Ways to Increase Your Cleaning Company’s Profit Margin

If you haven’t set up your cleaning company to volunteer, your main goal as a cleaning business owner is profit. Without it, your company will not survive. It’s no surprise that one of the questions crime scene cleaners or water damage cleaners as is “how can I increase my profit margin?”.

There are three main strategies for increasing profits for your cleaning business: cutting costs, selling more services, and/or raising prices.

We found that most crime scene cleaners tend to focus on only one of the three ways to increase revenue and pay less attention to the rest. In truth, finding a balance between all three strategies is almost always the smartest approach to building a successful and profitable cleaning company.

How to Increase Your Cleaning Company’s Profit Margin?

Cleaning companies like crime scene cleaners or suicide scene cleaners looking to improve profitability often try to cut costs first. They look at the turnover and then they focus on ways to save on payroll, office expenses, supplies, and marketing. They are looking for more efficient tools and equipment that can provide a quick return on investment by allowing professional crime scene cleaners to do more work in less time.

  • Cutting costs.

The truth is that most of the time we need fewer resources to do our job than we think. Making smart shortcuts allows us to maintain your prices and customer base while still making more money. This means increasing profits without increasing prices or having to find new customers.

What’s more, figuring out ways to reduce operating costs and improve efficiency is a must for the crime scene cleaners because it’s getting harder to find enough professionals to keep up with the growth in sales.

Cutting costs is not always easy. The thinner your operation, the more difficult it will be to find room for further cuts. In the end, you run the risk of cutting too far and ending up with overworked, underpaid, poorly equipped and poorly trained technicians. This will lead to dissatisfied customers, loss of business and reduced profitability. The business may then be tempted to make even more cuts (and exacerbate the problem) or be forced to cut prices.

Lean manufacturing is important for sustainability. Ultimately, continuous growth is the key to consistently increasing profits.

  • Selling More Cleaning Services.

Marketing oriented cleaning company owners are more likely to focus on customer attraction and retention. Their goal is to attract new customers and keep the existing customer base long term. They focus on marketing efforts, upsells and cross-sells, customer loyalty programs and exceptional customer service.

The more clients, the more money. Happy customers are more likely to buy more services and make referrals, which means higher profits.

It costs money to get new customers, including advertising costs and sales team salaries. Fortunately, for existing customers, it can reduce/offset the costs associated with marketing or customer acquisition. You will also need more staff to do the extra work and you may find it difficult to find reliable crime scene cleaners in the cleaning industry.

Raising prices

Price increases do not require new employees or other investments. And even a small change can have a dramatic effect.

It’s a proven fact that 1 percent increase in prices (with no change in sales volume) results in an 8 percent increase in operating profit. This impact is nearly 50 percent greater than a 1 percent drop in costs, and three times greater than the impact of a 1 percent increase in sales.

Clients can pay more, but if they don’t see value for money, they may turn to other cleaning companies, especially in a highly competitive market.

As a profit-driven business owner, your primary goals should be to attract and retain good customers and keep your costs as low as possible while providing a high quality service.