How to Start and Grow Your Own Cleaning Business

 
Start A House Cleaning Business

 

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Following are some interesting facts and figures on the residential cleaning business.  This information has been gathered both from research and through our own experience during our years in the residential cleaning business. 


Number of American Households Hiring Cleaning Help:

According to a report by American Demographics, the number of households turning to outside help with their house cleaning chores was predicted to increase from an estimated 10 million in the year 2000 to 10,740,000 by 2006.


Frequency of Cleaning Visits:

The key to building a viable residential cleaning business is to develop a clientele who use the service on a regular weekly, biweekly or monthly schedule.  Our own experience around the country over 15 years has revealed the following breakdown as being typical:

Frequency of Cleaning Schedule

Percentage of Clients

Weekly

12.07%

Biweekly

70.35%

Monthly

12.17%

Other (one time, periodically, etc.)

5.41%


Typical Demographic Profile of a Residential Cleaning Customer:

We have found that typical clients are dual-income households, professional single adults, high income single parent families, and affluent empty nesters and retirees. They will typically be between 35 and 64 years of age, with a household income over $75,000 annually.  However, virtually EVERY household earning over $100,000 a year, regardless of other demographics, is a prime candidate for a weekly, biweekly or monthly cleaning service.  Even households with high six- or seven-figure incomes who have part- or fulltime domestics often hire outside professional cleaners to assist their live-in help.

Number of U.S. Households by state

with the following demographics:

Annual Income:  $100,000 or more

Age:  35 - 64

Own their Home

 

STATE

 # HOUSEHOLDS *

ALABAMA

               130,137   

ALASKA

                 46,794

ARIZONA

               225,705

ARKANSAS

53,303   

CALIFORNIA

            1,801,578

COLORADO

               281,462

CONNECTICUT

               284,250

DELAWARE

                 53,525

DISTRICT OF COLUMBIA

                 30,288

FLORIDA

               871,215

GEORGIA

               364,398

HAWAII

                 42,485

IDAHO

                 43,036

ILLINOIS

               601,244

INDIANA

               242,089

IOWA

                 85,321

KANSAS

                103,875  

KENTUCKY

                113,087

LOUISIANA

               140,151  

MAINE

                 44,183

MARYLAND

               439,313

MASSACHUSETTS

               494,034

MICHIGAN

               484,935

MINNESOTA

               308,815

MISSISSIPPI

                 54,402

MISSOURI

               211,447

MONTANA

                 26,189 

NEBRASKA

                 74,706

NEVADA

               139,495

NEW HAMPSHIRE

               94,935

NEW JERSEY

               683,078

NEW MEXICO

                55,780

NEW YORK

              944,314

NORTH CAROLINA

               376,022

NORTH DAKOTA

                  11,676  

OHIO

               542,072

OKLAHOMA

                 86,506

OREGON

               168,452

PENNSYLVANIA

               487,814

RHODE ISLAND

                 45,486

SOUTH CAROLINA

               150,699

SOUTH DAKOTA

                 16,276

TENNESSEE

               186,175

TEXAS

               876,982

UTAH

               112,130

VERMONT

                 22,308

VIRGINIA

               448,208

WASHINGTON

               371,079

WEST VIRGINIA

                 22,718

WISCONSIN

               282,967

WYOMING

                 12,522 

US TOTAL

              13,787,000

 

*Source:  InfoUSA 2005


Average Cleaning Price:  The price for house cleaning varies, depending on a number of factors.

  • The entity doing the cleaning.  There is generally a wide gap between what individual house cleaners can charge for their service versus what a full-fledged, professional residential cleaning company can command. 

  • The amount of work involved:  No two homes are identical when it comes to cleaning them, even if they are identical in size and layout.  Obviously, the more work the higher the price.

  • The geographic location:  The price for cleaning a home that requires "X" amount of time and labor in a large urban center is generally higher than it is for a house with the same amount of time and labor in a small town.  The difference is in the cost of labor and other operating expenses.

  • The value-added features and benefits:  A professional cleaning service offers far more than just doing a satisfactory job of house cleaning.  ""Real" cleaning companies carry liability insurance, third-party fidelity bonding, and Workers' Compensation Insurance.  They pre-screen their employees, including legal eligibility to work in the United States, conduct criminal background and reference checks, look after their employees' social security and Medicare taxes, and provide professional training and supervision of their employees.  The average cleaning price we've experienced around the country has ranged between $75 and $110 in recent years for routine weekly and biweekly cleaning visits.

  • First time or onetime versus repeat cleaning visits:  It can take as long to clean the bathrooms alone on a first time cleaning visit as it will to do the entire home on subsequent regular weekly or biweekly visits.  It is not unusual for a first time cleaning to take two to four times as long as routine light house cleaning thereafter.  We have seen first time/onetime cleaning charges ranging from as low as what is charged on repeat visits (for homes in pristine condition) to as much as several hundred dollars.


The Value of the "Average" Client:

In many businesses the owner is challenged with spending a lot of time, money and effort to find and sell a customer one time, or only infrequently after the first sale.  One of the benefits of this industry is that you get to sell the client every week or two.  A client who pays you $85 every other week represents over $2,000 per year in revenues.  A weekly client at the same cleaning price can be worth double that amount annually.  Get your calculator out and do the math!  A couple hundred repeat clients can represent substantial annual sales revenues.


The Number of Existing House Cleaning Companies:

With all the individuals who clean houses on their own or with one or two helpers -- many of them operating in the underground economy and under the radar of the IRS and the INS, no one knows for sure how many of these small independents there are throughout the country.  However, we do know that there were over 12,000 house cleaners listed in the telephone directories across America in 2005.  The breakdown by state is as follows:

STATE

NUMBER OF
HOUSE CLEANING
COMPANIES 

ALABAMA

               124 

ALASKA

                53

ARIZONA

              211

ARKANSAS

                41

CALIFORNIA

            1,788

COLORADO

              278

CONNECTICUT

              240

DELAWARE

                58

DISTRICT OF COLUMBIA

                19

FLORIDA

              945

GEORGIA

              309

HAWAII

                54

IDAHO

                44

ILLINOIS

              480

INDIANA

              152

IOWA

                96

KANSAS

              114

KENTUCKY

                86

LOUISIANA

                95

MAINE

                80

MARYLAND

              331

MASSACHUSETTS

              527

MICHIGAN

              341

MINNESOTA

              180

MISSISSIPPI

                53

MISSOURI

              222

MONTANA

                37

NEBRASKA

                56

NEVADA

              186

NEW HAMPSHIRE

              129

NEW JERSEY

              348

NEW MEXICO

                79

NEW YORK

              731

NORTH CAROLINA

              458

NORTH DAKOTA

                15

OHIO

              427

OKLAHOMA

                92

OREGON

              175

PENNSYLVANIA

              471

RHODE ISLAND

                64

SOUTH CAROLINA

              252

SOUTH DAKOTA

                19

TENNESSEE

              180

TEXAS

              535

UTAH

                89

VERMONT

                51

VIRGINIA

              418

WASHINGTON