Does your cleaning business struggle to break even? Turning a profit in the janitorial industry is not as easy as it sounds. Raising prices may seem like the best solution to increase revenues, but that may turn off potential clients.
After all, everyone is on a tight budget, and most people can’t afford higher cleaning rates. If you need to make your cleaning company more profitable, you’ll need to think outside of the box. Here are a few changes you can implement in your business right away and make your Cleaning Business more profitable
Stop Missing Appointments
This is the first way to make your Cleaning Business more profitable. Clients want to hire a cleaning company that they can trust to show up on time. Overbooking and sloppy scheduling could make you lose some of your best clients. Instead of writing down appointments on a notepad, switch to appointment scheduling software. Integrating this type of software with your website will streamline scheduling and help you quickly find more details about each client.
Janitorial scheduling software prevents double-booking and also reminds clients of upcoming appointments. Online credit card processing ensures every client pays beforehand.
If a client wants to schedule recurring service, they can do so without picking up their phone. You won’t worry about missing an appointment ever again, and convenient scheduling will also attract new customers. Automated scheduling will let you sit back and watch your profits skyrocket.
Market All Specialty Services
Clients may hire you initially for basic cleaning services, but there is a good chance your company offers much more. Perhaps you specialize in tile and grout cleaning. Maybe window washing is another service you hope your clients will book.
Most janitorial businesses, whether commercial or residential, offer a vast array of services. However, very few of their clients actually know about these offerings. Why is that? Lack of marketing is most often to blame.
A company can’t expect to sell a service if no one knows about it. Additionally, your clients may not realize a specific service would benefit them until someone mentions it.
The most successful cleaning companies market all of the services, especially those with a higher profit margin. It’s possible to advertise effectively without spending a lot. Mention tile cleaning to any client with tile floors. Post an unbeatable deal for window washing on social media. Connect with real estate agents about move-in/move-out cleaning. The broader your marketing reach, the more services you will sell.
Become More Productive
Evaluate how long it takes to complete every appointment. Even if you have a lot of clients, you could lose money by being inefficient. After all, the more customers a company serves in a day, the more money it makes. Time is money, and you want to generate as much profit as quickly as possible. Becoming more efficient will also open up more wiggle room in your schedule to add new clients.
Cleaning businesses need the right equipment to become more efficient. Vacuuming a commercial space with a residential-sized vacuum, for example, will only slow you down. Upgrading to a more powerful vacuum will reduce the amount of time it takes to clean the building. Improving productivity also starts from within.
Take the time to retrain your staff on how to work efficiently. Make sure they understand how to provide top-notch service without losing track of time. Clients will appreciate the faster service, and you’ll enjoy higher profits.
Stop Wasting Supplies
All janitorial companies need plenty of cleaning supplies to get the job done, but you may end up pouring money down the drain if you don’t manage these supplies carefully.
Cleaning and disinfecting chemicals cost a pretty penny. Buy concentrated chemicals in bulk to save money. When mixing cleaning solutions with water, never eyeball the amount. Doing so will cause you to make a few mistakes along the way. Not only will these measurement errors cost money, but misjudging amounts may also weaken the formula. Instead, try using a dilution control system to provide accurate measurements each time.
When stocking up on cleaning supplies, always keep the company’s budget in mind. Overspending may reduce your cash flow. It’s also smart to look for discounts. Compare the prices at several vendors to see who can provide the best deal.
Too many business owners feel loyal to a single vendor, causing them to miss out on lower prices. Don’t feel bad about switching to a new vendor if the price is right.
Look for Creative Ways to Save Money
Take a detailed look at your company’s accounting ledger to spot any wasteful spending.
For example, do you pay too much for utilities at the office even though you mainly work in the field? Start turning off all the lights when no one is in the office, and turn the air conditioner up a few degrees to cut back on these unnecessary costs. It may even be possible to save money on gas. Book neighbouring clients on the same day, and try combining multiple errands into a single trip.
All janitorial companies have unavoidable bills and expenses, but it may be possible to consolidate them considerably. Even taking employee uniforms to the cleaners all at once may help lower that invoice. Tightening the budget will help boost profits more than you could ever imagine.
Manage Unprofitable Accounts
Every cleaning company has a few accounts that are just not as profitable as others. You should turn a profit at every appointment. Just breaking even should never be an option.
Narrow down any clients that aren’t making your company as much money as you like and look for ways to re-manage these accounts. Perhaps you can schedule them alongside another client in the area. It may also be possible to get the client to buy additional services.
If all else fails, try raising your rates. Sure, you could lose the client in the process, but you can always replace them with a more profitable account. It’s also wise to rethink your cleaning rates each year. Inflation affects how much it costs to run a cleaning business, and sometimes a price increase is the only justifiable solution.
Clean Your Way to Higher Profits
Although janitorial services are in high demand, turning a profit is sometimes tricky. It’s time to take a hard look at your business to see where you can improve. After all, even the best cleaning company can’t stay in business if it doesn’t make any money. Implementing these tried-and-true tips may be just what it takes to get your books out of the red and back into the black.