Core KPI Rate Increase Per Year
The Rate Increase Per Year KPI measures how consistently and effectively your cleaning business adjusts pricing over a 12‑month period. Rate Increase Per Year protects profit margins against rising labor, supplies, and overhead, and it ensures that pricing keeps pace with the true cost of delivering service. By monitoring Rate Increase Per Year alongside close rate and retention, you can calibrate small, predictable adjustments that grow revenue without shocking customers.
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How to Calculate Rate Increase Per Year
The Rate Increase Per Year KPI measures the percentage change in your cleaning rates over a 12-month period. This KPI helps you understand how effectively your business is adjusting pricing to maintain profitability and cover rising costs.
Rate Increase Per Year (%) =
((Average Rate This Year − Average Rate Last Year) ÷
Average Rate Last Year) × 100
Example: If your average cleaning rate last year was $150 and this year it is $162, then:
($162 − $150) ÷ $150 × 100
= 8% Rate Increase Per Year
Close Rate Per Week — What, Why, How
What is the Rate Increase Per Year KPI?
The Rate Increase Per Year KPI measures the percentage change in your average cleaning rates over a 12-month period. It tracks how effectively your pricing strategy adapts to maintain profitability.
Why is the Rate Increase Per Year KPI important?
The Rate Increase Per Year KPI ensures your business keeps pace with rising costs such as labor, supplies, and overhead. Without steady annual increases, profit margins shrink and growth slows.
How can I improve the Rate Increase Per Year KPI?
You can improve the Rate Increase Per Year KPI by scheduling small, predictable annual increases, using customer communication strategies to explain value, and leveraging software like MaidCentral to automate adjustments and reduce friction.
Rate Increase Per Year KPI FAQs
How do I calculate the Rate Increase Per Year KPI?
You calculate the Rate Increase Per Year KPI by comparing your Average Rate This Year to your Average Rate Last Year. Use the formula: ((Average Rate This Year − Average Rate Last Year) ÷ Average Rate Last Year) × 100.
What does the Rate Increase Per Year KPI tell me about my business?
The Rate Increase Per Year KPI shows whether your pricing strategy keeps pace with rising costs. A healthy KPI means your revenue is growing sustainably and your profit margins are protected.
What is a good benchmark for the Rate Increase Per Year KPI?
A typical benchmark for the Rate Increase Per Year KPI in residential cleaning is 3–8% annually. This level is usually enough to cover inflation and increased labor costs without causing customer churn.
How can I improve the Rate Increase Per Year KPI?
You can improve the Rate Increase Per Year KPI by implementing small, predictable annual adjustments, communicating clearly with customers, and automating changes with software like MaidCentral to ensure consistency.
What happens if my Rate Increase Per Year KPI is too low?
If your Rate Increase Per Year KPI is too low, your business may struggle to cover rising costs, leading to shrinking profit margins. Over time, this erodes profitability and makes growth harder to sustain.