And the beat goes on.......

[Cameron1]

Received this email from a client that we have had a 30 year cleaning relationship with.



Thank you for the quote.  I explained to Steve that Cintas had also provided me a quote for the same work on carpets and tiles.  Cintas has the same cleaning/extraction methods and works 24 hours per day and 7 days per week.  They have provided a quote that is over 40% less than yours.  I appreciate your time in quoting my facility, but I will use Cintas for this upcoming cleaning.  If their cleaning is not to my satisfaction


The client told me as we were walking his new facility that Cintas just showed up one day and asked to guote the cleaning , otherwise he would have just let us do it as always.

This was the first time we have bid against Cintas. Most likely, we will get this client back at some point.

 

[Dmreed4311]

I lost a bid to cintas on 20k of carpet, I have no idea what they bid but but I bid 20 cents per sq. ft. it was on the 10th floor and would have been a pain.

 

[AJR]

Steve
what were you bidding per sq. ft. on that job, carpet and tile? do you guys have any idea on what cintas is getting a sq. ft.? Price may have not been the only issue. i cant see how they can beat out an owner operator biz with thier overhead? Do you think your customer may have fell for thier overal presentation and marketing material? The C in tas website and setup as well as the sales man may have impressed your custy to at least want to give them a try. When we bid on commercial jobs we put together a complete floor maint. plan to give the customer clean floors all the time not just sell them floor cleaning services one time.

 

[Steve Toburen]

Cintas just showed up one day and asked to guote the cleaning , otherwise he would have just let us do it as always.

Ouch. That hurts. (Especially the 30 year relationship part.)

Stuff like this (sadly) just shows the need to have a continually running commercial sales process. No matter how good of an operation you run (and Steve, I know you folks have a great one) you WILL have "customer erosion". No one can "coast" anymore. Capitalism is not for the faint of heart!

Steve Toburen
www.SFS.JonDon.com

PS BTW, Steve, it was a delight to have Candice with us last week. You and Caryn should be very proud of her. Hopefully the five days gave her a new vision of the industry. In fact, Candice came up to me Thursday afternoon and said, "I can't believe Mom hasn't fired me yet"! Now I doubt you will have to...

 

[rwcarpet]

Received this email from a client that we have had a 30 year cleaning relationship with.



Thank you for the quote.  I explained to Steve that Cintas had also provided me a quote for the same work on carpets and tiles.  Cintas has the same cleaning/extraction methods and works 24 hours per day and 7 days per week.  They have provided a quote that is over 40% less than yours.  I appreciate your time in quoting my facility, but I will use Cintas for this upcoming cleaning.  If their cleaning is not to my satisfaction


The client told me as we were walking his new facility that Cintas just showed up one day and asked to guote the cleaning , otherwise he would have just let us do it as always.

This was the first time we have bid against Cintas. Most likely, we will get this client back at some point.

I believe I lost a 20+ year custy to Cintas. I'll give em a cleaning or 2....they'll be back. The director claims that they don't want to write multiple checks anymore for janitorial and carpet cleaning. I was available 24/7 for them, and was a trusted secure contractor. (They have many clasified items and computers in the building.) I had to work around the janitorial strip and wax of the main halls. A PITA, but a nice paying job.

 

[Larry B]

i cant see how they can beat out an owner operator biz with thier overhead? .

The size is how they out bid the OO. As an OO you are shooting to make $100 per hour or better Cintas only needs to profit $1. in that same hour. The OO is trying to make money off 1 or 2 vans, Cintas is making it off 100's.
The OO is going after carpet cleaning and maybe tile, Cintas locks a contract for carpet, tile, uniforms, area rugs, janitorial, rest room cleaning.

The one plus side to Cintas is they only seek the huge buildings that their 3 guy crews can work in.

 

[Becker]

I have a client who works for Cintas.. Not in the carpet cleaning department, but has knowledge.
That company has a lot of money to be doing jobs at a lose.
He told me just like other divisions Cintas offers.. Take over the market, then slowing raise price.

