[Dollar]

Hi All

HELP! I'm starting a domestic business around the Gatwick area.  What should i charge per hour? 

dollar

[Jan K]

although not from your area, i suggest phoning around some of your future competitors and finding out what they are charging, then determine your charges from that. It may seem a bit underhanded, but pose as a potentinal customer, ask a few questions take it from there. After all all fairs in love and business

[martin19842]

hi there,

you will find lots of iinformation on this website, therefore i would use the search option,as  there has been a lot of discussion recently about domestic cleaning.

what you must do is price every job as if you are staffing it out from day one, WHY cause in the future you will empploy staff to do the work in whatever guise, and you will find that you have fallen into the "business start up low pricing syndrome"

think of it like this, you are in business to make a profit, proifit is required to expand and develop your business, whether that be replacing cleaning eqpt or business expansion.

every job that you do should return an "operating profit" otherwise whats the point.

regarding ringing the competition, i rang 5 companies two of them were the big boy franchisees, ring "answerphone no reply" the three others small operators, one - no answer
second- didnt turn up for appt
thrird- turned up for appt.

therefore look after your prospective clients.

i amazed at how many potential suppliers dont need my business, ah well more fool them

so good luck for now

regards

martin

[Dollar]

Thanks, guys

This site does work!! Thank you for answering me question.

I did think about calling some of the cleaning companies - but big ones likes  Molly Maid charge around £30 for 2 c leaners accourding one of my future customer.  It's the ones like me starting up are charging around £7 - £8;50. 

Once I paid all my tax etc that doesn't leave me much and I was looking at working around 5hrs per day, 5 days a week.  I could do with some advise on how many hours I could do to make it pay for me each month.   

Many thanks
Dollar

[Ian Gourlay]

Over the past few weeks I have been following this Subject and have come to the Conclusion at  £8.50 an hour you will make a loss.

My back of Envelope Calculation  providing van Staff Advertising etc etc worked out at £15 per hour per cleaner for a two man team.

I think Mollys Maids profits will not make you Mega Rich so why charge less.

[Tim Downer]

Hi all

I have to ask this: If a lot of small companies are struggleing to make some profit for all their hard work, why do you not piggy-back some added extras which WILL bring in a lot more profit?

For example - "Carpet Cleaning"

Here you are already in the clients house (and you would have a database of these already!!), they know you and trust you....so why not offer them a yearly carpet cleaning service?  @ £150 - £250 per house for a days work depending on their size would surely bring in a healthier profit ratio into the business to suppliment the Domestic Cleaning??

Ontop of this, what if the client needs their 3 piece suite cleaned? They will come to you....far better then giving their money and business to another company or competitor? Or their curtains cleaned?

Now I have started to say that, I can't think now of anything else that would bring you in more money?? Any one else have any ideas??

Regards

Tim


Martin!

You been away? Hadn't seen you on the forum for the past few days which is unusual for you?
Are you getting busier now that the christmas period has finished. Been a bit slow here, but now finally, we have chuffing tenders coming out of our ears! Working hard to get the work and make the Tenders sell....just got to wait for the appropriate answer from the building companies.

Tim

[Jan K]

Hi Tim!

What sort of public/employers liability insurance are you looking at to incorporate carpet cleaning. I had one hell of a job getting a decent price for my insurance, and I did in the end, but I am limited to only cleaning houses and offices (excluding carpets/exterior of windows). Pricing is still area specific, you guys up in the East are able to charge higher prices as everything is more expensive where you are. Down here, we have a high cost of living, but wages are still bad! Of the 7 existing clients who I contacted recently advising I am raising prices in April, so far to have agreed, 1 has opted to cancel, and 1 has negotiated a lower increase. When I did my marketing, I also came across business who didn't answer the phone (hence me doing all my business via a mobile), or if I left a message they either didn't get back to me or did, but days later. However, there were still an awful lot that I did get plenty of information from, course this was way back in January of last year and by the tie I started up in September last year everyone except me had put theie prices up. I was starting my business through a local small business developement agency, and had to put together a business plan, which in the end was 36 pages long. It took me 9 months and it was all for a grant of £750.00. Not much you might say, but it got me started.

Dollar, don't rush into anything, and do your homework thoroughly, like all the guys say, make sure your prices are right from the outset, including costing for staff. Down here we are lucky if we get £9.00 per hour, but as you are in the London areas I would have said £15.00 minimum would be more than reasonable.

good luck, but remember the guys on here are a wealth of advice and are fantastic at giving their support and gee-ing you up when you are feeling despondent.

[Tim Downer]

Hi Jan

Yes it has been a couple of years since i was carpet cleaning alongside my office cleaning business, but racking through the old grey cells in my head, i think i was paying around the £800 - £900 pound mark insurance for carpet cleaning, window cleaning, office cleaning, house cleaning and also employees liability for up to 10 staff.

