Janitorial Distribution Customer Satisfaction

Jul 17, 2019
 

 In the last video transcript, I talked about the ISSA survey and the three specific categories.

We also learned that according to ISSA survey, 17% of customers are extremely satisfied with their current distributor, 26% are satisfied, and 57% are dissatisfied. If you haven't seen the video or read the first transcript, I will advise you to do so as it will further enhance your understanding.

SUMMARY

  • According to Michael Porter, competitive advantage is the leverage a business has over its competitors in the same space.

 

  • If your business makes less profit than its competitors, you lack what we call a competitive advantage.

 

  • The average gross profit for paper sales is {29%}, chemicals {38%}, supplies {29%}, sales {22%}, and {31%} for miscellaneous.

 

  • If your gross profit ranks higher than those of your competitors, this means you are doing a great job, and you need to keep it, but if your gross profit comes out lower to that of your competitors, then, you need to find a way to correct such defect. 

 

  • If you want to have a competitive advantage over your competitors, you need to continually find ways to keep your company updated with new trends and tips. 

You see, the gross profit - which by the way is a very important topic - is made up of the same five categories we spoke of in the first video transcript. This category includes Paper, chemical, supplies, equipment, and others which are miscellaneous.

 

According to Michael Porter, The Harvard Business professor who created the term and wrote a book about “Competitive Advantage,” he  said, and I quote: "Competitive advantage is the leverage a business has over its competitors in the same space." In other words, this means, if your business makes less profit than its competitors, you lack what we call a competitive advantage, but if you make more profits compared to your competitor, this signifies that you have a competitive advantage over your competitors. 

 

So if I may ask, in the janitorial distribution industry, what is regarded as the average gross profit? Well, the average gross profit for paper sales is {29%}, for chemicals it's {38%}, for supplies like - brooms, brushes - it's {29%}, for equipment sales, around {22%} percent gross profit, and {31%} for miscellaneous - this includes things like baby change and many others amongst the list.

I encourage you to look at your business and split it into these five categories as this will enable you to see your average gross profit. If your gross profit ranks higher than those of your competitors, this means you are doing a great job, and you need to keep it. If your gross profit is on par with your competitors, you might want to tweak your business a little. But if your gross profit comes out lower to that of your competitors, then, you need to find a way to correct such defect. 

If you want to have a real competitive advantage, you need to continually find ways to keep your company ahead of its competitors. 

 

Be Insightful , Adon 

Close

50% Complete

Two Step

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.