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ICAN/ATEX: How can I develop a commercial cleaning pricing model?

April 10, 2013
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Many cleaning professionals visit the International Custodial Advisers Network (ICAN) Ask the Experts page for insight and, every business day, we deliver advice to better help you perform your job.

Tuesday’s Question:ICANATEX Logo

I'm looking to develop a commercial cleaning pricing model.

I'm after advice on what a typical cost break down/split for direct and indirect costs should look like i.e. for a contract price, what % of the contract price should labor costs be? supervisor costs?, materials/chemicals?, uniforms?, equipment?, office overhead? if I target a 12-15% profit before interest and taxes?

Any assistance is greatly appreciated. I realize this can vary greatly, but am looking for some broad industry benchmarks to aim for.

Tuesday’s Answer:

I am not aware of any pricing model such as you describe. That doesn’t mean there aren’t any; I’m just not aware of them.

I have never looked closely for guides such as these because, as you say, all of the items factored in vary greatly from one business to another and I could never be sure they would fit mine.

For example, supervisor costs on a large facility with 50 cleaners will far exceed those for a small bank branch where the cleaner works alone and the supervisor visits twice a month.

Another example could be office overhead. Use a home office and it is minimal; rented space could cost a substantial amount each month.

Uniforms? We use a simple company apron, but many provide a full shirt and trousers. Cost is quite a bit more for the latter, especially … - Lynn E. Krafft, ICAN/ATEX editor

To read this response in its entirety, click here.

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