The Costs You Forget

Why a fully booked week can still break even — the itemized list of everything that isn't wages.

The itemized list

Typical annual numbers for a small residential company running two teams. Yours will differ; zeros are rarely honest:

CostTypical annualNotes
Payroll taxes & workers' comp15 – 30% of wagesThe burden that turns $16/hr into $19–20
Liability insurance & bonding$700 – 2,500The thing customers are actually paying the premium for
Supplies & equipment$2,500 – 6,000Chemicals, vacuums on 1–2 yr cycles, cloths, PPE
Vehicles & fuel$4,000 – 10,000Short-trip city driving is the hardest duty there is
Drive time15 – 30% of paid hoursPaid like cleaning, billed like nothing — unless priced in
Cancellations & lockouts3 – 8% of visitsA crew standing on a porch is payroll with no revenue
Empty schedule slotsvariesChurned clients leave holes; refilling them costs ad spend
Scheduling software & ads$1,500 – 6,000How the calendar stays full enough to matter
Quality callbacks1 – 3% of visitsFree re-cleans are the price of reviews; budget them

The two that hurt the most

Cancellations are pure loss: the slot was reserved, the crew was scheduled, and the revenue vanished with a text message. The fix is a policy with teeth — 24-hour notice or 50% fee, in writing at signup — enforced kindly and without exceptions. Businesses that "don't want to be difficult" about it are, mathematically, running a free-rescheduling charity on top of a cleaning company.

Churn is the quieter one. Losing a $150 biweekly client is $3,900 a year of revenue that ad spend has to replace. This is why pricing slightly under the top of the market and being ruthlessly reliable beats maximum-price churn every time — retention is the highest-margin activity in the industry.

What to do with the list

  1. Total your real numbers and divide by annual visits — that's your true overhead per visit.
  2. Feed it into the calculator's overhead percentage.
  3. Re-quote your five lowest-priced recurring clients. At least one is below break-even; they're the reason busy months feel poor.

Turn the list into prices

The free calculator folds burden, supplies, drive, and overhead into every quote. The $29 workbook keeps it all tunable — team costing, add-on menus, commercial bids, and a client book with income tracking.

Free Pricing Calculator