How To Gain a Profit Margin for the Cleaning Business in 30 Days?   

Last night, we were watching soccer, and a pizza ad appeared at the end of the first half. We couldn’t resist (and we were hungry, too), so we ordered the pizza.  

The story tells two things: the power of the right messaging at the right time and what if you can apply the same principles in your cleaning business.   

No, we aren’t asking you to deliver pizza. We want to let you know that by hitting the right points and making small tweaks, you can increase the profit margin for the cleaning business in 30 days.   

So, let’s get started!   

Which Factors Affect Cleaning Business Profit Margins?   

Did you know that the average profit margin for cleaning businesses ranges between 10% and 28%? If you think about it, that’s not bad. However, some business owners miss key points, and they end up in the lower range.  

So, let’s talk about these key points that affect the profit margins of cleaning businesses.   

1. Type of Cleaning Business   

The type of cleaning service plays a huge role in your profit margins. For instance, residential cleaning tends to have lower overhead costs but often faces pricing challenges due to tough competition.   

On the other hand, commercial cleaning has higher rates, but it requires significant investment in equipment, certifications, or skilled labor.  

2. Location of the Job   

Where your cleaning business operates can greatly influence your profit margins. Jobs in urban areas often come with higher demand and the potential to charge premium rates. However, these advantages can be offset by increased costs like travel expenses.   

On the flip side, businesses in smaller towns may face less competition but might struggle with lower pricing from clients.  

3. Job Frequency   

How often a client requires your services can significantly impact your bottom line. Recurring jobs provide a steady income stream and often come with reduced customer acquisition costs. These clients are your bread and butter, offering stability and predictability for your business.  

By the way, if you want to apply the recurring model effectively, you can check out our detailed guide here.   

In contrast, one-off jobs, such as deep cleaning or move-out services, may generate higher revenue but require more effort to secure and often involve additional expenses like sales and marketing.   

5 Tips for Increasing Profit Margin for the Cleaning Business  

We know many cleaning business owners struggling with cash flow and couldn’t figure out how to get out of this mess. However, they overlooked the small tweaks that could increase their profit margins.   

So, let’s see what those tweaks are and how you can apply them to gain a profit margin for the cleaning business in 30 days.   

1. Set Clear Pricing Strategies   

Pricing your cleaning services can feel like a guessing game. If you charge too much, the clients may not turn into recurring ones. If you charge too little, your efforts may not be worth it.   

The first step to fixing these issues is to realize that your skills and time have value, and your service pricing should reflect that. You need to calculate everything, like cleaning supplies, travel expenses, and employee wages, and then calculate your profit margin.   

Once you’ve figured out your costs, it’s time to think about why your services are worth the price. For instance, a busy homeowner might be willing to pay extra for cleaning the kitchen. So, you need to highlight the value of your services.   

Pro Tip: Create packages to cater to different client needs. For example, they offer basic cleaning services for clients who just need essentials. This allows you to upsell, and clients feel like they’re in control of their budget.   

2. Offer High-Tier Services   

Offering high-tier services can be a game-changer for your cleaning business. Instead of competing on price for basic cleaning, you can position yourself as the go-to provider for premium services that deliver extra value.   

On the job, you can ask the clients for services they might need but haven’t asked for, like carpet cleaning. This can create an opportunity to upsell. Here’s how you can get started:   

• Pay attention to what clients are complaining about. Active listening can guide you in offering the right premium services.  

• If you’re offering high-tier options, make sure clients know what makes these services special. You need to highlight the benefits of your services. You can even show them other clients’ testimonials.  

• You can bundle premium services with your standard offerings. For example, create a package that includes deep cleaning, window washing, and sanitizing. Bundles feel like a deal to clients but also increase your profit margins.   

3. Keep up with Trends   

The cleaning industry is evolving rapidly, and staying ahead of trends is important. The global cleaning services market will grow to $22,820 million in 2030.   

Here’s how you can keep up with the trend: 

• More clients are requesting green cleaning options, and offering them could set you apart.   

• Getting certifications for niche services like sanitization can help you charge premium rates.  

• Implement online booking, digital payment systems, or even cleaning schedule apps to simplify business operations.   

Speaking of automation, you can check out our guide on the 5 best cleaning business accounting software.   

4. Reduce Overhead Costs   

Overhead costs are the ongoing expenses your cleaning business incurs to operate, like supplies, equipment, utilities, and others. These costs can quickly eat your profit margins if you aren’t careful.   

Here’s how to start reducing overhead costs:  

• If you buy in bulk, you’re likely overpaying for cleaning products. You can partner with suppliers to negotiate discounts or look for wholesale options. At the same time, avoid overstocking items that could expire.  

• If you’re renting an office but mostly working on-site, consider switching to a smaller space or even running operations remotely. With digital tools for scheduling and client management, you may not need a physical office.   

• With gas prices fluctuating, travel can be a huge expense. You can optimize your routes to save time and fuel.   

5. Promote Your Business   

Around 97% of consumers go online to find local services. If your cleaning business isn’t online, you’re missing out on potential customers. A smart marketing strategy can attract new clients to your business and turn them into recurring ones.  

You can adopt the following strategies:   

• Share photos of your work, client testimonials, and behind-the-scenes content on Facebook and Instagram. This can build trust and show the personality behind your brand.  

• Offer discounts to customers who refer to your services. Word-of-mouth remains one of the most effective marketing tools.  

• Collaborate with real estate agents, property managers, or event planners who may need cleaning services for their clients. These partnerships can be a steady source of referrals.  

• Ensure you’re listed on platforms like Google My Business, Yelp, and Thumbtack. A strong presence on these sites can boost your credibility and help local clients find you easily.   

Final Thoughts   

These are some of the tweaks you can make to increase the profit margin for the cleaning business in 30 days. The key is to start small. Implement one or two changes, track your results, and build from there. We hope the next 30 days will be the start of something big for your business.   

Speaking of starting, increasing profit margins can be difficult if you don’t have a grasp of pricing strategies, overhead expenses, and market trends.  

So, why not start working with a pro?   

Tangent Consulting has years of experience as a business coach and CFO service provider for cleaning businesses. With us, you don’t need to hire an accountant or business coach separately; you can get both in one place.           

PS If you are reading this, it means you can have access to our free consultation for your cleaning business. Avail this for free today before we change our mind 😉   

FAQs  

What does the net profit margin show in a cleaning business?   

The net profit margin shows how much profit your cleaning business earns after covering all expenses.  

Which cleaning business makes the most money?  

Specialized cleaning services, like post-construction, medical office, and industrial cleaning, are generally considered highly profitable in the cleaning industry.   

Can a commercial cleaning service be profitable?  

Commercial cleaning services can be highly profitable due to recurring contracts and higher job values.