Why Too Much Competition Can Be Good for BSCs

Contributed by AlturaSolutions Communications

Cleaning contractors considering expanding their services into a new area first look to see if the new market is growing in population and industry, if they will be able to find workers in that area, and how well they can manage the area once they acquire new customers.

They also consider the competition in the new area.

Robert Kravitz, a seasoned building service contractor and now president of AlturaSolutions, a B2B marketing agency, says that all too often, this last issue, the competition, becomes the deciding factor. 

“If there are already lots of cleaning contractors in that area, they usually back off."

However, especially in larger metropolitan areas, too much competition can be a good thing. Among the reasons Kravitz believes this are the following:

1. When there are many cleaning companies in an area, it's often a clear sign that it is a strong and vibrant market.

2. Building managers in these areas are often required to take bids for cleaning every two to three years, creating an going cycle of opportunity for new contractors coming into the area.

3. In a larger marketplace, more building managers like to make changes, presenting yet another door of opportunity for someone new.

Too much competition can also benefit contractors and their customers. For instance, it often improves:

Innovation: To compete, service providers must strive to innovate and differentiate themselves, often offering more services and more unique services, benefiting the contractor and their customers.

Quality Improvement: A more competitive environment compels service providers to enhance the quality of their services, which invariably results in improved service, efficiencies, and healthier buildings.

Niche Marketing: Larger areas allow cleaning contractors to tailor their services to specific niche sectors such as medical offices, architectural firms, private schools, or law firms. By establishing a strong reputation within a particular niche, contractors can attract similar clients through word-of-mouth and targeted marketing efforts.

“When I was in the cleaning business, I managed to acquire clients in small rural areas to large urban areas,” says Kravitz. “There was lots of competition, but that did not deter me from doing well.”