Cintas, Sniffing around my accounts

[AshleyMckendree]

So Cintas has been sticking there nose in some of my biggest accounts,
One of these accounts I have had for 7 years, and is in the 60k/yr ballpark, And I have a solid biz relationship with them, and for the past month they have been BEGGING them for there Carpet cleaning contract, Asking for a copy of my pricing contract so they can BEAT IT by 5% so they can be "Competitive"...

Needless to say this PISSED off my client, and he told them no way and that if they want to be "Competitive" they can give him a bid and he will file it away for the day I go out of business or decide to quit cleaning carpet LOL.


Although he WAS impressed with there "Vortex" they kept shoving high gloss pictures of down his throat.

 

[GeneMiller]

you could always laugh and tell them they can only show him pictures because it is probably in the shop getting repairs. they seem to spend more time broke then running.

Hey, maybe that can be their final legacy.

gene

 

[Out of Character - 0]

It always hurts a little but you do have the right to shove premium literature down their customers throats too.

 

[steve frasier]

I have had to match thier price on 2 accounts if I wanted to keep them, cost me $100 per cleaning on each one

I have seen the truck a few times at night cleaning ceramic tile for BurgerVille fast food joints

this type of thing goes on more than you think, getting cutthroat out there

 

[dealtimeman]

they are aerotechs and they are very cuthroat when it comes to prices. they combine service (rugs, uniforms, soaps and supplies -carpet cleaning) to lower the prices and get in the door. the bad part of all of it is, they actually do a good job cleaning.

 

[Mike Draper]

I have stopped by Aero Tech Mfg in Salt lake city a few times in the last couple of months. They are going balls to the wall building AT's for Cinta's. At told me they were building 8 a month for them. :shock: :shock: and they haven't stopped yet.

 

[boazcan]

s]http://www.youtube.com/watch?v=MGsh3rcpCS4s]

 

[Steve Toburen]

It always hurts a little but you do have the right to shove premium literature down their customers throats too.

Exactly. That is why it is so important to not get complacent. Even if you don't want to "get big" every company should have an ongoing marketing and sales program.

Steve Toburen
www.SFS.JonDon.com

PS I believe they call it "capitalism" otherwise known as "survival of the fittest".

 

[NobleCarpetCleaners]

It will condense down to a battle of perception.

Whether in residential or commercial work it all boils down to price and perception. Your RELATIONSHIP is just one factor that will keep a customer over and over again. This customer of yours is worth 60k?, wow. I wouldn't take for granted your relationship for a second in this economy or any other.

Cintas is just like any other national service provider. And they kick and scratch to gain any account they can get. I wouldn't let their equipment expansion impress you either. All they have to offer is price. Even commercial clients could give a shit about method, and the vast majority of glue down carpet is still being maintained by bonnet and mop bucket. Don't you think they wouldn't do the same above the 1st floor. Encap is the only way anyone is going to compete on commercial carpet.

Tile and grout competition, well I know a little about that nationwide as well. From commercial buildings to fortune 500 food chains these floors are being "maintained" by mob and bucket. They only way we or some large national service provider are going to get a turbo on the floor is through low price. Cintas is going for after hours accounts through price and perception. Like every other large provider they are banking on brand as well. They are a janitorial company who likes to photograph their Vortex's.

 

[Captain Morgan]

Do you think independent carpet, upholstery, tile cleaning "Mom & Pop" companies will go the way of pharmacies, hardware stores, doctors/dentists, grocery stores, funeral homes, etc?

In the last 20-30 years they've each faced the wave of acquire others, be acquired or go out of business. I see our industry as being the next to be swallowed up or at least go through a major overhaul. Too much in-fighting, professional disorganization, rising costs, expenses making it harder and hard to maintain competative and making harder and harder for smaller guys to make a profit. I understand it's business and capitalism at work.

The bigger chains has volume pricing discounts, national marketing systems and others which allow them to undercut or at least run some services at a loss while making up for it on the other services all the while gaining marketshare.

It's gonna get ugly...
Bill

 

[lance]

Looks like they use a 1.5 inch wand. Similar to Prochem ti but ugly.

Go to 3:22 and watch the poor guy on the wand.

 

[Desk Jockey]

What they have that most of us don't, an experienced professional sales force. They are already in and out of these businesses daily servicing and looking for work.

