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Use Minimums To Protect Your Cleaning Service’s Bottom Line

All you seem to hear about is the power of – maximums.

Maximum Speed! Maximum Returns! Maximum Protection!

Well, I’m hear to tell you about the power of minimums!

Specifically -

Minimum Frequencies,
Minimum Profit Per Month and
Minimum Number of Hours

Let’s take them – one at a time.

First, minimum frequency – for any job to qualify as being worth going after consider setting a minimum frequency (# of cleaning visits/week).

Why?

Well, landing a one-time per week account may be easy, but that may be the only easy part.

That’s right, getting it filled and keeping it filled with a competent cleaner – may be MORE of a challenge!

So, you may find setting a minimum cleaning frequency requirement, say 3 times per week, for any cleaning job you’re going to bid on may actually help your cleaning business to be more stable because you’re able to keep turnover down.

Next up – minimum profit per month.

Sometimes your standard profit percentages don’t generate enough profit dollars.

It’s true, on very small jobs, sometimes even a healthy profit percent doesn’t generate enough real profit dollars per month to make it worthwhile to take on as a client.

Answer? Again – minimums. This time of course for a the least amount of total dollars per month of profit you’re willing to accept.

And, finally – minimum hours/visit.

Again, similar to the logic with minimum frequency – if an account won’t supply enough cleaning hours per night to allow you to attract and keep qualified cleaning staff on a job - it may not be worth it for your cleaning company.

It may be fine for another cleaning business, but, again, you may find you’re better off when you require at least some minimum number of yours per night of cleaning – such as 3 hrs. per night.

Sounds tough, I know – but sometimes saying no to a job because it doesn’t meet certain minimum standards is the best thing you can do for you and the client.

Discover the Guru in YOU,
Dan

6 Responses to “Use Minimums To Protect Your Cleaning Service’s Bottom Line”

  1. Pamela White says:

    Thanks Great Advice

  2. DLiebrecht says:

    Pamela, Thanks for you note! Glad to hear you’ve found my videos helpful. Wishing you MUCH success in your cleaning business!! Dan, CleanGuru LLC

  3. Willy Jones says:

    Indeed a very nice post. I am also associated with andradecleaning service, carpet cleaning northridge, grout cleaning services in los angeles. Thanks for writing such good posts and as I have subscribed to your blog, I do expect that you will be posting nice posts like this on a regular basis.

  4. Arnel says:

    Thanks for the great post

  5. Anna says:

    Thank you for the great post. I have an very small account that does not generate a minimum profit per month. It’s, however, associated with an another bigger account which generates good profit. I’m wondering how should I tell my small client that his account does not generate a profit for my company and I need to increase the rate by 50%. I would appreciate your advice.

  6. DLiebrecht says:

    Anna, you’ve asked a good question; unfortunately, the answer isn’t easy, for several reasons, one of which is highlighted in your note where you say, ‘It’s, however, associated with another bigger account which generates good profit’.

    Specifically, the questions of ‘whether to raise an account’, ‘how much to raise’, them as well as ‘when and how to have the price increase conversation’, need to answered ‘in context’; taking into account the potential consequences of each course of action.

    For example, if you feel whether or not the small account would accept a price increase, it wouldn’t have a significant, negative effect on your status with the larger, profitable account you clean – you may decide to move forward, knowing you would be comfortable with either outcome.

    If however, you feel asking for a price increase at the small account would likely jeopardize your relationship with the large, profitable account – then, this is where it can be helpful to do a ‘risk vs. return’ analysis, to determine if the potential gain at the small account is worth the potential loss at the large account.

    Unfortunately, in running a cleaning business, it can be difficult to know these things for sure. However, it’s generally best to review all factors and potential financial outcomes in advance.

    And, if you do decide to move forward, we have found it helps to schedule the ‘price increase’ conversation to a time when your client is very happy with your service and your cleaning staff rather than a time when, for whatever reason, they may be feeling dissatisfied with your service or cleaning personnel.

    Hope that helps and wishing you much success in your cleaning business,
    Matt
    CleanGuru LLC

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