Per Room Pricing

CapeCleaner

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For those who use per room pricing, how large an area (average room size) do you use to establish your pricing?

I'm giving some consideration to this pricing method and am thinking of using 250sqft for the average room size.

Thanks
 
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George Valliant
My new years resolution is to quit per room pricing and start pre-inspection price quotes on every job. Rummor has it you can command more $$$ by in home price quotes. Not to mention a better cleaning exerience for the custy.


250 s/f is my limit on a single room.
 

XTREME1

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200 sq ft here but if one is 240 and the other is 160 abouts it is a wash. I don't measure just have a good eye if I am charging extra sq ft I will measure

The reason my room sizes aren't bigger is people who advertise room prices usually are at 120-150 sq ft in my area and I would have to raise my room price to go to 250 and be less competetive
 

CapeCleaner

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Carpet Cleaning Fool said:
Rummor has it you can command more $$$ by in home price quotes. Not to mention a better cleaning exerience for the custy.
That is the part I'm not understanding with the per room pricing. The pricing should be lower but not at the "chew and screw" level and the customer experience definitely should not suffer.

Some of the per room pricing I've found just doesn't make sense. For instance, using the maximum square footage for three rooms, SS in my area and Greg Crowley's (not picking on you Greg but I was looking at your pricing earlier) 25dollarsaroom Silver Package price out to $.14/ft and $.19/ft respectively. That type of pricing has to erode one's profit which means each day is based entirely on volume. As George stated, that has to affect the customer experience.

My objective is to provide a straightforward, easy to understand pricing structure yet continue to provide an outstanding service experience at a price that allows me to make a fair profit. The client benefits by seeing exactly what a first class cleaning will cost and I benefit by not having to spend a lot of time doing estimates for price shoppers.

Anybody using per room pricing at around $60? Even that is only $.30/sqft.
 

XTREME1

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You don't have to worry about me and my feelings. If you don't like my business model that is fine. Some people have different sets of circumstance that allows them to do different things. I am lucky enough to own everything I have and only pay for consumption and advertising.

The things people miss in the room pricing is the halls and stairs plus protection and upholstery.

I would say I am sure I miss oppurtunities for more money all the time but I have a very loyal customer base who calls when they want their carpets cleaned rather than when they need their carpets cleaned
 

Larry B

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On per room pricing we have a MAX of 200 sqft per room. If the room was 200 sqft it would come out to $0.20 per sqft. Most customers around here have smaller rooms than that so the sqft price goes up the smaller the room and the more rooms they have done.

You cant compare what others offer on price to what you want/need because your pricing will be different. Like Greg we have very little debt so we dont ask high prices to pay loans and other debts.
 

floorguy

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ok so lets say its $25 a room... and you do a bedroom that just has like 20 sqft, because its just were the open is, because you have a bed, dresser and other crap in the room, but yet you have a living room that is wide open, and a 300 sqft liv...

then what???

you still getting the $25 for the bed, yet do you think you should charge more for the liv now??? if so i say thats crap..


A lot of times it balances out..

I tell them over the phone, that if i feel it is over sized then it will be more, and they have always understood...
 

CapeCleaner

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Larry B said:
You cant compare what others offer on price to what you want/need because your pricing will be different. Like Greg we have very little debt so we dont ask high prices to pay loans and other debts.
Not yet comparing prices because I've not yet decided to adopt per room pricing. I've had no real price resistance at $.40/sqft with a $100 minimum. Just trying to get a better understanding of the per room pricing method.

My ultimate objective is to infuse within the customer experience efficiency for both me and my clients and I think per room package pricing would help accomplish that objective. I'm not significantly leveraged so I'm not afraid of an overall lower per foot price. However, even without significant debt, one still has to account for wages, taxes, insurance, fuel, travel time, etc.

And yes, I do admit to enjoying good margins! Why else would one be in business?

Again, just trying to get a better understanding of this pricing method before making any changes.
 

Larry B

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floorguy said:
ok so lets say its $25 a room... and you do a bedroom that just has like 20 sqft, because its just were the open is, because you have a bed, dresser and other crap in the room, but yet you have a living room that is wide open, and a 300 sqft liv...

then what???

you still getting the $25 for the bed, yet do you think you should charge more for the liv now??? if so i say thats crap..


A lot of times it balances out..

I tell them over the phone, that if i feel it is over sized then it will be more, and they have always understood...

We have never had a problem doing that. When the jobs are booked the customer knows a room is a room. If they want 25 sqft of one room done and they have a room that is twice the size of a regular room then they are charged for 3 rooms. Never a problem. We also do not charge for closets and hallways anymore if they are getting 2 or more rooms done.


