How Cleaning Companies Price and Structure Contracts – Wimgo

How Cleaning Companies Price and Structure Contracts

Searching for a cleaning service? I feel you. The options are endless and it gets overwhelming fast. You see an ad boasting sparkling clean houses for just $99! Then you find out that’s for a bathroom the size of a closet. Or you get a quote for $500 to scrub your average suburban home. Wait, what?

It’s the wild west out there when it comes to pricing models and contracts. Some cleaning pros want to lock you into a year-long “bargain” that’s actually loaded with hidden fees. Others just casually quote you a small fortune without explaining what’s included. And good luck comparing Apples to Apples between companies.

Believe me, I’ve been there. After my third baby was born, our house was a disaster zone. I desperately needed help before permanent stains materialized. But quotes varied so widely, I had no clue what fair pricing was. I wasted hours haggling with sales reps and squinting at confusing contracts.

Well, today I’m sharing all I learned to spare you the headache. This comprehensive guide will demystify how cleaning companies price and structure their service contracts. You’ll understand what factors affect rates so you can spot unreasonable quotes. I’ll overview the common pricing models and contract structures, plus insider tips for negotiating the best deal. Arm yourself with knowledge – you’re going to nail this. On to your sparkling clean castle!

Pricing Factors: Why Quotes Vary Widely

First, let’s explore why prices fluctuate so much between cleaning companies. What makes one quote $150 and another $350 for seemingly the same work? There are several important factors that affect rates:

Square Footage 

The size of the area being cleaned is typically the biggest determinant of price. Most cleaning companies base their rates on the square footage of the space. The larger the area, the more time and effort it takes to thoroughly clean, which translates to a higher price. Make sure quotes you receive clearly indicate the square footage used to calculate the rate.

Frequency

How often you want the cleaning done—such as one-time, weekly, biweekly, or monthly—will impact the price. Cleaning more frequently usually comes at a discounted rate compared to one-off cleanings. Companies offer better rates to incentivize regular service.

Services Offered

The types of services provided during each cleaning, such as dusting, vacuuming, bathroom scrubbing, window washing, etc. will influence cost. More tasks mean higher quotes. Be clear about exactly what’s included so quotes are based on the same scope of work.

Location 

Service rates can vary depending on the location where cleaning is being performed. Metropolitan areas with higher costs of living will have higher rates. Suburban or rural areas may be more affordable. Geographic proximity to the cleaning company’s home base also factors in.

Employee Wages 

The rates cleaning companies pay their employees ultimately influence the rates they charge customers. Companies with higher pay and benefits have higher overhead and therefore higher prices.

Supplies and Equipment

The cost of cleaning products, tools, and equipment needed for the job also contributes to pricing. Companies factor these expenses into what they charge. More specialized supplies or industrial equipment raise rates.

Profit Margin 

Cleaning companies build in a profit margin so they earn income after covering labor, materials, insurance, marketing, and other operating expenses. Typical margins range from 30-50%. Higher volume allows companies to make profit with slimmer margins.

Discounts and Promotions

Many cleaning companies offer percentage discounts or special deals to attract new customers. It pays to ask about any current promotions when requesting a quote to potentially lower the price.

Pricing Models

Now that we’ve explored the key variables that affect pricing, let’s look at the common pricing models cleaning companies use:

Per Cleaning 

This is the simplest model, charging a fixed rate each time a cleaning is performed. It’s commonly used for one-time or infrequent service. Rates span $100-$500+ per cleaning based on size, services, etc. Per clean pricing gives you maximum flexibility but no discount for regular service.

Monthly Package

Some companies offer monthly packages where you prepay for a set number of cleanings per month, usually with a small discount. Packages run $200-$600/mo. This ensures regular service without having to schedule and pay each time. Extra cleanings during the month incur additional fees.

Per Square Foot

A very common approach is to charge per square foot cleaned. Residential rates typically range between $.03-.05 per square foot. The final price depends on the size of your space. Per square foot pricing simplifies quoting for different area sizes. Companies sometimes include a base rate plus per square foot charge.

Flat Rate 

For regular customers with predictable needs, some companies offer a flat monthly rate regardless of cleanings completed. This guarantees predictable billing amounts. Flat rates work best for unchanging service requirements. One-time adds-on are still billed separately.

Contract Structures 

In addition to setting rates, cleaning companies also create contracts that specify the terms and conditions of service. Contract structures define things like duration, scheduling flexibility, and payment details. Here are some typical categories:

Short-Term

Short-term contracts lock in rates and terms for a defined period, usually a few months up to 1 year. This offers stability without a long commitment. Short-term contracts often auto-renew unless cancelled.

Long-Term 

Long-term contracts last from 2-3 years up to 5+ years. Companies offer the best rates for these extended commitments. It provides predictable costs and service over a longer horizon. Early termination fees can apply.

Recurring Service

Recurring service contracts roll over automatically, with no defined end date. Service continues month-to-month or year-to-year with written notice required to cancel. This offers ongoing convenience without remembering to renew a fixed-term contract.