Even though it was a pain at times because i was always busy, the mobile phone was a God-send, because i was always there to talk to my clients, both current and potential ones. Too many companies out there with answer phone and potential clients hanging up to talk to the next one in yellow pages.

Dollar
As recommended by the other posters, do your homework, do search the forum for questions that many others have asked and please do ask other questions you may have and all the best in your venture.

Regards

Tim

[maggie67]

Hi Dollar

I'm in the south east and have carried out some research. Big companies charge between £16-22 per hour plus vat. Being a small business can have its advantages and it is this you want to market.

Attention to detail. Greater control over the service you are providing, spot checks, greater contact with staff creating better feedback & more motivation. You could negotiate on price according to whether or not you are supplying materials. Discount on a more regular svs or add on a surcharge for less frequent cleans.

Extras to think about are cleaning patios or drive ways, ironing whilst at the property, watering/feeding plants, applying a leathercare treatment to appropriate furnishings, preparing a basic meal, hanging out the washing, feeding the cat!!!!.....................and so it goes on!

Good luck!

Maggie

[martin19842]

hi there.

BIG COMPANIES

SMALL COMPANIES

it doesnt make any difference, you will still loose money if you dont charge enough, you ve got to be in the £11-£14 bracket as a starting point £15 is good .

its not even worth getting out of bed for £8.50 and if you go down that route, then your post in 3 months time will be " i'm not making money, and i'm extremely busy, and i need to employ staff but theres not a lot left in the pot"

to avoid that go in high-  customers who want the service will pay, they will then recommend you to someine else and the snowball begins to roll.


tim,

no not been away, just been extremely diifucult week, business wise, and noit there yet, but looks good from where we are at the moment.  the easter rush is now in full swing, lots of plots to get out and this weather isnt helping.

then april will be a consolidation month, but then May is busy again.

so we just keep going

regards

martin

[Tim Downer]

Martin

Keep going mate, you will get a day off next week to go to the Cleaning show before you get back to the grind!!

Over past 2 weeks have send off 4 Tenders....not too big but all 4 for top building companies around, 1 I am currently going through at the moment with 34 apartments, a small office and a 2 storey doctors surgery all in the 1 complex....and another arrived today which i have not even looked at today....!!

I too am looking forward to a day off at the show next week...have booked off Tuesday to go up. Haven't had any of the bad weather as yet, so the staff are still plodding on and wishing it was snowing!! Whilst I work hard in the warmth of the office being supplied with too much Tea and Coffee.....Ce la vie

Catch you later

Tim

[maggie67]

Hi Martin

Sounds like you're having a hectic week (but think of the money being generated long term!!!)

Sorry I probablly didn't make myself clear as a small business I am not actually charging much less but trying to instill a little confidence into to those fellow workers who perhaps feel they are 'small fry' compared to the larger competitor but actually have a lot to offer and so could charge more or less the same.

I certainly do agree with your comments re pricing and cannot fathom out how those employing staff and charging £12p/h or less can continue to operate. Taking into account staff wages, materials, equipment & insurance alone I certainly couldn't!


Regards

Maggie

[Jan K]

It's all really relative to the area you are trading in guys, ain't it. I would love to be able to charge £12.00 to £15.00 pounds and hour and pay my cleaners £7.00, but I wouldn't get any business at all.....perhaps I could retire then and live off state benefits (joke!!)

[Dollar]

Thanks Guys for all the info. especially on how to make extra cash. I did think of adding ironing to my list along with shopping.

But didn't think of the hanging the clothes - do I charge a different rate for this service.

Also is there any areas youn't thouch?  ie bathroom area - nappies, used tissues all those kinds of things.  And if you did how much would you charge and how would you inform the customer in a polite manner.  you know what I mean!

I need to get this business off the ground ASAP as it will need to pay for my mortgage and living costs.  The local Gov is no help at all. So I'm getting despreate to get some money in. 

I can't see myself going back to my old job - working in the office 9 - 5. 

many thanks to you all
Dollar

[Ian Gourlay]

Dollar,

How do you plan to find enough customers to pay mortgage and living costs.

How long is this going to take you?

[Dollar]

Hi Ian

Through word of mouth and advertising in the local parish magazine.  So far through word of mouth I have about 6 customer some asking between 2 - 3 hrs per week.  Before finding this wonder site - I quote them @ £8:50 per hrs.  But now wondering how I can ask them for £10: per hr??? 

I'm also looking at putting a small ad in the local newsagents and maybe doing some leg work by droping into letterboxes some of my leaflets.

I need to get this started ASAP due to change in my situation  I'm looking to get started around  April.

