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Author: David

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So how do you grow a sustainable carpet cleaning business? The key word is SUSTAINABLE. One that will continue and GROW year after year.

There are three mistakes that most cleaners make.

  1. Most carpet cleaners are not businessmen and so start off on the wrong foot. What do I mean by that? Quite simply they don't realise the costs of running a business and therefore price their carpet cleaning too cheap. (Usually by asking other cleaners what they charge)

In fact, most carpet cleaners are slowly going broke... they just don't realise it yet!

So how can you work out the cost of running your business?

You need to work out your annual costs and then divide them by the number of hours that the floor wand is moving over the carpet which is typically going to be just a handful each day (maybe four or five at most).

The figure that you'll be left with can be surprising. When I did this many years ago I found that it was costing me £26 per hour to run my business. And that's when the wand is moving! Now what sense would it make to clean carpets less than this?

  1. They try to compete on price alone.

Competing solely on price is a race to the bottom... and bankruptcy!

There will always be someone cheaper cleaning carpets. In most cases they are slowly going broke but don't know it. And it doesn't matter how cheaply you price, there will ALWAYS be someone cheaper.

And whenever there is an economic downturn, customers at the bottom end of the market will either not have their carpets cleaned because they can't afford it or will look for someone cheaper. You can be sure that the one thing missing for you will be PROFIT.

  1. Failing to see that the money is in the relationship.

To build a long-lasting business you must have regular customers. One of the most expensive costs in a carpet cleaning business is the cost of getting customers. Yet a repeat customer can cost virtually nothing to acquire.

The best way to build a relationship with your customers is to keep in contact with a regular customer newsletter that they will want to read... one that educates, informs AND positions you as the expert. These can be supplemented with regular reminder cards.

 

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Imagine you're visiting your doctor.

You explain that you've had chest pains for a few days and are short of breath. Without looking at you he immediately starts to write out a prescription for antacid tablets. No examination. No questions. No interest.

How much confidence would you have in his diagnosis? Do you think you might be inclined to ask for a second opinion?

Now imagine that the second doctor asks a lot of questions about family history, current medication and general state of health. He then follows up with a thorough examination. Which doctor are you more inclined to want to use? If you were PAYING for a medical service, how much MORE would you pay doctor number two?

The first doctor's attitude is typical of many carpet cleaners. (maybe even MOST)

Instead of an inspection or home visit they prescribe the solution without knowing what the diagnosis is. Their view is that every carpet is the same and every cleaning process is more or less the same.

Here in the UK a doctor's service is free as part of the National Health Service but people always pay for carpet cleaning. And they will pay more, much more if they have confidence and trust in your service.

So rather than quoting a price over the phone or "winging it" upon arrival, act like a doctor if you want to get higher prices. Spend time asking many probing questions (even if you know the answers). Always diagnose the problem before giving a prescription for the solution.

I went to look at a job a few years ago. After asking several questions about the history of the carpet the lady impatiently said "Look... just give me a price will you?

She disqualified herself and I left immediately.

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Do you know a good carpet cleaner who is struggling?

Or a technically good carpet cleaner who has given up with their business because they can't find enough customers profitably?

Maybe it's YOU and you know other carpet cleaners who are not as good as you but seem to be getting work.

It's easy to think... "if only I can become even better, then I'll have all the customers I need"

Unfortunately, in business the best does not always win.

Think back to the VHS vs Betamax war when video recorders were popular. Everyone agreed that Betamax was a much better format, but VHS won the battle because...

they had better marketing!

In order to be better, you must first be different.

In fact, being different is better than being better!

So what can you do?

The first thing is to find out what the marketplace wants and be sure to give it to them. But do so in a way that cannot be compared to your competitors. The last thing you want to be is...

viewed as a commodity

Why not? Because people only buy commodities on PRICE.

An essential way to do this is to have a Unique Selling Proposition (USP) or as I prefer to call it... a Unique Buying Proposition. Give the customer a compelling reason to choose YOU vs all your competitors.

Because being different is better than being better, a USP really sets you apart in a category of ONE. Now you're a monopoly instead of a commodity. And people pay a premium when you're a monopoly.

To find at least 6 ways to do this, see the course for carpet cleaners who want to command higher prices... "Make More Money by Attracting Premium Clients, Getting Higher Prices and Ending Price Shoppers Forever" at success4carpetcleaners.com

 

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Mistake 1. Marketing to the Wrong People

Most carpet cleaners target the wrong people. Actually, they typically target some ‘right’ people and most wrong ones by targeting EVERYONE in their geographical area. There are people there who will never use a carpet cleaner because they won’t pay for a service. There are people who only want to pay the cheapest price for carpet cleaning. There are tenants whose sole reason for cleaning carpets is to get their deposit back and they don’t care too much about how clean the carpets are. They just want them clean enough to satisfy (‘fool’?) the landlord. And there are others who want a high-quality service that they can trust and are prepared to pay a premium. Naturally these are NOT the same people. You need to target one specific type of customer (ie. budget, higher-end or premium) and exclude the rest. A price-focused budget cleaning message will not appeal to a premium customer at all. And vice-versa.

