Target market ideas???

[redavenger]

I started out a small commercial cleaning service and I finally got a small account for a employment agency! But it took me 2 months to get that and it is only once a week. I am professional in appearance and polite but I can seem to get any accounts going. If I don't get some more accounts now, not soon-now, I wont be able to keep this going. And then I have to go back working for "the man."
My target is small offices. I have distributed around 1000 cards and flyer's to Dr.s, Dentist, hair salons, employment agencies, financial advisers, attorneys, churches, veterinarians, and a larger real estate agencies and property management groups. It seems that I covered most of the city itself, population 75,000.
I am going out to the metro area now and I am wondering if you folks might have some ideas concerning who I should target that I might not have considered. What type of businesses need a cleaning service that I have not thought of? Also, what about larger office buildings with multiple suites-How do you get into those. Thanx for your input!

[Kathleen]

Too Bad your not in my area. It is screaming for quality commercial cleaning services.

Since I joined a local networking group (referral group of professionals) in which I received over 10 members asking me to clean their offices/buildings. However, I only want the residential clients for now....one thing at a time. A networking group is all about getting to know others on a consistent basis. People are more likely to go to you if they personally know you!

Perhaps you can team up and create alliances with local residential cleaning companies. Think Contact ...contact and follow up again!

Good Luck

[redavenger]

I thought about joining BNI, a networking group, and they wanted almost $400 to join for one yr. Plus the weekly $15 fee for breakfast. I talked to another person that was in a BNI chapter that also has a commercial cleaning service. She dropped it after her subscription ran out because there would be a few people that got all the referrals.
I had trouble figuring why does it cost $400 to join. Where does the money go? especially consdering you still had to pay $15 a week for breakfast. That would be another $800. I dont even like breakfast. I went to the vistors day for BNI, of course I had to pay, it seemed that it was a very clicky environment. Existing members didn't approach you at all. Of course that might be just that particular local chapter. I dont know. All I know is someone is making a lot of money from BNI chapters and I didn't see it was worth the money i cannot afford to spend. Has anyone else had better luck with BNI?

[Kathleen]

My area has a few networking groups. BNI is not in my area. My group Erie Power Networking is much different. See their website: www.eriepowernetworking.com. Some groups are clicky and I think it is all in your approach to it....but some well are better not joined from what you are saying.

My group charged $250 to join. I have figure that is cheaper than running an ad in a local paper for one time and for the breakfast cost...my cost $20 for once a month. I can also sign up for addtional seminars that cover indepth topics for 3 and half hours. They also sponsor 5 minute networking events where I can meet and talk with 20 new people for 5 minutes at a time. Kind of like speed dating concept, which worked out very well for me. From that even I was able to gain 4 new accounts and meet a local doctor which has become my family physican.

If your local chapter members of BNI did not approach you...well then their "leader" has not trained them in how to work a room and how to rreally network. Your goal at event like this is to meet at least 5 people, exchange cards and ask them questions. The questions can be about anything. Sometimes I feel it is easier for me to think of at least 3 questions to ask others. Example of whatI say: "Hi, my name is Kathleen Balcam and I am from K&B Cleaning Service, What do you do? So, what kind of clients are you looking for? Do you belong to any other networking groups? Great weather uh? Do you know anyone interested in residential cleaning? Ever have anyone give you a free quote on your cleaning needs?" Sometimes the goal is to ask all the questions..help when you are asking the questions..most people love to talk about themselves and their businesses. Once you have asked about 3- questions the goal is to close the conversation by saying something like - "well, it was great meeting you..do you have a card? Thanks. Talk to you later - let's go mingle and make more contacts." And repeat the above til you have talked to at least 5 people. Now the goal at the end of the event is to go back to your office and send them an email. Follow up is key. "KEY" the key to them remembering you. In your email you refer to your conversation with them something like "Hi Bob, It was great to meet you today (or yesterday) at the BNI event. It was sure interestijng to see everone coming together to support one another in the growth of their businesses. I will be sure to forward your name onto my clients that are in need of ______. By the way here is the link to my website for your future reference. (the highlight an area of your service). " Then your goal need to be send them a flyer or email or call them directly within next 10days. You can invite your five contacts to a morning coffee for about an hour to talk more indepthly about what kind of clients your businesses are looking for and get to really know these contacts. It really is who you know these days. remember it is all about referrals and people are more likely to refer another person to someone they know than a stranger!

