Maybe you’re thinking, why does it cost so much these days to get my windows or house cleaned? I mean after all its just cleaning right! What could possibly make it cost so much? Well hopefully this article will help explain the costs behind the service.
So what goes into the cost of a home service? Well first of all, with home services we are barely selling any product at all…. we’re selling the service. Meaning, we’re selling our employees time and expertise. How much does it require in order to be able to support with an employee a living wage? In order to retain valuable, trustworthy, responsible employees? This is one of the biggest factors in the price tag of services.
Another factor is the driving, set up and service time. If we could clean windows all day without driving, setting up, invoicing, talking, loading tools, or keeping the trucks tidy then perhaps money could be save. But the truth of the matter is that there is a fair amount of work behind the scenes in order to give a good customer experience. So the time spent on the job is not the only time that goes into the experience.
Expenses are another thing. In order to run a healthy business that can be sustained and consistently deliver the same great experience over and over again, there’s a cost. Shop rent, fuel, tools, uniforms, marketing expense, laundry, broken tools, paid time off, company culture, team meetings, next level software, health benefits, the list goes on and on. On top of those costs are the insurance and payroll costs. These typically add about 25% to the employees cost. So if someone is paid $20/hour it actually costs the company $25.
In an effort to build and maintain a healthy company offering an amazing customer experience and service, we need to maintain margins. In general the cost of labor needs to be around the 40% mark of total cost. That means if an employee costs us $25 for an hour we need to make $60/hour and that doesn’t include the costs of routing etc. Most service companies that have been in business for a while and maintain a healthy company will agree that at a minimum a company must average between $75-$100 per hour for growth.
Live Next Level prices all jobs by the window, square foot, or size. This way you get an upfront cost that you never have to worry about surprises with and it is up to us to make sure our team works efficient and is trained properly so that we maintain our margins