How to price commercial cleaning
To price a commercial cleaning job: (1) divide each area's square feet by its production rate to get hours a visit, (2) multiply by visits a week and 4.345 weeks to get hours a month, (3) multiply by your true cost per hour (wage plus payroll burden, supplies and overhead), and (4) add margin. Below is every step with real numbers.
Step 1: Hours a visit
A production rate is how many square feet one cleaner covers in an hour for a type of area. Restrooms are slow, open office is fast. Here is the Outscoped sample building, Lakeview Office Park, using Industry Standard Production Rates:
| Area | Sq ft | Sq ft per hour | Hours a visit |
|---|---|---|---|
| Open office / workstations | 8,600 | 4,000 | 2.15 |
| Restrooms | 1,150 | 800 | 1.44 |
| Lobby / common areas | 2,650 | 4,500 | 0.59 |
| Server room | 5,500 | 5,000 | 1.10 |
| Total | 17,900 | 5.28 |
Step 2: Hours a month
5.28 hours a visit x 5 visits a week x 4.345 weeks a month = 114.6 hours a month. (A year has 52.14 weeks, so a month averages 4.345.) Buildings cleaned fewer times a week get dirtier between visits, so the hours per visit go up a little. Outscoped adds 7% at 4 visits a week, 15% at 3, 30% at 2 and 50% at 1.
Step 3: True cost per hour
Your cost for one labor hour is more than the wage:
| Piece | Default | Running total |
|---|---|---|
| Wage | $18.50 | $18.50 |
| Payroll burden (taxes, workers' comp, insurance) | 25% | $23.13 |
| Supplies | 5% | |
| Overhead | 10% | $26.59 |
$18.50 x 1.25 x 1.15 = $26.59 an hour. Learn what goes into burden on the labor burden page.
Step 4: Monthly cost and prices
114.6 hours x $26.59 = $3,049 a month in cost. Each package is the cost times a set number, rounded up to the next $5:
| Package | Math | Monthly price |
|---|---|---|
| Good | $3,049 x 1.08 | $3,295 |
| Better (recommended) | $3,049 x 1.189 | $3,625 |
| Best | $3,049 x 1.274 | $3,885 |
These are Outscoped's default numbers so you can follow the math. Use your own wage, burden and production rates. The calculator lets you change every input and shows each step.
Common pricing mistakes
- Pricing per square foot from a number you heard, instead of from your own hours and costs.
- Forgetting payroll burden, which adds a large share on top of wages.
- Using one production rate for the whole building. Restrooms and exam rooms take far longer.
- Leaving out supplies and overhead.