Clean It Up

UK General Cleaning Forum => General Cleaning Forum => Topic started by: julieg on June 15, 2004, 01:24:55 am

Title: profit margin
Post by: julieg on June 15, 2004, 01:24:55 am

I set up a small domestic cleaning business in Surrey. My client base and staff is now on the increase and I am now currently doing a review on costs and charges. Most of this was guess work in the begining.

Can anyone tell me what is the average profit margin?

Thanks

Julie G

Title: Re: profit margin
Post by: Spiceman on June 15, 2004, 05:05:19 pm

WHAT A QUSTION... how much is your time worth? ... are your cleaners vetted and trained... do you provide a proffessional, reliable, trustworthy and flexible service? Are you properly equiped and insured, a member of a professional body perhaps?

The better the service the higher you can charge .. check out the competion what service do they provide for the money..

We deal mainly with commercial clients, the few domestic clients we have are with us mostly by recommendation from our commercial side, it is a lucrative but troublesome market. We are not cheap but we do an excellent service.. I don't have the time to thoroughly check out enough of our cleaners to put into peoples homes .. they need to be more trustworthy than me .. my reputation is at stake, so £5-£6 an hour would be a joke for staff of this calibre. You have holidays etc to consider. I turn domestic cleaning away all the time, I find that all to often people expect a high service at a cheap price, but if I focussed on it I would be looking for a handsome return.

So all in all profit margin can be higher if you cut corners but comfortable if you don't.
Good luck.

Title: Re: profit margin
Post by: Len Gribble on June 15, 2004, 11:00:47 pm

Julie

JPPepper Ant far wrong you only have to look at the franchised domestic market there staff needs own transport, that costs

Average profit margin is about as long as a bit of string

Len

Title: Re: profit margin
Post by: julieg on June 16, 2004, 10:24:56 pm

Thanks yes I do provide ins, vet staff, equip etc etc. I think I have always had an issue with price charging, am I charging too much??, will they buy my service?? etc. etc.  

I think after reading your comments I need to let up and charge a fair price for a hard days work and adopt a take it or leave it. I know the service is brill and my ladies are worth their weight in gold.