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Never Say Never

In talking with building service contractors over the course of this spring and summer — for the official business of article research, or just to catch up — I’ve found the general sentiment is that BSCs are doing a lot more for a lot less. Whether they’re losing accounts to lower bids, witnessing customer bankruptcies, experiencing cash flow issues, or dealing with major service cuts, one thing is for sure: it’s harder than ever to hang onto profitable accounts.

One BSC I recently spoke with said his company’s making half of what it was bringing in this time last year — and that revenue dive is not for lack of trying. In fact, BSCs are bending over backward to retain accounts, and are finding it more and more difficult to say no to requests and propositions that even six months ago they would have passed up. For example, this BSC has purchased pieces of cleaning equipment, something he never would have done in the past, in order to keep long-term accounts that otherwise would have been farmed out to another contractor.

Is this a commonplace customer relations conundrum? Have other BSCs experienced similar situations, in which customer demands are more difficult to say no to than they used to be? How far are contractors going to keep customers?


Posted 08-31-2009 3:01 PM by Lisa Ridgely

Comments

magicaclean wrote re: Never Say Never
on 09-01-2009 9:58 AM

We're a very small company and without a doubt are going through this just as much as any contractor.  We're currently offering incentives to a particular prospect such as a no-cost carpet cleaning of 4000 rsf, just to sign a contract for next July!

We're  barely getting by right now but if we plan to be in business a year from now, we're thinking ahead.  The current drought doesn't feel like it's going to be better anytime soon, personally I imagine this winter season to really come down hard.

Our main line of revenue a year ago was construction cleaning & UHS floor care.  Those lines of service are certainly closing up with our current standpoint.  We're now offering UHS services as a no-cost incentive to prospects and they're still beating us down in hourly numbers.

What to do?

Lisa Ridgely wrote re: Never Say Never
on 09-01-2009 10:08 AM

I just sent you a message, because I wasn't sure if your comment was posting - looks like it did! Good!

In any case, you are not alone in the struggle to make ends meet and create new business. Did you read our August cover story? www.cleanlink.com/.../Game-Plan-For-Growth--11235

That might help inspire you to think outside the box a bit; certainly, the BSCs I interviewed for that piece agree that you've got to be willing to change and take on new challenges to survive in this economy.

Bob Croft wrote re: Never Say Never
on 09-02-2009 2:14 PM

We've generally kept our billing up - we're only down 0.7% from a year ago.  Three things are key:

 1) Put more, not less, effort into sales

 2) Keep right on top of current clients.  With everybody and his brother trying to find clients, and cutting pricing to do so, your clients ought not be given service problems, or percieved lack of attention, to encourage them to go away.

 3) Keep alert to client cost cutting needs, and do whatever you can to accomodate.  Cut service frequencies and price when you need to; look for internal cost savings.  Consider lower rates, and shorter cleaning times, because the client has fewer employees in his office and thus creates less mess.  It's a good time to pick up used equipment from failed competitors; also a good time to recruit quality employees (labor and management) at lower rates than normal.