How Much to Allocate to Cleaning Costs?
Do you find yourself wondering how much to allocate to cleaning costs in Melbourne? But it’s so hard to find out because people don’t normally share this info…so we did a client survey to figure out how much they spend as a percentage of revenues in cleaning services. We surveyed mostly Property Managers and Administration Managers / Office Managers of Professional Office Spaces (Marketing Offices, Information Tech Offices, etc.). It’s important to know that this is only for Melbourne Metro Area —the data would vary widely depending on location.
We figured 2 important things that may help you if you are trying to put a cleaning budget together for your business. #1 The Cleaning costs as a percentage of gross revenues depends heavily on how many employees these companies have in that particular branch / office. And #2 how many visitors normally visit the facility.
Basically, Managers who reported allocating 1% of their revenues in cleaning costs have 2 things in common: #1 they have more than 10 employees in the facility and some visitors on a daily basis coming in and out of that particular facility. And #2 The companies spending less than 1% in cleaning costs have less than 7 employees and almost no visitors on a daily basis to their place of business.
The companies who spend 2% or higher in cleaning costs per year have more than 25 employees working from that specific facility and have a high number of customer visits to their place of business. For example, a high end building that we clean for in Melbourne – spends 3% of their revenues in cleaning costs, it’s a high-end condo building and the building normally has over 50 employees throughout the day. We clean 7 days per week. This high-end residential building is allocating 3% of their gross revenues to cleaning costs because of the type of condo-owners and their needs for a 5 star cleaning service 7/days per week.
Keep in mind that cleaning costs don’t have to be high to be effective. Every company is different, you have to find a company that can understand your needs. The more info you share during your meeting with the different cleaning or facility management companies, the better they would be able to put together a proposal that makes sense to address your needs.
We hope this has been helpful!