Introduction - Overview of Fred Edwards Brief description and history of Servpro Canada. How long in the business, diversity of clientele etc. Talk about how things are going in Edmonton and how it compliments our current operation. History and goals for the day – What brought you hear today, what do you want to accomplish, agenda (i.e Interactive Questions and answers at the end or during the presentation) Why should you perform janitorial services! I am going to provide you with a high level overview as to why you should be in the janitorial business. More importantly I am going to speak about how it’s a natural fit into your current day to day operations. You’re in a better position than most. You’re apart of a well established organization with a powerful brand. The question is Why should you expand to Janitorial? I’m going to do my best to answer that question.
The janitorial business if full or pros and cons just like any other industry. IHowever, I want to focus on 4 simple reasons why you should enter the janitorial business. 1)Profits – Expanding your services will result in increased bottom line 2)Marketplace Presence – You’re already in the game 3)Monthly Revenue – Guaranteed Source of Revenue 4)Value Add – Provide more value to the brand We could really dig deep with each of these reasons but I am only going to touch on the what I feel are the most important aspects. Let’s begin with the almighty dollar.
PROFITS - Oh the so important bottom line. Let’s be honest, we’re all in business to make money. I can tell you from personal experience you will make money in the janitorial business. Good Money! Service your customers effectively and the money will follow. It’s a very simple concept. GOOD MARGINS - There is often a miss conception that janitorial service providers work with low margins. Yes the margins are substantially lower than the DR business but there is money to be made. ******* Provide some statistics from personal experience at Servpro if comfortable******Possibly talk about the average margins of 15 – 25 %. - Janitorial margins are much higher with one time cleans and speciality services STABILIZE LABOUR - Profits are increased with reducing turnover by way of employee retention. This reduces the amount of training $$ spent therefore improves profits. - Provide front line workers steady employment enhancing their skill base and overall productivity - ownership pride and loyalty naturally develops. One of the biggest challenges for any organization is maintaining a strong skilled labour force. Keep your people busy and happy they’ll have no reason to stray. EQUIPMENT - Equipment is paid for by the client. Equipment is built into the cost and typically amortized over 3 years. Bidding trick – Amortize the equipment to reflect the term of the contract. - ****Idea**** Current inventory of branded equipment would separate you from other competitors as most do not offer that brand significance. Will set a professional image and strong brand. LONG TERM CONTRACT – Commercial janitorial typically operates on long term contracts growing profits. Explain - We’ll find efficiencies over time ultimately resulting in profits. Some of our current contract have started at a 15% margin and after a very short time increasing to a 40- 50% margin. - Contract length from 1- 5 years. Average contract last 8 – 10 years with renewals.
PROFITS - Oh the so important bottom line. Let’s be honest, we’re all in business to make money. I can tell you from personal experience you will make money in the janitorial business. Good Money! Service your customers effectively and the money will follow. It’s a very simple concept. GOOD MARGINS - There is often a miss conception that janitorial service providers work with low margins. Yes the margins are substantially lower than the DR business but there is money to be made. ******* Provide some statistics from personal experience at Servpro if comfortable******Possibly talk about the average margins of 15 – 25 %. - Janitorial margins are much higher with one time cleans and speciality services STABILIZE LABOUR - Profits are increased with reducing turnover by way of employee retention. This reduces the amount of training $$ spent therefore improves profits. - Provide front line workers steady employment enhancing their skill base and overall productivity - ownership pride and loyalty naturally develops. One of the biggest challenges for any organization is maintaining a strong skilled labour force. Keep your people busy and happy they’ll have no reason to stray. EQUIPMENT - Equipment is paid for by the client. Equipment is built into the cost and typically amortized over 3 years. Bidding trick – Amortize the equipment to reflect the term of the contract. - ****Idea**** Current inventory of branded equipment would separate you from other competitors as most do not offer that brand significance. Will set a professional image and strong brand. LONG TERM CONTRACT – Commercial janitorial typically operates on long term contracts growing profits. Explain - We’ll find efficiencies over time ultimately resulting in profits. Some of our current contract have started at a 15% margin and after a very short time increasing to a 40- 50% margin. - Contract length from 1- 5 years. Average contract last 8 – 10 years with renewals.
