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Purchasing Habits

BSCs spend approximately $6 billion annually on cleaning supplies. Only about a third of purchases are direct from manufacturers, warehouse clubs, or retail stores, reports Nelson. The balance of purchases is from jan/san distributors. It is likely that they prefer purchasing from jan/san distributors because they can get three things from distributors that they cannot get from these other outlets: service, training, and support.

Accordingly, price is not always the deciding factor as to where they buy or what they buy. Indeed, when compared to other groups such as facility managers of schools, medical centers, and other industries, BSCs are more concerned about product performance. They are also looking for more distributor support than those in other groups, and order turnaround - getting the product quickly is of greater importance.

As to what they actually buy, chemicals and paper and plastic goods represent the largest share of purchases. Other frequently purchased categories include hand soaps, odor control products, and janitorial carts.

Business Realities

Do you know what it's like to run a contract cleaning company?

As Nelson states, BSCs usually have very demanding customers, and because so much of cleaning is subjective - what is clean to one client may not be so to another - they can be unusually difficult. Additionally, many customers want their facilities not only clean but healthy and Green as well. This places an extra burden on BSCs, forcing many to show that they are accomplishing something that is not always tangible or readily apparent.

Adding to their difficulties is the fact that most BSCs are charging essentially the same price for their services now as they were 30 years ago. There have been periods during the past three decades when it appeared charges were going up, but competition in the industry is so intense that these periods were short-lived. Because of stagnant prices and the fact that most of their business operating expenses are going up, BSCs must do everything possible to cut costs while still meeting growing customer expectations.

Some of the ways they are accomplishing this include:

• Proper hiring. Employee turnover in the professional cleaning industry is very high and very costly. Astute BSCs have learned that if they place more emphasis on the hiring process, turnover can be reduced considerably.
• Effective Training. Training not only helps maintain customer satisfaction but also upgrades skills so that work can be performed more efficiently.
• Supervision. Competent supervisors promote worker strengths, address weaknesses, and enhance the overall operation of the company.
• Suppliers. As referenced earlier, BSCs value the expertise of knowledgeable jan/san distributors to help them maximize worker productivity, cut costs, and keep their clients happy.

Links That Bind

Distributors, as Nelson sees it, have two basic options when it comes to working with BSCs. They can provide them with what is commonly viewed as "typical" service or with more advanced service, taking the extra steps to help them operate and even build their businesses.