An MSN Exclusive Distributor Feature
Distributors Use Education To Help Customers Reduce Labor Costs, Succeed In Today’s Economy
By Rick Mullen & Harrell Kerkhoff
Maintenance Sales News
(Reprinted from the January/February 2010
issue of Maintenance Sales News)
Although many U.S. companies continue to struggle during today’s economic hard times, the need to clean remains very much alive. Therefore, janitorial/ sanitary
distributors are finding success by helping their customers now more than ever save on labor costs via the use of more economical products and cleaning systems.
Maintenance Sales News recently interviewed four such distributors and learned more about how they are succeeding during this difficult stretch of the economy.
Serving the Bridgeport, CT, area since 1957, Benman Industries, Inc., is a full-service janitorial supply house and equipment repair center. The company focuses on those accounts found in the industrial and municipality sectors as well are working with small to large cleaning contractors.
On the equipment side, Benman Industries General Manager Alan Hunter explained the distributorship works on machinery such as floor scrubbers, buffers, burnishers and carpet extractors.
“I feel our service of equipment has been very consistent. Many people are looking to have their equipment repaired right now, as opposed to purchasing new machines,” Hunter explained.
Although the U.S. economy has not been great, Hunter said the distributorship has been holding its own by helping to keep pricing consistent for customers.
“We can find alternative products for customers such as generic or private label items. These work very well without paying the premium for a well-known brand name,” Hunter said.
Another area of focus for Benman Industries is training. This includes both onsite training and helping people at their own facilities.
“We have sales people on the road and everybody in our building who answers the phone is also a sales person. We don’t use voice mail,” Hunter said. “We stress building personal relationships and working to deliver products within 48 hours.
“It’s important to develop personal relationships with people. By doing this, they know we are going to meet their needs. If one of our employees doesn’t know the answer, he/she is willing to go the extra mile to find that answer for the customer.”
Keeping up with new product demands is also key to the success of Benman Industries. This includes products and cleaning systems that are considered environmentally friendly and/or provide hands-free solutions.
“Hands-free is good to a certain point. We do see these products in larger institutions, but there is a cost factor involved with smaller institutions to consider,” Hunter said. “Dilution control is also very big with larger customers; however, a good portion of our business is with smaller companies. A dilution control system may not be as successful for a customer who is working out of a service van.”
He added the old adage, “You get what you pay for,” is still very true with jan/san supplies.
“It’s important to sell a product that will meet the true needs of a customer. There are ‘Good, Better and Best’ lines of equipment as well as various types of supplies available to match certain price demands. It’s important to focus on chemicals, for example, that may cost more to begin with but feature a better rate of dilution. This can add to more cost savings.”
When asked if he feels Benman Industries is able to take advantage of a certain niche within the local jan/san segment, Hunter responded that being a smaller company does have its advantages.
“We are very people oriented. Some janitorial companies have the big box mentality. Given the added value of our service, instruction and personal touches — that is our niche,” Hunter said.
Marketing is also important for the distributorship. The company advertises locally and also relies on its Web site to “get the word out.”
“I think our Web site has been beneficial, but you still have to be people-oriented. There are people, however, who visit our site and then give us a call. That is what we strive for,” he said.
Working with quality suppliers is also essential. This includes being able to rely on manufacturer’s reps as it relates to training and product knowledge.
“We have an 1,800-square-foot storefront and often bring in manufacturer’s reps to provide product demonstrations. These are generally informal, low-key sessions,” Hunter said. “When it comes to working with suppliers, we look for service and backup support. We also want products to be readily available.”
Hunter added that at the end of the day, the success of Benman Industries comes down to its strong employee base.
“We have hard workers and long-term employees. It’s not a big staff, but many of our people have been here for a long time,” he said. “I would say the success of this business is due to the interaction our employees have with customers. It’s important to build relationships. My employees are all people-oriented.”
Contact: Benman Industries, Inc., 1870 E. Main St., Bridgeport, CT, 06610. Phone: 203-334-0376.
Web site: www.benmanind.com.
Reporting that business has been good recently is Action Unlimited Resources Vice President Aaron Glazar. The New Castle, DE, jan/san distributorship has been in operation for 27 years, with a primary focus on providing custodial supplies and systems.
“We also serve the foodservice industry, such as restaurants and caterers, as well as industrial facilities that need cleaning and safety supplies,” Glazar explained. “There are many opportunities out there for us to grow since we are a small company. We don’t own the kind of marketshare that some of the larger distributors own, but we are able to pick up new business.”
When trying to sell a new client on his company’s customer service focus, Glazar said it’s hard to not sound like a constant parade of clichés.
“I will tell a potential customer, however, that we do believe our service and knowledge (at the distributorship level) is better than the competition. As far as pricing goes, we will be as competitively priced as anybody in the market,” he said. “All we need is an opportunity.”
