Cleanfax Survey: Find Out How Your Profit Margins Stack Up to the Competition
NORTHBROOK, Ill.—March 20, 2020—Carpet cleaning companies report a wide range of profit margins, but our most recent survey found that 49% of respondents earn gross profit margins of at least 30%. According to the results of the results of the 2019 Carpet Cleaning Benchmarking Survey Report, the most common gross profit margin range for carpet, floor care, and upholstery services is above 50% with 18% of companies falling into this category.
The Cleanfax survey, which was sponsored by Legend Brands, asked owners to calculate their profit margin percentage by totaling all revenue from carpet, floor care, and upholstery services, minus the cost to provide those services, divided by the total revenue.
Of the companies surveyed, about 17% have a 31%-40% profit margin, and about 14% have a 41%-50% profit margin. At the lower end of the spectrum, about 35% of companies have gross profit margins under 30% and nearly 10% have margins under 20%. About 15% of respondents chose not to answer this question.
How does your profit margin compare to the rest of the field? If you are pulling less than 30% margins, now might be a good time to analyze how you might improve your gross profit margin. As you reflect on 2019 and make crucial business decisions for the year ahead, check out our full Carpet Cleaning Benchmarking Survey results.