This is just line extension for them, no addition costs on the sales end, major costs on the production end. :shock:

They are formidable competitors, but because of the quality of cleaning, you or I can clean just as well. It's the sales force that is out there pounding the pavement day in and day out that will bring in the work.

Will they last? I think they will for a while or at least until they figure out they are not making the kind of return on their investment that they expected.

Then there will be a huge sale on Aero Tech's..........what you say Jim want a used Aero Tech in a few years?

 

[ACE]

They have some PS sales propaganda too. They have been doing restroom cleaning for a few years. They tell clients that there weekly cleaning disinfect surfaces and whatever antimicrobial they apply will continue to keep surfaces free of pathogens until the next service.

 

[sam gm]

I just saw one of there trucks cleaning here in austin on saturday night on 6th st. a very busy night club /bars kind of place. I thought it was odd cause they had all there hoses runningacross the sidewalk where alot of people were walking, mabey they were doing a flood. First time I saw them in action here. they do run aero techs and probably do a decent job. I welcome the competition.

 

[daniel@procarpet]

I am not competing for the same accounts as CINTAS. I didn't even know they operated here until they called me asking if they could refer clients needing carpet stretching to me. I do a few restaurants and I will leave it at that. All they are going to do is drive down the prices with CHEAP LABOR and their so called super machines. I know that business model is not for me.

 

[rwcarpet]

What they have that most of us don't, an experienced professional sales force. They are already in and out of these businesses daily servicing and looking for work.

This is just line extension for them, no addition costs on the sales end, major costs on the production end. :shock:

They are formidable competitors, but because of the quality of cleaning, you or I can clean just as well. It's the sales force that is out there pounding the pavement day in and day out that will bring in the work.

Will they last? I think they will for a while or at least until they figure out they are not making the kind of return on their investment that they expected.

Then there will be a huge sale on Aero Tech's..........what you say Jim want a used Aero Tech in a few years?

Just wondering......what's their pricing structure? Hourly? Sq ft.? With that huge investment in equipment, they must be charging decent pricing. I think they'll be around a few years then out.

Remember when the national lawn care company was cleaning carpets off season? (can't remember the name of the company). They didn't last long......I think they used ProChems, and had them painted green. Unless they maintain those trucks, there will be problems.

I'll wait them out and buy an Areotech.

 

[Desk Jockey]

Chemlawn had Butlers and had Jeff Bishop as their consultant and still gave up after several years.

 

[Chris A]

Yeah, who knew cleaning carpet in the winter would be a bad idea?

 

[Steve Toburen]

Chemlawn had Butlers and had Jeff Bishop as their consultant and still gave up after several years.

And lets not forget the Carpet One fiasco from years ago. They were going to take over the world.

And to be honest- you don't get much more "synergistic" than a retailing chain signing people up with a long term maintenance contract at time of purchase. sounds GREAT ... in theory. In practice they ran into the sheer logistical problems of running a national operation and maintaining quality plus they didn't have a clue on the emotional Dynamics of working in the customer's home.

Steve Toburen
http://www.SFS.JonDon.com

PS There will always be a very profitable place for a locally owned carpet cleaning business either commercially or residentially IF you do it right. Too many cleaners don't.

 

[rwcarpet]

Butlers and had Jeff Bishop as their consultant and still gave up after several years.[/quote] And lets not forget the Carpet One fiasco from years ago. They were going to take over the world. And to be honest- you don't get much more "synergistic" than a retailing chain signing people up with a long term maintenance contract at time of purchase. sounds GREAT ... in theory. In practice they ran into the sheer logistical problems of running a national operation and maintaining quality plus they didn't have a clue on the emotional Dynamics of working in the customer's home. Steve Toburen [url="http://www.SFS.JonDon.com" data-source="" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch">

http://www.SFS.JonDon.com[/url]


I think it is Service master that uses ProChems. But they are already in the CC business. Or maybe it was Serve Pro. Somebody was using green PC's.

Or maybe I'm just gettin old......


There will always be a very profitable place for a locally owned carpet cleaning business either commercially or residentially IF you do it right. Too many cleaners don't.[/quote:33mp1zke]

 

[Brian R]

Don't let the paranoia get to you. The ones who roll with the punches will survive...the ones' that get caught up in it, won't.

