Running a profitable commercial cleaning business isn’t just about keeping spaces spotless—it’s about understanding your costs and pricing your services correctly. Without accurate job costing, even loyal clients and steady work can leave your bottom line in the red. This guide walks you through everything you need to know about how to price your cleaning jobs, commercial cleaning pricing, and managing the hidden costs that impact your profits.
Job costing is the process of calculating all costs associated with completing a specific cleaning job. For commercial cleaning companies, this goes beyond multiplying labor hours by hourly rates. It includes:
Understanding job costing ensures every client contract is profitable and no cost goes unnoticed. Accurate job costing also builds cost transparency your clients can trust.
Many cleaning businesses struggle with underpricing, overestimating profits, or losing money on certain contracts. Proper job costing gives you:
Here’s a clear summary of the six key steps, including what to track and why each matters:
|
Step |
Focus Area |
Key Components to Include |
Why It Matters |
|
1 |
Calculate Labor Costs |
Full Labor Burden (Wages + Payroll Taxes, Workers' Comp, Benefits, PTO) |
Labor is the largest expense. Missing the 25–40% labor burden guarantees underpricing. |
|
2 |
Include Supplies & Equipment |
Consumables, Replacements, and Equipment Depreciation (cost per usage hour) |
Prevents profit erosion and ensures asset costs are covered. |
|
3 |
Factor in Overhead |
Indirect costs (Rent, Utilities, Insurance, Admin Salaries) calculated as an Overhead Allocation Rate |
Ensures all operating costs are reflected in your pricing. |
|
4 |
Account for Hidden Costs |
Costs from Rework, Staff Turnover, Absenteeism, and Scheduling Inefficiencies |
Stops "silent leaks" that quietly reduce profitability. |
|
5 |
Set Your Pricing |
Use Cost-Plus or Value-Based models. Factor in Cleanable Square Footage |
Guarantees competitive bids grounded in true operational costs and a healthy profit margin. |
|
6 |
Monitor and Adjust |
Continuous review of costs and profits per client, and updating pricing for supply or labor changes |
Keeps the business profitable and competitive by reacting quickly to rising costs or market changes. |
Labor is often the largest expense in commercial cleaning. Don’t just track hourly wages—you must account for the full labor burden:
Full Labor Burden includes all non-wage costs, which can quietly add 25–40% to the hourly rate:
Tip: Capture every hour and cost accurately with a job costing calculator.
Supplies and equipment can eat into your profit if not properly accounted for. Include:
Example: A $4,000 floor scrubber expected to last 2,500 hours adds $1.60 per hour to a job ($4,000 ÷ 2,500).
Tracking these costs ensures no surprises from hidden expenses.
Overhead includes indirect costs such as:
Allocate overhead across jobs to get realistic pricing insights.
Many companies miss costs that quietly reduce profitability, such as:
Including these in your pricing ensures no revenue leaks and avoids common bid mistakes.
Once you know your true costs, choose a pricing model:
Factor in cleanable square footage for accurate labor estimates.
Job costing is ongoing. Continuously track costs and profits:
Accurate job costing is the backbone of any profitable commercial cleaning business. By calculating labor, supplies, overhead, and hidden costs—and continuously monitoring your jobs—you can confidently price your services, avoid revenue leaks, and maintain a healthy profit margin.
Tracking all these details manually can be challenging. That’s where Swept comes in. Our platform helps you:
With Swept, you spend less time chasing numbers and more time growing your business—keeping your cleaning operations profitable and your team efficient.