 

[Steve Toburen]

This is not to diss anyone here (and especially Steve) but the point is being missed. Cintas does marginal work using marginal employees at low prices. So what is their secret? Steve's client gave it away:

"Cintas just showed up one day and asked to guote the cleaning..."

That's right, Cintas recognizes my new marketing mantra: "Marketing is a process, not an event." So they will keep chipping away at your commercial base using "The Law of Massive Action". How can a small cleaner fight back? Do the same back at them- a regular, consistent, sustained sales effort with a set number of new prospects to contact every week. (I suggest 20 new prospects each week for a small operator.)

Steve Toburen
www.SFS.JonDon.com

PS True confessions time: I too engaged in "binge selling". Wait till I was desperate (or fired up by losing an account) and then do a flurry of selling. Then we would get busy doing the work and I would fall back into complacency.

 

[FB7777]

This is not to diss anyone here (and especially Steve) but the point is being missed. Cintas does marginal work using marginal employees at low prices. So what is their secret? Steve's client gave it away:

"Cintas just showed up one day and asked to guote the cleaning..."

That's right, Cintas recognizes my new marketing mantra: "Marketing is a process, not an event." So they will keep chipping away at your commercial base using "The Law of Massive Action". How can a small cleaner fight back? Do the same back at them- a regular, consistent, sustained sales effort with a set number of new prospects to contact every week. (I suggest 20 new prospects each week for a small operator.)

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

PS True confessions time: I too engaged in "binge selling". Wait till I was desperate (or fired up by losing an account) and then do a flurry of selling. Then we would get busy doing the work and I would fall back into complacency.

excellent post Steve

I've run up against Cintas a few times out here, their marketing material is slick and the sales reps come in well dressed. As for me, I typically slither in in-between jobs and give them a quote :mrgreen:

Out here, Cintas rarely comes in low bid, and they'll bid on everything ( tile, uniforms, mats ware washing etc.) if given the chance. I believe some facilities chose them for the one shop vendor experience or the perceived savings given by offering discounts on multiple services.

Mr T nailed it tho... we all run into Cintas cause they're hitting the pavement 24/7

 

[Steve Toburen]

Thanks, Fred. In addition to having a regular and ongoing commercial sales program here is another way to deal with the "big boys"...

The one plus side to Cintas is they only seek the huge buildings that their 3 guy crews can work in.

I think it was Joe Namath who was asked how he avoided interceptions and he replied, "I throw where they ain't." (Now some sports buff is going to contradict me.) But the point is to look for those profitable niches that don't work for Cintas, etc.

Steve Toburen
www.SFS.JonDon.com

PS Another solution is to partner up with a janitorial service. Jeff Cutshall subcontracts the encapsulation for a big 300 employee janitorial service in Kansas City. The service takes 20% off the top and Jeff provides the equipment, staffing and chemicals. He has several Cimexes running 24-7 doing this and says it is highly profitable.

 

[Connor]

I think it was Joe Namath who was asked how he avoided interceptions and he replied, "I throw where they ain't." (Now some sports buff is going to contradict me.) But the point is to look for those profitable niches that don't work for Cintas, etc.

You're welcome

http://bx.businessweek.com/strategic-ma ... b2d29d962/

Matt Michel of Service Roundtable sez the same ting.

 

[GeneMiller]

if they clean the way their video shows it will be a better cleaning then most. they pre spray , scrub then pre spray again before extraction. sounds like steps to success. i'm not doing all that and i'm consider myself pretty thorough .

gene

 

[Dolly Llama]

but the point is being missed. Cintas does marginal work using marginal employees .

How do you know that, Steve ?
Have you been behind them ?

and what knowledge do you have of their hiring practices?
What makes you say they hire "marginal" employees?


and i have to laugh when you suggest their work is "marginal" but then you'll tout Cutsell's biz model of sending Cimex jockeys to sling sCampoo around

for the record, I don't know if Cintas does good or bad work.
I DO know what scrub 'n run is though


..l.T.A.

 

[hogjowl]

YEAH!