Why Does My Cleaning Service Cost Increase Every Year?

Nobody likes it when the cost of something you want to buy or already have (e.g. a service) goes up in price.

House prices go up every year, so does home and content insurance, and the same goes for new and used cars.

We get that it can be totally frustrating and a kick in the gut when this happens. Because in all honesty, most of us try to look for “the cheaper the better.”

But as we all know, this is life. The cost-of-living increases every single year and there’s not much you can do to stop it.

In fact, the cost of a commercial cleaning service also goes up every year.

If you’ve ever wondered why your service charge changes and what factors are contributing to this, then look no further. At In-Tec, we value honesty and transparency which is exactly why we’ve written this article for you! It’s time to find out why your cleaning cost should increase yearly.

What causes your cleaning service to go up every year?

If we were to tell you in 4 simple words the entire reason as to why your cleaning cost will increase, it’d be:

“The cost-of-living.”

I mean, this last year has been extraordinary. We’ve seen an increase in cost for so many things.

• Garbage bags have tripled
• Cleaning chemicals and solutions
• Other business increases e.g. rent
• Public liability insurance – has gone through the roof this year because cleaning companies supply covid-19 services, meaning we keep people safe so we are at a higher risk
• Fuel – our company vehicles run on fuel, and we all saw how expensive it got 😲 (we even considered cycling to work 🤪)

As you can see, the cost-of-living forces everything up. Which in turn, increases your cleaning cost.

But it’s not just this. Cleaner’s wages also contribute to the cost of your cleaning service increasing.

Let’s get into some data and percentages to explain this further to you.

In our cleaning contract, clause 8 states, “On 30 June each year, In-Tec may increase the Weekly Service Charge by an amount equal to 4.85% of the Weekly Service Charge or the CPI at the time, whichever is greater.”

CPI (consumer price index) refers to a measure of the average change over time in the prices paid for a basket of goods and services such as transportation, food, etc.

Now, the 4.85% we have in our service contract is generally the magic number that covers all the things we said above like wages, supplies, etc. This is on a normal year.

But like we said, this year has been a little different.

In 2022, we think there will be a double whammy. The cost-of-living in 2022 has gone through the roof so much that the cleaning charge increase may verge on 8%. Plus, we are predicting that the cleaner wage increase will sit somewhere around 4%.

“But when is this charge passed on so I can be prepared?”

At In-Tec, we pass the charge on the 1st of July because this is when cleaners generally get their wage increase from Fair Work.

And there you have it!

The factors that contribute to the increase in your cleaning service charge and the percentage In-Tec typically pass on at the start of the new financial year.

Here are some things to think about before you move on.

Your cleaning company should be willing to be as open and honest as they can be. And the only way to do this is to have anything related to cost cemented in a service contract.

We’re all in business to make money. Although we don’t want to talk about it, that’s the simple truth. If your cleaning company’s costs have gone up and all they’ve done is absorbed it, they’re not really helping themselves, their employees, or you (which you’ll find out why below!).

Why it’s actually better for your cleaning charge to increase every year

Should you be upset about your commercial cleaning company increasing their weekly charge to you?

Quite simply, no.

Instead, you should probably be questioning your cleaning company if they aren’t passing on a higher charge!

“Paul, don’t be silly, why would I question them when I’m getting the same price and aren’t getting charged extra?” 

That’s exactly the point – there is something your cleaners aren’t telling you (usually on purpose).

When they don’t pass on an increase the first thing they do is reduce the labour – we have seen this time and time again. In other words, they reduce what YOU’RE getting. If your site is cleaned 10 hours a week and there has been a 5% increase (that they haven’t passed on), they will reduce the labour on your site by 30 minutes.

Essentially, your cleaners are ripping you off.

At In-Tec, we treat our clients fairly so we do pass on an increase to ensure we can keep delivering the best service to you.

Now you know what to expect with your cleaning service cost!

Next time you notice that your cleaning service charge has increased, you’ll now know why!

Just like any other business, the cost-of-living drives everything up including how much you have to pay. And it’s no different in the cleaning industry.

We hope that this article was able to give you a better idea of the different factors that can influence your weekly cleaning service charge.

If you think you’ve taken a step too far and haven’t yet had a chance to find out how much a cleaning service will cost you, check out our article How Much Does a Commercial Cleaning Service Cost.