First, let's start with costs. In order to accurately price anything you have to understand costs. We break costs into two categories, fixed and variable. Fixed costs are costs that remain the same whether we're cleaning or not. Variable costs are the costs that vary based on how much work we do. Since we pay employees by the hour we figure all costs as a function of time (by the hour). We use this method so we have a clear understanding of what it really costs to put employees in houses. We do this by taking our costs (fixed and variable) for a given period of time and dividing by hours worked for the same period of time. This results in fixed and variable cost per labor hour. We add the two which results in total cost per labor hour.

So now that we know our cost per hour, we need to figure out how long the cleaning should take. Since square footage is a metric most people readily know about their homes, this is the primary metric in our price formula. Based on our cleaning process and experience we know how many square feet per hour,per employee we can clean so we divide square footage of the home by our cleaning rate (sq’/hr) to arrive at labor hours for the cleaning. The matrix gets pretty complicated, so I will use a 2500sq’ house as the base for the example. 2500sq’divided by 725sq’ per hour (cleaning pace) equals 3.45 labor hours. 725sq’ per hour is the base pace for every other week cleaning service for that size house. To find labor hours for the other services we simply divide square footage by the cleaning pace for that type of cleaning. Again, using 2500 square foot example the per employee pace is different based on the type of cleaning. Move in/out cleaning: 250sq’ per hour. Deep cleaning: 300sq’ per hour. For recurring cleanings weekly takes less time than every other week which takes less time than monthly. The reason is simple-the house has more time to get dirty the less frequently we clean.

This formula gets the price right most of the time but can’t account for everything (yet). For instance, pets can throw the formula off. We figure most people have pets so we don’t automatically adjust the price. However, if you have three German Shedders in your house it’s going to take longer to clean than if you only have one Labradoodle. Same house, different environment-takes longer to clean. When we see the real-time numbers don’t match the estimated numbers we will discuss adjusting the price.

Now we know our cost and how long it should take to clean. Next, lets figure out the price. Our cost per labor hour is $37 per labor hour and our bill rate is $45 per labor hour resulting in $8 per hour profit. That is a 20% markup resulting in an 18% profit margin. Let’s pause for a second and discuss profit. If you are of the mindset that companies shouldn’t make a profit, or shouldn’t profit from your account, or if you are uncomfortable with these numbers, we encourage you to look elsewhere for your house cleaning needs. The core purpose of Above and Beyond Residential Cleaning Service, Inc is to make life easier for employees and customers. Without profit the company will cease to exist thereby making life easier for no one. A company cannot survive, let alone thrive, without profit. Our bill rate is $45/hr, so from the 2500sq’ every other week example above, 3.45 (labor hours) multiplied by $45 (bill rate per employee) equals $155. So the price for every other week cleaning service is $155 per cleaning and it should take 3:27 for one person or 1:45 for a two person team. Our standard team size is 2.

I hope you have found this article helpful. If you need clarification, or if I left something out that would be helpful to you, or if you would like to share your comments, email us at This email address is being protected from spambots. You need JavaScript enabled to view it.. We look forward to hearing from you.

Sincerely,

Jeremy Smith, Owner
Above and Beyond Residential Cleaning Service, Inc

Let’s Make Life Easier!