You know the feeling. A new contract lands in your inbox — a decent-sized office block, three cleans a week. You do some quick maths on the back of an envelope, knock 10% off because you really want to win it, and send the quote.
Three months later, you're sending two operatives to that site every other evening and barely breaking even. The client's happy. Your bank balance isn't.
Pricing is where most cleaning businesses leave money on the table. Not because they're bad at cleaning — but because nobody teaches you how to price properly when you're building a business from the ground up.
Here's how to stop guessing and start pricing contracts that actually grow your business.
The Hourly Rate Trap
Most cleaning companies start by pricing per hour. It feels safe — you know what you pay your staff, so you add a bit on top and that's the price. Simple.
Except it isn't.
Hourly pricing punishes efficiency. If your team gets faster and better at a site, you earn less. It also makes it impossible to plan cash flow, because hours fluctuate week to week.
Worse, it invites comparison shopping. When a client sees "£15 per hour" next to another company quoting "£12 per hour," they pick the cheaper one. They can't see the difference in quality, reliability, or professionalism. All they see is a number.
Price per site, not per hour. A fixed monthly fee for a defined scope of work. The client knows exactly what they're paying. You know exactly what you're earning. And if your team finishes in less time because they're well-trained and organised, that's your margin — not a discount for the client.
Know Your True Costs (Not Just Wages)
Here's the mistake that catches most cleaning company owners: they price based on what they pay their staff and forget everything else.
Your true cost per site includes:
- •Labour — wages, holiday pay, pension contributions, National Insurance. An operative on £12/hour actually costs you closer to £14.50 when you add employer NI and auto-enrolment pension.
- •Supplies and consumables — cleaning products, bin bags, gloves, equipment wear. Even if the client provides some supplies, you'll still have costs.
- •Travel — fuel, vehicle maintenance, parking. If your operative drives 20 minutes to a site, that's unpaid time and petrol eating your margin.
- •Insurance — public liability, employer's liability. These aren't optional, and they need to be spread across your contracts.
- •Management time — your time doing site inspections, handling client queries, sorting cover when someone's off sick.
- •Overheads — phone bills, software, uniforms, accountancy, storage for equipment.
Add all of that up, then divide it across your active contracts. That's your baseline. Anything you charge above it is your actual profit margin.
Most cleaning companies that feel "busy but skint" are charging above labour cost but below true cost. They're technically losing money on every contract and trying to make it up on volume. It doesn't work.
Stop Racing to the Bottom
There will always be someone cheaper. Always. A one-person operation working cash-in-hand with no insurance and no pension contributions will undercut you every single time. Let them.
Those companies don't last. They can't scale, they can't cover sickness, and they lose contracts the moment something goes wrong and there's no insurance certificate to show.
Your job isn't to be the cheapest. It's to be worth the price.
That means:
- •Be clear about what's included. A detailed scope of work removes ambiguity and shows the client you've thought it through.
- •Show your professionalism. Branded uniforms, proper documentation, inspection reports after every visit.
- •Make reporting easy for the client. If you can send a monthly summary showing what was done and flag any issues — that's worth more than saving £50 a month.
- •Highlight your compliance. COSHH records, DBS checks, Living Wage accreditation, public liability insurance.
When you present yourself as a professional operation, you can charge accordingly.
Value-Based Pricing: What Is the Contract Worth to Them?
Here's the shift that changes everything: stop thinking about what the clean costs you, and start thinking about what it's worth to the client.
A school that needs a reliable cleaning contractor before pupils arrive at 8am isn't buying cleaning hours. They're buying the confidence that the building will be safe, presentable, and compliant every single morning.
A facilities manager at a school will pay more for a company that sends inspection reports, has trained DBS-checked staff, and responds within the hour when something needs attention.
Show the value. Then price for it.
Your Margin Is Your Business
A healthy cleaning contract should deliver 15–25% net margin after all true costs. If you're consistently below 10%, you're working too hard for too little.
A quick sanity check for any new quote:
- •Calculate your true cost for the site (labour + supplies + travel + insurance + overheads)
- •Add your target margin (aim for 20%)
- •Compare that number to what similar contracts go for in your area
- •If it's competitive, quote it with confidence. If it's higher, make sure your proposal explains why you're worth it.
Don't apologise for your prices. If you've done the maths properly, you know exactly what you need to charge to run a sustainable business.
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