In the state of Michigan, legislation has pushed up the minimum wage resulting in the small but impactful raise from $8.15 in 2015 to $8.50 in 2016 to $8.90 in 2017 to $9.25 in 2018 and now again $9.45 for 2019.
This increase impacts an industry built heavily on its employee base, and pricing can be significantly affected by increased labor costs.
While providers try to absorb these changes, operational cost increases inevitably affect janitorial pricing.
At the same time, Facility Managers are still under pressure to keep janitorial budgets controlled.
Many of the most experienced and effective cleaning companies rely on a combination of industry best practices such as:
- Smart Cleaning
- Open Book Pricing
- Time Saving Cleaning Equipment
- Team Cleaning
- Employee Retention Practices
The Difference Between Team Cleaning & Zone Cleaning
Team cleaning has been proven to be significantly more efficient than traditional zone cleaning.
Zone cleaning assigns different sections of a building to individual cleaners, resulting in duplication of equipment and inconsistent specialization.
Team cleaning instead assigns a group of specialists—each focused on one core task across the entire facility.
This increases efficiency, reduces equipment costs and improves training consistency.
For example, having a vacuum specialist, a restroom specialist and a floor specialist eliminates the need to equip every cleaner with multiple tools while improving the quality of each task.
Industry Innovation Can Help Keep Prices Low
The janitorial industry has undergone major technological advancements that make cleaning more effective and more cost efficient.
For example, Clarke’s Boost floor cleaning machine has shown labor cost reductions of over 80% in case studies.
While these machines carry a high initial cost, they significantly reduce cleaning hours and operational expenses.
HEPA backpack vacuums allow staff to clean more than twice the area in the same amount of time while also reducing repetitive motion injuries and improving indoor air quality.
Innovation not only increases efficiency but also enhances building health and sustainability.
How Smart Cleaning Helps Keep Prices In Check Without Losing Quality
Smart Cleaning strategically reduces or adjusts certain services to cut costs while maintaining acceptable quality levels.
The key is strategy—not random reduction.
Effective Smart Cleaning requires:
• A cleaning company experienced enough to know what can be reduced without affecting quality.
• A company willing to understand the specifics of your building and tailor the approach accordingly.
By cutting non-essential or intermittent tasks, you can reduce cleaning hours without significantly impacting cleanliness.
Janitorial Turnover Can Hurt Your Cleaning and Your Wallet
People are a service provider’s greatest asset, which is why rising labor costs matter significantly.
The janitorial industry is known for high turnover, and replacing employees is expensive due to recruiting, screening, hiring and training costs.
New employees are less efficient while learning their duties, which can reduce cleaning quality if turnover is too frequent.
Companies that actively reduce turnover often deliver higher quality service at a more stable cost.
Use Open Book Pricing to Your Advantage
Open Book Pricing provides transparent breakdowns of how costs and profits are calculated, allowing you to understand exactly what you are paying for.
Hard costs typically include:
- Direct Costs (supplies and consumables)
- Labor
- Taxes
- Management Fees
- Employee Benefits
- Insurance
- Profits
Labor will always be the highest expense and will continue to increase with rising minimum wages.
Companies that use Smart Cleaning and invest in efficient equipment can offset some of these costs, but fixed cleaning hours will naturally become more expensive.
Managing a Rising Minimum Wage Without Sacrificing Service
Michigan’s rising minimum wage will inevitably impact costs across many industries, including janitorial services.
Still, both Facility Managers and cleaning companies can adjust strategies to control costs without sacrificing necessary service levels.
If you are looking for better service, greater value or improved consistency, now is the time to explore your options.
Stathakis proudly serves the Southeastern businesses of Ann Arbor, Detroit, Royal Oak, Farmington Hills, Downriver, Farmington, Dearborn, Livonia, Troy, Auburn Hills, Novi and Plymouth.
