If you’re tired of pouring money and resources into cleaning supplies and training staff yet still not getting the desired results, a commercial cleaning company could save you money. And yet you wonder if it is a worthy investment.
It might sound counterintuitive. You’re spending an initially high cost, but investing in commercial cleaning services often yields a significant ROI. The upfront costs may seem daunting but you’ll soon see in this comprehensive guide how its long-term benefits far outweigh the initial investment.
A simple formula for doing the simple calculation of the ROI you can get from hiring a commercial cleaning company
ROI or Return on Investment measures the profitability of an investment. In this context, it refers to the financial gain your business receives relative to the cost of hiring commercial cleaning services.
Here’s a simple formula:
ROI = (Gain from Investment – Cost of Investment) / Cost of Investment
ROI boils down to the following:
- Find out how much money your business gains from hiring a cleaning service.
- Subtract the cost of the cleaning service. The price can come from the specific pricing model stated in your contract with the company, whether it’s an hourly rate, a per-square-foot fee, a monthly contract, or a customized package.
- Divide that number by the cost of the cleaning service.
How to quantify the "Gain from Investment"
The gain from investment is the positive financial impact your business experiences from hiring a commercial cleaning company.
This can be tangibly measured in several ways:
- Increased productivity: Employees are not burdened with cleaning duties, allowing them to dedicate more time and energy to core responsibilities. A boost in productivity can directly lead to higher sales, improved customer service, and ultimately increased revenue.
- Reduced absenteeism, as a clean and healthy workplace, can lead to fewer employees taking time off due to sickness. Commercial cleaning services help minimize the spread of germs and allergens, reducing absenteeism costs and ensuring the continuity of your business, especially if it is a small one.
- Lower costs on maintenance and repair: Regular cleaning helps prevent dirt, dust, and grime from building up and speeding up the wear and tear on your facilities and equipment. Ensuring everything is in optimal condition allows you to lengthen the lifespan of your assets and save money on costly repairs or replacements.
- Improved brand image and customer satisfaction: Clean and well-maintained storefronts or environments signal professionalism, attention to detail, and quality commitment to your clients. All of these are correlated to increased sales and a stronger brand reputation.
Let’s look into a hypothetical case study that COULD happen to any small business owner
Now you know where the sources of the gains can come from, let’s calculate the ROI for a business — a hypothetical gym and fitness center called “Peak Performance Fitness”.
The Scenario
Meet Sarah, the owner of Peak Performance Fitness. Before hiring cleaning services for her fitness center, her staff juggled cleaning duties alongside their primary roles as trainers and front desk. They spent about 10 hours weekly cleaning, costing the gym $150 in wages.
Not only was this time-consuming, but the gym’s cleanliness was inconsistent, leading to occasional complaints from members about dirty locker rooms or equipment, not to mention the disgruntlement of her staff.
The Breaking Point
Sarah was at her wit’s end. Her staff, once enthusiastic and energetic, were quitting in droves, citing the added burden of cleaning duties as a major factor.
Membership rates were also declining due to the grisly state of her gym, and complaints littered online reviews. The once vibrant atmosphere was clouded with frustration and a lingering smell of disinfectant that could not mask the underlying grime.
Sarah eventually realized that her DIY approach to cleaning was no longer sustainable. She could feel her staff’s resentment, her gym’s reputation suffered, and the financial impact was undeniable. It was time for a change.
The Solution: Outsourcing To A Commercial Cleaning Company
After a sleepless night reflecting on her options, Sarah researched commercial cleaning services.
She devoured articles, read testimonials, and crunched the numbers. The benefits of outsourcing became increasingly clear: reduced staff turnover, improved productivity, enhanced brand image, and ultimately, a healthier bottom line.
Armed with this newfound knowledge, Sarah made a decisive move. She partnered with a well-known local cleaning company in her area. The transition was smooth, with the cleaning team quickly taking over all the cleaning responsibilities and arriving regularly.
With their expertise and attention to detail, the transformation of Peak Performance Fitness was about to begin.
The Transformation
The difference was as clear as day. Almost immediately after partnering, her gym began proverbially shedding its layer of grime and unveiling its true potential.
