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Research archive - 2006 study

Pricing House Cleaning Assignments

House Cleaning Alliance's Statistical Analysis & Practical Applications

Use the HCA Pricer
179cleaning assignments
3 monthsof observed work
87%within 25% predictive error
Model IIselected for the Pricer

Purpose, benefits, and limitations

During 2006, the House Cleaning Alliance sponsored a statistical study to derive a formula for pricing recurring house cleaning assignments. The model predicts the man-minutes required for a team of professional cleaners to clean an occupied single-family home.

The model goes beyond house size. It considers physical attributes, household usage, and execution factors that can materially change cleaning time. Its purpose is to improve estimates, help operators examine their own operating profiles, and provide a rational foundation for pricing.

Man-minutes equal the elapsed cleaning time in minutes multiplied by the number of people on the team. Travel time is excluded.

The study also recognized important limits. Several usage factors require subjective scoring; correlated variables make it difficult to assign every minute cleanly to one cause; and the model produces estimates rather than guarantees.

Data and house attributes

The dataset contains 179 observations collected from July through September 2006 by a large Denver house cleaning company. Each observation represents one recurring cleaning assignment.

House attributes included finished square footage, basement area to be cleaned, number of toilets, and showers in use. These objective characteristics form the physical foundation of the estimate.

Usage factors

Usage factors measure the effect of the residents on the work. They include the number of inhabitants and scored observations for lifestyle, floors, and pets. Higher scores mean additional expected man-minutes; lower scores mean less work than the model's average household.

LifestyleTraffic and the household's tendency to maintain cleanliness between visits.
FloorsThe condition, mix, traffic, and interim care of the home's flooring.
PetsHair, tracks, accidents, cages, and other recurring effects associated with animals.
InhabitantsThe number of people normally residing in the home, including fractional part-time residents.

Execution factors and correlation

The study considered team size, team-leader profile, late-day work, daily workload, whether the client was home, and other conditions affecting execution. It also examined correlation among explanatory variables.

Square footage and bathrooms naturally move together. Lifestyle and clutter were also strongly correlated. Because clutter and dusting added little independent predictive power, Model II removed them from the statistical model.

The model and principal findings

Two multivariable linear-regression models were tested. HCA selected Model II because it was more parsimonious, easier to apply, and slightly more accurate after statistically weak variables were removed.

Predictive value. Approximately 87% of Model II observations had an absolute predictive error below 25%. The report identified roughly 20% error as a practical tradeoff between precision and predictive coverage.

Lifestyle and floor. A one-point increase in either factor added approximately 0.6 times the logarithm of square footage in man-minutes.

Pets. A one-point increase in the pet factor added approximately one-half of the logarithm of square footage.

Team size. A three-person team carried an estimated penalty of approximately 33 man-minutes compared with a two-person team.

Bathrooms. The original model estimated roughly 32 man-minutes for toilets with and without showers in use, although the report cautioned that the coefficients were probably biased by the available observations.

Practical application

The recurring-cleaning model supplies the foundation for weekly and biweekly estimates. The initial-cleaning calculation was intentionally described as a "better than nothing" aid because the study did not statistically analyze initial cleans.

Operators then convert predicted man-minutes to prices using their chosen hourly rates and minimum charges. The original subscription Pricer also allowed each company to adjust coefficients and operating assumptions to reflect its own scope, teams, market, and experience.

From research to working tool

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The working replacement retains HCA's baseline model while keeping operator-adjusted coefficients, rates, minimums, and assumptions private behind the WordPress login.

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About the authors

The original study combined formal statistical analysis with operating experience from a large independent residential cleaning company.

Supadej Ksrisuwan

Statistical analysis

Supadej Ksrisuwan was born in Bangkok, Thailand, in 1981. After graduating from Assumption College, he earned a Bachelor of Engineering from Chulalongkorn University in 2003. He later changed fields from engineering to economics and finance and earned his master’s degree from the University of Colorado at Denver in 2006.

Drawing on two years of experience as a research assistant in microeconomics, he performed the statistical analysis for this study.

Christopher R. Lude

Industry analysis

Chris Lude earned his MBA from the Tuck School of Business in 1994. He previously worked as a CPA for Price Waterhouse and held management and finance positions including investment banking at Bear Stearns and fund management at AIG.

He founded Denver Concierge in 1999 and grew it into one of the nation’s largest independent house cleaning companies before selling it in 2006. His operating experience supplied the industry analysis and practical application in this study.