7 Reasons Why a Rate per Sqft Does Not Matter
Jul 05, 2023
A common challenge cleaning business owners face is pricing. More specifically, they feel the need to create a standard rate per square foot. It's a terrible way to price anything and below are some reasons why you shouldn't rely on a rate/sqft for a price.
You can have 2 identical buildings/office suites, both at 10,000 sqft, next door to each other, and even have the same cleaning frequency and time, but have two totally different prices coming from the same cleaning company. Why? Below are some reasons:
1) Different surfaces can take time. If one is all carpeted and the other all tile, the one with tile will take a lot longer, especially if mopping is involved.
2) There could be more delicate surfaces. Those can add to the time you need to clean.
3) The layout could differ. 10K in open space cleans a lot faster than 10K in offices. Likewise, 10K in cubicles will take a lot longer than 10K in enclosed offices.
4) One could be a loss leader. If you have a location that has multiple locations around town, wouldn't you me more inclined to give a discount on that one location vs a similar building that only has one location?
5) I post all the time about an aggravation factor. If you have a facilities manager or point of contact that's being a pain in the butt to deal with, I will price higher than one who seems easy to work with.
6) Each building might have a different level of clean expectation. Check out APPA's 5 Levels of Clean. Some may want it perfect. Most don't need that, and that'll impact the time you need to clean and therefore impact your pricing.
7) And all of the above assumes you are the same bidder on both. Your finances are not the same as your competitors. Your production rate is not the same as your competitors. I always put the caveat in my answers that it assumes my expenses, my income, my profit, etc. But my profit goals may not be your profit goals. My expenses may not be the same as your expenses. Last year I spent about $35K on training and coaching. My building clients pay for that. But someone reading this may not be spending money on coaching, on a mastermind, on conferences, etc.
In short, any pricing answers are mere guides and don't necessarily apply to you.
