The recession might be over but not all the optimists who comment or analyse our economy are in agreement with that statement. All in all, the cleaning industry in Australia has come through relatively intact but that doesn't mean that any of us in the commercial cleaning industry should let our guard down now.
Most of our clients are still very guarded with their level of spend and their business model is still based on cost rather than value. Sometimes, if businesses are to survive, that is an understandable measure. And there is no indication either that clients are going to increase their level of spending any time soon. In fact, recent figures I have read indicate that clients level of spending on commercial cleaning and maintenance is still down from 2009 levels. Recovery will take some time because clients are still looking at ways to cut costs in their own businesses.
If there has been any positives coming out of this recession is that many businesses see the advantages of outsourcing many of their services. There has been a lot of tender activity in the last 12 months or so and many of those tenders were for services that were performed in house. So companies that employed their own cleaners under their own banners have outsourced their cleaning and maintenance needs to commercial cleaning contractors.
The important thing is to maintain your own profit margins and don't fall victim to the trap of cutting your margins for the sake of just keeping the job. Sometimes doing that will end up costing you money and that's not why you are in the commercial cleaning business for. Always charge for a level of service that covers your costs and has a profit margin as well off course also maintaining the level of service that the client expects and deserves. Keep in constant touch with the client and act on matters that they raise immediately. Doing things in this manner will ensure that you have a healthy profit margin and happy clients.
Wednesday, August 25, 2010
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