This is the cost to do the job, and I tacked on some operational costs outside which I call a “constant”. And the profit posted per job does NOT INCLUDE WHAT YOU PAY YOURSELF and will VARY depending on how you run your business. But for the Houston market this is pretty accurate. These numbers may vary depending on your region. Model 3) Or 1 truck a day doing 1 job a day that is a $1000 job with profit margins of 600$ per job? ![]() Model 2) Do you want to run 2 trucks a day that do 2 jobs a day at 500$ per job with profit margins of 250$ per job? That would be 2000$ a day with profit margins of 1000$ per day Model 1) Do you want to run 3 trucks doing 100$ jobs 5 to 7 times a day with profit margins of 25$ per job? That would be 2100$ a day with a profit of 525$. Model 1 is a model I never want to be in, and you will understand why when you understand the math. The two I have personally done are model 2 and model 3. There are 3 different pricing models in residential cleaning I have seen. The pricing I go over below will paint a better picture for you. You are going for the clients who eat at Cheesecake Factory, not McDonalds. Do you want to send someone who doesn’t groom themselves, or someone who is presentable? Do you want to send someone in a beat up van with 3 different colors? Or a truck that is wrapped and represents your company well? Image has a cost, and the Cheesecake Factory knows this. The concept is the same with a cleaning business. I will take a date to the Cheesecake Factory way before I ever take them to McDonalds, unless I just want to terminate the relationship (it is ok to laugh). Do you believe McDonalds will put Cheesecake Factory out of business? I don’t believe so. But the customer experience is entirely different, and so is the pricing. What I am getting at is what kind of business do you want to be? Do you want to be a McDonalds or do you want to be a Cheesecake Factory? They both do the same thing, make you full. Even Amazon and Walmart struggle to excel in all 3 of these. What has been found is that a business CANNOT afford to be the cheapest, fastest and best quality. ![]() There is an axis on how you define your value proposition. There is a book called “Discipline of Market Leaders” that can be purchased at Īlthough the information is dated, the concept isn’t. Learn the definition and meaning of “Value Proposition” and memorize it well, it will be what defines your service, and company. What you need to understand is that there is what you value a service at, and what someone else perceives the value at. ![]() Pricing jobs is an extremely delicate subject because there isn’t a “right answer” to anything pricing related.
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