The primary service region for Action Unlimited Resources is primarily located in Delaware, southern Pennsylvania, southern New Jersey and a portion of Maryland. The company operates its own fleet of delivery trucks and relies on what Glazar calls “a great crew of drivers who share the company’s customer service philosophy.”
“Our drivers are willing to go above and beyond what is normally expected. This may require taking a product down to the basement or up to an attic of a customer’s location and then stacking the item on a shelf,” Glazar said. “Customers really do appreciate this commitment. We receive a lot of praise about our drivers.”
The distributorship also has found success with its full-service repair center. Equipment repairs can be made both in-house and at a customer’s location.
When asked about today’s strong “green” movement, Glazar reported that more customers are starting to understand that there are different shades of green available.
“Many of them also know the different aspects of certain programs which make them more sustainable,” Glazar said. “In this area (Delaware), however, there is not a lot of legislation taking place to mandate green. It’s mostly driven by national companies that have locations in Delaware and have bought into the green movement. I feel Delaware will eventually follow suit with other states that are passing legislation in this area.”
Another area of high importance for Action Unlimited Resources is the company’s Action Academy, which focuses on providing training directed toward various customer groups. The academy is located at the company’s facility.
The distributorship's ability to provide a high level of training often comes in handy, such as during the recent flu season.
“One of the things we did a month or two ago was implement two separate training courses specifically designed to instruct facilities on how to address the H1N1 concern,” Glazar said.
The distributorship employs a full-time trainer and typically conducts two training sessions a month. Topics vary and include carpet and hard floor cleaning and restoration as well as health and safety issues.
“We teach how to clean a facility for the health of those who will use that building rather than to just clean for aesthetics. If you clean for health and safety, the aesthetics aspect will come along,” he said. “We provide both in-house and onsite training.”
When it comes to marketing the distributorship, Glazar explained that many different avenues have been tried, but it still comes down to focusing on people.
“Our company’s name says it all — Action Unlimited Resources. When we have a customer in need, it’s important to do whatever is humanly possible to fulfill that need.”
Regarding the distributorship’s Web site, he added that work is taking place to have this site stand out from the pack.
“There are probably thousands of janitorial distributors with Web sites promoting the same things. However, we are not looking to be in the big box mover category of distribution,” Glazar said. “We offer primarily an informational Web site right now, but do have a goal of featuring online ordering for customers later this year.”
Contact: Action Unlimited Resources, Inc.,
230 Quigley Blvd., New Castle, DE 19720.
Phone: 302-323-1455.
Web site: www.actioncleanup.com.
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With today’s busy workplace, customers of jan/san supplies are seeking companies that can deliver quality products and services at lower costs and more conveniently. This is exactly the focus that Seaway Supply Co., of Melrose Park, IL, strives for, according to Thomas J. Engoren, president and owner.
“For those customers who don’t have time to waste and want to purchase a cleaning item or piece of equipment that works well and meets expectations, then I feel we are the way to go,” Engoren said.
“This is our niche. As a result of our longstanding relationships with both our manufacturers and customers, we can very effectively and efficiently fulfill our customers’ supply and equipment needs.”
Engoren explained that Seaway Supply, which is located in the Chicago-metro area, has been in business for 35 years. This, he said, is a testament to strong customer satisfaction.
“We are very customer-service oriented and try to put ourselves in the customer’s position. We don’t want to ask twice for things, and we don’t expect our customers to do the same,” he said. “It’s vital to offer services quickly and easily.”
Seaway Supply operates a fleet of multiple delivery trucks that service the entire metropolitan Chicago area. Along with regular deliveries, Engoren said the company can handle emergency requests “better than most.”
“We can get just about anything we sell to a customer very quickly,” he explained. “We also choose vendors that I consider are ‘A-list’ players within the industry. These are companies that have plenty of inventory, can deliver products on time and employ capable people. Products don’t get lost, misplaced and instructions don’t get misunderstood.
“This follows through for our own staff. We have employees who are committed to serving the needs of our customers. There is a chain of events that must successfully take place in order to succeed in this business. Our internal and proprietary S5 (Seaway Supply Superior Service System), the company’s proprietary audit-control system, ensures that customers’ orders are filled accurately and delivered on time.
“We strive for perfection,” he explained. “There is a lot of hard work that must take place behind the scenes.”
Engoren attributes the company’s impressive growth curve to three interrelated strategies:
• Increasing sales from an existing customer base by analyzing their needs and responding to their internal growth;
• Attracting a steady stream of new customers through a strong internal sales effort supported by strong customer references; and,
• Collaborating on succession strategies with independent supply companies that can benefit from the managerial expertise and technological platform that Seaway has developed. The goal is to be a very attractive exit alternative for successful supply company owners who are looking to derive value for their years of hard work building their businesses.
Officials at Seaway Supply also keep an eye on changes within the jan/san marketplace. This includes meeting the ever increasing demand for “green” products and cleaning systems.
