Hi, my name is Lisa and I am from MO.  I recently started a cleaning business with a friend of mine and as of now we are going to try to do residential and commercial.  We have one residential account so far and one business account, which happens to be where we got our insurance from:)  My question is we feel we underbid on the residential, and feel it is costing us more than it's worth.  It's a 2400 sq.ft.home and we are doing it for $50 every two weeks.  We spent 5 hours on her first time cleaning, and she had about ten complaints.  We, of course, offered to come back the next day to fix things, but she said we could do it on our next visit.  So visit 2 was also a 5 hour job, but she seemed happy.  If we continue to spend 4-5 hr. per visit, her rates definitely need to be adjusted.  Suggestions please?!

I've never cleaned residential... but it does seem underbid.

Now that you have cleaned it twice, do you know how long it will take to clean on average?  Will it take 5 hours?  Ten dollars an hour is a bit low, in my opinion.  

In the end, it comes down to what you are willing to work for.  Once you decide how much per hour you need to perform a job, it should simplify the problem.  If you are honest and tell them you made a mistake on the bidding, they should be reasonable and understand your position.  If they don't want to keep you, it's still ok, considering you are not making enough money.

I would like to hear what others have to say. 

 First, welcome!  I am glad you found us.

You are absolutely right...it's too low.

 We have a minimum rate to clean and then charge hourly.  I would explain to the client that you will need to adjust the rate due to the fact you are making less than minimum wage.  Are you providing supplies, insurance, gas, etc. on top of the wage?  Of course. :)  

 Decide what you want to make per hour, what your productivity rate is on average, and factor the density of the home, condition of home, pets, special surfaces, etc. before you present a bid.  The lowest I have ever charged was $85 for a one-bedroom apartment.  I also charge $50-$65 per hour for two maids cleaning per hour.  Your area may be different on rates, but you can see where you need to charge for your time, supplies, overhead, etc. and still make a profit.

 Good luck and let us know what you decide to do.  

I forgot to mention that it took me and one other person the five hours to clean each time.  After the $8 it took in gas to get there and back me and my partner each made $18.50 and yes we supplied everything.  I feel I will lose her if I try to raise the rate to where it should be, cause she had a fit about the $125.00 first cleaning fee, in which she received a 10% discount.  In reality I know I don't really need her to grow my business, I just feel as though I am failing.  And at the same time, I know she is taking advantage of me and the rate, because last time, she had a list of special requests.  Basically, as far as price, we want to be coming out at about $20/hr. which is $10 for each.  I will confront her about the price when we go back on July 1. 

Thank You!

jm cleaning service:

 Basically, as far as price, we want to be coming out at about $20/hr. which is $10 for each. 

$10 an hour?!?!  You cannot be in business the proper way!  At $10 an hour each how are you paying for your licensing? Taxes? Supplies? Insurances?  What it sounds like is that you are working under the table and not paying all of the costs of doing business that are mandatory of legitimate businessses.  If that is the case then the customer is right to balk about paying you more since you offer no protections to her as a legitimate business.  If that is not the case and you are operating as a legit business then I ask you this - why would you allow a customer to dictate what you are paid?  You have costs to cover and you set your pricing based upon those costs.  Any client who does not want to pay those  rates is free to hire the illegals and to get burnt by them as well.

Not to offend you jm but sites such as this promote the legitimate ownership of cleaning businesses.  If you are not legal just ask us how and we will help you to become legal it is the law after all  

Oh, no, no!  I am licensed, insured, and bonded...I assure you.  We are in a small town, and the surrounding cities are of population of around 3500.  So around this area, we just feel as though people are not going to be willing to pay what you say you charge for cleaning services.  And around here to make $10/hr. is like big bucks!  We do know of people who do work "under the table" as you put it, and they do it for $10/hr. and so we are competing with all those who AREN'T going about business the right way! 

I appreciate your input, and you are absolutely right.  Y should someone else tell me what I will or won't get paid! 

jm cleaning service:

 We do know of people who do work "under the table" as you put it, and they do it for $10/hr. and so we are competing with all those who AREN'T going about business the right way! 

I appreciate small towns and lower wages, I also appreciate that you are running your business legitimately - Thank you!

What I suggest is that if you are comfortable with "clearing" $10 per hour each that you price your business to reflect that + your costs add on 10% for growth and then price your jobs at that rate.  You may need to "educate the customer" as to why your pricing is "slightly higher" however most any person who is reasonable with acknowledge that what you are offering in terms of being legitimate and carrying insurance is well worth the extra couple of bucks.

Thanks again, and you have been a big help to us.  We are definitely learning a lot just in this past month since we started our business.  And I love that you and the others responded so quickly to my concerns.

lisa

• Any time that is what we are here for