So, the "KEY" things to remember are to meet at least 5 people, exchange cards, and follow up. Other wise yes it is a waste of your time and money (for me that is one in the same). Networking is a skill that these groups should teach it's new members how to do. Not everyone is "born" to network.

[redavenger]

I am one of those not born to networking. hahahah I am shy at first in social settings like that. Once, I have a feel for people I lose the shyness. It would have been nice if members initated contact. But, I also know that this is any area of personal development for myself. What is the name of your networking group? Maybe they have a local chapter here in kalamazoo. Right now, my methods are not working for getting new accounts-hand delivering my flyer and I mailed out about another 350. I did set up a referral program with my one account. It is an employment agencey. I told them I will knock off $10 for every bid they refer me to and $20 if I am able to land the account.
From the look of it I will try to find a part time job this week so that I can keep this cleaning service going. I don't want to give up yet even though I am losing money bad and just about out of funds.

[Kathleen]

My referral group is called Erie Power Networking. Based right now only in Erie PA.

What about this...Do you think you can call and gather up about 10 local owners/managers to get together to discuss helping build each other businesses. These are people you know and have done business with before. Start with that and perhaps you can get the feel of networking before you go to the next BNI meeting.


Good Luck

[tcmb04]

redavenger,

I am going through very simalarly the same thing right now and i don't want to give up yet either. Have been thinking of looking for a part-time job too or moving out of this state all together.

It is looking like i get passed over alot because of the amount of employees i have and cannot afford to hire more nor would it be worth it to do so with amounts people only want to pay.

I am guessing for some reason these bigger companies can afford to bid lower than my prices and i just cannot understand how and still make a profit.

Tina

[Grizzly]

Tina:
Let me explain why the large companies can afford to bid low to a certain degree. The larger companies work on economies of scale ie: they go after a large number of larger commercial properties in the same area. Now , for us to make a profit on a building of say 80,000 sq. ft. we need say a 10 to 15% net profit margin. These large companies will go after say 10 of these buildings in the same area. Now this means that instead of getting just the profit from the one building they get the profit from 10 buildings. This allows them to bid a lower price because they view the situation from the revenue that is generated from the 10 buildings not just the one. They also spread their costs over the sq. footage of the 10 buildings rather than the one. This allows them to be happy with a net profit margin of around 3 - 5% . We won't go into the quality of the job that they do, or the use of illegal labour, these are factors that it is difficult to sell the corporate bean counters on. We have targeted niches in the market that are much more profitable and the big companies haven't gone after them yet. We target stand alone industrial outlets, say that sell and service construction equipment, or any such commercial, industrial setting. Being owned by a number of different companies, it makes it difficult for the larger janitorial companies to sell the economies of scale approach as the stand alones usually make the decisions on the local branch level.

Bill

[tcmb04]

Bill,

I guess what you are saying the bigger companies actually make a smaller profit off each building after labor, and expenses?

[jeg8344]

Bill, I just read your comments concerning large companies, quality of work, and illegal labor. I have been a part of this industry as an owner of a company much like the members here have; that is, a business doing under $8million per year, but I have also worked for a medium size company( $70 to $150mil) and hopefuly in the next few days I'll be Vice President of Sales for Aramark's Plant Services Division which does $250mil and this doesn't include health care or educational facilities services, thus Aramark's total business is in excess of $1billionper year. Trust me when I tell you that most large companies do not hire illegal workers intentionally nor do they get to be large by doing substandard work. Take Crothall,a division of Compass Group, for example, they do $650million in facilities services which is mostly cleaning but they have the highest customer retention ratio in the business at 96% which, of course, says alot about the quality of their work. I have mentioned this in these forums before but getting and keeping accounts is about building a relationship with the customer to determine what their actual needs are and not to assume that it is price or a need for better quality cleaning.
Finally, a previous poster mentioned that he was having trouble getting accounts and he didn't know why since he looked professional. The ability to sell has very little to do with how you look, how tall or short you are, introverted or extroverted, neat or slovenly, energetic or lazy since I have seen very successful sales people with each of these qualities.
What I have noticed is that the people that can sell are "woors" they have a complusion to win and hold peoples affection, they are industrious, they have empathy for their customers, are self confident, and have an ego that likes to win.

