John
November 23rd, 2004, 11:24 AM
I am new guy to the carpet cleaning business just now getting started. So far I have invested around $3500.00 in a portable extractor, start-up kit, and a few chemicals.
What is the most common way of pricing for your services? Is it by the square foot or by the room. Please explain.
What are the basic prices per room and if by square foot how much per square?
Donald:
Pricing: that is the great debate. For the first 15 years I was in the business I always charged by the square foot. The last eight years I cleaned, I left the option to the customer. In other words I asked them when they called "Do you want to be charged by the room or the square foot?" It kind of lets the customer tell you their comfort level on mathematics. Over 95% of the customer choose room pricing! Did you know that your local newspaper is written to the eighth grade education level? Or that the average person's math level is only at the 5th grade even less?
Most cleaners bid commercial jobs by the square foot with a mental check of by the hour comparison (about $75 per hour per person). Most residential jobs are cleaned by the room as a base price and extras are charged by the square foot or by the room. This was not true 20 years ago though, over 90% all jobs (whether commercial or residential) were quoted by the square foot by all cleaning companies. But over the years, the home cleaning business has flipped over to room pricing.
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Commercial prices average the same as 1/2 of residential cleaning, depending on frequency, and the size of the job.
Room prices $19 per room ($.15 per sq ft) and up for basic prespry and steam rinse. Add $9 per room ($.05 per sq ft) and up to prescrub with a rotary buffer or bonnet. Add $9 per room ($.05 per sq ft) and up to blow dry and/or Bonnet towel dry just cleaned carpet to have dry in one hour. (This way you can offer dry cleaning services to compete with dry cleaning carpet cleaning companies)
Note: 25% of all customer will pay 25% to have the carpet guaranteed to be dry in one hour. Room prices are for rooms and stair cases less than 200 sq ft in size. Price is calculated on the measurements of the entire room rather the cleaned sq footage. Rooms 200 to 400 sq ft in size count as two rooms, rooms 400 to 600 sq ft count as 3 rooms. Most living and dinning areas count as 3 rooms, even if under 400 sq ft, because if you draw an imaginary line between the living and dining room, and the living room portion is over 200 sq ft, this area is actually two areas and the dining room is the third.
The advantage to charging like this, is it sound cheap but adds up fast. Most carpet are not cleaned with enough regularity to just perform the basic cleaning service so they will opt for the $28 per area ($9 pre-scrub and $19 for the steam rinse). A living room, dinning room and hall would cost $91.00 + tax (halls and bathrooms count as half price) Square foot prices are calculated the sq footage of the cleaned area, not the size of the room. This way if a customer is just cleaning traffic areas they will only be charged for that sq footage.
Here is an example of sq foot pricing:
Living Room= 17 X 17 - Dining Room= 10 X 10 - 3 Hallways 3 X 12 = 425 sq ft.
425 X .90% cleaned and 10% under unmovable furniture = 382.5 sq ft X $.20 per sq ft (per scrub and steam rinse) = $76.50 + tax.
Comparing these measurements to the room prices, room prices would make you more money. This is not always the case, however. Sometimes charging by the square foot would make you more money. You need to come up with a way that is fair for you and the customer no matter what either you, or they choose. Minimum cleaning charges are $65 and up. Fabric protection averages half the cost of cleaning except the protector that carry a one year warrantee match the cost of cleaning.
What is the most common way of pricing for your services? Is it by the square foot or by the room. Please explain.
What are the basic prices per room and if by square foot how much per square?
Donald:
Pricing: that is the great debate. For the first 15 years I was in the business I always charged by the square foot. The last eight years I cleaned, I left the option to the customer. In other words I asked them when they called "Do you want to be charged by the room or the square foot?" It kind of lets the customer tell you their comfort level on mathematics. Over 95% of the customer choose room pricing! Did you know that your local newspaper is written to the eighth grade education level? Or that the average person's math level is only at the 5th grade even less?
Most cleaners bid commercial jobs by the square foot with a mental check of by the hour comparison (about $75 per hour per person). Most residential jobs are cleaned by the room as a base price and extras are charged by the square foot or by the room. This was not true 20 years ago though, over 90% all jobs (whether commercial or residential) were quoted by the square foot by all cleaning companies. But over the years, the home cleaning business has flipped over to room pricing.
------
Commercial prices average the same as 1/2 of residential cleaning, depending on frequency, and the size of the job.
Room prices $19 per room ($.15 per sq ft) and up for basic prespry and steam rinse. Add $9 per room ($.05 per sq ft) and up to prescrub with a rotary buffer or bonnet. Add $9 per room ($.05 per sq ft) and up to blow dry and/or Bonnet towel dry just cleaned carpet to have dry in one hour. (This way you can offer dry cleaning services to compete with dry cleaning carpet cleaning companies)
Note: 25% of all customer will pay 25% to have the carpet guaranteed to be dry in one hour. Room prices are for rooms and stair cases less than 200 sq ft in size. Price is calculated on the measurements of the entire room rather the cleaned sq footage. Rooms 200 to 400 sq ft in size count as two rooms, rooms 400 to 600 sq ft count as 3 rooms. Most living and dinning areas count as 3 rooms, even if under 400 sq ft, because if you draw an imaginary line between the living and dining room, and the living room portion is over 200 sq ft, this area is actually two areas and the dining room is the third.
The advantage to charging like this, is it sound cheap but adds up fast. Most carpet are not cleaned with enough regularity to just perform the basic cleaning service so they will opt for the $28 per area ($9 pre-scrub and $19 for the steam rinse). A living room, dinning room and hall would cost $91.00 + tax (halls and bathrooms count as half price) Square foot prices are calculated the sq footage of the cleaned area, not the size of the room. This way if a customer is just cleaning traffic areas they will only be charged for that sq footage.
Here is an example of sq foot pricing:
Living Room= 17 X 17 - Dining Room= 10 X 10 - 3 Hallways 3 X 12 = 425 sq ft.
425 X .90% cleaned and 10% under unmovable furniture = 382.5 sq ft X $.20 per sq ft (per scrub and steam rinse) = $76.50 + tax.
Comparing these measurements to the room prices, room prices would make you more money. This is not always the case, however. Sometimes charging by the square foot would make you more money. You need to come up with a way that is fair for you and the customer no matter what either you, or they choose. Minimum cleaning charges are $65 and up. Fabric protection averages half the cost of cleaning except the protector that carry a one year warrantee match the cost of cleaning.