An Overview of How a Cleaning Service Business Makes its Earnings on Average in Singapore
Hiring a cleaning company is now synonymous among businesses, homes and industrial sector in Singapore. The cleaning service business is now contributing to economic growth of Singapore as many startups are springing up. But, what do you think these cleaning service businesses make on average?
Well … there’s no doubt that cleaning service business is now lucrative in Singapore in the service industry. Each niche is unique, and their earnings vary.
Let’s us break down how much a cleaning service business make on average in Singapore:
When setting up your own pricing, never make any estimate until you get to client’s premise to see the condition of the facility. Don’t make any blind estimate over the phone in any cleaning service business; you might end up losing a greater opportunity.
The average amount a commercial cleaning service business entails several factors such as square foot, facility layout, number of employees, areas needing special care, the position of appliances and furniture among others. The costings are by the working hours for each employee in a month. If the cleaning service is to be done five times weekly its equivalent to 21 working days, and if it’s thrice in a week the figure is 13 working days in a month. Let’s assume you have ten workers and they work a week thrice. Each worker gets an hour rate of S$30 — the hourly rate per week for the ten workers will be 30*3*10=S$900.
More often, the overheads for janitorial services or commercial cleaning services it is one way or another higher compared to residential, usually between an estimate of 25 to 40 percent of the cost of labor. In my case, the labor cost will be roughly S$225 to S$360. The average net profit for the majority of janitorial cleaning service business will fall between 10 percent to 28 percent of the gross sales.
Let’s take the case of a one-time cleaning service business that does the residential cleaning. The standard rate for a floor area under or above 1000 square feet four-room HDB or a two-bedroom condo and under is S$126. During the peak period, the rates could go up to S$140. For the record, the peak period rates apply three weeks prior to the common festive seasons. These include Chinese New Year, Hari Raya Puasa and Deepavali. The S$126 is the cost per 1000 square foot rate. If for example, you have two cleaners (S$28 market rate), with 10 minutes of drive time (S$5 to reach the premise) and your equipment total to S$4 per hour, it calls for you to charge a minimum of S$37 per hour to break even!
Now, to get you an average profit, we’ll agree that it costs S$37 per hour to clean due to overhead. If it takes 3 hours for your cleaning service business to clean a two-bedroom condo, you can roughly talk of S$5 profit per hour
Therefore, the hourly rate will be illustrated to look like this S$37+5=S$42 per hour
Flat rate: S$42*3 hours=S$126
Remember, most cleaning service business charge on an hourly rate. As such, they base the rates on the number of hours one can use to clean a place. For properties that are larger, a square foot rate is applied to make estimates. Each cleaning business service charge differently and what they make on average will also vary from time-to-time.