Factors Influencing the Price for Your Cleaning Services

June 2, 2013

Choosing the right Price – which is one of the 4 Ps of the Marketing Mix – determines your profitability, client satisfaction AND employee satisfaction. When it comes to the amount you should charge for your services, two questions need to be answered:(a) How much is too much? (b) How less is too less?

You shouldn’t price your services so high that your clients get antagonized; at the same time, it shouldn’t be priced too low to suggest poor quality. In effect, your pricing should be carefully chosen after researching the various influencing factors, such as:

(a) Marketing Objective: Everything you do must serve to fulfill your marketing objective. Your rates might change depending on whether you want to penetrate an existing market, enter a new market or create your own niche in an existing market.

(b) Supply and Demand: If supply > demand, it’s a ‘customer’s industry’, implying that you cannot charge very high rates and HAVE to take into account your competitor’s rates. If supply < demand, you have more leeway to set your own rates since your service becomes ‘unique’. In the janitorial service industry, supply IS greater than demand, and hence you must rely more on service differentiation than price differentiation to attract and retain customers. That is, you should differentiate yourself with the type, level and quality of service than the price

(c) Competition Pricing: This is closely related to the aforementioned factor of supply and demand. The amount you charge should take into account your competitor’s pricing, unlessyou have a very good reason to charge a higher price. (A unique service – for instance – might definitely call for a higher price.)

(d) Frequency of Services: The amount you charge also depends on whether it’s a contract or one-time job. A contract job generally involves periodic cleaning and such clients should be charged a lower price or a ‘price package’ compared to jobs that only require one-time cleaning.

(e) Type of Job: The pricing also depends on the type of job – such as whether you are cleaning a big building or small building; a medical office or a library! Certain jobs demand higher quality than others, and these can be priced higher.

Click on the link to learn more about the various factors influencing how much you should charge: http://smallbusiness.chron.com/charge-janitorial-services-12231.html