CapeCleaner said:
Larry B said:
You cant compare what others offer on price to what you want/need because your pricing will be different. Like Greg we have very little debt so we dont ask high prices to pay loans and other debts.
Not yet comparing prices because I've not yet decided to adopt per room pricing. I've had no real price resistance at $.40/sqft with a $100 minimum. Just trying to get a better understanding of the per room pricing method.

My ultimate objective is to infuse within the customer experience efficiency for both me and my clients and I think per room package pricing would help accomplish that objective. I'm not significantly leveraged so I'm not afraid of an overall lower per foot price. However, even without significant debt, one still has to account for wages, taxes, insurance, fuel, travel time, etc.

And yes, I do admit to enjoying good margins! Why else would one be in business?

Again, just trying to get a better understanding of this pricing method before making any changes.


Our Min is $80.00 and we have no problem making money the way we charge for CC. The one key thing is book customers as close as possible so you are not back tracking across town all day.
 

Ken Snow

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avg room is under 150 sq ft so even at 4 rooms for 99.99 as we are it works out to 16.67 cents per sq ft or more, plus stairs, halls, SG and possibly upholstery.
 

Jim Martin

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Jim Martin
I price by the room.......and I make just as much as the guys that price buy the area.....If I get into a room that is loaded with things then I just adjust the bill down to compensate for it...or if it is over 200 sqft I adjust my bill up....the client is full aware of what the bill is going to be before I even string a hose into the house...
this also includes adding things like red spots or urine problems...etc....Since day one I have never had a problem or a complaint...( especially from the ones where I lowered the price )............I have more important things to do then after a full days work then run around and do a few more estimates.....I figure that what I save in gas is helping me more then what I am burning running around measuring peoples homes...Not to mention my time.....
But for me the big thing is that every home I go to is already booked and expected to be cleaned...So it is not like I went there and wasted my time measuring everything and then did not get the job....IMO it is just a matter of communicating with the client so everyone is on the same page...Phone rings...Tia sells us... books the the client ...They are fully aware of what to expect...I have the work order with the amount on it and the client is full aware of the given price.... I do my walk threw and some need adjusting and most don't...
There are some times when a bedroom is loaded with crap and I will offer to compensate for it buy cleaning an area rug for them...Most are happy to go this route...


But I do measure tile jobs and commercial work.....Hard to price them over the phone..


There is no right or wrong ..it is just how you choose to structure your company........
 
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Guest

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I price by the room also; I consider an average bedroom 12x12 = 144sqft. up to 14 x 14= 196 sqft. @$25 per room; anything over that goes up $10 and so on. I also charge seperately for stairs; considering they are more time consuming and sometimes require hand and knee work. Great rooms start at $40 up to $90. Some say I am more expensive than the average cleaner; I reply they are on a time schedule; I am not; When I leave your carpet; It will be as clean as it can get.

I also tell them I;

1. Thoroughly Vacuum
2. Spot Treat/stain removal
3. Pre Spray
4. If Pile Carpet Use Power Mate / HWE with Regular Wand
5. Deordorizer comes with every job no charge.
6. Post Groom
It has worked so far; That way custy sees on my website and their is no surprises.
 

Jay D

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I use to sq ft price at .30 in a middle market and would go out and do the dog and poney show estimate. I moved to a new market and the client was similar but different. My old clients had time to spare, many single income stay at home moms and retired folks so they and I had time to do in home estimates. My new clients are 2 income upper middle class, busy folks who live in the city where it is too busy. There time constraits makes it difficult to clean much less do a in home estimate. They are also usually aware of my company via a friend, referral, internet or repeat customer so they just need to know approximately how much if they are concerned with the price.

Area pricing is standard here but many still have pkg area pricing. I personally have gone to area pricing with a 200 sq ft max per area. If it is oversize then we chg by each 1/2 area above the max sq ft. 300 sq ft is 1.5 areas etc. I give customers leeway just like they give me leeway in being fare to both of us. SG and pet treatments are additional of course but usual stain removal is no chg and yes i try to get everything out in that price. I will clean a mat, remove a spot in a otherwise perfect area as a help to their budget.

I will probably work on a package price system in the new year to add additional value and additional income (same level of clean). I price the first 2 areas at 89.99(1 area and a flight of stairs) with each additional area at $33.00. The 89.99 covers travel, setup and teardown time plus servicing 2 areas as my Minimum chg. Price shoppers are usually looking for cheaper than that and usually need cheaper. My prices are low for some here but fit my market fine and no i am not a red board make believe. I am what I am. :roll:
 

Jim Williams

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Wow, now that I know a Vortex guy charges by the room I feel much less hackish. Or is that hacklike.

I have a 250 sq. ft. minimum then .25 per sq. ft. for anything over. Open area does not take that long to clean.

I'm at $100 for 2, $145 for 3, $185 for 4, $225 for 5 rooms. Some folks in the area say I'm too cheap and some ask me why I'm so much more than everybody else.

