Setting a Good Price for Customers in Business

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An Afripreneur starting up a cleaning service business a while ago asked, "Please can anyone help me out with the pricing information and workability of

providing Home Cleaning services. I'm putting up my paperwork to start-up the Home Cleaning business, and I need rate of charges for effective pricing." These were the practical reponses received;

Ayotokunbo Ajewole 
Please roll these through your mind:
1) who are your target customers? individuals or companies/organizations? where is your location? where is your target location?
- what I mean is do you have in mind just about anybody who walks into your door regardless of your location and their(the physical to be cleaned house) location? or you are interested in long term contracts? like cleaning the homes of expats of a company XYZ often located in a particular area?

2) where would you be operating from and where do you expect your target homes to be. Consider the relationship between Distance, Time and Efficiency.

3) Time / Cleaning Intervals: I assume you would be employing cleaners to do the jobs. What would be the cleaning intervals: who dictates this? you or the customer.
- would you offer me a menu of cleaning intervals to choose from or you would adjust to my needs whatever they are?
- for organizational settings, would your cleaners be partly resident in the homes for a couple of days or just a day by day work. (I mean, I would rather have a cleaner come to my house Monday morning, clean, eat and sleep over, leave maybe Tuesday Night / Wednesday morning rather than having 3different people show up on 3 different days / the same person show up from 9am to 5pm

Omotayo Adegbenro 
Really,I don't think you can have a pricing rate, I doubt If that wld work, u can't have fixed charges, calculate your cost, Labour as well. You can set a standard margin you want to make per job, it varies, by size, location, frequency etc. You win some and lose some. An office cleaning you want to offer to do for N30,000 for instance, there is some boy out there with just OMO and brush Willing to take on it for N5,000. So you check the work to be done, size up your customer, calculate your cost, add your margin and that is it. Having a rate in mind might not work, I got burnt couple of times and had to fall back to the drawing board.....just know you can't serve everybody, so streamline your customer type too. I hope this helps though. Best of luck!

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Segun Ogunlana

A social innovator, a fixer, who likes to make a difference and get things done better. His focus covers Project Management, Systemic Innovation, Product Development, Design Thinking, Business Strategy, Set-up & Development. Some call him a super manager, natural marketer and sales man. He is a Chelsea fan too.

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