Overview
The purpose of market research is to find a suitable market for your cleaning business. We want to make sure we find markets that have specific metrics that will ensure we have success launch. You will conduct a market research study to identify potential markets to start your business based on key criteria metrics.
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📞 When you are calling, you will notice variations in the level of customer service and professionalism. You will also notice the call back and pickup rate across the different cleaning companies. These are all competitive factors that go into providing quality service and should give you insight as to how much opportunity there is in having amazing customer service.
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Criteria for Location
- Ideally in the range of 250,000-750,000 homes in the area.
- Avoid major metros (Los Angeles, New York, etc.), these are too competitive generally to get started. (Note: If you do select a major metro - I suggest a sub-market within it).
- Avoid areas with too many franchises (Molly Maids, MaidPro, Cleaning Authority etc.) - Under 10 companies on the first two pages of Google Maps Search is great.
- Average Household Income: Look up city area/zip codes and make sure average household income is at least >$50k. Higher the better - allows for price elasticity.
- Bias towards your current location - you can quality control these areas and you already have local knowledge. Not necessary though.
- Other considerations: Vacation Rental Market, Good Weather Year Around, Net Positive Migration.
Market Research Calls
- Call 10 highly rated home cleaning companies (aka your competition - and ask for rates on a 2BD/1BA 1500 SF place - standard, deep cleaning and move-out cleaning) and input into sheet.
- When you call, you will pretend to be a potential Client. You need to make sure you are asking for the same bed/bath and SF combination to get results you can compare. (i.e. 2BD/2BA 1500SF).
- Example Script: “Hey I am looking for a cleaning in my 2BD/2BA 1500SF place. Do you mind telling me what your standard and deep cleaning prices are? We also might be moving end of the month as well, do you mind letting me know what a move out would cost too?”