How Much Do Cleaning Companies Make? Profit Margins

Learn the profit potential for cleaning companies

Nelmie Jane Pardo | Updated March 29, 2023

Before you start a cleaning business, you need to know how much you can earn annually to decide if it’s profitable for you. Valuable information, like the average cleaning business owner’s salary and profit margins, can help you make well-informed business decisions.

To help you gain an insight into the profitability of a cleaning company, we’ll talk about the typical salary ranges of a cleaning business owner and the average profits of a cleaning company in the U.S.

How Much do Cleaning Companies Make?

Cleaning business owners in the U.S. make an average income between $50,000 to $60,000 USD annually. This amounts to $26-$32 per hour. This hourly rate is based on working 160 hours per month. Salaries go as high as $110,000 on the high end for companies with large sales volumes.

Annual salaries and hourly wages of cleaning business owners in the U.S.

Cleaning Business Owners	Annual Salary	Hourly Wage
Top Earners	$110,000	$53
75% of Cleaning Business Owners	$69,500	$33
Average	$55,949	$27
25% of Cleaning Business Owners	$26,000	$12

As you can see, cleaning business owners’ average earnings significantly vary, which means you have opportunities for scalability, growth, and higher pay as you level up your skills and experience. The location of your business also plays a key role in your annual cleaning business profits.

Several other factors can affect the profits of a cleaning service company, which we will discuss below.

What Is the Average Profit of a Cleaning Business?

The annual profits of a cleaning company depend on various factors, including the location, scope of services, number of customers, and service charges. Learning how to price house cleaning in a profitable yet competitive manner will help you scale your business.

On average, residential cleaning businesses in the U.S. make profits between $36,000 to $100,000 annually (2).
House cleaning businesses that generate at least $36,000 in profits typically clean 25 to 30 homes monthly and charge anywhere between $100 to $300 per cleaning job.

Overall, the amount of money your business can earn largely depends on how much you bid on your cleaning jobs, how many clients you can get, and how much work you can do.

Key-Takeaway: Cleaning businesses with a steady stream of clients have higher, more consistent profits. If you’re ready to take in more clients, then you also have to be prepared to hire additional cleaners to handle more jobs.

Profit Margins for Cleaning Companies

So what does it take to be profitable? A reasonable profit margin for a cleaning company is around 10% to 28%. You can gradually raise your profit margin to as high as 50% or more as your business grows.

For example, if your total revenue is $700,000 and your overall expenses are $500,000, then your net income is 200,000.
You can calculate your profit margin percentage by dividing the net income by revenue. In our example, 200,000 divided by 700,000 is 29%.
29% is a healthy profit margin for a new cleaning business.

Cleaning businesses typically have high profit margins and low startup costs, making them quite profitable.

However, total cleaning business profits vary significantly from one cleaning company to another depending on factors like location and prices of services.

Compelling Cleaning Industry Statistics and Trends

Residential and commercial cleaning businesses can be incredibly lucrative as demand for cleaning services continues to skyrocket all over the U.S.

Take a look at these impressive statistics and trends:

The U.S. Department of Commerce forecasts that 80% of households will use a home cleaning service by 2024.
The average hourly prices for deep cleaning across the country range from $55 to $65.
The projected worth of the residential cleaning market by 2025 is around $40 billion (1).
There are 1.99 million cleaners and janitors and more than 1 million cleaning businesses in the U.S., so the cleaning market won’t get swept under the rug.
North America has the most prominent cleaning industry market worldwide.

More than ever, millions of people are concerned with hygiene, health, and cleanliness, leading to a substantial surge in demand for residential and commercial cleaning services.

Residential house cleaning is a fast-growing industry with an expected annual growth rate of 20%, and it’s undoubtedly an enticing market to enter for aspiring business owners.

Is a Cleaning Business Truly Profitable?

