The Ultimate Guide to Commercial Cleaning Services Pricing

It's Time You Know

A search on the Internet for “office cleaning prices” brings up 280,000,000 results!

And not ONE of those results really breaks down the mysterious world of commercial cleaning pricing.

Well, I don’t think it should be this way.

I am Jonathan Befort, I own Hallbrook Cleaning, one of many office cleaning companies in Minneapolis Minnesota and even I was getting frustrated trying to get any good information on how other companies in the industry determine office cleaning cost for the locations they quote.

That doesn’t seem right to me, so Hallbrook is going to change it.

This is probably going to make a lot of competitors in my industry very unhappy, but commercial office cleaners have lived in shadows far too long.  It’s not good for customers and it’s not good for the industry, so I have decided to rip the lid off of pricing and lay out everything I know about how quoting works.

So join me while I go through all the dirty secrets that I know from being a part of this industry.

What Is In This Article

In this article I am going to demystify commercial cleaning price and show you how cleaning services calculate their quote so you can understand what you are really paying for and how to get real value. Complete transparency is the goal at Hallbrook Cleaning.

I will cover:

  • What goes into pricing commercial cleaning services?
  • The Dirty Secrets. Factors that go into pricing that commercial cleaning companies don’t reveal.
  • Subcontracting: Better than employees?
  • What you REALLY pay for.
  • Why VALUE is always a better deal than “cheap.”

What Goes into Commercial Cleaning Prices?

Commercial Cleaning Logistics

A fundamental factor in determining price are the physical characteristics of the facility. The time it takes to clean, the cost of supplies, and overhead, will vary based on these factors.

What type of building is it?

Is this a warehouse (“Class C”)? Is it a “Class B” office building with laminates, and modest fixtures in the kitchen and bathroom? Or, is it a “Class A” building that has marble, granite, expensive furniture and high-end fixtures?

What is the current state of the facility?

Is it an old building that hasn't been cleaned in a while and is very dirty? Have the floors been waxed or do they need to be stripped? The “current state” will impact the pricing of at least for the first, if not several initial cleaning cycles as the property is brought to, and kept at, the standards you want.

What is the frequency and type of cleaning?

Is deep cleaning or maintenance cleaning required? Do you require a predetermined schedule of maintenance with periodic deep cleaning factored into the monthly price? Or, do you want a standard cleaning contract, and price any special work à la carte?

What do you want cleaned?

All businesses want different things cleaned. Some businesses want desks dusted; others do not want them touched at all, and just the trash bins emptied. Wipe the kitchen counters, but don’t touch the fridge and microwave. Or clean the fridge every Friday, and desks on Thursdays, and so on.

Each of these factors directly impact both the time it takes to clean and the cost of supplies.

The Math

The pricing equation is simple, but hiding behind the simplicity, is a lot of detail (and some secrets). And they matter.

The basic pricing formula comprises:

  1. Cleaning Time
  2. Hourly Rate
  3. Materials, Business Overhead and Employment Tax
  4. Frequency (daily, weekly, monthly)
  5. Sales Tax

So, the formula for calculating the monthly cost of cleaning your office is:   

 

((total cleaning time per clean x hourly employee rate) + (materials + overhead* + employment tax) x (4.333* x number of days per week))  x  (1 + sales tax) = Your Monthly Price

*There are 4.333 weeks in a month on average, not four. If we divide 52 weeks by the number of months in a year (12 months) we get 4.333.

*Materials and overhead are not the full amount the company spends each month, but just a fraction of the cost based off the total amount of materials and overhead for the whole company. 

 

The Time

Though the equation may look complicated, it’s actually quite simple.  In the final analysis, it all comes down to time to clean and the cost for that time. You can actually condense the entire formula down to a very simple equation that you may want to keep in mind when trying to find a good cleaning company.

 

(total no. of cleaning hours per mo. x price per hour) + sales tax = Total Monthly Cost for the Customer

 

So, for any cleaning company, TIME is the number one factor to consider. Time is really the business that we are in and this is what will make or break a cleaning company.  This is why we are so detailed about the logistics of every account that we visit to give a free quote.  Whether it’s 10 seconds or 10 minutes, everything takes time and it all adds up. 

This is where logistics come in.

The logistics (exact list of duties we will perform) of each site are important because logistics impact the time it takes to clean. A dirty facility that has not been maintained well takes more time to clean. A ‘Class A’ facility with fancy architecture (lots of nooks and crannies), and expensive surfaces takes more time to clean.  

