I started a home cleaning business 3 years ago and it’s not profitable. It’s an easy entry business so there is too much competition and it’s difficult to differentiate in this type of business. Everyone claims they provide a quality service. The worst part is that most competitors are using low prices to compete-so a race to the bottom. Looking for advice on how to salvage this?
Cleaning business here, with 35 employees
It is indeed an extremely competitive industry, and as you describe, major players deliberately offer very low prices to outpace the competition.
Development advices:
1 - Target small businesses, in proportion to your size. Small enterprises (law firms, real estate agencies…) with compact spaces tye are less price-sensitive and value proximity in relationships. Being a local, human presence is often preferred, especially if you lack teams for daily cleaning of a 2000m² store, for instance.
2 - Focus on specific professional categories (legal or medical, for example). They communicate a lot and can easily refer you if satisfied.
3 - Clearly define what “quality service” means. Everyone claims it, but few explain it. Is your strength service continuity (replacing absent staff)? Crucial in this sector. Confidentiality/security? Important for legal professions…
Explain what quality service means and what measures you’ve taken to ensure it.
4 - Refine your proposals (meeting agenda, specifications, proposal documents, etc.). If you want to be more than just a price, demonstrate additional value beyond cost.
Good luck. I remain available if you need assistance.