Yes, definitely! The startup costs of a cleaning business are low, and it’s not an incredibly complex type of business to manage. Plus, there’s reliable demand for cleaning services all around you. You can get your business up and running in no time with some elbow grease and dedication.

Here are the top reasons why a cleaning business is a profitable venture:

High Demand for Cleaning Services

There’s a fast-growing demand for professional cleaning services in the residential and commercial cleaning markets. Homeowners and commercial business owners all need someone to come by and keep their properties clean and sanitary.

You can charge higher rates on your cleaning proposals if there’s an increasing demand in your area, although you’ll likely have to set competitive prices if there’s a lot of competition and average demand.
Find the typical rates in your location by calling five or more local cleaning services.
It’s a good idea to investigate the types of cleaning services your competitors offer, so you can plan ahead and identify competitive rates that will still earn you reasonable profits.

Great Opportunities for Scalability and Growth

The cleaning industry statistics and trends shown earlier prove the considerable growth potential. Opportunities to get cleaning clients are almost limitless.

As you become more experienced in running your business and knowledgeable about your target cleaning market, you’ll be on the fast track to securing a steady flow of cleaning contracts and ultimately double your cleaning business profits.

Low Startup and Operating Costs

Cleaning businesses typically have low overhead costs, so it’s easier to increase your profit margins. The typical expenses of running a cleaning company include cleaning supplies, equipment, liability insurance, licenses, labor costs, cleaning uniforms, and transportation expenses.

Pro-tip: You can save on startup costs by using space in your home as your office in the first year. As demand surges and your profits increase, you can move into a more presentable office and hire more staff.

Can I Get Rich Running a Cleaning Business?

Yes, a cleaning business can become successful and immensely profitable. It’s a gradual process that usually takes years of commitment and hard work.

Like any other business venture, a cleaning firm isn’t going to make you rich overnight or even after months. The truth is every well-thought-out business idea has the potential to make anyone rich.

However, in reality, most cleaning businesses fail in the first few years due to poor research and planning, ineffective marketing, low quality of services, and lack of online presence.

Succeeding in the cleaning services industry takes more than just providing stellar services; it’s critical to advertise your cleaning business vigorously, expand your network, and do everything you can to reach your target audience.

You must be a savvy business owner who knows how to manage your cash flow and advertise your services properly. In your first year, you should be prepared to have a tight budget and sacrifice part of your personal savings to pay for various expenses and keep your business afloat.

If you apply advanced digital marketing strategies to get ahead of the competition, plan thoroughly, and perform diligent research, you can run your own cleaning company and thrive in the industry.

Key-Takeaway: Once you’ve mastered managing your company, you’ll find yourself earning more and more profits as you scale your business, increase your team, and widen your network of clients. Being an expert in your chosen industry will help expand your company and reach your goals.

How To Increase Profits as a Cleaning Business Owner

To become a successful cleaning business owner and enjoy substantial profits, you must make your cleaning business shine.

You must draw in quality customers who will stay loyal to your company and drive more business through networking and referrals.
It’s also vital to get ahead of the competition and stay top of mind among prospects.

Follow these must-read growth strategies to make your cleaning business successful and highly profitable:

Deliver Outstanding Services

The quality of your work will speak for itself and drive more clients through word-of-mouth referrals.
Your company’s reputation can make or break your success, so make sure to deliver exemplary services every time.
Follow the specific cleaning instructions of clients to keep them happy, so they will recommend your company to neighbors, friends, and everyone they know.

Prioritize Your Cash Flow

A study by U.S. Bank revealed that a whopping 82% of small business owners (3) failed due to cash flow problems.

Make sure to manage your finances responsibly. It’s critical to budget properly and analyze your cash flow statements to ensure everything is in order.
You can use cloud-based software, hire a bookkeeper, or ask for help from a certified accountant to keep your cleaning company’s cash flow in check.

Invest in Online Marketing

In today’s modern digital age, any business without an online presence lags far behind competitors. Make sure your prospective clients see your cleaning business on page one of search engine results when they look for local cleaning services.

