Cleaning Business Pricing Mistakes: That Cost You Money

Why Most Cleaning Businesses Get Pricing Wrong

Pricing is the most important choice in your cleaning business. Get it right and you make good money. Get it wrong and you work hard for nothing.

Most cleaning business owners pick prices based on feelings, not math. They look at what others charge, pick a number that seems okay, and hope for the best. This leaves a lot of money on the table.

Here are seven pricing mistakes we see all the time and how to fix each one.

Charging by the Hour Instead of Flat Rate

When you charge by the hour, getting faster hurts you. The better you get at cleaning, the less you earn. That makes no sense.

Clients also get nervous watching the clock. They wonder if you are going slow on purpose. This makes them upset and hurts the trust between you.

Switch to Flat Rate Pricing

• Give one price per visit — based on the size of the home
• Use square feet as a guide — charge a set rate per square foot, then adjust
• Count the rooms and bathrooms — kitchens and bathrooms take the most time
• Build in your profit — aim to keep 20% to 30% of each job as profit

Flat rate pricing means you earn more when you work faster. Clients like knowing the price up front too.

Not Accounting for Travel Time and Costs

If you drive 30 minutes each way to a job, that is one hour of work you do not get paid for. Plus you spend money on gas. Many cleaners never think about this, and it eats into their pay.

A $150 job that takes two hours to clean and one hour to drive to pays $50 per hour of cleaning. But it is really only $37 per hour of your total time. Take out gas costs and it drops even more.

How to Handle Drive Time

• Set a service area — decide how far you will drive and stick to it
• Group jobs by area — clean homes near each other on the same day
• Charge extra for far away homes — or set a minimum price for those jobs
• Track your miles — you can write off 67 cents per mile on your taxes

Matching Competitor Prices Without Knowing Their Costs

The cleaner down the street charges $100. But they might not have insurance. They might not pay taxes. They might be losing money. If you copy their price, you copy their problems.

You do not know what their costs are. Many cheap cleaners are losing money and will not last long. Do not follow them down that path.

Set Prices Based on Your Costs

1. Add up your real costs — pay, supplies, insurance, taxes, gas, and time spent on calls and emails
2. Add your profit on top — at least 20% more than your costs
3. Check the market — your price should be in the middle or upper range, not the lowest
4. Sell your value, not your price — being on time, doing great work, and being insured is worth more than a cheap price

Giving Discounts Too Easily

Every time you give a discount, you tell the client your work is worth less. Once you lower a price, it is very hard to raise it back up.

Some owners give discounts to win new clients or keep old ones. But this trains clients to always ask for lower prices.

When to Give Discounts (and When Not To)

• Do give a small discount for weekly clients — they give you steady work, so 5% to 10% off is fair
• Do give referral credits — give clients $25 off for each friend they send you
• Do not drop your price to match a cheaper cleaner — let them go if price is all they care about
• Do not give a discount when someone complains — offer to come back and reclean instead

Not Raising Prices Every Year

If you charge the same price this year as last year, you are making less money. Everything costs more each year — gas, supplies, and insurance all go up.

Many cleaners are scared to raise prices. They think clients will leave. But most clients expect small raises each year. The ones who leave over a 5% price bump were never good clients.

How to Raise Prices Without Losing Clients

1. Raise prices 3% to 5% every January — this keeps up with rising costs
2. Tell clients 30 days ahead of time — send an email that explains the change
3. Talk about what is better — better supplies, more training, or new services
4. Raise for all clients at once — do not make exceptions or you will never finish

If you charge $150 now and raise prices 5% each year, you will earn $191 per visit in five years. That is $41 more per visit for the same work.

Undervaluing Deep Cleans and Add-On Services

Deep cleaning, oven cleaning, fridge cleaning, and window washing are extra work. They take more time and more effort. But many cleaners charge barely more than their normal rate.

Extra services should cost extra. Clients already expect to pay more for them. Do not sell yourself short.

How Much to Charge for Extras

• Deep cleaning — charge 1.5 to 2 times your normal rate
• Inside oven cleaning — add $25 to $50 per oven
• Inside fridge — add $25 to $50 per fridge
• Window cleaning inside — add $3 to $8 per window
• Laundry — add $20 to $35 per load
• Organizing — charge your hourly rate plus 20%

Having No Minimum Job Size

A tiny apartment that takes 45 minutes to clean might seem like quick money. But add drive time and setup, and you spent two hours for one small job. That is not worth it.

Without a minimum price, you fill your day with small jobs that barely pay your costs. You stay busy but do not make much money.

Set a Minimum Price

• Know your hourly goal — this should cover all costs plus your profit
• Set a minimum price per visit — most cleaners set it at $100 to $150
• Charge the minimum for small spaces — even if the job takes less time
• Be honest about your minimum — put it on your website and tell people during quotes