client Type

Different types of commercial clients have different needs and budgets:

  • Small Businesses: A small office or retail space might have a smaller budget but can still offer a reliable, long-term contract.

  • Large Corporations: Larger offices or multi-floor buildings typically have bigger budgets and may require more complex contracts (e.g., night cleaning, special requests).

  • Industries with High Regulations: Certain industries (e.g., healthcare, food service) might demand specialized cleaning and thus can afford higher pricing due to the stringent standards.

Factor in how much time and effort you need to put into customizing services for each client.

7. Offer Bundled Packages

Offering bundled cleaning services is an effective way to increase your revenue while delivering more value to your customers:

  • Basic Package: Regular cleaning (e.g., dusting, vacuuming, trash collection)

  • Premium Package: Adds window cleaning, carpet shampooing, and sanitization

  • Deluxe Package: Includes all of the above with deep cleaning services on a quarterly basis.

Packages make it easier for clients to understand what they’re getting and often result in higher-value contracts for you.

8. Factor in Seasonal Adjustments

If your business is in an area where weather can impact cleaning needs (e.g., heavy snow in winter or allergens in spring), adjust your pricing for peak seasons. You could offer discounts during quieter months or charge higher rates during periods of high demand.

9. Review and Update Your Pricing Regularly

Regularly review your pricing strategy to ensure you’re still competitive while maintaining profitability. As your business grows, you can increase prices to reflect your experience, your team’s expertise, and inflation in the cost of supplies.

A good rule of thumb:

  • Review your rates annually

  • Increase rates by 5%-10% depending on inflation, market conditions, and rising costs.

Final Thoughts

Pricing your commercial cleaning services requires balancing affordability with profitability. Understanding your costs, the competition, and your clients' needs allows you to set a pricing structure that maximizes your revenue while remaining competitive. By offering quality service and flexible pricing options, you’ll be able to attract and retain clients while building a profitable cleaning business.