Why Most Cleaning Businesses Get Pricing Wrong
Pricing is the single biggest lever in your cleaning business. Get it right and you build a sustainable, profitable operation. Get it wrong and you will work exhausting hours with little to show for it.
The most common mistake cleaning business owners make is pricing based on what competitors charge. The problem with this approach is that you have no idea whether your competitors are profitable. Many of them are not. Instead, you need a pricing strategy built on your actual costs, your target margins, and the value you deliver.
Step 1: Calculate Your True Costs
Before you can set a profitable price, you need to know exactly what each job costs you. Most cleaning business owners dramatically underestimate their true costs because they forget to include indirect expenses.
Direct Costs (Per Job)
- Labor: Wages plus payroll taxes, workers comp, and any benefits. If you pay a cleaner $18/hour, the true cost is closer to $22-25/hour after taxes and insurance.
- Supplies and chemicals: Track what you actually use per job, not just what you buy in bulk.
- Travel time and fuel: The drive to and from each job is a real cost. A 30-minute drive at $0.67/mile adds up fast.
- Equipment wear: Vacuums, mops, and other tools need replacing. Factor in depreciation.
Indirect Costs (Monthly Overhead)
- Business insurance (general liability, bonding)
- Vehicle payments and maintenance
- Phone, software, and technology subscriptions
- Marketing and advertising
- Office supplies and administrative costs
- Your own salary as the owner
Add up your monthly overhead and divide by your total number of jobs per month. This gives you the overhead cost per job that must be included in every price.
Step 2: Choose Your Pricing Model
There are three main pricing models for cleaning services. Each has advantages depending on your business type.
Flat Rate Pricing
Charge a fixed price per job based on the size and scope of work. This is the most popular model for residential cleaning.
Pros:
- Customers know exactly what they will pay
- Rewards efficiency (faster teams earn more per hour)
- Easier to quote and sell
Cons:
- Requires accurate estimating
- Unexpected conditions can eat into margins
Hourly Rate Pricing
Charge by the hour, typically ranging from $35-75 per hour depending on your market and service type.
Pros:
- Simple to calculate
- Adjusts naturally to job complexity
Cons:
- Penalizes efficient teams
- Customers may worry about the clock running
- Harder to predict total cost
Square Footage Pricing
Charge based on the size of the space, common for commercial cleaning contracts. Rates typically range from $0.05-0.20 per square foot depending on service level.
Pros:
- Easy to scale for commercial bids
- Objective and consistent
- Simple for clients to compare
Cons:
- Does not account for condition or complexity
- May need adjustments for heavily soiled spaces
Recommendation
For most cleaning businesses, flat rate pricing with a square footage foundation works best. Use square footage to calculate your base price, then adjust for condition, frequency, and any special requirements.
Step 3: Set Your Target Profit Margin
Your price must cover all costs and leave a profit margin that makes the business worthwhile. Here are industry benchmarks:
| Service Type | Target Margin |
|---|---|
| Residential recurring | 25-35% |
| Residential deep clean | 30-40% |
| Commercial contract | 15-25% |
| Post-construction | 35-50% |
| Move-in/move-out | 30-45% |
To calculate your price with a target margin:
Price = Total Cost / (1 - Target Margin)
For example, if a residential clean costs you $85 in total (labor, supplies, overhead) and you want a 30% margin:
Price = $85 / (1 - 0.30) = $85 / 0.70 = $121.43
Round up to $125 or package it into a tier.
Step 4: Create Service Tiers
Offering tiered pricing is one of the most effective ways to increase your average job value. Most customers will choose the middle option, and some will upgrade to premium.
Example Residential Tiers
Basic Clean - $120
- Dusting and vacuuming all rooms
- Kitchen surfaces and appliance exteriors
- Bathroom cleaning and sanitizing
- Floor mopping
Standard Clean - $175
- Everything in Basic
- Inside microwave and oven exterior
- Baseboard wiping
- Window sill and ledge cleaning
- Trash removal from all rooms
Deep Clean - $250
- Everything in Standard
- Inside oven and refrigerator
- Interior window cleaning
- Detailed baseboard and trim work
- Cabinet face wiping
- Light fixture dusting
The psychology of three tiers is well established. Presenting a Basic, Standard, and Deep Clean option anchors the customer’s expectations and naturally guides most people toward the middle tier.
Step 5: Price for Frequency Discounts
Recurring customers are the backbone of a profitable cleaning business. Offer frequency-based discounts to encourage regular bookings:
- One-time clean: Full price
- Bi-weekly service: 10-15% discount
- Weekly service: 15-20% discount
- Monthly service: 5-10% discount
The discount is justified because recurring jobs reduce your sales and marketing costs, provide predictable revenue, and allow more efficient route planning. A customer paying $150 bi-weekly is worth far more than a one-time $175 clean.
Step 6: Handle Price Objections
Every cleaning business owner faces price pushback. Here is how to handle the most common objections:
“That’s more than I expected”
Explain exactly what is included and the quality difference. Emphasize that your team is insured, bonded, background-checked, and trained. Ask them what they were expecting and see if a different tier or frequency fits their budget.
”I found someone cheaper”
Do not compete on price with solo operators who may not carry insurance or pay taxes properly. Instead, focus on reliability, consistency, and professionalism. Say: “I understand. We focus on providing reliable, insured service with trained teams. Many of our customers came to us after having inconsistent experiences elsewhere."
"Can you give me a discount?”
Rather than discounting, add value. Offer a free add-on service for their first booking or a referral credit. This preserves your pricing integrity while giving the customer something extra.
Step 7: Review and Adjust Regularly
Your pricing should not be static. Review it every six months and adjust based on:
- Cost changes: Labor rates, supply costs, fuel prices, and insurance premiums
- Demand signals: If you are winning every bid, you are probably priced too low. If you are losing most bids, you may be too high or not communicating value effectively.
- Market positioning: As you build reputation and reviews, you can justify higher prices
- Profitability data: If certain services consistently underperform on margin, raise prices or stop offering them
Using software like CleanScale to track job costs and margins makes this analysis straightforward. You can see exactly which services and clients are profitable and which need adjustment.
The Bottom Line
Profitable pricing is not about being the cheapest option. It is about understanding your costs, delivering clear value, and positioning your business as a professional operation worth paying for. Take the time to calculate your numbers properly, create compelling service tiers, and review regularly. Your bank account will reflect the difference.