What's In A Rate?

Why do cleaners charge so much? That's way more than I wanted to spend! I've been quoted less than that! My old cleaner did it in less time than that! I regularly see these protestations aimed at fellow cleaners/cleaning companies online (and occasionally at myself). But have you ever truly thought about what goes into the pricing structure of a small business? If you are not self employed or have never run your own business, it's easy to forget (or be unaware) of just how many overheads and costs need to be covered and taken into account. When you receive a quote or hire the services of a sole trader or small business, you're not just paying that full amount as a 'wage'. It includes so many factors, so the price you pay them is not their total income/take-home pay. Please remember this before questioning the prices of a sole trader or small business.

What do cleaners do? Yes we clean, but along with 'just cleaning' goes knowledge. Knowledge of products, chemicals, techniques and much, much more. Along with the physical cleaning also goes running a business. Marketing, bookkeeping, diary management, time spent replying to enquiries, etc. So when you hire a 'cleaner' you are hiring a professional. Someone who knows the best products and techniques to keep your home/business safe from bacteria and infection control. Someone who knows how to keep your chrome sparkling clean and keep your mould at bay.

There are many cleaners in the local area and pricing can be competitive, so how do you know if you are getting real value for money? Some charge low prices which is fantastic, but are you really getting a service you can rely on? Are they insured and do they have an up to date DBS check? Have you done some research on them and have you got some honest references? I truly make such a small profit when you consider the amount of time, effort and stress that goes into running a successful business. A great deal goes into my work. I provide the highest quality service and this comes with both passion and professionalism. I am fully registered, DBS checked and fully insured which is taken into consideration when pricing.

A lot goes on behind the scenes of a small business so when calculating my rates, I need to take various factors into consideration including.....

• Accounting fees

• Banking fees

• Class 2 and Class 4 National Insurance contributions

• Cost of business/public liability insurance

• Cost of valid DBS check

• Cost of high quality equipment including multiple vacuum cleaners, cloths, mops, steamers, scrapers, blades, brushes, tools, PPE, etc (my vacuum cleaners alone cost almost £500 each)

• Cost of having a car to get to jobs including servicing, annual MOT, maintenance, tyres, business insurance, fuel, parking charges and road tax

• Cost of legal expenses cover

• Cost of phone contract each month

• Cost of high quality, professional cleaning products and sprays

• Cost of PAT testing

• Cost of professional memberships

• Cost of uniform and work clothes

• Cost of waste carrier's licence (if a cleaner takes away any of your waste for you without a valid licence, they are actually breaking the law)

• Holiday pay (as a self employed individual, I don't get this paid for me so I have to set money aside for it)

• Income tax

• Money and time spent on marketing, advertising and graphic design

• Money and time spent on professional training to constantly improve my skills

• Money and time spent on website hosting, design and maintenance

• My time and effort on the job providing a high quality and reliable service

• My wage

• Office costs such as computers, electricity, printing, internet, stationery and software

• Pension contributions

• Sick pay (as a self employed individual, I don't get this paid for me so I have to set money aside for it)

• Time and money spent on researching/replenishing supplies

• Time and money spent on washing/drying cloths and uniform each day

• Time spent maintaining and servicing equipment

• Time spent on administration including invoicing, bookkeeping, banking, diary management, doing paperwork and chasing payments

• Time spent on risk assessments

• Time spent on social media management, content creation and branding

• Time spent providing high quality customer service and responding to emails, messages and enquiries (clients and potential clients can and do contact me 24/7 and responding to those messages can take several hours a day)

• Time spent quoting new jobs at potential client's homes

• Time spent stocktaking

• Time spent travelling to jobs and quoting

• Wear and tear on my body and ensuring I have enough time to rest and recover between jobs
  

As a small business, I need to cover costs for everything so when you think about it, I am actually pretty good value. Not every day is a cleaning day when you're running your own business. As you can see, when you are a sole trader - you are the person who does everything, from the cleaning to the paperwork. I work very hard. During my working day, I don't take breaks and I work non-stop. I go above and beyond and often stay that bit extra to get the job done right. I struggled on through a pandemic and I go to bed with a stiff back every night and wake up with one the next day. I never have a day off where I'm able to not end up doing something for the business. Behind the scenes, I work late and I'm up early, seven days a week. I am constantly working to put systems in place, to ensure I am working with the time I have, to the best of my ability, to give the best value for money service to my clients. You are paying for the skills, not the minutes and I pride myself with the highest standards. I receive no company sick pay, holiday pay, workplace pension or blue light discounts. My income is unreliable, I have zero job security and nor do I receive any income support or tax credits (all the while my rates are undermined by cash in hand cleaners who do).

I know I'm not the cheapest cleaning service in my local area but my work, reputation and reviews speak for themselves. I will not apologise for my pricing because I shouldn't. No small business should. My pricing allows me to make a small profit, which allows me to pay my bills, which also allows me to stay in business (which is the whole point of a business after all). My pricing allows me to pay myself for the countless hours I work. I'm never truly 'off the clock'. My pricing keeps a roof over my head and food on my table. I own a small business. One where the CEO knows your name and truly cares about you. I'm not the cheapest but I'm also not the most expensive. My pricing is what it is to allow my small business to keep going, which allows me to keep making a positive impact. Hopefully this post has helped you to understand the costs behind not just my business, but other small businesses too. They are not being greedy. All small businesses are feeling the strain and are desperately trying to survive.