Before you hire one more service, you need to understand the two major causes of the commercial janitorial industry high business failure rate and how it affects you.
Atlanta is growing and so is the demand for janitorial services. As of May 2016, there were approximately 3.26 million people working in the cleaning services industry in the United States. The U.S. Janitorial Services Industry is huge and worth $52 billion dollars. The business is very competitive, comprised of 765,000 mainly small operators, including 44,000 franchised outlets.
When you have an industry that is in such high demand you are going to have problems and business failures. First, some janitorial services just plain suffer from inexperience. They just don’t know what they are doing. Cleaning commercially is not the same as cleaning your house.
There are many franchises out there promising the buyer a fortune if you buy one of their franchise without any prior skills.
Second, the low bidder cannot possibly even survive in business unless they don’t do the job they were hired to do!
Yes, you read that right. The janitorial industry is a service industry based on time spent. In calculating price, a cleaning service multiplies time by an hourly rate. The hourly rate has to pay the cleaning person, the supplies, and the overhead, what’s left over is profit.
It is not the hourly rate that varies so much between companies, it is the time allotted for the job. After you sign your long-term contract, the low bidders have to short-cut the actual cleaning process or lose money.
The profit margins are slim in the commercial cleaning industry because anybody who can push a broom can enter the janitorial industry and low-ball the work. The reputation of the janitorial industry is poor because of these want to-be cleaners.
It estimated two out of three janitorial service companies are built on the business model of constant turnover. These cleaning services get you to a long term contract, usually one year; therefore, ensuring you will have to keep on paying them, even though they are not doing the job they were hired to do. Why do they operate like this? Small janitorial service companies do not have enough sales to pay a decent rate to their janitorial staff plus earn enough profit to pay for overhead. They only have their long-term contract.
We are so confident in our cleaning service, that we do not have long-term contracts, only a thirty day notice. Larger, established janitorial companies can charge a reasonable cleaning fee, pay their staff so they will care about the job they do and not have constant turnover plus they have plenty of customers, each contributing a small amount to overhead and profit. If the janitorial company is very large, they sometimes suffer from too much overhead – an expensive office, expensive cars for the owners, etc. You get the picture. This leads to short term success and a higher turnover rate.
SuperClean Commercial Cleaning, LLC has been around since 1995 and needless to say has gone through the growing pains stage. We charge a reasonable fee for our services based on industry guidelines, not the lowest and not the highest.
Many franchise janitorial companies are sales organizations. Former business executives or retirees looking for a nest egg spend their life savings or home equity to purchase a pre-packaged business plan that shows them how to sell the services of the company and gives them a crash course in cleaning. The failure rate is very high and when they have no capital left to sustain the business to a size that will support overhead it all come to a halt. They have no prior cleaning experience and don’t know the ins and outs of the business. They only have one year contracts and low ball bids.
How to Hire the Right Company
Hire local. When accepting bids, you will need a detailed cleaning specification to ensure that all companies are bidding for the same job. Janitorial companies that service nationwide accounts are notorious for focusing on their most important accounts and treating their smaller customers as unwanted step-children. When interviewing janitorial companies, make sure they are not so large that your account is unimportant.
Every project is different, every project is special!