Because you use chemicals in your business so often, it seems as though they are a major cost in running your business. Recently, a group of professional cleaners and restorers at a conference sponsored by Interlink Supply, was nice enough to share percentages from their income statement. By combining all of those income statements into one average, we were able to come up with a clear view of where chemical expenses are in the priority of expenditures. Their answers may surprise you. Reflected as a percentage of sales, chemical costs were around 3% of net income. It was a little higher for companies doing mostly restoration. It was a little lower for companies doing mostly commercial cleaning. In order of priority, chemical expenses were way down the list - behind labor, equipment, fuel, insurance, marketing, and more! They
calculated that in average residential carpet cleaning, their cost of chemical was less than ½ cent per square foot. 

So why does it seem like every time you turn around, you are writing a check to buy more chemicals? Probably because you consistently use them. Compare it to the number of stops you have to make to fuel up the van and what that costs you and you will soon see what we are talking about.

There is one other important point you should always keep in mind when it comes to your chemical costs. As previously mentioned, your highest cost comes in the form of labor, the salary or wages you are paying the people doing the work, and the staff who administratively support them. Labor is as high as 15 times more per hour than chemical costs when you are doing the work. The goal of good cleaning and restoration chemistry is to make you more effective at your job, and a whole lot faster! Skimping on the quality of your chemical to save you a few dollars per gallon may seem like a good idea at the time, but in actuality, it can cost you money. Quality chemicals will make you faster and more efficient. When you reduce labor cost by making your staff faster and more efficient with the very best chemicals, it is 15 times more effective at helping your company be more profitable than saving a few dollars on a gallon of prespray.