The cost of what you want cleaned is also a matter of hours. Items like refrigerators, stripping/waxing, windows and other items are typically priced separately only because they are small items that take a relatively long time to clean and may not need the typical daily maintenance of other tasks like trash and mopping.

It all comes down to time.

Calculating Time

Calculating time is as much an art as it is a science, but science is where the quote starts.

Most companies use charts from industry groups to calculate how long it will take to perform each task a company wants.  One such list is from the most respected industry group International Sanitary Supply Association (ISSA) and it breaks down the average time it should take to do everything from vacuum 10,000 sq. ft. of carpet to filling up a 3 gallon mop bucket.

Companies take the list, calculate all the tasks and add up the time it will take to perform. However, that does not take into account things such as travel time between trash cans, time spent talking to staff when the cleaner arrives, time to take a trash can outside to spray it down with a hose when it’s really dirty.  This is where the art comes in.

It is an art to be able to accurately predict how much extra time it will take to do all the things an employee will do at a customers location. 

The art will account for some of the discrepancy of quoted price between different companies, but it does not account for all of it.

That is where the dirty secrets of commercial cleaning companies comes in to play.

 

The Dirty Secrets of Commercial Cleaning

Now, don’t get me wrong, these dirty secrets are not illegal or unethical and they are not immoral.  These are just the things that every company thinks about when deciding what to charge a particular client, but they will never tell you.

Except us.

 

Dirty Secret #1: Where is your office?

Yep, your location will factor into the price!

Your location in relation to the cleaning company headquarters will adversely affect the price. More drive time equals more hours. It means more cost (gasoline for the vehicle(s). It also impedes the ability to get that work crew to another job that evening. Understanding this will save you the time and energy of considering bids from poorly positioned companies.

To avoid hidden price increases due to travel time, a good rule of thumb would be to consider only those companies within 15 to 20 miles of your business. Does this mean you should never choose a company further away if you believe they offer the best service? Not at all. Hallbrook Cleaning has clients that are farther away than that. The important thing is to openly discuss any impact to service and/or price.

 

Dirty Secret #2: How dirty is your facility?

Some companies only want easy work and will inflate their pricing for tougher jobs. It is easier to get higher margins on the easy work than it is on the hard jobs. This is particularly true when it comes to independent contractors and firms that use contract workers. They generally lack any true cleaning system and procedures that enable them to tackle tough jobs efficiently. This lack of efficiency forces a price increase, a reduction in quality, or both.

 

Dirty Secret #3: Does the company’s business model work for you?

There are volume-based businesses, niche cleaning services for things like restaurants and those that focus on a more premium service model. Others focus on industry-specific niches. One model is not better or worse than another, but it will impact pricing. You should think about which model is a best fit for your company.

Volume-based companies often have lower pricing, so as you might guess, they are more concerned than anyone about time.  This can lead to cutting corners and employee discontent because of being rushed or not being paid a fair wage.  The best volume companies have intense training and precise processes so that they can still do a good job in less time than other companies.  However, this can be easier said than done, it is not an easy thing to pull off.

Niche cleaning services structure to provide the best service within their niche so that they can charge a small premium because they are absolute experts at one particular job.  There are some companies that focus on cleaning restaurant vent hoods or outdoor awnings or medical facilities. In my experience these types of companies really are above average servicing their niche.  However, most of the niche companies also take on other, more general work as well, but still end up charging their premium rate.  The benefits of that specialty may not be valuable to your particular situation, so it is something good to consider.

Premium service companies stake their services on extra special care.  They charge more than most other companies because they claim that they will be spending more time on your location than companies with other business models.  In my experience, these types of companies are very hit or miss.  They either truly believe in taking care of their customer at a high level or they just use it as a sales pitch to try and get more money. 

 

Dirty Secret #4: The company’s economic status matters.

Many, many, many office cleaning services providers reach a certain point and actually want to stop growing.  With growth comes more work, more marketing, more capital expenditure, more insurance and more risk, so lots of companies find a point that they are happy with and then stop looking to grow.  These kind of companies will often quote very high for new locations so that the job will be very lucrative if they win the account, but secretly, they are hoping they don’t get the account at all.