The locker rooms, once a source of complaints, were now consistently fresh and spotless. The exercise equipment didn’t reek of sweat and was free from the sticky residue of countless workouts. Even the oft-neglected corners of her fitness facility were dust-free.
But the transformation went beyond just appearances. The gym’s atmosphere shifted palpably. Employees were no longer burdened by cleaning duties.
Sarah now had the bandwidth to refocus efforts on hiring new trainers and front desk staff, as well as, doing the marketing to attract new members.
The once-dwindling membership numbers began to climb as word spread about the gym’s revitalized ambiance. The online reviews too, now sing praises of the spotless facility and the friendly, attentive staff.
Even Sarah felt a renewed sense of pride in her business, as she walked through the gym and saw the tangible results of her decision to hire a cleaning company.
Calculating the ROI of commercial cleaning: A breakdown of “Peak Performance Fitness”
Let’s revisit Sarah’s story to calculate the ROI. Before outsourcing her cleaning company, her gym faced multiple challenges:
- High staff turnover
- Decreased productivity
- Increased absentee rates
- High maintenance costs
- High overheads (from having to purchase and repurchase cleaning supplies and equipment)
After partnering with the same cleaning company, the facility saw a remarkable turnaround. Let’s break down the potential ROI.
Since the staff at Peak Performance Fitness were not paid extra for cleaning, the cost of in-house wages would be zero. However, there’s still a significant opportunity cost associated with the time they spent on cleaning instead of core tasks.
Increased productivity
Estimate: Performance Fitness operates 24/7 with three shifts: morning (6 am – 2 pm), afternoon (2 pm – 10 pm), and overnight (10 pm – 6 am).
Sarah has 5 trainers who each work 40 hours per week, spread across these shifts. Previously, each trainer spent roughly 2 hours per week on cleaning tasks, on top of their regular working hours, with an average hourly wage of $22.50.
Additionally, 3 administrative staff members, working standard business hours, each spent 1 hour per week cleaning on top of their regular duties, with an average hourly wage of $17. This totals to about 13 additional, unpaid hours spent on extra cleaning duties.
Potential Gain: Through outsourcing, these 13 hours are given back to the employees each week. It also eliminates the negative impact on productivity.
All other factors considered equal, all the employees are collectively not trying to make up for the lost 13 hours by resting the next working day due to exhaustion or slacking off work due to frustration and having to conserve energy for the looming cleaning task before them reluctantly.
Trainers and staff have more time and energy to focus on their core roles — trainers of providing high-quality sessions and potentially attracting and retaining more clients. Admin staff on upselling membership packages, marketing, and other tasks that drive revenue.
This increased focus and reduced fatigue could lead to improved performance, less burnout, and potentially increased revenue:
Calculation:
- Trainers: 5 trainers * 2 hours/week * 50 weeks/year * 10% productivity loss = 50 hours of lost productivity per year
- Admin Staff: 3 staff * 1 hour/week * 50 weeks/year * 10% productivity loss = 15 hours of lost productivity per year
- Total regained productivity: 65 hours
- Estimated revenue gain from regained productivity: 65 hours * $39.50/hour (average hourly rate across all staff) = $2,567.50 annually
Reduced absenteeism
Before hiring the cleaning company, Peak Performance Fitness had a recurring problem: employees calling in sick due to less-than-ideal hygiene conditions.
This absenteeism disrupted operations but also incurred significant costs for the gym.
Estimate: Peak Performance Fitness has 8 employees (5 trainers + 3 admin staff). Assuming each employee previously took an average of 2 sick days per year, at an average daily cost of $150 per trainer (in lost revenue from missed sessions or classes) and $100 per admin staff (in lost productivity), the total annual cost of absenteeism was $2100. This is broken down as follows:
- Trainers: 5 trainers * 2 sick days/trainer * $150/day = $1500
- Admin Staff: 3 admin staff * 2 sick days/staff * $100/day = $600
Potential Gain: With professional cleaning and disinfection protocols, sick days were reduced by a conservative estimate of 25%, translating to annual savings of $525 for Peak Performance Fitness.
Lower maintenance costs
Neglecting cleaning and maintenance can have a snowball effect on costly repairs and replacements for gym equipment and facilities. The buildup of dirt, sweat, and grime can speed up wear and tear, leading to malfunctions, breakdowns, and a hefty repair bill.
