10 Ways to Build Profit in Your Cleaning Business
You may have started your cleaning business to be your own boss, get out of the 9 to 5 rat race, or just because you enjoy cleaning and doing a good job for your customers. But your business will not succeed if you are not making a profit.
The cleaning industry can be highly competitive and most likely, your profit margins on any particular job, are not more than 10 to 20 percent. When prices of your supplies climb or when gas prices skyrocket, your profit and the success of your cleaning business can be in jeopardy. Keep a close eye on all your business activities so that you can distinguish between costs that are necessary and costs you can reduce or avoid altogether.
So how do you get your profits back up? The following are 10 ways you can build profit in your cleaning business:
- Don't just sell your day-to-day cleaning services. When bidding a new job include routine maintenance such as carpet spotting, carpet cleaning, hard floor care, and window washing. Encourage your cleaning customer to have maintenance services performed regularly, such as every 3 or 6 months. Your customer's buildings will maintain a professional appearance; extend the life of their floors, and bring more profits to your business. Keep in mind that these are specialty services so you'll need to educate yourself on the proper maintenance and cleaning procedures.
- Don't just provide cleaning services. Also sell the items that your customers need and consume repeatedly. Every building needs trash can liners, toilet paper, hand towels, and soap; and depending on the building, may also need facial tissue, urinal mats, and air fresheners. Offer to manage your customer's supplies and then invoice them for the cost of the products, adding in a small profit for yourself, typically up to 15%.
- Become the "go to" source for all your customers' building service needs by bundling your services together. You don't necessarily have to provide a discount on services; if your customer knows they can have one company do everything (carpet cleaning, window washing, floor maintenance, etc.), they will save time and money by not having to look elsewhere for these services.
- Don't compromise on price. When the competition comes knocking on your customers door, don't back down on your price. Educate your customers on the value of the service you provide rather than on the price you charge. This day will come so be prepared to wield the full strengths and qualities that your company provides, and back up your value with client testimonials and case studies.
- Develop strategic alliances with non-competing businesses who also sell to your niche clients. For example, partner up with ultrasonic blind cleaning companies, landscaping companies, duct cleaning companies and fire restoration companies, just to name a few. When you have partners that refer you, you'll save money on your marketing budget.
- Don't cheap out when it comes to tools, supplies, and equipment. Buying cheap, inexpensive tools, supplies, and equipment may seem like you are saving money but it will hurt you in the long run. Cleaning technicians using poor quality towels/wipes, inadequate dusting tools, cheap mop heads, and inferior vacuum cleaners will most likely have increased labor hours thus reducing your profit margins.
- Keep your equipment clean and in tip top shape. Regular and routine repairs and maintenance of your cleaning equipment will keep your cleaning crew working on site longer with less down time caused by malfunctions or having to perform on site repairs.
- Train, train, and train again. Thorough and continues training of your cleaning technicians will keep them sharp and on point. Failure to train properly can result in poor production rates, watered down cleaning chemicals, and possibly hazardous situations.
- Encourage repeat business by staying in front of your customers. Send out monthly newsletters/flyers/postcards containing special offers and seasonal services. For example: “Free Holiday Wreath when you schedule a detailed refrigerator and stove cleaning” or “20% Off all spring window cleaning.”
- Add more cleaning services. For example, you can make a tidy profit off cleaning the microwaves and refrigerators in the break room. You can also put these services on a regular cleaning schedule, such as the first Friday of every month, and invoice your customer accordingly.
One last thing. The best advertising for your business is word of mouth. Get your customers talking about you and your cleaning company by asking for referrals and ask them to mention your company if they know of anyone looking for the services you provide. Best of all, it's free.
Visit our Store for Certification Training Programs