Mistake 2. Advertising Like Big Corporations

Big businesses typically do ‘image’ or ‘branding’ type advertising focusing on their company name or logo hoping that when the time comes the customer will remember them. But this is very expensive and cost prohibitive for a small carpet cleaning business. (Coca-Cola’s budget is around four billion dollars!). And sometimes large corporations advertise to impress shareholders or for some other purpose. And does it work? …who knows, is the simple answer!

Here’s what YOU need to do…

  1. Identify WHO your ideal customers are – the ones that you’ll enjoy working with the most, the ones who are the most profitable or who will pay premium prices for high quality work and the customers who will not be a ‘pain in the backside’
  1. Find out WHERE they are - do they read certain magazines or newspapers? Do they attend specific events or seminars? Do they live together in a particular area? Are they gather-able together in ‘one place’ so to speak?
  1. Get in front of them - once you know who they are and where they are to be found, now you can get in front of them. That might mean setting up a meeting, writing an article, giving a talk, delivering a flyer or placing an ad. But you need to get in front of them in some way.
  1. Create attention and interest - your positioning, value proposition and sales argument need to be relevant to your ideal customer (whether that’s budget or premium). You must be able to get their attention and then get them interested and engaged so you can have a conversation with them.
  1. Make an offer to them - it could be a free trial offer or a free audit or inspection. Or some other ‘direct-response mechanism’ that causes them to respond to your offer.

Mistake 3. Marketing by Price

Trying to sell carpet cleaning based on cheap price is quite simple a ‘race to the bottom’. The problem is that there can only be ONE lowest price. If you’ve got deep pockets and don’t care if you lose money short term you can put your competitors out of business…until someone cheaper comes along. (and they will!). There’s no value in a marketing message that says “we’re second cheapest”

 

So, if you can’t be the cheapest, why not build your business to be the most expensive? Everyone is trying to be cheaper but hardly anyone is trying to charge higher prices by giving greater value. At least you’ll have a message to promote.

But once you know who you’re trying to reach and what message they will respond to, it’s so much easier.

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Why should you as a carpet cleaner strive to be a monopoly?

Well, I wonder if you're like me when it comes to buying petrol. I buy wherever is the cheapest. And why not? Petrol is petrol wherever its sold right? Well it is to me, even if some of my friends say that some brands get more miles per gallon.

However when it comes to my car, I don't drive the cheapest car I can buy.

Why the difference in buying behaviour? It's because I view petrol as a COMMODITY but my car totally differently. The car I drive is only made by one manufacturer. They have a MONOPOLY. If I want their car, I have to pay the price they are asking.

All businesses are somewhere between a commodity and a monopoly. When people think of a monopoly, it conjures up visions of illegal activity or of using power improperly. Yet for a carpet cleaner there are tremendous advantages in trying to be a monopoly.

First, consider the disadvantage of a commodity business. Price is the main factor in buying and the lowest cost cleaner will win. In order to stay competitive, the cleaner has to maintain their profit margin and can only increase profits by reducing costs...  until they are forced to lower their prices because their competitors have reduced their costs too! This is how many carpet cleaners operate and why we have such large turnover in this industry.

But a monopoly is different. It cannot be compared directly to something else so the buyer makes a decision based on value not price. To generate carpet cleaning sales you must offer customers EITHER a meaningful difference OR a great price. In other words be a commodity or a monopoly.

So your mission if you want to stay in business is to create as near as a monopoly as you can. When you have a "dramatic difference" vs all other competitors, you hold a monopoly-like position in the marketplace.

For example, suppose you could wave a magic wand and in five minutes carpets really are looking clean and "like-new". No-one else can do this. Do you really think you would be matching prices? No... you're doing something no-one else can do. You would have a monopoly and can charge accordingly because it has a tremendous advantage to your customer. And they are prepared to pay more for it.

What you don't want is for your prospective customers to think... "It's only carpet cleaning and all carpet cleaning is the same isn't it?" That makes you a commodity which gets sold on price alone.

So how do you create a monopoly? You probably can't wave a magic wand a create "like-new" carpets in five minutes, but there are other things you can create so that you cannot be directly compared to others and therefore hold a monopoly-like position. Perhaps a unique guarantee or maybe even something as simple as advertising that your customers don't need to move any furniture whatsoever. Whatever it is must matter to your customers.

There are real benefits to being a monopoly. Firstly, it creates buzz - gets you talked about because there is now something to say. It also gives you a true story to tell via advertising and can generate free publicity

Above all you can charge higher prices for a unique service... which means higher profit margins.