Market Saturation

[jvermaes]

Greetings and salutations, everyone. How're you all doing tonight?

Okay, here's the situation: I'm currently still in the 'research' phase of the whole residential cleaning market as it is potentially something that I'd like to get into as a primary source of income. I've found a wealth of information on this website already, so thank you for that!!

A resounding question that I have however is concerning 'market saturation'. I'm in the Phoenix metropolitan area (Mesa to be exact). I did a cursory search on Dexonline.com and came up with approximately 230 hits for companies in the 'House / Residential Cleaning' category (broken down into sub-categories, ex. Bonded, Family Owned, Hourly Rates, etc.).

Frankly, seeing a number like 230+ is a bit disheartening as I'm not quite sure what kind of value I can add to an obviously already saturated market (despite the size of the Phoenix metropolitan area). I'd be curious to know the ballpark number of companies in your area and the general size of your area. Are you still managing to make a living, regardless of the market saturation?

As a side-note, I also did a cursory search at the BBB for residential cleaning companies to try and get an idea of what local companies are doing (or are not doing) to potentially lose customers. I also took a look at approximately 25-30% of the websites for the companies around here and they all look like cookie-cutter versions of each other -- same services, same policies, etc.

Anyhow, any nuggets of participation would be greatly appreciated.

Thank you and have a GREAT day / weekend.

Sincerely,
John ..

[Kathleen]

Hi John,

In my area, in a county of about 450,000 plus there are about 38 residential cleaning services listed with the census (www.census.gov) where you get the NAICS code within the American Fact Finder link and to find your population statistics. Then go to your public library online (Reference USA) where you can use the the NAICS code to give you the number of businesses , aggregate sales and employment and other statistics.

In addition to what I have found and calculated about another 15 companies that are not listed, plus an unknown number of individuals working under the table at bargain basement prices.

If I only went by the Dexonline, it would try to tell me that there are only 4 residential cleaning services in my county. So, you might want to go else where for your stats.

As for the market saturation in my area, well I am seeing that three theme things that others are not doing: 1) Following Up,- contact - contact- contact ...which seems to be a forgotten business practice ...it is an art and 2) Personal Touch, personalizing the prospective client as well as your current clients and their cleaning needs, using a psychological perspective ..using "you" statements instead of calling them a client to their face. Example: " I feel that with my service it will give YOU the time for your family and your career..." It is endless and finally 3) Cleaning, I mean really cleaning...giving the client the best clean and making sure that the client values it through following up. Getting the client to agree with you..that you offer a service that no other cleaning company can provide at your price! (again, utilizing a psychological approach)

It is understanding that the above three all occur within a business transaction, but what I have certainly found in my area that is that people are craving a personal connection, however within varying degrees. It is about getting to know your client and meeting their needs...and from that my new business has grown in leaps and bounds. Referrals gotta love them!

As for "cookie cutter" websites, I believe that those businesses that are starting out are looking for a starting point. And from that point, we all will expand and change the look and feel of our sites that reflect our business attributes. I think your focus would be better spent researching the websites within your service area. In my area, I have only found ONE other company that has a website!!!!!! That is one of my advantages and it has worked out quite nicely. I certainly think, that cookies cutter sites can be a good thing because it mainstreams key aspects of our industry. It is up to the owner to make our sites stand out to potential clients, so they can notice a difference between them and make an educated decision from there.

Polices that have worked over time still exist for a reason. As you write your business plan and build your business you can come to appreciate this a bit more.

Helpful sites when writing your business plan:
www.citypopulation.de/
www.careeronestop.org/lmi/LMIHome.asp
www.census.gov/
www.bizstats.com/
www.bls.gov/oco/print/ocos174.htm
www.ecls.lib.pa.us/cgi-bin/refusa_auth.cgi
www.claritas.com/claritas/Default.jsp
www.commerce.gov/
www.fedstats.gov/
www.firstgov.gov/Business/Self_Employed.shtml
www.zapdata.com/

Good Luck -

Kathleen

[jeg8344]

John, the cleaning industry is highly competitive and primarily because it has low entry costs. By that I mean that everyone can run out and by a roll of paper towels and a spray bottle and say they are a cleaning company. 90% of those in business today will be out of business in a year simply because they know nothing about business whether or not they are an expert at cleaning. Your success will have more to do with a knowledge of running a business than it will with your knowledge of cleaning. As a matter of fact, most of the members here will be gone from the business soon too since most are out cleaning instead of managing a business.

[Kevin]

hmmmm, Jeg, everyday I clean a account or work for a customer doing some task performing a job they are paying us to do. I think the key is staying in the field, and also managing your business. Then again I multi-task Very well.

I also believe your 90% number is a little high, more like 60%. hopefully we can lower that percentage a little.