How do I judge whether a house cleaning service’s supplies are bought or client-supplied?
Ask client by client who supplies the products and equipment, then check the books for what the business actually buys. Some clients expect the company to bring everything, and others hand over their own supplies. Your costs, pricing and the expectations a new owner inherits all follow from that mix.
Start with the client list and mark who supplies what. A household that keeps its own products and a vacuum is a different job from one where the cleaners arrive with a full kit. Ask whether it was agreed in writing, or just became a habit. Habits are harder to change when a new owner takes over. Next, look at the spending. Pull supplier receipts for products, cloths, vacuums and other tools. Do the purchases match the number of clients who expect the business to provide? Look for equipment that is old, shared between teams or owned by the cleaners themselves. Ask how the price reflects the difference. If clients who supply their own products pay the same as those who do not, margins vary job to job. Ask whether any products need special care or training, and who is in charge of stock. Finally, think about changes. A new owner may want to alter the arrangement, and clients may push back. Speak with the seller about how past changes went, including any complaint about products or scents. Ask also whether supply costs are billed to clients in any case, and how. Your accountant can help you see how supplies show up in the cost of each job.
Key takeaways
- Mark which clients supply their own products and equipment.
- Match supplier receipts to the clients the business actually supplies.
- Ask how pricing reflects the difference and how past changes landed.
Related reading
15 pages on the same subject, grouped by topic.
Buying
- Expert answerHow do I judge the crew quality of a house cleaning service I want to buy?
- Expert answerHow do I judge whether an inn’s breakfast service depends on the owner?
- Expert answerHow do I judge the camera and inspection gear used by a duct cleaning company?
- Expert answerHow do I judge call quality records at an answering service I want to buy?
- Expert answerHow do I judge whether an irrigation company is too dependent on a few landscaper clients?
- Expert answerHow do I verify a cleaning company’s supply closets and chemical inventory on site?
- Expert answerWhat equipment and supplies come with a cleaning company sale?
- Expert answerHow do I check a recording studio’s in-house engineers and who they bring in?
- Expert answerHow do I judge a lumber yard’s forklifts, boom trucks and racking?
- Expert answerHow do I judge whether a bakery’s morning rush is a one-person operation?
Due diligence
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 03Business Development Bank of CanadaGovernmentHow to diversify your supply chain
Deavo is an advertising and listings platform, not a brokerage, law firm or valuation firm. This page is general information, not legal, tax, accounting or valuation advice, and rules differ by province. Confirm anything you rely on with a qualified professional before you act on it.