Estimate: Before cleaning services, Peak Performance Fitness was allocating an average of $1,000 annually for equipment repairs and facility maintenance due to wear and tear.
Potential Gain: Meticulous cleaning and preventative maintenance practices significantly reduce these costs.
Ensuring equipment is properly cleaned and lubricated, and spills are addressed promptly, the lifespan of equipment and gym flooring can be extended, delaying the need for expensive repairs.
If we conservatively estimate a 10% reduction in maintenance costs, this translates to an annual savings of $100.
Less expenses on cleaning equipment and materials
Estimate: Prior to partnering with Craddock’s, Peak Performance Fitness estimated spending around $200 per month on cleaning supplies.
This included:
- Disinfectant wipes: Approximately $30 for a pack of 4
- All-purpose cleaners: Around $15 per gallon
- Mop heads: Around $10 for a pack of 3
- Paper towels: Approximately $20 per case
- Garbage bags ($10 per box)
Annually, this amounted to $2,400 in recurring expenses. Additionally, they had to budget for replacing worn-out equipment like mops, brooms, and buckets, which averaged around $50 per year.
Potential Gain: Through the partnership with the cleaning company, Peak Performance Fitness eliminated these recurring costs. The company already provided materials and tools, including durable microfiber cloths, squeegees, and commercial grade disinfectants.
They already use well-maintained equipment, be it vacuums or power washers. This could translate to estimated annual savings of $2,450 for the gym.
Furthermore, the expertise of the cleaning company ensured that only the right solutions and products are used for each surface. This maximized the lifespan and reduced the need for constant replacements.
Improved brand image and customer satisfaction
Estimate: Computing the financial impact of a positive brand image and increased customer satisfaction is difficult, but we can make educated estimates based on this case scenario.
Before hiring the cleaning company, the gym was receiving an average of 2 negative reviews monthly, citing cleanliness as a major concern. These negative reviews were estimated to deter approximately 10 potential new members each month.
Potential Gain: After outsourcing, the gym saw a significant improvement in online reviews, with positive feedback about the gym’s cleanliness and overall atmosphere becoming the norm.
This resulted in a decrease in negative reviews and an estimated 20% increase in new monthly members.
Assuming the gym previously had 100 members, a 20% increase would result in 20 new members per month (100 members * 20%).
With an average membership fee of $50 per month, this translates to a potential monthly revenue increase of $1,000 (20 new members * $50/month), or $12,000 annually ($1,000/month * 12 months).
Key takeaway
Calculating the exact ROI that you can potentially get from hiring a cleaning company can be difficult, but the overall gains, tangible and tangible are undeniable.
This is true especially if you partner with a reputable provider with an excellent track record.
By factoring in the cost savings from reduced sick days and maintenance of overheads, as well as, the potential revenue increase from a clean facility that attracts new members, it can be clear that professional cleaning is a wise investment.
Disclaimer
The figures and calculations presented in this example are for illustrative purposes only and are not intended to represent the ROI for every gym or fitness center precisely.
The actual return on investment from hiring a commercial cleaning company can vary widely depending on size, location, employee wages, membership fees, specific cleaning services, and other business-specific factors.
The goal of this example is to highlight the potential financial and non-financial benefits of outsourcing cleaning tasks, such as increased productivity, reduced absenteeism, and lower maintenance costs.
While it’s estimated that these benefits could lead to significant financial gains for your business, the calculation does not account for the potential impact of employee burnout due to additional cleaning duties.
It’s important to recognize that even without explicit additional unpaid hours, assigning cleaning duties to employees can contribute to burnout.
Factors like the physical demands of cleaning, the added mental load of juggling multiple responsibilities, and the potential resentment of feeling underappreciated for taking on tasks outside their job description can all negatively impact employee morale, motivation, and overall well-being. These factors, while not easily quantifiable, can significantly influence a business’s performance.
Therefore, it’s crucial to consider your unique circumstances and consult a professional cleaning service to get a clearer picture of how much you can save instead of in-house cleaning.
It’s also important to prioritize employee well-being by ensuring fair compensation for additional work, providing adequate rest and time off, and hiring enough staff to handle all necessary tasks without overburdening individuals.