Want to get the maximum profit on your next carpet cleaning job?
Carpet cleaning can be a very profitable service when priced correctly. With profit margins often over 50%, this service can bring in a lot of revenue and make your clients’ carpets look better and last longer. To make the most of this opportunity, it’s important to know how to set your prices and confidently handle larger or more complicated jobs.
Here’s an example of pricing for cleaning 30,000 square feet of carpet using the hot water extraction method:
Example – Clean 30,000 sq ft of Carpet
• Production Rate: 500 square feet per hour.
• Total Hours Required: 30,000 sq ft / 500 sq ft per hour = 60 hours
• Labor Costs: 60 hours of cleaning + 6 hours for moving furniture and travel time x $30 per hour + 20% for taxes and insurance = $2,376
• Cost of Chemicals, Equipment, etc.: $600
• Total Costs to Contractor: $2,976, or $0.10 per square foot, not including travel or furniture moving costs.
Here’s how the final prices to the customer would look with different markup percentages:
• 50% Markup – $0.15 per square foot
• 75% Markup – $0.18 per square foot
• 100% Markup – $0.20 per square foot
By keeping a close eye on your material and labor costs, you can manage your carpet cleaning expenses effectively.
Increase Your Carpet Cleaning Sales
Offering additional services proactively is more effective than waiting for clients to ask. Using the relationships your managers have with clients can greatly increase your add-on sales. Give your managers the ability to offer extra services directly to their clients. Providing them with a standard price list and a commission for sales will encourage them to promote these additional services.
By understanding your pricing, empowering your managers, and offering commissions, you can successfully boost your sales of extra services and grow your business.
Read: How do you calculate the cost to strip and wax floors to price jobs properly?
