Cleaning companies and how they arrive at rates

If you visit your local phone book or do an internet search, you will find any number of  cleaning companies.  Once you start calling,  you will notice the following:

a.  The price ranges vary tremendously

b.  Some companies insist on an in house estimate while others do not

c.  Companies differ in the types of products they offer

d.  The crew numbers vary from 1 cleaner to up to 5 or even 6 cleaners per home

While reading a review of another company recently, I was struck by something that the reviewer wrote.

He said regarding pricing that….

They charge around $100 for a house with 3 BR, 4 Bathrooms and a finished basement

Based on that comment, I can tell you how much their employees make and I also can tell you why they are able to charge slave wages for all that work (yes, $100 amounts to slave wages for a house that size).

a.  I’m pretty certain that the “company” is not registered as a real company.  But even if they are, I am 100% positive that they carry zero insurance.  There is no way that they can afford to carry insurance and  still be able to charge $100 to clean a 3 bedroom, 4 bath house with a basement (That’s a lot of work—-that’s 3 floors!)

b.  The person who owns this “company” is the one doing the cleaning (as opposed to simply running the business).  And my guess is that she has a family member helping her out.  That way she does not have the expense of payroll and she does not have to hire a company to complete her payroll.  They are probably also a “cash only” company that does not pay taxes.

c.  IF she has an employee outside of her family, that person is making either minimum wage or less than minimum wage.  I determine that based on the low fees she is charging.

Here is the deal.  Cleaning companies have overhead.  Legitimate companies are carrying Workers Comp insurance (expensive), liability insurance (expensive) and some type of bonding insurance (more affordable).  Insurance alone puts companies in a position where they must charge a decent and realistic rate.

What happens if a company does not carry insurance?  Well the danger is on the part of the homeowner.  If a worker in an uninsured company gets hurt while in the home, that homeowner is responsible for the medical bills.  That is a fact. And if something gets broken, the homeowner must hope that the “company” can afford to pay for it since they have no insurance.  And in the case of theft….no bonding insurance to fall back on.

What is the true price for cleaning a 3 bedroom, 4 bath, 3 level home?  Well if it’s a first time “deep” cleaning, it will cost a minimum of $260 and possibly more, depending on how many hours it takes to clean it and its condition.

Ongoing cleanings of that same house would generally run (for 3 levels) at least $168+ every 2 weeks.

In life, we get what we pay for.  Of course a homeowner will save money by hiring a pseudo-company that is uninsured and pays no taxes.  But in the long run, what good is it doing to gamble?  The IRS is being cheated and the homeowner is assuming great risk by having this uninsured person or persons in their home.

How do legitimate cleaning companies arrive at our rates?  We look at the full picture.  Overhead is a reality and so is labor.

I say it time and time again. Hire a real company. Don’t take any chances on hiring people from off the street to come into your home around your children, your pets, your valuables…..your keys.

Photo credit HERE