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Invoice template for cleaning services for Product Management

what's going on cleaning peeps here with another video talking about how to make your cleaning business better and in this video I want to talk about how to price properly because when we started our cleaning business back in the day we knew nothing about how to price and honestly we were undercutting ourselves severely just because of the fear of like not wanting to overcharge right in the beginning you have no real idea of like what is a good price to charge and that's why I want to explain this in this video so let's get into it now the first thing I want to touch on is hourly rate versus flat rate and there's going to be a lot of debate in the comments of this probably because there's a lot of cleaners out there that are still doing hourly rate but I am 100% against that for one specific reason and it's you basically undercutting yourself if you're cleaning fast and then if you're cleaning slow the customer is not going to be happy because they feel like they're paying too much for too many hours so then it becomes kind of like a lose lose situation by making it a flat rate your cleaner can make more per hour especially if they're running like the remote cleaning method like the way that we are where the contractor gets like a percentage of the job because they know that they're going to make 15 no matter what even if the job is finished in 2 hours or finished in 4 hours so that they have the opportunity to make more per hour and the customer is happy because they knew exactly what they were going to be charged from the minute we walked in and that's still what they're charged when it comes to understanding how much you should be charging this is going to be a little subjective because not everywhere is the same right if someone is in Oklahoma versus in California versus in Florida these pric is going to be a little bit different right because the standard of living is a little bit different so what I want you to do is simply call around to like 10 cleaning companies and just understand what the market is charging and you want to call around to different kind of companies right from the franchises to the company that has the most reviews in your area to the opposite end where it's like people that probably aren't even on Google so that you can get a get a good idea of like what people are charging I want your prices to be somewhere between the middle and the highest charging company in your area because if you're charging way too low then you're leaving a ton of money on the table right this can be the difference between you making $100 in profit on a job or $330 a profit by just having that ability to charge more and have more profit in your business you're giving yourself the ability to grow a business profitably which at the end of the day that's what we all want now meanwhile you're doing the market research trying to figure out how much your competitors are pricing okay I want you to ask as many questions as possible you know is this hourly or is it a flat rate thing because I want you to get a feel for like both types of like pricing um some are going to be hourly some are going to be flat rate also what affects the pricing like is the price going to change when you get here maybe I have pets maybe I have kids maybe I have a basement like you got to ask as many questions as possible that you can think of like different scenarios that you wouldn't necessarily know how to price if you encountered this over the phone now as you know there's different types of cleans too there's standard cleans there's you know like your really basic cleans there's um move in move out cleans there's deep cleans so as you call the different companies kind of get a feel for the different types of cleans as well because these are going to be priced a little bit differently now when it comes to Flat Rate pricing you also have to determine how you're going to calculate that flat rate you're giving to your customers like I said before I like to keep things simple so instead of getting into like how many bedrooms and bathrooms do you have and this and that I simply go off square footage so I'm asking the customer how much square feet is there home and by the square footage answer I have basically a template where I have okay there some at, 1500 ft it costs this much to do deep clean this much to do standard clean so on and so forth now let me get into it my square footage packages they range from 750 on the low end because if someone has some like a like a place that's less than 750 ft um I'm I'm just not going to charge them you know what that would be because it's not worth my time to go out so that's going to come in at $258 for a deep clean and with these deep clean prices or just any prices in general I need to go for a certain dollar per hour production rate that I'm trying to hit because if I can calculate my cleaners are going to be there for 4 hours and I want to pay them $25 an hour to make math simple let's say I pay them 50% of the job you can do the math here I have to charge $50 per cleaner per hour so for this smallest deep clean which is 700 ft I'm charging $258 and like I said this is Orange County California prices this might be more or less than what you're seeing in your market research when you do it in your area so it's going to range from 750 to about 6,000 square ft now once I start getting past 6,000 squ ft Now you kind of have to customize the the quote a little bit more you can't have it so much as like a template because you know things change when you start getting to some of these Mansions right but just to give you guys an example of like a couple different types of houses if I were going into like a, 1500t house a deep clean would be 363 if I was doing something like a 20 700t house that's going to be 543 for the deep clean and you might be thinking wow these prices are very high well like I said we did the market research and we found that we're not the highest but we're somewhere in between the average and the highest and by getting price that is in that area you're going to get some people that tell you your prices are are too expensive that is okay you have to be okay with hearing no and hearing that your prices are too expensive because as long as you able to close 50% of the leads that come in the door then you can have a profitable business even if you're running pidt ads so once you've done the deep clean now it's time to do the standard clean like if you're doing a recurring or something like that and I like to take a percentage off but that's after I ask my cleaner how long do you think it's going to take to to do this job if it's like monthly or bi-weekly and things like that they will give me a really good idea of how much time it's going to take and like I said if you know your production rate per hour which you need to know for example to make numbers easy if it's $50 and the job is going to take one person 3 hours all you got to do is multiply 50 * 3 that's 150 and now you know that if you were to do this clean Bi weekly you can charge $150 per clean so that's a very simple way to do it now when it comes to move in move out cleans that takes a little bit more time than a deep clean because for us a deep clean is