Has the company been poorly managed and possibly under a heavy debt load? Here the pressure will be to maximize price while minimizing costs. Hiring practices will emphasize cost over quality. Reduction of overhead like removing site supervision or using lower grade supplies will occur. Cost minimization comes at your expense through degraded quality and service.

There are many other situations that may affect a quote too like a business may be in the process of being sold, the business is brand new, the business has been handed down to an heir, etc…

All of these things play into the quoting process. 

It is not possible to know every little thing about a company before you hire them, but asking a few questions about the company is a good idea.  If you feel like they are not being clear or honest with you, it may be a warning flag.

 

Dirty Secret #5: “I’ve got a bad feeling…”

Many companies just want an easy client that will not be too hard on them and won’t demand too much.  Other companies might be very concerned with how a business might treat their staff. So when a company rep gets an uneasy feeling from the business or facility manager, this will have an impact on the overall quote.   Will s/he be unreasonably demanding, or treat the employees poorly? If it is suspected that the job will be made harder by an abrasive personality, or constant unfair demands, the price will reflect this.

Subcontracting: Better Than Employees?

The difference in the use of employees versus independent contractors or subcontractors can’t be overstated.  By far the number one reason we get called in to perform a quote is to replace some sort of subcontractor that was not delivering consistent quality.  In almost all instances subcontractors will not provide consistent, quality service for a long period of time and they never give the kind of value for the money that a company with an employee base, like Hallbrook Cleaning, can deliver. They are nearly always cheaper than hiring a company with actual employees, but you give up a lot to get that price.

There are two kinds of subcontractors, one where a single person runs their own business and does all the cleaning and the other is a company that doesn’t actually hire employees, but instead hires other companies to do all the work while they take a slice of the profit.

Either way you cut it, a company that does not have legally designated employees will have some serious disadvantages that need to be considered.

  1. No Redundancy
    If the contractor can’t make it, you don’t get clean. There is no one else to fill in. A cleaning company, at best, can only scramble for a last minute (untested?) replacement. A company with employees can often find a replacement on short notice to fill in and that replacement has had all the same training as the person they are replacing.
  2. Poor Training & Systems
    Legally there are strict rules when hiring a subcontractor and one of them is that you cannot control HOW they do their work.  All you can do is make sure that they actually get the work done. No quality controls.  To have true, consistent quality it requires a stable workforce to train and track over time. Without dedicated employees, work is ad hoc and inconsistent.
  3. Lack of Enthusiasm
    One of the most overlooked factors in delivering value is the quality and care of the actual people who do the work! Never underestimate the value of well-treated, well-compensated, and well-trained, employees.  In a true company, with employees, there is a support network of peers and Management that are there to talk with cleaners, offer advice and encouragement. People who are happy in their work and feel appreciated always do a better job than people who are not or people who are on their own. They take care in their work, pay attention to the details, and take pride in the results.  Caring for employees as much as clients is one of the biggest reasons for the success of Hallbrook Cleaning.  We don’t just think a happy employee delivers better service, we have seen it time and time again.
  4. No Accountability
    Contractors, by definition, aren't subject to the company’s schedules and routines. Workflow, work patterns, onsite arrival times can’t be controlled in the same way. This leads to further inconsistencies in the work outcomes.  Companies with employees can control every aspect of the cleaners work, appearance, equipment and schedule.
  5. No Vetting
    Employees are fully vetted with background checks performed. This is not always the case with contractors and subcontractors. Your are completely responsible for figuring out if you can trust this person.  Even in the best case scenario you are still rolling the dice on a subcontractor.
  6. Commitment
    Subcontractors can always get another account.  They only have to have two or three to make some decent money, because all the money they bill goes straight to them.  So losing a customer every few months is no big deal, there are always others looking for bargain basement prices. 
    With a commitment to employee vetting, training, and well-being, companies like Hallbrook Cleaning are in it for the long haul. We aren’t just looking for the “next job.” We have payroll to make and employees to keep satisfied. To do that, we rely on long-term relationships with our clients. The only way to achieve that is by delivering consistently excellent service and value.  
  7. Robust insurance
    This is a must have. You need to know that the provider you choose has robust insurance in place. Insurance that protects your business from any potential damages to property or harm to employees for which you are liable. Many sub-contractors are not properly insured or are not insured at all.
  8. Additional Services
    Without qualified, trained and available employees on staff, occasional cleaning services, such as stripping/waxing, deep cleaning or carpet care can’t be handled in a timely and high-quality manner, if at all.  