[logan5127]

Remember that a lot of the post and replies on this forum are opinions. My opinion is that a lot of the larger companies do indeed offer sub standard work for less pay. I get several calls a year from these larger companies that are grasping to find anyone to do one of the stores in their accounts that happens to be in my area. They always want me to do them for about a fourth of what I charge. Just last week I was called and asked if I could clean some windows in a local store that is one of several nation wide. This was from one on those large cleaning companies. They said we will pay you what we charge which was $75. I said no but I would do it for $250. They called back and said they couldn't find anybody else and offered me $200, I said OK and they had me go ahead and do it since it was such a small lost for the giant of a cleaning company. After doing it I thought I should have said $300. I also get calls for carpet and wax jobs from some of these large companies and they always want it done for next to nothing. How could you expect anything but sub standard work at the prices they want sub contractors to do the jobs for. But thats just my opinion and has nothing to back it except my thoughts. I am a small company under $300,000 a year. I know that when I was under $150,000 a year I was better able to keep on top of my jobs . The bigger you get the harder it is to have enough quality help to keep everything at 100%.
Finally , You may not have to look professional to sell but I do encourage that you try to have a professional image. Hopefully you will have the personality to carry you forward.
I say again to all the members on this forum. When reading post or replies remember that for the most part it is opinions only and may or may not work for you. So read them all and form your own opinions.

[Grizzly]

Jeg8344:
I congratulate you on obtaining a position with such a large company. I encourage you to read my post carefully. The point that I was making was that large companies operate on economies of scale and therefore charge less per square foot than the smaller company can afford to charge. I said I would not go into the use of illegal labour etc. but since you brought it up, it is evident after the actions against Walmart that this practice is prevalent in the industry. I also get calls from these large maintenance companies and cannot do a job for the price they dictate. It is evident when the quote on an office building is less than the winning quote of 1990, they are operating on smaller margins. Even with the benefit of increased technology and techniques, a difference of 8000. from 15 years ago suggests either cutting corners or other practices. I do not brand the whole industry, but the economies of scale and substandard work, is prevalent. By the way, a business of 8,000,000. per year is not small in my books, but then I obviously am not as successful as yourself.

tcmbo4:
Yes the profit they make off each building is less, but they have say 7 buildings in the same area or they do 300 buildings for the same client so that when they look at it from the revenue side a 3 % net profit on say 300 million for all the buildings makes it worth their while , but the 3 % profit on the one building of say 3% of a 60,000. dollar contract is not feasible .

Bill

[classactioncleaner]

tcmb04 said:

redavenger,

I am going through very simalarly the same thing right now and i don't want to give up yet either. Have been thinking of looking for a part-time job too or moving out of this state all together.

It is looking like i get passed over alot because of the amount of employees i have and cannot afford to hire more nor would it be worth it to do so with amounts people only want to pay.

I am guessing for some reason these bigger companies can afford to bid lower than my prices and i just cannot understand how and still make a profit.

Tina

Well I have a all together different view on business...... Our business isn't ours its the Lord's and we work for HIM..... So these big companies don't bother me...... When business is slow I just look at my walk with Christ and see if I did what HE wanted me to do.......So what I am saying is ..... God ownes everything and HE is in control of what jobs you get and the ones you don't.... Seek HIM and see what HE wants you to do.......God bless you in all that you do... but let HIS will be done...

Joseph & Merri
Class Action Cleaners

[Linda]

Well, I feel a little differently here. If this were the case I dont believe we would ever make a mistake or have anything to learn from or grow in knowledge from. He opens the door, we decide where we want to step. These big companies pay their employees $7.00 bucks an hour and even less. I dont step there anymore. They dont seem to offer insurance or anything else that would benefit the employee. Kinda like my boss Working on stepping out on that one. These shoes were made for walking and I am about to get alot of exercise.

Linda

[logan5127]

I have a friend that told me God had Blessed him with all his cleaning contracts. I looked at him and said , you mean the Devil , don't you. Confused he looked at me and said what do you mean? I said do you think God would give you jobs that have you working on Sundays and most Wed, nights to the point where you miss church more than you go. He said he never thought about it that way. He said well in the Bible it says if you have an ox in the ditch would you not pull it out. I said yes but what if you put the ox there just so you would have to get it out instead of attending church services. I believe in God , but I don't believe he gives me each job. I believe he has gave us all abilities and a mind to decide how we are going to live and work. I believe there are a lot of evil people out there with large companies as well as small companies. I believe he gave us all a mind that we can use ourselves to form our own opinions. I believe that we should not ask God what he can do for us but instead what we can do for him. But that is just my opinion from a mind that God gave me. As I told my friend who now works 7 days a week, "sometimes we know not what we are asking for."