Jarred,
This topic has been discussed numerous times here. If you do a search under commercial cleaning or janitorial companies you should come up with plenty to keep you busy for an entire day.
Yes, this relationship can work well. On larger facilities you’ll probably have to sharpen your pencil quite a bit from those numbers though. But you should be able to encap a good portion of it and still make a good profit.
I’m typing fast but here’s a few advantages of subcontracting work form janitorial companies
1. They already have relationships with customers it could take you years to develop.
2. They have access to a lot of work and often times their janitorial customers would prefer to let them have the carpet cleaning, since they already have access, etc. (This is of course unless they’re constantly screwing up on the janitorial. LOL)
3. Your company can grow very fast. Yes, you’ll need at least a good helper or two.
4. Many janitorial companies have already failed at trying to do it themselves. Turnover is extremely high in janitorial. With hiring you they don’t have to worry about training, equipment breakdowns, etc. One call to you and their problems are solves. It’s a win, win for everyone, if done correctly.
Disadvantages
1. With one phone call your company can also have to downsize very fast if they ever decide to do it themselves.
2. You’re the middleman, which can be frustrating at times. I usually go in under the janitorial service umbrella. Some know they sub to me and others don’t. Communication at times can be a challenge because oftentimes I don’t deal directly with them client, rather the janitorial company.
3. Most of the time the janitorial company is the one that maintains the relationship. Good for them but not so good for you.
4. Because of the large facilities they maintain, sometimes it’s very challenging scheduling jobs. (This is can also be a good problem though.) Some weekends we don’t have anything going on and some weekends we’re cleaning 50,000 sq feet. I’ve found if possible we like to do the bulk of the work on the weekend. Of course it doesn’t always work that way.
Generally speaking the ones I work for are happy to make 20-30% on the job. Honestly most of the time if they did it themselves they’d have all the headaches and still not make much more than that. With one phone call (to you) all their carpet cleaning problems are solved. They look good and it gives them credibility.
Remember though commercial is VERY competitive. You completely need to change your pricing (and cleaning method) mentality. Encapsulation cleaning often times produces
superior results and you can still be very competitive.
On the other hand, if this is a national company you’re referring to that’s looking at subcontracting work to you I haven’t found they are very good to work for. I’d stick with the local ones.
Keep us posted
JeffC
www.SFS.JonDon.com