End Users Are Diversifying, Distributors Should, Too

While attending ISSA/INTERCLEAN North America last year, I heard industry consultant Ian Greig use fishing as a metaphor for diversification: the more hooks you use to snag a fish, the harder it is for him to get away. The same is true for diversifying. The more services you provide, the harder it is for clients to let you go.

This mentality is why building service contractors have been diversifying beyond cleaning for years; offering facilities window washing, winter care, foodservice, pest control, security, graffiti removal and other services. Whatever it takes to land a new account or keep a current customer happy is a necessity in today's rough economy. In fact, according to the "The U.S. Commercial and Residential Cleaning Services Industry" report published by Marketdata Enterprises, janitorial revenue will grow at a sluggish pace for the next few years, but specialty or niche services, such as the ones previously mentioned, will generate revenue at a faster pace.

Jan/san distributors need to put themselves in a position to receive a part of this additional business. If customers expand into new services, then distributors need to get their "hooks" ready and supply the appropriate products. Otherwise, customers shopping elsewhere for these new lines may find they can buy their cleaning supplies there, too.

Of course, adding new product categories is easier said than done. Check out our annual wholesalers article to learn how this supply chain partner can help distributors meet the diversified needs of customers, but with less risk.