According to Engoren, his company works with many suppliers that have championed the green cleaning supply movement. This, in turn, has greatly helped his distributorship and customers.
“Initially, being green basically meant a product did not contain dyes and/or perfumes. Many, however, have evolved into being bio-based,” Engoren said. “We are also certainly aware of greenwashing. Even though green is here to stay, I don’t think it is continuing to evolve. There is still a lot of opportunity for innovations, however, such as focusing more on items that help reduce consumption.
“It’s very expensive to conduct business these days. Therefore, it’s important to help customers operate as efficiently as possible. This all translates into providing good pricing and quality products and services.”
The distributorship has also worked this past fall and current winter to help people keep up with the flu season. This includes sending out e-mails to customers on how they can better protect themselves from H1N1.
“A lot of it has to do with basic common sense such as washing hands, using sanitizers, etc,” he explained. “We have been very fortunate to be able to keep enough product in stock. Our customers have not experienced any long delays in getting disinfectants, etc.”
To help spread the word about the benefits of Seaway Supply, the distributorship uses its Web site, e-mail and regular mail to “show what business we are in and what company we keep.”
“Information today has never been more readily available. The Internet has provided a great plus in communication,” Engoren said. “However, we still take the face-to-face approach. Although much of the world is tied together on the Internet, our products are relatively inexpensive and heavy. There is no real reason to ship many of our products a great distance away (via an Internet purchase). In some cases, the shipping costs alone would be more than the cost of the actual product. Instead, we are very much a local delivery type of company.”
Contact: Seaway Supply Co.,
123 N. 10th Ave., Melrose Park, IL 60160. Phone: 708-216-0000. Web site: www.seawaysupplies.com.
Helping customers meet today’s challenging economy has been a central focus for Morgan Supply and its President/CEO Morgan Vandergriff. He explained that the 23-year-old company, located in Fort Smith, AR, is a full-line distributor of away-from-home products such as towels, tissue, disposable wipes, chemicals, mops and can liners.
“The business climate has been a little different as of late. Some of our past customers have gone away due to the economy while others are looking for more help in saving money,” Vandergriff said. “We generally carry two different lines, one more expensive than the other. There have been those customers who have needed to change to the less expensive line. It’s important to help them make these decisions.”
According to Vandergriff, the cost of labor remains a major concern for many jan/san end-users. Those distributors that can help with this issue will most likely succeed.
“There are many new products to help with decreasing labor costs. We are also concentrating on being more environmentally responsible by offering new lines of can liners, paper and chemicals that are Green Seal-certified. There are more people interested in this area,” Vandergriff said.
He added that the Fort Smith area, located in west central Arkansas, is becoming more accepting of environmentally friendly products and cleaning systems.
“One thing we have always tried to do is give our customers value. This is done by keeping our own overhead low and offering better pricing and services than the competition,” Vandergriff explained. “In return, I believe we have lost very little business due to our competition. Most of the business we have lost is due to the economy. These are customers who either are not in business anymore or simply can’t afford to buy much.”
Being able to see and understand changes within the various segments that use jan/san supplies has also helped Morgan Supply. Vandergriff explained that his company used to work with a lot of industrial accounts. However, the company recognized 10 years ago that a change was taking place in this area and moved in a new direction. The distributorship now focuses heavily on end-users found in the government sector as well as schools and smaller companies such as machine shops.
“We guarantee everything we sell and offer an option where people can order online. When doing so, they can view their past orders and pricing,” Vandergriff said. “Our company also provides next-day delivery, which is free. We did implement a surcharge when gas prices were extremely high. However, this as since been removed.”
According to Vandergriff, another strength of his company concerns its training capabilities. Training programs can be tailor made to fit a customer’s true needs.
“For example, with a school system, we will often go to their facility and conduct training on how to properly strip a floor. This has been a real plus for these people,” he explained. “We have also educated schools on what they should be doing regarding the flu season. It’s important that they know about, and use, the right products and procedures.”
Working with quality suppliers is also vital. Vandergriff said his company takes pride in carrying a broad line of inventory. This includes not only jan/san items, but also packaging and safety supplies.
“A lot of people like to deal with us because of our single-source capabilities,” he said. “When it comes to suppliers, we want those that are willing to support the company and work with our sales people. It means a lot to a distributor when a manufacturer’s rep can walk in and help. I also look for a manufacturer that is truly honest. We are an honest company ourselves, checking on everything we sell to make sure it measures up.”
Another key to Morgan Supply’s success, according to Vandergriff, is that of belonging to a buying group. This has allowed officials from the distributorship to meet with distributors from other parts of the country on a regular basis.
“This has been a real asset. We have had a lot of growth since we joined,” he said.
Contact: Morgan Supply, 4609 S. 16th St.,
Fort Smith, AR 72901. Phone: 479-646-3922.
Web site: www.morgansupplies.com.
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