PROFITS - Oh the so important bottom line. Let’s be honest, we’re all in business to make money. I can tell you from personal experience you will make money in the janitorial business. Good Money! Service your customers effectively and the money will follow. It’s a very simple concept. GOOD MARGINS - There is often a miss conception that janitorial service providers work with low margins. Yes the margins are substantially lower than the DR business but there is money to be made. ******* Provide some statistics from personal experience at Servpro if comfortable******Possibly talk about the average margins of 15 – 25 %. - Janitorial margins are much higher with one time cleans and speciality services STABILIZE LABOUR - Profits are increased with reducing turnover by way of employee retention. This reduces the amount of training $$ spent therefore improves profits. - Provide front line workers steady employment enhancing their skill base and overall productivity - ownership pride and loyalty naturally develops. One of the biggest challenges for any organization is maintaining a strong skilled labour force. Keep your people busy and happy they’ll have no reason to stray. EQUIPMENT - Equipment is paid for by the client. Equipment is built into the cost and typically amortized over 3 years. Bidding trick – Amortize the equipment to reflect the term of the contract. - ****Idea**** Current inventory of branded equipment would separate you from other competitors as most do not offer that brand significance. Will set a professional image and strong brand. LONG TERM CONTRACT – Commercial janitorial typically operates on long term contracts growing profits. Explain - We’ll find efficiencies over time ultimately resulting in profits. Some of our current contract have started at a 15% margin and after a very short time increasing to a 40- 50% margin. - Contract length from 1- 5 years. Average contract last 8 – 10 years with renewals.
MONTHLY REVENUE - Keeps your business going. CONSISTENT REVENUE – Unlike DR you can rest assured that there will be monthly revenue. This is revenue you can rely on. - Invoices are processed at the beginning of each month generating strong cash flow. Some contracts even pay in advance. - Revenue is much more consistent. It is typically not seasonal such as DR. i.e flood and fire season. Revenue increases with growth and sustainability. STEADY ADMINISTRATION –Contract Cleaning will keep administration teams busy with constant work and repeat duties - Your infrastructure is built and can easily integrate with current procedures and systems. SUBSIDIZE SLOW TIMES – The DR business varies month to month. Monthly cleaning contracts can assist with filling any voids and subsidize the slower times. The janitorial business does not slow down but will sometimes remain flat. - Cross training and cross functionality will equate to a much diversified work force. Employees can be aligned to operate in both DR and janitorial positions. GUARANTEED CLIENT INTERACTION – You will spend more time in front of your customers. We all know that face time is invaluable. You’re positioned to build relationships quickly, increase services levels and revenue with current clients and prospects. MONTHLY REVENUE GENERATION – You will generate additional monthly revenue from your janitorial contracts. This revenue is generated from additional one time and specialty services, such as carpet cleaning, window cleaning, move in and move out cleans, day porter and matron services etc. These services tend to carry higher margins which average 50% or more
You already have a strong market place presence. MAJOR PLAYER – You’re already in the market. You’re not only in the market but you’re a major player with a high market share percentage. Customers are at your fingertips. - The simple 80/20 rule - its easier and more cost effective to maintain current clients than obtain new ones. CUSTOMER AWARENESS – Customers are aware of your services, your approach, your people, your brand. Expand your customer base. - Existing clientele with the DR business. Lots of potential spin off, referral, and repeat business. ESTABLISHED RELATIONSHIPS - It’s a people business and people like to work with good people. Half the work is done. Relationships are already there. - The trust and rapport is developed. PROVEN TRACK RECORD - Proven track record with your past services and success stories. Everyone can relate to personal experiences. DIVERSIFY YOUR BRAND AND SERVICES – You’ve already penetrated the market. Make contract cleaning your competitive advantage. Truly Separate yourself from the competition.
Differentiate yourself from your competitors. Add value. Customers are always open to more value. INCREASE BRAND EQUITY – Naturally expanding your service offering will result in increased brand equity, brand awareness and overall brand strength. - It’s the whole one stop shop theory. If a customer can go to one place for all services, they will. STREAMLINE – Streamline your services. Offer discounts for multi serviced customers. EXTENDED SERVICE OFFERING – INCREASE VOLUME - Increase sales volume and stream lines cross-functional services. - Diversify your service offering. Expand your portfolio.
Conclusion – What you really need to be asking yourself is WHY NOT? You’ll make money, you’ll generate consistent monthly revenue, you’re already in the market, and you’ll add value. I think it’s safe to say that it’s a natural fit. Thank you