going to include top to bottom the walls it's going to include you know the floors the kitchen every bedroom every bathroom and it's obviously going to be dirtier because we're doing it for the first time it's it's also going to include the oven clean but when it comes to the move and move out now you're can to add a few more things like the fridge the cabinets and in general the houses should be empty right there's going to be some areas that are a little bit dirtier since they haven't been seen or touched in a long time so with the move in move outs we add $75 on top of the deep clean price and that gets us at a pretty good price that makes sense for the deep clean now obviously something that you have to take into consideration is that you're doing these quotes over the phone or at least you should be because you're wasting your time if you're going out to every single quote in person and when you do these quotes over the phone how can you 100% have certainty that you're pricing a job the right way this is something you have to take into account is how dirty is the place actually going to be because some people are pretty good at keeping their house you know relatively clean and then other people can be hoarders or borderline hoarders and when you get to those types of situations obviously the price is not going to be the same so when you're on the phone you have to kind of get a gauged for how dirty the house is by asking certain questions right do you have pets do you have kids when's the last time your house was professionally cleaned on a scale of 1 to 10 you know one being the house is spotless I could eat off the floors 10 being the house is basically unlivable where would you put your house you know these types of questions will give you a good idea of how dirty the house actually is now you also have to read between the lines because if you've taken a call and you you're going to notice that some people flat out lie whether that be because they're embarrassed or because they want to get a cheaper price they are going to sometimes exaggerate how clean their house actually is when reality it's pretty dirty so you have to read between the lines and kind of see what their tone is and how they sound with Hower and that their saying their house is take those things into account and whenever there is a house that is really really dirty we usually put on either a 50 or $100 like extra deep clean price because we have to do to account for our cleaners being there for an extra 2 hours or 3 hours or whatever that is and if they want to add on any other things like you know wet wipe on the on the blinds that's not standard in our deep cleans or like inside the dishwasher any other appliances like that then you have to take that into account now I know I'm getting like pretty in the weeds and Technical here and like adding all these different things but this is a simple concept if you have to break this down to one concept here at the end of the day you need to hit a certain production rate per hour and for us that's anywhere between 50 on the low end and $70 on the highend and for you you just have to understand how much I want to pay my cleaners and kind of work backwards from there because ideally we want to pay our cleaners anywhere from $25 to $35 an hour and if we're paying them 50% of the job then you can do the math there and see that we need to be making $50 to $70 per hour so that's a really good place for you to start if you're trying to figure out what your hourly rate should be because that is going to get you your exact number of how much should I be accounting for every single hour okay one thing I want to touch on is how do you change your prices for client that you already quoted over the phone and said it was going to be certain price but then you show up to the house or your cleaner shows up to the house and you can clear clearly see that this is under bid okay because this is a situation that you're totally going to run into and it totally normal but it's important on how you handle these situations so step one is you got to set expectations over the phone you just have to let them know that if the property the house whatever it is is very different from what we talked about on the phone today it is possible that we may need to change the price you know most of the time the price is completely fine but if that's the case we'll always let you know before the job starts okay so the first step is always set in expectations now once your cleaner gets there it's important that they communicate with you if the price does need to be changed because like I said you want to do this before the job nothing is worse to a customer then getting something done when you thought it was going to be one price and at the end once it's already completed they tell you it's going to be another price you don't want to do that to your customers make sure the cleaner does communicate with you beforehand and then once they do make sure you call the client and just explain hey we talked about it being one way but there's actually this ABC whatever different about the the property of the house so it's actually going to be this price if you're asking the right questions over the phone and you're getting a good idea of their house it shouldn't be too different now most of the time customers will be okay with it some of them might be a little annoyed but that's just what it is right because at the end of the day they probably lied to you about how dirty their house was and that's on them make sure you're having these hard conversations and not just letting people walk all over you because if you do your profit margins are going to hurt and your business overall is just not going to be in a good place if this is constantly happening you're basically leaving a ton of money on the table now that we've gone over how to price and you know flat rate versus hourly and all the Tactical stuff I just want to leave you with one last question are you going to be the cleaning company that's constantly undercharging your clients so then you're hurting as a result of it or you're cleaners are not making as much money as it could be or are you going to take control of your company and actually price a reasonable price even if some people tell you it's too expensive but because it's for the benefit of your company the benefit of your cleaners getting paid better and your company being more profitable so that you at the end of the day could run a healthier business and have more money in your pocket it can be tough trying to raise your prices to these reasonable prices because some people are going to tell you it's too expensive you might even lose some clients if you end up raising your prices which is something that you should be doing every year but in reality you have to look at the numbers and see that even if I have a few less clients even if a few people tell me no I'm still going to be making more money at the end of the day because you're pricing correctly so if you made it to this point of the video if you have any questions if you feel like I left something out make sure to ask me down in the comments and I'll make sure to reply to it and if you got any kind of value out of this video make sure you hit the like button subscribe and I see you guys in the next one peace [Music]