Hitting all demographics.

[asupremeclean]

I hear so much debate about the benefits of high volume / low dollar cleaning vs low volume / high dollar and visa verse.

Has anyone ever considered running several divisions of one company in order to hit all price demographics?
Or having two different businesses. One for the apartments and package deals for price shoppers and one for the high end residential and commercial clients?

If anyone is currently doing this or something similar, what if any drawbacks / benefits have you experienced?

 

[diamond brian]

I tried doing both and gave it up. I found that the low-end customers were diluting our brand identity. Imagine having a referral expecting a top quality whole-house special for $99.

I lacked the time and capital to start a whole new operation for low-end cleaning, so I ended up as a silent partner in a one-truck operation. It's working out OK so far.

 

[billyeadon]

demographics

You cannot be all things to all people. Once your customers have placed you in a "position" you cannot change that position. You would need to change the company name in order to accomplish that. You could not use the same employees. You need focus.

Last year WalMart decided that they wanted to start selling upscale womens clothing. They hired top executives from the fashion industry. They ran expensive ads in magazines like Vogue.

They failed miserably because noone would ever expect to find high fashion in WalMart.

Don't be Michael Jordan as a baseball player.

 

[John Buxton]

Craig Jasper had a bait and switch, and a legitimate company when he cleaned.

 

[Joe Couch]

I agree with Bill that you can not be everything to everybody. We do thousands of apartments a year and have tried to go into high end residential but when your employees are geared towards speed and volume it is very hard to change that and give the high end customer the service they deserve.

When one of our apartment clients moves into a nice high end home and calls us to clean the carpet do you think they expect to be charged hundreds of dollars to have their new home cleaned when they used to get their apartment cleaned for $65. It is very hard for them to justify paying $150 for 4 rooms of carpet cleaning when they got that same amount of carpet cleaned for $65.

If I were going to have two divisions ( one for apartments and one for high end )I would do it with a different business name for each and have employees that were used specifically for each one.

 

[asupremeclean]

Hi Bill,

Yea I was thinking I would actually start another business with a different name and market only the new business to the Package deals and give all the apartments to the new comp.

Then I would keep A Supreme Clean as a high end CC business and market only to existing customers.

I started A Supreme Clean as a package priced company and changed every thing over to hit high end and have had great success. Now I have a great client base and am getting more and more referral business. The apartment complexes are a great money maker but take too much time away from the High end clients at the end of the month. I would like to commit myself and my time to what I do best. That is, absolute 100% quality work to the high enders. Yet keep my lower dollar higher volume clients as well. (Best of both worlds)

I would run one van for A Supreme Clean solo.(1 man Operation) While my existing lead tech would be the Manager of the new company with 2 vans and 2 employees. They would take on all the apartments and any new clients coming in from the new ads run for the new company.
We would still be focused on quality like I was when I started, however ,we would not be concerned with dry times. Unless specified.

This is the only way I know that may work to stop the feelings of missing out on something.

 

[diamond brian]

I agree. Different entity, different vans, different phone, different point of contact.

 

[The Great Oz]

I like the idea of two companies, with the low dollar store providing initial training for techs. A tech that seems worthy could move up to an opening with the other company.

There is additional paperwork, but at least you'll be able to have accurate cost accounting, and if you find that most of your profit is on one side or the other you can adjust pricing or drop the loser.

 

[asupremeclean]

Right on! Lots of options for either company.
Could even sell either.

Still looking for someone actually doing it already, is thinking of doing it, or something similar.

Doesn't Al Sims have 2 different companies? I thought I read that somewhere.

 

[The Great Oz]

I haven't had any contact for awhile, but the guy that ran Alberta Carpet Cleaning in Edmonton was also running an upmarket company. Dan Burk or maybe Scott Rendall might know.

There's a guy in the northwest that runs a franchise on one side and a private company on the other, but I don't know if he wants people to know who he is.

 

[steve r]

my apt prices are just that apt prices.

then i do the 3 room special

in high end homes i still go by my 3 room special to start but then there are add ons which to me make the difference in high end homes.extra rooms, furniture ,protector.i quoted 3 jobs this week from $300 to $425.i booked 2 no call back on third yet.

my prices really dont change just the amount of work.
bigger homes have bigger and more rooms.

and im a one man operation so they all get me.

 

[Ron Werner]

Someone suggested I offer a "budget" cleaning for those that didn't want the full treatment. The only challenge is how would I do a 1 hr house cleaning for one person and a 3 hr for the next??

In fact, I have no idea how to clean a house in an hour and I don't want to know! If I know, I might be tempted to do it that way.


Whoever mentioned it first above is correct.
2 diff busn's,
2 diff busn names,
diff techs for each, and don't let the techs talk to each other. Which ever ones are making more, the others will want in on.

 

[KevinL]

why would you need different vans and crews? Couldn't you use magnets for your name and number on the vans. Still run 2 or 3 vans but share the work between your guys and change the name on the way to the job. Sounds nuts but it might work. Or, just go after more high end and forget about the cheap stuff. Isn't that goal of all of us?

 

[Ron Werner]

why would you need different vans and crews?

I would want my techs thinking either to clean thorough or to clean fast. If you used the same tech, they might be tempted to clean faster when they should be cleaning slower. Cleaning faster they might make more per hour, but the higher ticket jobs will they will need to be more thorough. It may require more time and effort but they'll make them the same pay. But if they rush the job, you may not see that client again. If you can follow my meaning. Doing higher end jobs, or doing more thorough work takes a totally different mindset.

 

[KevinL]

I understand completely Ron. I have a helper that worked for SS for 10 years and I can't get him to slow down.

 

[asupremeclean]

Ron nailed it. That is why, it is hard to go from the cleaning they do in an empty apt to a cleaning in an upscale home for a high end client.

This is the very reason I started looking into this.

Like alot of owner operators, I am the only one in my eye, that can do the job correctly all the time. Don't get me wrong my guys do a great job. It is just hard for them to do the different demos and stay focused. As Steve T would say "Make it easy for them to do it right." or something like that.

My lead tech knows his stuff and if I have to pull him off one business for the other he wouldn't miss a beat.

This way I know our high end clients are getting our absolute best service possible.

 

[asupremeclean]

Kevin that sounds like the type of guy you would want kicking it in the apt / lower end. He'll make you a ton of money working his butt off. If you pay him well he will be a huge asset.