23 Apr Profit making in the Janitorial industry

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Accurate pricing in a janitorial business is all about ensuring profits and staying power. It is not to be viewed as a weapon to win a price cutting war with war your rivals in business. Low pricing leads to low profit margins which do not guarantee your continued existence in the market.

janitorial business starting

While a low pricing strategy can be helpful, pricing should be undertaken keeping in mind the market, revenue and aims of the company. When you enter a new market, keep the prices lower than the existing one for janitorial services . This lets you to make a space for your company which will attract new customers who will be attracted by the low prices. Ensure that you are reliable and thorough with your janitorial services.

Once your customer base grows, you can think of raising your charges for the services offered to new customers. Test the reaction to the higher rates quoted. If customers are ready to pay the higher rates, you can make that your price for all your customers.

For the customers who require only the very basic cleaning, offer the lowest rates in the market. Some customers may ask for only occasional cleaning or they may demand fewer processes. This may help you to reduce your labor overheads since you need fewer staff and you can cut costs on materials used too. Your profit margin will increase since you can trim your marketing costs too.

Making the right pricing moves in time and identifying needs

Offer the best cleaning services in the market. Offer tailor made cleaning solutions to customers taking into consideration their specific requirement. Introduce techniques that are not yet common using top of the line products. Put your best employees on the job and proffer extra services like floor buffing, carpet cleaning, furniture cleaning and polishing that increase the value of your services.

The rates you charge should reflect your special services. With this you attract high value customers who are willing to pay for premium services. The higher value that you get will make up for the lower volume as your customers in this segment may not be many. Create janitorial service packages that give more choices to customers.

These packages or bundles can be a collection of basic cleaning procedures, mid-intensity ones and the premium services package. This way you can charge more than what all these processes individually work out to. There could also be packages that are based on frequency of cleaning cycles.

Specific extras like spot cleaning could be offered as free add-ons to the premium bundles to make these packages more appealing. Offer cleaning solutions that apply to special surfaces like marble, luxury woods, mirror and mosaic. The charges for these could be at a much higher level. Though the customers for these specific services may not be many, the higher value charged will make up for the lower volumes. Train your staff to deliver the best services possible. Make sure that they function out of a legal and secure environment that supports them.

For more information on janitorial services or how to start a janitorial business contact the National Association of Certified Building Contractors

NACBC
(256) 837-5761
1871 Slaughter Rd
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Last modified on Monday, 27 May 2013 11:55