ISSA Janitorial Distribution Product Category Review
Jul 08, 2019
Hello LinkedIn friends, Adon here. And today, this transcript will cover the stats provided by the ISSA for agents, distributors, and sales rep.
- The total percentage of sales in the janitorial industry is made up of five categories, namely sanitation, paper, chemical, miscellaneous, and equipment.
- When you break your business down into sanitation, paper, chemical, miscellaneous, and equipment, it gives you a benchmark as to how you measure compared to your competitors in the market space.
- When agents, distributors, and sales rep put the ISSA survey into consideration, it can help them tweak or enhance their competitive advantage.
- Many distributors invest heavily on equipment sales, and that might be a wrong investment because equipment doesn't necessarily have repeatable sales.
- Equipment sales are important, but to have a competitive advantage over your competitors, you need something repeatable and constant.
In the industry, the total percentage of sales is made up of five specific categories, and I call them: Sanitation, Paper, Chemical, miscellaneous, and of course you have Equipment. To have the edge over your competitors, you must break your business down into these categories because they give you a benchmark as to how you measure compared to your competitors in the market space.
- Paper sales: This sale makes up 50% of the average distributor business, and anything more than this percentage may not be a great thing as paper has a lower profit margin.
- Chemical sales: This makes up 30% of the market, and if your business somehow finds its way above this percentage, this means you're doing a pretty good job, as an increase above the 30% threshold means a competitive advantage over your competitors.
- Sanitation sales: Sales such as brooms, mops, and many other things along that line make up about 9% of the market.
- Miscellaneous sales: Sales like baby change tables and other items in that category make up about 3% of your sales.
- Equipment sales: This sales makes up to 8% of the market.
Many distributors tend to invest heavily equipment sales, and the reason why that is not a positive thing is that you don't necessarily have repeatable sales with equipment. Why? Equipment is based on capital spent, and although it's nice to have big chemicals equipment sales and hits in your territory, the truth is, these sales are not repeatable. Yes, equipment sales are important, don't get me wrong, but for you to have a competitive advantage over your competitors, you need something repeatable and constant. __________________________________________________________________
The stats mentioned above are the industry average, according to ISSA. This stats were provided to help agents, distributors, sales rep, and business owners see how they measure up in the industry and how they might be able to tweak or enhance their competitive advantage.'