Sometimes people look for an excuse not to succeed.

There are more than enough customers out there for everyone.

The beauty is there are many more than just one type of customer and each company can take care of a few types.

Cinta's will have theirs....you have yours...I have mine. etc.

 

[sam gm]

Don't let the paranoia get to you. The ones who roll with the punches will survive...the ones' that get caught up in it, won't.

Sometimes people look for an excuse not to succeed.

There are more than enough customers out there for everyone.

The beauty is there are many more than just one type of customer and each company can take care of a few types.

Cinta's will have theirs....you have yours...I have mine. etc.

very nicely said,

 

[GeneMiller]

Looks like they use a 1.5 inch wand. Similar to Prochem ti but ugly.

Go to 3:22 and watch the poor guy on the wand.

I noticed the same thing. They have a great sales video.

gene

 

[Ron Werner]

they have a top handle on that wand as well. Looks like a Ti modified with a handle like I had on my old wand. Everyone said that was ugly too. :roll:

Notice the two dudes shaking hands at the end. Look like twins.

 

[randy]

Yeah, who knew cleaning carpet in the winter would be a bad idea?

Actually that illustrates a great point: These big national outfits that come along every once in a while to take over the industry, never seem to last but a few years BECAUSE THEY REALLY DON'T KNOW THE INDUSTRY.

I remember when Marriott's Host division started cleaning commercial carpets back in the mid-90's. They too started in January, held a recruiting event to hire experienced techs from within the industry. One of their recruiters was at our local distributor bitching about how hard it is to hire techs. He then pitched me on their wonderful benefit package and $11.00 hour wage they offered. When I told him what I net the previous year between both of my businesses he looked amazed and said , " you would have to be a division vice president to make that at Marriott.

They lasted less then 4 months in the cleaning industry.

 

[randy]

Butlers and had Jeff Bishop as their consultant and still gave up after several years.[/quote] And lets not forget the Carpet One fiasco from years ago. They were going to take over the world. And to be honest- you don't get much more "synergistic" than a retailing chain signing people up with a long term maintenance contract at time of purchase. sounds GREAT ... in theory. In practice they ran into the sheer logistical problems of running a national operation and maintaining quality plus they didn't have a clue on the emotional Dynamics of working in the customer's home. Steve Toburen [url="http://www.SFS.JonDon.com" data-source="" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch">

http://www.SFS.JonDon.com[/url]

PS There will always be a very profitable place for a locally owned carpet cleaning business either commercially or residentially IF you do it right. Too many cleaners don't.[/quote:19i2nq4n]

and to think all this time I thought that was YOUR idea. !gotcha!

 

[Desk Jockey]

And lets not forget the Carpet One fiasco from years ago. They were going to take over the world.

Carpet One had Fritz Thompson helping them too!

We bought a couple of vans and mailing list from a local Carpet One when he wanted out of the cleaning business. He said cleaning was 3% of his profits but 98% of his headaches. :mrgreen:

I'd bet they eventually tire of the business for one reason or another.

 

[KevinL]

Chemlawn is part of the Service Master family. So don't use them.

 

[Steve Toburen]

And lets not forget the Carpet One fiasco from years ago. They were going to take over the world.

Carpet One had Fritz Thompson helping them too!

We bought a couple of vans and mailing list from a local Carpet One when he wanted out of the cleaning business. He said cleaning was 3% of his profits but 98% of his headaches. :mrgreen:

I'd bet they eventually tire of the business for one reason or another.

Exactly! So learn from what they do right (targeted and consistent sales efforts, a Business Infrastructure made up out of written systems and procedures, solid financial analysis, etc) and wait them out.

Nothing beats a local entrepreneur focused on his or her niche who is also dialed-in on business strategy.

Steve Toburen
www.SFS.JonDon.com

PS Fritz worked like a dog on the Carpet One venture. But not even he could overcome the corporate inertia and ignorance plus the apathy and disinterest of their franchisees.

 

[Ron Werner]

Home Depot was subbing work, $25/room of which the tech got $16 !!
Hardly incentive for a tech to do good work to generate loyalty and repeat busn.
That lasted about a year or so. Don't even hear much about their Chemdry association anymore.