Like some of the others have said, I don't like to inconvenience my customers twice, plus my schedule stays too full to give in home estimates.
 

Lyman

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If greenie could way in, he had a simple room plan that sounded good. 25-50-75 Maybe more details are needed.
 

davep105

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Dave Pires
I am at room pricing also. I tell the customer that over the phone I can give a ballpark estimate, that each job is a little bit different depends on amount of furniture to be moved and if the carpets are trashed out. But I try my best to come close over the phone and they understand that. I give and exact estimate before I start the job. I charge from 35 to 55 dollars a room for average size, if its a master bedroom or an oversized living area its about 65 to 90. I get 35 for halls and 4 dollars per step. I also have a 100 dollar minimum that I might raise to 125 in the spring? Those prices include vacuuming, deodorizing, pre-treating, scrubbing, steam cleaning, basic furniture moving, and grooming. I try and get about half the price of the cleaning for protection. I find that the area pricing works out the best for me. I do measure for tile and for commercial work.
 

Greenie

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20-40-60

the $20 was reserved for halls, bigass walk-ins and bathrooms, 40 was what I called a standard room like a bedroom and stairs, the 60 was for great rooms, combo rooms like L shaped living rooms etc... It was straight forward and the smaller rooms always made up for the larger ones, and I didn't discount for beds and such....same dirt just more concentrated, I'd rather clean an empty lightly used 12x12 any day than a traffic lane from hell around a bed.

It's all about the hourly wage, right? Get it any way you have to, but get it, your kids deserve to go to college too.

If it were today, even in this economy, I'd probably be $25-50-75, can't afford to work for less in Cali.
 

floorguy

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ohhh yes,

I dont move furniture..unless they cant move that last couch out..

They pre-vac.....if i still deam its a nasty vac job, then i will vac it again...

I dont fart around with all the fancy spot stuff....i was going to try it...but hell i am to lazy to work on it at my house, let alone have it bog me down some where else...besides that 85% of the stuff comes out with the prespray, and another 10% with power-gel...if those dont take it out...screw it.. and move on
 

Larry B

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floorguy said:
ohhh yes,

I dont move furniture..unless they cant move that last couch out..

They pre-vac.....if i still deam its a nasty vac job, then i will vac it again...

I dont fart around with all the fancy spot stuff....i was going to try it...but hell i am to lazy to work on it at my house, let alone have it bog me down some where else...besides that 85% of the stuff comes out with the prespray, and another 10% with power-gel...if those dont take it out...screw it.. and move on


Holy shat!

Doug is human

Greenie said:
20-40-60

the $20 was reserved for halls, bigass walk-ins and bathrooms, 40 was what I called a standard room like a bedroom and stairs, the 60 was for great rooms, combo rooms like L shaped living rooms etc... It was straight forward and the smaller rooms always made up for the larger ones, and I didn't discount for beds and such....same dirt just more concentrated, I'd rather clean an empty lightly used 12x12 any day than a traffic lane from hell around a bed.

It's all about the hourly wage, right? Get it any way you have to, but get it, your kids deserve to go to college too.

If it were today, even in this economy, I'd probably be $25-50-75, can't afford to work for less in Cali.

I will try that on some mailings this spring and see how it works out.
 

KevinL

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Kevin Leach
First 2 rooms for $85, then $30 per room. Most people will brag about their big great room over the phone so I let them know it may count as 2 rooms but br traffic areas I may discount to $25. Halls are $1 per foot and I round down to the nearest $5. (17 foot is $15). Stairs are $30. I hate it when they expect a small bathroom to be next to nothing. I hate doing them at any price. I never have to drive more than 20 miles and it's usually closer to 5. Now I need to make up some stuff over at ICS.
 

CapeCleaner

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CapeCleaner said:
For those who use per room pricing, how large an area (average room size) do you use to establish your pricing?
Great information from everyone. Thanks very much!
 
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I'm Rick James
I charge per room. Its $109 for the first 2 rooms up to 250 sq ft a room and then $50 a room after that. I move whatever furniture the clients wants(within reason). I dont really move alot of furniture the clients usually have it moved or wants me to go around it, but I always offer.

In BR I still charge the $50 and I move nightstands and chairs. I explain that during walkthrough. If they feel its too high for the area than I will tell them I will just do the exposed areas for $35. Halls $35. Bathrooms $25. I sell the protector at 50% of the cost of the total areas cleaned and deodorizer at 50%. If the client has an issue one week or one month after cleaning I will still take care of their needs.

In the 4 months of doing my own thing I havent had an issue with price. I assume I will in the future, everyone wants something for nothing.

The main goal of my company is customer satisfaction. I think I have average prices that appeal to alot of people. The quality it top notch. I am very excited about 2009.
 

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