Many companies out there advertise extremely low rates when it comes to carpet cleaning. Cleaning companies that offer these incredibly low rates would never exist.
Let us assume the rate is $10 a room, and we are cleaning an average house with 3 bedrooms, a living room, a den, and a hallway. The total charge would be $50. This house would take us a total of 5 hours, an hour in driving time, and 4 hours of actually cleaning and set up and break down time. That comes to $10/hour.
With this scenario one might be able to fit 2 jobs into one day, for a total of $100 of revenue per day. Now let us look at the expenses.
For 5 hours of running the machine and driving time, that is about $15 in gas expense. For 2 houses in a day, that is $30 in gasoline expense. The next major expense is chemicals. The total amount of chemicals you use might come to around $10 in expense to you. Let us also take into consideration your depreciation on the machine and the van, oil changes on the machine and van, wiper blades for the van, and all the other little expenses that naturally come with a vehicle. You must spread these expenses out over time. Let us assume our depreciation expense per job comes to about $15.
Our total expenses for one day with two jobs are $80 and your revenues were $100. So the carpet cleaner that charges $10 a room and works a 10 hour day earns about $20 in profit. This example does not include a payment or insurance on their work van, or rent expense for their business facility.
How do these companies survive?
These companies survive by using bait and switch pricing. They offer a very low price to get into your home, and then they will add on extra charges while they are in your home. Some companies might charge extra for pre spray, or agitation. These components are basic elements of carpet cleaning and should not be considered an extra charge.
A legitimate carpet cleaning company must charge at least $30 to $40 a room in order to turn a small profit. So when you are pricing a carpet cleaning company, don’t be fooled by low pricing!!!