I assume you have a good relationship with the decision maker at the location you are currently servicing. If you haven't already, arrange a sit down to collect ALL the information surrounding the change. The obvious thing is cost per unit, but dig deep and ask exactly what parts of your quality & service they may have been dissapointed with, if any. Get them to reconfirm their satisfaction with your company. You may find out that there is something, no matter how small, that they're not completely satisfied with. At least then you can respond to that complaint, and take it with you for the future.

I used to deal with this exact situation in a different industry (wood packaging) that had a lot of small, start-ups. However, I was usually dealing with hundreds of thousands of $$$$ in annual business for my company. We had large local or regional clients that would get bought by a larger national or global company. Right away, they wanted to produce more profit and the purchasing department would be the first line of attack. Suddenly, pricing had to be cut and major re-bidding was under way. Even if they didn't make a switch, they got you to cut your pricing to keep the job. If I made the decision that it wasn't worth supplying our product for the pricing they were looking for, I cut the customer loose. Yes, it hurts losing a big account, but better than loosing profit just to turn $$$$.

What usually happens, and I think is pertinent in your case, is that when the company switched, the new vendor couldn't handle the account, or messed up something big. The customer comes knocking back on your door, but expects you to match the other guys pricing. If this happens, don't be too quick to give away the store. Sit down with the decision maker and find out EXACTLY why they're dissatisfied with the new guy, and why your service demands the price it does. You may have to make a small price concession, but don't give away the store. Normally, the corporate office never seems to figure out that certain purchases of goods or services need to stay controlled on the local levels. Certain things can't be bought at an "across the nation" price structure because the markets vary so much.

The one thing I would suggest you learn from here is that you have way too much business in one basket. That's a sure fire way to end up out of business. Business changes too fast today to believe that you'll keep a certain customer forever. Especially if it's a national, glogal or even regional "big boy" business. While I wouldn't discourage you from doing all you can to keep that client, or keep an eye on them to get back in if the other guy fails to satisfy them, I would encourage you to "beat feet" to spread out your client base. Good Luck!

Mary & John Montag - Owners
Five Star Commercial Services, LLC
1555 Lakeview Rd.
West Bend, WI 53090

info@my-5star.com
http://www.my-5star.com
262-305-5575 office
262-305-4890 cell
262-692-6829 fax

Well i really appreciate all the comments you all posted. all of you had alot of helpfull things to say. I recently spoke with the fleet manager and he said that fleetwash was washing thier trucks for $8.00 a piece. also last time fleetwash worked for them they lasted a whole 3 months before they got fired. i just cant believe they are washing these trucks for 8.00 bucks. i am washing them for 20.00 i did the math i pay my employees a total of 2,300 for labor, for 2 days of work to wash these trucks + gas+hotel+workman comp+soap+armarall, etc ,etc. Fleetwash is grossing 2,400 for washing all trucks. HOW IN THE HELL CAN THEY DO THAT. Well i will keep you all posted to what happens.

I have some purse swinging whore in my area trying to under-cut me on one of my fleets. If he gets the job, I'll be sure to meet him.

I work for a Hospital in the Maintenance dept. and we see this all the time.

The reasons for the Company leaving you to get someone else can be several reason and a few may not have anything to do with you or your quality of work.

We have lost contractors due to bad paper work on thier end or lack of follow up from them. Or better yet we have lost some because there was a new superviser somewhere in teh line that has a nephew that does that you do, or they just have someone that have worked with in the past they trust and have a history with.

Im trying to use all the mistakes i see a lot of the contractors we use, and use them to my advantage by learning from someone elses mistakes and hopfully making the right corrections before i get in that same situation.

But it all boils down to communication, You might not have done anything at all wrong ,but it does pay to find out for future use.

Doug Peabody
Hydra Pressure Washing
Springfield MO

Ron,

Just a suggestion: since you stand to lose a considerable sum, become pro-active. Get yourself a digital camera and take plenty of photos of your guys washing and doing their thing, plus nice before and afters, do some videos as well. Then find out when FW is starting and do the same for them - take before and afters and durings along with a video. Show the customer what they are geting from you and not from FW. Consider putting a presention book together, showing FW price versus your value. Good luck.

Mike,

I'll tell you how they do it.....

Now we're talking about FedEx Express, not Ground, Freight, or Home Delivery.

Most FedEx locations have 50+ W300/W700's or Sprinters, actual size is not that important.

50 units at $6ea = $300

3 employees all making around $10 hour.

Employee #1 Applies Soap Downstream

Employee #2 Follows behind #1 at a breakneck pace with an 18" Brush covering every inch of the unit. Typically a young, physically fit individual.

Employee #3 Rinses with a high volume washer (6-10gpm)


Each employee passes over each unit only once, there is no backtracking BS. With a system like this they can crank out 50+ units an hour. I don't know anyone here that can say $300/hr gross is bad money.

So let's say you service 5 FedEx locations in one day. They are all typically about 20-30 minutes from each other. You have 5 hours @ $300/hr = $1500 gross for the day. 3.5 hours of drive time not producing revenue.

Employee #1 = $10/hour (soap applicator)
Employee #2 = $8-9/hour (the brush guy)
Employee #3 = $12/hour (rinser and quality control)

Before tax labor cost is $263.50 for the day.
Fuel cost probably $125 for the day. (2 burners, 1gph ea., 17 gallons of $3.00/gallon fuel, same for gasoline + $50 fuel for the service truck)
Chemical cost at most $20 for the day.

So you have $408.50 in costs. Leaving a $1091.50 margin to pay for insurance, unemployment, taxes.....

If you can't Survive on almost $1100 washing FedEx trucks for $6 you are doing something very wrong.

Even if you only work 5 days a week.... $5500/week, $22000/month, $286000/annually <----- After costs!!!!


With this approach you have well paid employees for no brainer work, happy customers with the best looking trucks in town, and pretty full pockets yourself. Hello, McFly? It's all about the volume!

still wont do it ............. had the chance @ several locations............ but .....Nah................ maybe im burnt out .......

Guess Im a George McFly !!

**Hot-Rod **
Restoring A 1949 Studebaker!!
Complete Major Overhaul.

I know that I am small fries here...

I just got word from a new customer that Fleet Wash was in there and I got the account. Our rates were a little higher, but they were just fed up. I know that they do the customer across the street, and I am a little happy to know that they are going to be watching me.

Quality services and word of mouth!!!

Josh Fox
Fox Industrial Cleaning
Syracuse, NY
315-430-9551
http://www.Fox-Industrial.com

How they work..Lets see first they come in and low ball the price
take you out of biz.Then have you work for them at there price
then they set up the water system scrub a truck or two then get the client to sign for a year deal.But in the paper work it says look clean from 50 feet away.Oh and never set up water set up again thats how they get it done so fast and cheap..Any thing looks good 50 feet away

Jet Stream Pressurewashing
Orange City Fl,32763
386-775-6301
386-383-9605

Congratulations Josh! Fact of the matter is is that there will always be individuals base getting their truck washed on price and these guys will keep wash companies like Fleetwash around indefinitely. However, I have seen first hand what is the result of this by looking at the cheapo wash guys equipment. They can NEVER afford to upgrade and improve, and they assure themselves of a JOB but never a BUSINESS. They also are in such a hurry that they cannot afford to properly train the employees they do have, and so their level of quality never improves, which again is why they charge the low price 'cause no one would pay more for it! All-in-all it is a vicious cycle. I will readily admit that in most cases we're not the cheapest, but we give a quality wash and are still able to do what the cheapo companies cannot do.