I have a feeling it will work - just sometime not too sure.  I still need to get more customers.  Tthe ones at the top level income.

What are you thoughs on this?

Dollar

[Jan K]

Dollar, no matter how desperate you are to get some cash, don't rush into this without doing your homework first.  It took me the best part of 9 months from first looking into starting my dom cleaning business to when it actually got started. During that time I was claiming Job Seekers allowance (I have a partner who works) and was cleaning for les than 16 hours a week, which meant I was able to keep any earnings (no income support, housing benefit or council tax benefits involved you see). I got the business ball rolling at the beginning of last year, and now  have 2 reliable employees and 19 customers (including 2 new ones from this week). But, I can no means say what I bring in is enough to pay the mortgage or bills, and I don't expect to be earning a comfortable living from my business for at least another 6 months to a year. If you decide to o all the cleaning by yourself, you will undoubtedly be working a good 30 hour week (@ £8.50 an hour thats £255.00 per week before all deduction, like tax, NI, petrol, insurances, advertising and printing costs, to say the least).  It is by no means easy working that way and by the time Thursday and Friday come you are knackered, weekend goes like a flash and it starts all over again.


Don't let what I say put you off, just do your homework and your sums,and it will work

[Ian Gourlay]

Dollar

Learn from Jan

I think it will take a while to build an income worth having, how are you going to live while you build it up.

You may only need a little , as if you are in rented accomodationyou could do a Cash Flow forcat showing little profit and claim Housing and Council Tax benifit.

If you have a family you could get Tax Credit.

If you have a large mortgage bassicly you are stuffed unless you have a nest egg to keep you going.

You will find that the Franchise companies do a Launch with about 50000 thats fifty thousand leaflets Full Colour. Can you afford this or can you do foot work while waiting for jobs to come in 8am to 6pm 5 or even 6 days a week untill your business is strong enough.

But it gets Franchise off to good start. Also Knock at least 100 doors a day.

After you have acheived this objective consider Yellow Pagesn and Press adverts.

Well thats what I think

Ian

PS weather should get better soon so its a good time to be hawking your services

But in my opinion not until you have done above

[Sarah2005]

Firstly please all read my thread 'Newbie introduction and thanks!' as this is mainly directed at the people on this thread as has been a great source of help to me.  I have to say how nice it is to find a MB of people so willing to share their expertise and tips in all the different areas of the cleaning business as a whole 

Anyway I would be really grateful if any of you could pm or email me with examples of flyers for Domestic cleaning.  Like Jan I plan to prepare and print my own flyers and so far have my logo and will be using quality paper as I personally feel that is important. I took note from Jan that it took months to set up and I am not going to rush into this, however I plan to look at uniforms, cleaning suppliers and preparing a flyer as soon as I can, I have some ideas but it is getting the message across that I will exceed expectation....well thats what I hope anyway   Focusing on quality etc. 

I had set out to charge £7.50 based on a friend of a friend charging this in another town, with four cleaners working for her, she started out on her own with a card in a shop window........thanks to reading this thread, I definately will not be making that mistake!    I will be starting out doing all the cleaning to begin with and am happy to work a 30 hour week, which I have just seen from Jan's post will be what I will need to be doing anyway if doing it alone (well once I get some customers that is  probably more like 2 hours a week in the begining  ).  I don't aim to be mega rich, I just don't want to go back to a stressful career as since being self employed for two years I have had a much better life, even if it is a little stressful moneywise when business is quiet (My previous thread explains what I have been doing).

I noticed on a previous post that £12 is the going rate in Peterborough (35 miles from Bedford but larger).  I am 50 miles from London and I aim to go for £12 - £14, although I don't know if this is realistic in Bedford?  I will be calling future competitors to gain knowledge of the area but I am hardworking and want to be paid what I am worth.  I am not afraid to inform a client as to why I am worth this rate, however like Jan I can also relate to those feelings of guilt and we have to believe in ourselves.  I think that comes from knowing some people pay very little for a cleaner and so quoting at £12 to £15 is likely to come as a shock, however I doubt they get the best service.  A friend of mine is never satisfied with her cleaner, yet she keeps her because she is cheap.....you get what you pay for in my opinion    My friends laugh as when I leave a hotel, I tend to clean up, I don't mean getting out my feather duster like but I do clear up putting all the rubbish in the bin, wipe round the sink, even make the bed, he, he.  Although saying that I once swept a chalet me and my friend had stayed at before we left and she was moaning saying 'come on thats the cleaners job' 

Anyway sorry I did go on a little there and thanks again for all your great advice.......watch this space 

Sarah 

[Ian Gourlay]

I was Looking on the MY  Web Site a Franchise company. Their Minimum charge is £50 , so I think Domestic Cleaners cleaners should learn from them