House Cleaning Business - What do I Charge?
This is the number one question I get on owning and running a
house cleaning business. And it's not easy to answer directly
because it depends entirely on your marketing and business plans.
Professional marketers know a little secret most small business
owners are not aware of; most advertising is worthless. And the
reason it's worthless is because people don't spend the time on
their small business plan and small business marketing plan. The
information you enter in these plans define your target
customer. Without knowing who your targeted customer is, what
kind of an ad are you going to publish?
Are you also aware that not everyone is your customer? Even in
the house cleaning business, there are different types of
customers that look for the type of house cleaning business that
will service their needs. Do you know who these people are and
how to attract them?
What you charge depends on what your market will pay. Every city
in the world is different. After you define your target
customer, you need to start researching your competition to
learn what they are charging for the services they offer. It
also makes a huge difference to your target customer that you
are licensed, bonded and insured; or not.
You can now start by defining your personal hourly rate. This is
the amount you want to earn per hour. Add onto this your
overhead and you have the hourly rate for your business. How
does this compare with what your competition is charging? Can
you compete at this rate? What will make you stand apart from
your competition at this rate? Is your rate your only measure of
exceeding your competition?
If you're going to compete in your market with only your rate,
you'll have a hard time. There will always be someone in your
area that will consistently under-bid your quotes. You'll need a
customer benefit to keep your target customer interested in your
service.
If you're targeting the low-end customers and lowering your rate
to get jobs, you'll constantly need to work more jobs and
acquire more customers to keep ahead. But, if you are targeting
the high-end customers that are looking for quality and
reliability, you can work less jobs for more money.
That why you need your small business plan and your small
business marketing plan to establish who your customers will be
and how you will attract them. If you don't have this
information, don't spend a penney on advertising until you do.
Define your target customers and all your marketing will easily
fall into place and effectively bring in customers that want
what you offer.