Pricing House Cleaning Assignments

HCA Statistical Analysis withPractical Applications

13.Conclusion for the HCA Statistical Analysis

13.1.

So far we have developed the model for estimating weekly and biweekly cleaning man-minutes by taking into account various house attributes, usage variables, and execution factors. The model has a mathematically simple form, yet yields quite satisfactory results. However, it has some limitations in that the execution factors are not specific to each cleaning assignment and usage factors are subjective in nature.

13.2.

The results show that the square footage of the house (including basement), the number of bathrooms and showers, lifestyle, floor, and pet factor are the main determinants of cleaning time along with the number of team members, the time elapsed between cleanings, whether the client is present, and revenue per person. The extra work required for biweekly cleaning is also influenced by the number of inhabitants and square footage. For example, based on the average size house with average number of occupants, it would require additional 19 man-minutes for a biweekly cleaning as compared to a weekly cleaning.

13.3.

The model can be used to estimate cleaning time with a confidence level of 87%, allowing a 25% error.

13.4.

As more fully discussed in Section 16 below, in terms of opportunities for further discoveries, further work might be beneficial with respect to the following:

13.4.1.	Collecting data from multiple companies with alternative operating characteristics could result in a dataset which more widely represents the entire population of house cleaning companies. As an example, it seems reasonable to presume that alternative compensation schemes could have a statistically significant impact on efficiency. The sample company uses a hybrid payroll scheme which combines elements of hourly pay and revenue sharing payroll schemes, pooling the revenue by week. Our experience with alternatives has shown that pay schemes can significantly impact efficiency.
13.4.2.	Each company has a unique scope for their cleaning. It’s reasonable to assume that alternatives in scope could significantly impact cleaning times.
13.4.3.	Each company has a unique scope for their cleaning. It’s reasonable to assume that alternatives in scope could significantly impact cleaning times.

14. Initial Cleaning Formula

14.1.

“Ball-parking” estimates for initial cleaning assignments is not for the faint of heart. If you can find someone who has really bothered to keep track of their own accuracy in quoting initial cleaning assignments, you’ll find that they won’t be bragging much about their record. This is because it is very difficult to accurately predict cleaning times for initial cleanings.

14.1.1.	The simple solution is to charge an hourly rate for initial cleanings. Unfortunately, a significant percent of home owners won’t even invite a company to perform an in-home visit if the company is unwilling to provide a fixed price quote. So to compete, many house cleaning companies comply with consumers’ requests and provide their best guess as to how long the initial assignment might take.
14.1.2.	Providing quotes for Initial Cleaning assignments over the phone is particularly challenging; one might have more luck answering the question, “How long is a piece of string?”

14.2.

Of course, we did not consider performing a statistical analysis of how long it takes to perform initial cleanings. The initial cleaning formula included in the model provides a “better than nothing” tool to assist someone performing an in-home estimate to arrive at a ball park estimate.

14.3.

Better to overstate the limitations, so let’s step out on a limb on this one: 1) the HCA Pricing Tools are totally devoid of any insights into how much time it’s actually going to take for the initial cleaning; and 2) the HCA Pricer cannot be used to determine the true meaning of life. Sorry, you ‘re still on your own for both.