Commercial cleaning providers that use non-employees will be “cheaper.” But given these potential issues do they really cost less? The costs associated with these risks can be a lot higher than any monetary savings from a cheap price upfront.

The uptick in price you will pay hiring a company that uses vetted, trained employees pays dividends in work quality and trustworthiness. Not to mention the lack of headaches.

What You REALLY Pay For

You may believe you are paying to get trash cans emptied and toilets cleaned, but good commercial hygiene is so much more than that.  What you are actually paying for is much more important and has a bigger impact on your business than you probably realize.

Here is what you are REALLY paying for:

  1. YOUR Time
    You have more important things to do. You need to focus on your business. You don’t want to think about cleaning and you don’t want to take time away from making money to clean or solve cleaning service issues.
  2. Peace of Mind
    I bet you have enough to worry about. You don’t need to worry about cleaning the office or constantly checking up on the cleaner to make sure they are there when they are supposed to be and doing a good job. You just need to know you can count on your cleaning company so you can free up space to think about other things and tackle bigger issues.
  3. Employee Morale
    The affect dirty break rooms, bathrooms, and smelly overstuffed garbage in the kitchen has on employee morale is substantial. A clean, well-cared for office space creates an atmosphere of mutual respect. To employees, a clean office is just expected and when that starts to suffer, their view of Management and the company at large starts to suffer. Employees start to think things like, “if a company doesn’t even care enough to give me a clean bathroom, then why would they care when I have a family emergency, or want to plan for retirement, or just need a kind word when I am having a stressful day?”   You can never overlook the morale factor.
  4. Employee Health
    More than looking good, a clean office is literally about feeling good. Absenteeism from illness costs businesses a lot of money. A lot more than paying a cleaning company to disinfect problem areas like door handles, bathrooms and office kitchens.
  5. A Good Client Impression
    A dirty office is like a wrinkled suit on an important sales call. It makes a bad impression. It doesn’t speak well of your attention to detail or the care you take. Your clients may think, “If this company can’t even keep their own offices clean, then how will they service my business well?”

What you really pay for is why, in the final analysis, the “cheapest” option can sometimes become the most expensive.

Uncovering these factors will save you from considering bids from companies whose model or status make them a poor fit for your needs.

Value: The Best Way to Measure

Folks can agree or disagree on the definition of value. There are probably as many perspectives on the right balance of cost and value as there are clients. Each has different priorities and needs. What doesn’t differ is the benefit of transparency in pricing.  Hallbrook believes we provide tremendous value in the way we deliver and price our services. But it is for you to decide if we deliver the right value at the right price. You can only do that if you have all the information you need.

Hallbrook Cleaning practices what we preach.

We only use employees, not subcontractors. All our employees have been vetted and background checks completed before they are ever hired to clean your office. They receive extensive training on Hallbrook cleaning methods that ensure proper cleaning and sanitization. We pay our employees slightly above industry average, including time and a half for holidays and provide them with free uniforms. They are treated very well, and they know that they are appreciated. They are incentivized to do consistent high-quality work for you.

We provide supervision. The work of every cleaner is supervised by a Service Specialist who makes regular onsite inspections to review the quality of work and make sure every cleaner has the right supplies and tools to do the best job.

Hallbrook Cleaning LLC provides a lot of value but is structured to keep the cost lower than many of our competitors. We are a small company, so our business overhead is much lower than many of the larger firms. That savings is passed to you.  We are a volume based company, but we have systems and process in place like a premium service provider.

We leverage part-time employees to keep hourly rates and benefit expenditures under control.

And after all that, we end up taking a smaller than industry-standard profit margin.  This allows us to be competitive in price while still delivering premium quality cleaning.

Can you probably get cheaper commercial janitorial services?

Yes.

Can you find a better value than Hallbrook Cleaning?

I don't think so.  

We work really hard to make value our calling card, so I hope we give more value than any other company.  Value is what we measure against whenever we make a decision.  While that might not make us the cheapest all the time, it does make us the best value for your money.

Wrapping It Up

Did you ever think so much would go into one single quote for cleaning your office?  Neither did I when I first started.

Understanding everything that goes into pricing might be complicated and even convoluted, so just remember that it’s all about Time and Value.

I hope this information was useful and if you have any other questions about pricing or cleaning please feel free to reach out at any time.

612-293-7122

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6410 84th Ct. N

Brooklyn Park, MN 55445