How to start a cleaning business: 16 – Increasing revenue by increasing average transaction size

Growth is never by mere chance; it is the result of forces working together – James Cash Penney

On our path to increasing revenue we’ve increased our prices and increased our number of customers. Today we’ll explore ways to increase our average transaction size and further improve profits.

Up-selling

Up-selling is a sales technique aimed at enticing customers to purchase a more expensive, upgraded or premium version of your product or service. This may also include add-ons.

With regard to our cleaning business, this strategy could be easily implemented for commercial clients. For example, when quoting a job we could offer a “basic” package for $100 or a “premium” package with additional cleaning duties for $150.

When using this strategy, try to make the “premium” package as attractive as possible. Don’t be pushy with the up-sell. Let the value of the service do the talking.

Cross-selling

Cross-selling is a sales technique used to persuade a customer to spend more by purchasing a product or service related to what is being bought already.

The easiest service for me to cross-sell is window cleaning, which compliments a general cleaning service. Using this strategy, I was able to increase revenue by $126 per month, providing the additional service to four commercial clients.

You could also use this strategy to sell products to your clients. These may include toilet paper, hand towel or hand soap. Adding 10-20% to the purchase cost of the products is an easy way to earn a few extra dollars for very little work.

Packages

Creating an all inclusive cleaning package is the easiest way to increase your average transaction size. Provide your potential client with a quote that includes all aspects of their premises. These can be individually listed on a duties list as part of the quote, as demonstrated below:

General cleaning:

  • Vacuum, sweep and mop floors
  • Kitchen, toilets and bathrooms
  • Dusting, skirting boards and cobwebs
  • Reception and waiting areas
  • remove rubbish and replace bin liners

Windows:

  • Internal / external window clean
  • external sills
  • light clean of building facade
  • remove external cobwebs

Products:

  • Supply toilet paper, hand towel and hand soap
  • Supply all necessary cleaning products

Submitting an all inclusive quote as above increases your chances of selling additional products and service. When submitting the quote, ensure you tell the client that they can add or subtract services from the quote and the price can be adjusted accordingly.

Remember, we don’t want to be pushy when trying to make a sale. Let your reputation and the quality of your product/service do the talking.

Wrapping up, we’ve now added $126 per month by cross-selling a window cleaning service to current clients. We increased our prices, adding another $76 per month and reduced operating costs to save $92.88 per month. Lastly we took on three new clients totaling $525 per month.

So, with a little effort and creativity we’ve added a grand total of $9838 in annual revenue. Next week we’ll take another look at our expenses to see if they can be further reduced.

Have you used up-selling or cross-selling to increase revenue in your business? We’d love to hear about it in the comments!

 

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