This article is from Cleanfax and written by Jeff Cross. The direct link to the article is here: Cleanfax Online :: Brought to you by Grand View Media

In the popular television reality show “Survivor,” each week there is a loser — someone who is tossed out of the game against his or her will.

Despite the players’ best intentions, someone has to go.

Competition is fierce, and there has to be a loser.

The same could be said for the carpet cleaning industry.

Despite business owners’ best intentions, someone has to go.

Competition is fierce, and there has to be a loser.

The problem is that in this industry, there isn’t just one loser — the number of carpet cleaning companies that fail in this business each year is in the thousands.

How can you survive?
CM/Cleanfax® magazine went to many industry-recognized marketing experts for advice on what individual cleaning companies can do to stay in business and perhaps even grow during difficult economic times.

The variety of suggestions were endless. It seems that the real problem would be finding the time to implement them. But, if you are seeing less revenue and are struggling, the time is now to find effective means to market your company.

Survival Tip #1
Jim Pemberton, president of Pembertons Cleaning & Restoration Supplies and West Penn Cleaning Company, McKeesport, PA, was straightforward when asked what his advice might be.

“Do not buy a new marketing package. Do not just ‘mail a coupon.’ Impulsively spending money on marketing or advertising is usually not prudent,” he said.

Instead, Pemberton recommended that cleaners should visit all of their major referral sources. “Most cleaners have carpet stores, real estate agents, designers, and others who refer them. They rarely stop by and say ‘Thanks,’ though,” Pemberton said.

This is a good time to drop by, thank them personally (with an appropriate gift in hand), and talk about what other needs they have that you might be able to help with, he stressed.

Pemberton had another word of wisdom. Do not talk about how bad business might be at this time. No one likes a complainer, and if you complain, you could be viewed as a business failure.

In addition, “Schedule tighter. If you aren’t as busy, don’t spread work out over several days, but work efficiently by booking your days full, and watching your travel distances between jobs.”

Survival Tip #2
Joe Polish, Piranha Marketing, said that after working with more than 5,000 cleaning companies, he has found that the best marketing “1-2 punch” for carpet cleaners is a free room offer with a carpet audit.

“Consumers all wonder whom they can trust, so giving an irresistible offer — like a free room of cleaning — gives you the opportunity to prove the quality of your work,” Polish said.

But, before you deliver that free gift, you evaluate the home, educate the consumer on what you do, why it’s important, and what their carpeting is in need of — what Polish calls a carpet audit.

“A carpet audit is an education-based marketing presentation that dramatically increases the perceived value of what you are delivering. It takes you from a cheap commodity to a valued service.”

It can all be about value.

When the consumers recognize the value you are providing, and see the quality of your work, they reciprocate by having other work done.

“This is by far the most successful strategy we’ve come across for getting new business, and our members utilize it in flyers to neighborhoods they want to work in, as five-arounds to nearby homes at jobs they’ve completed, as three-sequence mailers to referred friends of existing clients, and as ‘free room certificates’ with business endorsement relationships,” Polish said.

Of course, it is smart business to then ask for referrals. Many cleaners don’t even ask, and potential business is then lost.

If you do excellent work, the referral system will provide great dividends.

Survival Tip #3
Steve Marsh, creator of the “Be Competition Free Marketing Program,” said that he’s survived three major economic downturns during his 34 years in the industry.

Since carpet cleaning is not a necessity, consumers who believe their personal finances are tight might eliminate professional cleaning entirely, delay the frequency of service, or minimize the size of the job, he said.

“I’ve observed that companies servicing the quality-oriented higher-end market suffer far less during these times than budget cleaners trying to service event-motivated consumers,” Marsh said.

His advice to carpet cleaners during difficult times?

He says to stop giving away your profit when servicing repeat customers. There is no need to discount primary services when doing repeat work.

“Too many cleaners feel they must always discount their work. Is your work so poor that you must bribe customers to use you a second time,?” he asked.

“You only need to remind satisfied customers that you are their cleaner and when it’s time to have things cleaned.”

He said that discounts should be a strategic tool used primarily for acquiring new customers and introducing new services.

Consider offering discounts on additional services the consumer is not currently using, or, if you have a referral reward program, offer double referral rewards for a period of time to stimulate business.

Survival Tip #4
Scott Rendall, owner of Banana Profits, an industry marketing and consulting firm, believes that successful businesses that survive the tough times are the ones that treated it just like the “fat” times.

“In other words, the business should be just as aggressive no matter the economic condition. A company that falls into complacency during the good times is a company that will struggle and possibly fold during economic downturns,” Rendall said.

To combat this, Rendall recommends having in place a marketing system that isn’t predicated on the economy, but rather is one that continually is in front of the customer or prospect, one that creates a sense of trust, value and urgency no matter if the economy is doing well or poorly.

“What we hear in the media is often not reality, and that works both ways. When the media say the times are great, that doesn’t mean our customers are doing well, and vice versa,” Rendall said.

To assume the economy is to blame for the failure of a cleaning or restoration business is a case of improperly assigning blame.

Look no further than the mirror for the problem and solution, Rendall said. (Also see “A bad economy” sidebar)

Survival Tip #5
Doyle Bloss, vice president of education at Bridgepoint and Interlink Supply, said that one of the most important keys during economic times that are perceived to be tough is to recognize that there are still many customers who are not feeling the economic squeeze that others are.

“But even those that are not being directly impacted may have a strong change in their reaction to the downturn. They delay replacement. What that means is that many who may have been planning on purchasing new floor coverings will now be cleaning and maintaining the floors they already have instead. Cleaners should focus on this demographic,” he said.
The key, Bloss said, is to clean more wood, tile, grout and stone flooring. Diversification is important.

“The key is to get more money out of every job that you book, by expanding and emphasizing some of the diversifications you are offering,” he said.

“Subsequent to that, you need to offer financing alternatives, such as credit cards, that make it easier to expand your job ticket average.”

Doyle suggests that you look at some other, often-overlooked ways to increase job ticket averages, such as:

• Upholstery cleaning
  
• Leather cleaning
  
• Fabric protectors
  
• Duct cleaning
  
• Product selling, such as spotters, groomers, brushes, pet odor deodorizers, etc.

And, Doyle said, for cleaners who are still focused almost exclusively on residential cleaning, this may be the right time to investigate low moisture encapsulation carpet cleaning systems as a way to open the doors to new commercial carpet cleaning opportunities.

Survival Tip #6
Times like these should also give service companies the sense of urgency to begin that referral program they have been meaning to try for years now, according to Dane Gregory, president and CEO of the 3-D Corporation and an industry trainer and consultant.

“Companies need to get serious about developing relationships with people who can help build their sales,” he said. “Carpet and flooring retailers are the first priority, followed by maid services and then high profile property managers.”

Gregory believes that most carpet cleaning companies are relying too much on advertising and not concentrating on being the “Mr. Goodwrench” for the floor covering industry.

Getting into the home is now the largest part of the battle, Gregory said.