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Volume 10 December 15, 2008
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Greetings!
Happy Holidays! We are less than two weeks away from Christmas, Hanukkah and Kwanzaa. This is an incredibly joyful, busy, and (at times) stressful season for us -- and for the families whose homes we clean. Of course, this year, the biggest stressor for most of us is the failing economy. November unemployment figures were the worst in thirty years, and even those Americans who still have a steady income are hunkering down. To wit: Nearly half of Americans say they are spending less on holiday gifts this year than they did in 2007. But it isn't just gift-giving that is getting the axe. Solidly middle class families are clipping coupons and cutting cable TV, all in an effort to shore up their income during this uncertain time. Another expense under increased scrutiny? House cleaning and other domestic services. In a December 11 article entitled Trickledown Downsizing, the New York Times reported on this very trend. But take heart: The economic forecast does not have to spell a natural disaster for your housecleaning company. There are ways to shore up your business in order to weather this recession. Check out our feature article with six ways to recession-proof your company and learn how your fellow business owners are coping with the recession in Letters From Our Readers. Finally, please enjoy my special tip about holiday cards for your customers. I also want to take a moment to wish each of you, your family of workers, and your loved ones a joyous holiday season, full of hope for a new year that will provide more and more of the joys and rewards that you work and live for. Seasons Greetings! Jeff | |
6 Ways to Recession Proof Your Housecleaning Company
The economic news may be grim, but that doesn't mean the financials of your housecleaning business have to be. If you find yourself worried how this economic recession will affect your bottom line, take heart: Here are 6 financial rules for keeping your housecleaning business in the black.
1. Get Back to Basics If ever there was a time to dot every I and cross every T, this is it. In the housecleaning business, of course, that means ensuring that your teams are cleaning every house correctly -- every time. We all know that finding new customers is more difficult today than it was a year ago. So the last thing you want to do is lose a customer because of poor service. If need be, hold a group training session or work one-on-one with individuals who need a little extra attention.
2. Launch a Website You can launch a web presence for less than $100 and it is a great way to catch new customers who might not have otherwise heard of your company. When it comes to web design, remember that less is more. Make a "clean" impression by producing a site without a lot of visual clutter. And if writing isn't your forte, ask a staffer or even a friend to help you edit the text. Grammar and spelling mistakes definitely send the wrong message.
If you already have a website, why not start a blog? Adding a blog to your site requires almost no additional capital, and it is a great way to hook readers. Make sure that you update your content on a regular and frequent basis.
3. Stay in Touch Let your customers know that they are important to you by staying in touch. Beyond leaving a quick thank you at the bottom of your invoices, consider sending a monthly newsletter. Newsletters are a great way to drive traffic to your site or blog and they don't require a big investment of capital or time. Plus, sending out a brief monthly newsletter helps your customers feel like they are part of your "family".
Another way to stay in touch is to send personalized holiday cards. Be sure to have all your team members sign them personally. For more on how holiday cards can make an impact, see Holiday Card Tips (below). Also consider making up birthday postcards to leave with customers on their special day. What a festive way to make a personal and thoughtful impression. 4. Advertise Some of you are already down to a bare bones budget and don't have a lot of extra cash for advertising. Rather than cutting it out of your budget, why not get creative with your roll-out: You don't have to spend a lot of cash to make a big splash -- especially when your competitors are likely dialing back their advertising presence, too. If there is going to be a housecleaning advertising vacuum, make sure that your business is the one that fills the void.
5. Evaluate Your Expenses Take a hard look at your operating budget. Remember that at times like these, there are no sacred cows. Even small changes can add up to a large difference if you make them across the board.
As you look for ways to cut expenses, don't give up on quality supplies. Safe, strong cleaning materials make the job easier and faster for your employees and make it more difficult for them to fail at their cleaning jobs.
6. Think Outside the BoxSometimes cutting pennies isn't enough. If you need to make some serious budget slashes, try thinking outside the box. Can you cut back on car expenses by eliminating one vehicle? Then, instead of having two cleaners per team, staff up to three. You can clean 30 percent more homes on the same schedule with an extra person on each team. If, despite your best efforts, you find that you have to let a team member go, be sure to offer to provide references and severance pay (if that's in your budget). And take some time to reassure your other employees. Nothing deflates morale faster than feeling like you are on a sinking ship. Getting through an economic recession isn't easy for any business. And especially not for a business like housecleaning, which is so directly affected by changes in the lives of its customers. Now is the time to get back to basics, focusing first and foremost on results and efficiency. Your profitability may take some hits, but with the right game plan, your company's longevity will remain sound.
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Ho Ho Ho: A Holiday Tip from Jeff
Now more than ever, customer service can make the critical difference in your company's profitability. With Christmas, Chanukah, Kwanzaa and the Winter Solstice all rapidly approaching, this is the perfect time to connect with your customers through holiday cards.
Give your teams a fresh supply of cards each day, along with their Daily Work Schedule. Make sure each team member signs and personalizes each card. (Do the same the same if you use individual cleaners.)
Of course holiday cards make good business sense, but they are so much more than just a savvy marketing ploy. Cards encourage (or gently remind) customers to leave a holiday tip for their cleaners.
I don't need to tell you that you want your employees to get as many tips as possible, since they are the only type of wages that don't come out of your pocket. Plus, tips encourage and motivate your workers. Tips make employees happy! And happy employees make happy owners!
Happy holidays everyone!
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Letters From Our Readers Coping With The Recession
Last month we asked our readers how the economic recession was affecting their business. Here is a look at how two of your fellow housecleaning business owners are coping with the new financial reality.
We have lost about 20% of our customers and even though we have been doing our usual advertising we are not growing like previous years. We are trying to get more customers by offering budget cleanings for less money and even more ways to get free cleanings. So far it hasn't worked. Even a lot of the customers I have are changing to cleanings less often and skipping cleanings. I'm concerned that I may have to go backwards and start cleaning houses from my home again instead of an office! If November is like this, what will January be like? -- Ginger Moser, DirtBusters
My clients are holding on to our service with their fingernails (if they can). We have lost about 5% per month the last 2 months because of layoffs for the employed and less business for the self-employed/business owners. We are not replacing them fast enough. I am lucky if a $1500 door hanger campaign will return two regular clients. My prices are lower, and I am using more coupons and promotions. Large maid services are under cutting my prices! This time of the year is usually our best. I think there is a pretty good chance next year will be much worse, I am thinking a drop of 30 to 40% in revenues could happen as the layoffs mount in our area. Unfortunately, housecleaning services may have a hard time surviving this problem. -- PF (Pro Housecleaner) | |
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Thanks for reading us this month! Come visit us on the web at www.thecleanteampro.com.
Sincerely,
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Jeff Campbell
The Clean Team Catalog |
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