I often ponder if people are aware of the sheer cost of running a business.
Running a good, sound business involves no corner cutting, no underpaying staff, no avoiding paying bills, and no skimping out on cheap products.
Average running costs for most cleaning businesses are around a minimum of $40+ per hour on average (and this is all some cleaning companies charge). Pricing includes wages, insurances, factors in fuel costs doing local work, products, etc. On top of that, you have to factor in all other costs of advertising, vehicle maintenance, replacement of equipment if it fails, tax, superannuation, and the list goes on.
The pay rate for a casual adult cleaner as of 1st July 2023 is $30.09 P/H before tax, rounding up comes to $33.40 P/H with super added. This is not including the allowances under the cleaning award.
Also, if you run a good, sound business, you need to operate at around a 60% margin; we like to operate at 50% as closely as possible. Businesses need to make a good profit; that’s how they survive, grow, and continue to employ people.
In today’s economy, $50-$60 per hour doesn’t cover much, unless you work alone as a sole trader (or you work 24 hours a day with no sleep). But as a bigger company, that might cover your costs with some change.
Keep in mind that some people are passionate about what they do as a business and are good at what they do. These are the people to support. Cheap might be good, but what are you getting for your money? What value are you getting?
Undercutting is an unethical business practice, something we do not do. We quote what our rates are, not charge less just to win a job.
In conclusion, small local businesses are what make a community strong; support them. Online shopping might be cheaper at times, but long-term, it’s far more costly.