Explore the following proven marketing tactics:

Get a professional-looking, mobile-friendly cleaning company website design that gives site visitors a favorable experience and creates a lasting impression.
Implement proper cleaning company SEO to push your site rankings to the top.
Build your credibility and authority by creating quality blog posts.
Get your business on Google by managing your Google Business Profile.
Use paid advertising like Facebook Ads for cleaning companies to show targeted ads that spread awareness about your business.
Leverage social media and regularly post engaging, relevant content.
Post glowing reviews on social networking sites and on your website. It’s important to maintain a positive reputation online and offline.

Keep on Networking

Attend local events, shake hands with the right people, talk to other contractors, and market your services diligently.
You can also join cleaning-related community activities and make people aware of your cleaning business by handing out pamphlets, flyers, brochures, and even free branded merchandise.
Follow up with customers after a cleaning job by sending a thank-you email, where you can ask if they’re happy with the results, encourage loyalty, and offer special discounts for successful referrals.

Key-Takeaway: When you follow the tips above, you’ll significantly increase your chances of earning great profits with your cleaning business.

Frequently Asked Questions

Do janitors make good money?

Yes, janitors make as much as $117,000 annually on the high-end working as independent contractors. The low end is around $30,500 annually. The average independent janitor in the U.S. earns $59,961 annually.

In comparison, the average salary of Janitor employees ranges from $29,179 to $37,827.

Factors like education, skills, years of experience, and certifications affect the salary range of janitors. Highly skilled and experienced janitors can certainly earn well, especially those who run successful cleaning businesses with employees. On the other hand, beginners and part-timers typically get a low pay and earn below the median salary range.

Is being a janitor a good job?

Working as a janitor is a good job if you don’t mind performing physically demanding cleaning tasks. It’s easy to become a janitor, as most employers typically don’t require a college degree. You can get started right away after a brief on-the-job training.

If you like contributing to people’s health and well-being, doing janitorial work can be a rewarding job that provides a sense of satisfaction.

However, janitorial work comes with negative aspects. Some jobs may require cleaning repulsive messes or handling hazardous chemicals. Janitors sometimes have to work on weekends and evenings when clients and employees have gone home.

Do janitors make more than teachers?

On average, public school teachers in the U.S. earn around $65,090.

This means they still earn more than the average janitor employee. But janitorial contractors with employees can earn more than teachers.

Why are janitors looked down upon?

The undesirable nature and low education requirement of janitorial work somehow make it a stigmatized profession. Some people consider it unskilled labor, as it typically doesn’t require formal education. This kind of public perception sometimes leads to disrespect in workplaces.
Nonetheless, many janitors express that employers, clients, and people around them treat them fairly and respectfully.

Succeeding in the Cleaning Services Industry

Becoming a cleaning or janitorial contractor can be incredibly challenging but eventually rewarding when you succeed. Professional cleaning is a very profitable market with high growth potential.

Just make sure to have a thorough self-reflection before dipping your toes in the cleaning industry water to determine if you have the right skills, knowledge, experience, and resources to run your own business.

Remember that business involves immense hard work, patience, and persistence, especially in the first few years. You could work long hours, even on weekends, to get your cleaning company off the ground.

You should prepare yourself for the overwhelming work you’ll face as you start your own cleaning business.

With our information above on the average cleaning business owner’s salary and our handy tips on making a business highly profitable, you’ll be able to put together a realistic cleanin g business plan, make intelligent decisions, and set yourself up for long-term success.

References

https://www.franchisehelp.com/industry-reports/cleaning-industry-analysis-2020-cost-trends/
https://www.thimble.com/blog/cleaning-industry-statistics
https://www.fundera.com/blog/small-business-statistics

Written by Nelmie Jane Pardo

Nelmie Jane Pardo is a senior contributing writer who lends insight into digital marketing methods and business solutions. She regularly writes at BusinessHue to help business owners take their online marketing to the next level.