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One Question to JUMP START Your Profits

Is there one question you can begin asking that can JUMP START the profits in your cleaning business?

Yes, but first, let me tell you a story….

Years ago, by accident, Tony and I began to provide consumable restroom supplies, like toilet paper and hand towels, for a few of our building owners and property managers, and only because, they literally told us we had to.

That’s right! They said they didn’t want to “mess with” it anymore – too much of a hassle – and inconvenience.

Oh, lucky us; more work…we thought.

So we took an inventory of what kind of supplies they needed i.e. kitchen roll towels, hand soap, toilet tissue, trash can liners, feminine hygiene items, toilet seat covers, etc.

And at first, it was a pain.

We took over this new responsibility for our clients but basically just passed along the supply items to our customers at our cost, or just a little over.

Then one day we realized how much real value we were actually bringing to the customers of our janitorial company by handling this hassle – that they didn’t want to have to deal with.

That’s right, when we really looked at everything that went into handling the supplies, we were amazed:

-We had to keep the supply closet clean and organized plus, watch the inventory level, or count, of each item.

-We had to track the rate of use, to know when to order, to keep supplies on hand, without getting overloaded.

-We had to contact the distributor to order the supplies.

-We had to take delivery, and then make a trip to the account to unload each box, stock the shelves, and get rid of the cardboard etc.

-We had to take care of the paperwork and accounting from generating a purchase order and matching the packing slip to paying the jansan distributor, and then charging our customer.

Here’s the thing:

When it finally occurred to us how much work, and hassle, went in to this process – it quickly became clear that we needed to charge something more for handling these poly/paper, consumable type cleaning supplies.

So, we increased the mark up on each item we sold to the customers of our cleaning company to cover all of these costs- and allow for a small, but tidy, profit!

It wasn’t a jackpot of profit on each item, but right away it was started to add up!

Note: We simply itemized or listed these supply items separately on their regular monthly bill.

Well, there’s more to this story.

From then on, we began to ask every new customer if they would like us to take care of the poly/paper supplies for them.

And many started to say, YES!

Well, to our surprise – some of the janitorial accounts we landed really went through a lot of these restroom supplies. They had lots of employees, using lots of toilet tissue and hand towels.

And it was a good deal for our customers too, because, in addition to saving them all the time and hassle, we also began to get better pricing from our Jan San suppliers because of the increasing size of our orders.

WIN-WIN!

Eventually, we were ordering so much we were able to arrange for our distributor to deliver the supplies directly to our customers for us… with little, or no cost!!

Well, the end of the story is this:

We not only improved the monthly profit at the accounts where we provided these consumable poly/paper supplies, there were actually times we made as much on supplies – as we did in profit on the cleaning!

So there it is, one question that can JUMP START your profits:

“Would you like us to take care of tracking, ordering and stocking your consumable supplies for you?

Lesson:
In an ultra-competitive market, like commercial office-cleaning; being able to keep your monthly general cleaning price tight, by having other sources of monthly income, like handling the consumable poly/paper products – can be smart customer service as well as PROFITABLE!

One idea may not make you an overnight cleaning business millionaire, but a number of good ideas, like this one, can make you one -quicker than you think.

Please leave your comments below. Thanks, Dan

10 Responses to “One Question to JUMP START Your Profits”

  1. Hi Dan
    I was wondering if there was a reliable leads company that you pay for leads and are trustworthy. Im in Florida

  2. DLiebrecht says:

    Hi Giovanni,
    Good question. The short answer is actually, no, but there are a number of important reasons why. The long explains those reasons, but is probably too long to go into detail here, so I’ll send you a separate email directly to you. Best regards, Dan

  3. Rich says:

    Hi Dan,

    I just wanted to let you know that I believe Clean Bid was
    a great asset landing a great cleaning contract.
    Thanks Rich

  4. DLiebrecht says:

    Rich – Congratulations on your recent success! It’s always great to hear from members, like yourself, who feel CleanBid has significantly helped them grow their cleaning business! Thanks for taking the time to send in your note! Dan

  5. Natasha says:

    how much of a mark up would be good to do this for the company ??
    like tack on an extra $1 or $2 to each individual supply or how would that go ??

    Would appreciate it alot..

  6. DLiebrecht says:

    Natasha, you’ve asked a good question. Unfortunately, determining the percent % you can reasonably expect to mark-up the cost of consumable supplies in setting a price to charge your customer can be a challenging one.

    While one cleaning contractor (janitorial business) may be able to markup the cost of consumable poly/paper supplies by 15%, 25% or more, another may not, due to a number of factors, such as:

    1. What are you paying for the consumable products (your cost)?
    If you are buying a great variety of different kinds of poly/paper consumable supplies in large quantities from a Jan/San distributor, you may be enjoying very attractive, ‘low prices’ from your supplier. You may be able to turn around and charge a higher markup to your customers than other cleaning contractors that buy only very few number of supplies in low quantities and as a result receive very little discount from their Jan San supplier.
    In these cases, you still may be able to provide these items at an ‘attractive’ or competitive price compared to what your customer would have to pay if they were to buy these items.

    2. What would your customer expect to pay if he/she went out to get them on their own? For example, if they are likely to pay $90 for a case of toilet paper, and your price after markup, comes in close to this amount because of the volume discounting you enjoy from your supplier, you may have a relatively easy time ‘selling’ your customer on the value of you providing the supplies because you would be able to eliminate the hassle and expense of inventorying, purchasing and stocking consumable products for them, for about the same cost as they were going to pay for them on their own anyway.

    In the end, the answer to the question of what markup % you should apply should be arrived at by considering your costs, as well as, the value you bring to the client by handling this duty. Hope that helps, CleanGuru LLC

  7. maija says:

    We have been taking care of the paper products for years and it is easy. Its just part of the job the same with lights, maintenance of the entire building.
    One stop.

  8. DLiebrecht says:

    Hi Maija, thanks for your comment. Glad to see you’ve incorporated offering this service, specifically stocking, tracking and ordering poly/paper supplies for the buildings you clean as an additional benefit of doing business with your cleaning company, as well as, a potential profit center as well. Well done. CleanGuru LLC

  9. Virgilio says:

    Hello Dan
    I have very limited resources right now.
    I started to visit accounts (prospects), to land accounts.
    I always freeze up and don’t know what to say, except leave a card and call me if you need me.
    I hardly ever get in to see the desition maker.
    Any advise would be greatly appreciated ..

  10. DLiebrecht says:

    Hi Virgilio, please don’t despair – you’re definitely not alone. Nearly all janitorial business owners experience they very same problems at one time or another. I’d encourage you to check out all of the FREE resources (blogs and videos) available at CleanBid.net. Just click on the ‘Resources’ tab towards the top of the Home Page and you’ll find a number of blogs and videos describing many useful marketing, selling and profit tips and strategies. Hope that helps and best regards, Dan CleanGuru LLC

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