One-Time Cleaning

For single cleanings, companies offer simple one-time agreements. This specifies the date, services, and rate but includes no ongoing commitment. One-time service allows flexibility but doesn’t guarantee future availability.

Payment Terms

Cleaning contracts also outline payment expectations and options:

Upfront Deposit

Many companies require a percentage deposit or initial payment upfront when signing a new contract, typically around 20-50% of first month’s fees. This reserves your service schedule. The balance is due after the first cleaning.

Post Cleaning  

The most common payment method is due upon completion of each service. The company invoices you after the cleaning is finished. This pay-as-you-go approach is simplest for one-time or occasional cleaning.  

Recurring Billing 

For regular customers, companies can automatically bill your credit card monthly for scheduled cleanings. This convenient option avoids having to manually pay frequent invoices but gives less flexibility to adjust dates.

Cash/Check Discount

To incentivize non-credit card payments, some cleaning firms offer a small discount for cash or check—usually 2-5%. This avoids processing fees but requires keeping cash or checks on hand. Make sure companies have secure cash handling practices if paying this way.

Other Considerations

Beyond basic rates and contracts, cleaning companies may differentiate themselves through additional services, guarantees, and policies. As you evaluate options, consider these factors:

Insurance

Seek companies that carry both liability insurance and worker’s compensation to protect you from risk. Reputable firms offer over $1 million liability coverage.

Scheduling Flexibility  

Look for companies that allow reasonable date changes and cancellations without penalty. Life happens and you may need to adjust dates occasionally.

Cancellation Policy

Understand each company’s cancellation and early termination policies. Many require 30 days notice but some charge fees for cancelling before a minimum term.

Quality Guarantee

The best cleaning firms offer satisfaction guarantees promising to promptly correct any deficiencies free of charge. This demonstrates they stand behind their workmanship.

Supplies Included

Many companies provide their own supplies but some expect you to furnish them. Included supplies save you effort but may be reflected in slightly higher rates.

Green Cleaning Options

If using eco-friendly products is important to you, select a service that offers green cleaning methods using non-toxic, biodegradable supplies. This creates a healthier indoor environment.

Getting Quotes from Multiple Companies

Once you understand the typical pricing and contracting structures in the cleaning industry, you’re ready to request customized quotes. Here’s how to effectively solicit bids from prospective service providers:

Compare Rates 

Get quotes from 3-5 cleaning companies so you can compare. Rates for the same scope of work can vary dramatically. Wide price dispersion means huge savings potential.

Ask About Included Services

Make sure each company provides a detailed list of what exact services are encompassed in their quote. Confirm quotes are based on the same set of services for accurate comparison.

Check Reviews and References

Along with pricing, verify the company’s reputation online. Request and check references to confirm satisfactory experiences from past clients. Avoid lowest price alone.

Inquire About Employee Screening 

Ask about background check procedures the company uses for hiring staff. Reputable firms thoroughly screen applicants including identity verification, work authorization status, criminal history, and references. 

Request Sample Contract

Have companies provide sample contracts so you can evaluate terms. Look for reasonable cancellation policies, satisfaction guarantees, appropriate liability insurance, and fair payment expectations.

Negotiating the Best Price and Terms  

Once you’ve received multiple quotes, use these negotiation strategies to get the best value pricing and contract for your situation:

Be Upfront About Your Budget

Let the company know the monthly or per-cleaning amount you can afford to pay. Ask if they can work within your budget constraints to earn your business.

Ask About Discounts

Inquire about any discounts or specials that may apply to reduce the quoted rate. Negotiate the best price by highlighting competitors’ lower quotes.

Start with a Smaller Package

If a monthly package quote is too high, offer to start with fewer cleanings per month and increase later. A smaller commitment can secure better rates.

Offer to Provide Your Own Supplies 

Providing your own cleaning supplies and equipment can potentially lower costs a bit for companies that typically include them.

Pay Upfront for a Discount

Agreeing to pay a larger upfront percentage, or even full payment, may qualify you for a lower overall price. You get a deal while the company gets improved cash flow.

Commit to a Longer Contract 

Companies offer their best discounts for long-term contracts of 2 or more years. See if extending your commitment from one year to two years nets savings. 

Bundle Multiple Services

Negotiate a discount if you agree to use the company for additional services like carpet cleaning or window washing. Cross-selling helps justify better pricing.

Conclusion

Hiring residential or commercial cleaning services involves more than just picking a provider and signing a check. By gaining insight into the pricing models, service packages, contract structures, and negotiation strategies in the cleaning industry, you can make an informed decision. Approach the process knowing your specific requirements, budget constraints, and options within typical industry practices. 

With a clear sense of fair market rates and an understanding of the variables that influence price, you can confidently communicate with prospective cleaning companies, critically evaluate quotes, and negotiate the ideal balance of service and affordability. The time invested upfront to research pricing norms and contract considerations will pay off with significant long-term savings and a cleaning provider aligned to your needs. No one likes overpaying for services or discovering hidden gotchas in the fine print. Let this guide on cleaning industry pricing empower you to hire the right cleaner at the right price.