A First Hand View of How Both Small and Large Cleaning Companies Compete

At Mero, we’ve had a front-row seat to the evolving landscape of the commercial cleaning industry. From this perch, the Mero team has observed a fundamental truth about commercial cleaning: success in this business hinges on scaling efficiently while navigating razor-thin margins. New cleaning companies constantly emerge, challenging established giants. Our customers at Mero know, there’s always someone new trying to poach your existing business.

The commercial cleaning sector is dynamic, characterized by major players with extensive resources and agile newcomers disrupting the status quo. Mero has collaborated with both ends of the spectrum, from large corporations with over $500 million in annual revenue to ambitious startups. This diverse experience provides Mero with unique insights into the factors that drive success and how companies of different sizes can leverage the strengths that go with their size to compete.

Let’s dive into some of these insights. Whether leading a large, established cleaning organization or steering a growing team, these observations can help you outperform your cleaning contracts and thrive in this dynamic competitive landscape.

What We've Learned On How Smaller Commercial Cleaning Companies Succeed

Smaller cleaning companies have unique advantages that can help them compete effectively against larger incumbents. By focusing on these key areas, they can differentiate themselves and win new business:

They Prioritize Exceptional Service

The number one way smaller teams differentiate themselves is through service excellence. This includes:

• Conducting more detailed inspections: Small teams win contracts by going above and beyond in their inspection processes. They catch issues that larger competitors miss, and clients notice.

• Offering comprehensive data to clients: In today's data-driven world, clients expect cleaning proof of work data and insights from that data. The small companies that impress their clients the most invest in software to track and present cleaning data effectively. It's a game-changer in building trust and demonstrating value.

• Consistently aiming to exceed industry standards: We’re always inspired by companies that set higher standards for themselves. The best way to do this is with efficiency. The more efficient a cleaning company can be the more they can exceed the industry standards without blowing the budget.

They Embrace Technology Wholeheartedly

Technology solutions have enabled small companies to succeed in starting up new business offerings even though margins are razor thin.

• Beacon Based Data: Beacon-based tech for proof-of-presence is an absolute game changer. It’s non-intrusive to the employees and doesn’t get bogged down the way past solutions (like paper, GPS, or phone-based systems) have.
• Pattern Recognition: Beacon-based tech and its rigorously correct proof of presence enable smaller commercial cleaning companies to wring every last efficiency from their operations by identifying patterns that are slowing down work.
• Right Sizing: With the hard data that beacons provide, smaller commercial cleaning companies are able to right size their contracts. They can now go to building management and say “we don’t need this much time for the facility, we’re cutting costs” which leaves no room for competitors to move in. Conversely, they can go to building management with data when some areas are taking longer than estimated and show hard proof of that.
• Offering unique services: By leveraging cutting-edge technology, smaller companies can offer services that set them apart. Whether it's advanced disinfection techniques or AI-powered scheduling, these unique offerings provide a business edge that both customers and potential customers notice.
• Demonstrating a commitment to efficiency and modernization: Clients are increasingly looking for forward-thinking partners. When a small company showcases its use of innovative technology, it sends a powerful message about their commitment to excellence.

They Make Innovation Part of Their DNA

The most successful small companies we work with don't just use technology; they build their entire operation around it and make sure their staff is continually trained to realize it’s benefits:

• Training staff thoroughly: We've seen the difference comprehensive training makes. When every team member understands and can effectively use new technologies, the results are impressive.
• Being proactive rather than reactive: With beacon technology in place, cleaning management can know before building management, or worse, building tenants know when issues are happening. This enables them to address the issue before it blows up and makes unhappy clients.
• Time Studies: Beacon technology means that smaller commercial cleaning companies have rigorous data that matches the quality of data that the giant cleaning companies have. With this data, it's easy to do time studies and understand how much time the different areas of a facility need to be cleaned. These time studies can then be used to improve scheduling and staff management.
• Getting ready for the robots: Many commercial cleaning companies are incorporating robotics - like the Avidbots floor cleaning robots - into their operations. The more successful firms here are the ones that seamlessly integrate the robots with their teams from top to frontline workers. While robots today aren’t even close to being ready to replace a team they can already enhance the efficiency of teams that incorporate them.

Example of a Commercial Cleaner Punching Way Above Their Weight

Austin Jones and the team at Millennium Facility Services are living proof that in the cleaning industry, it's not about the size of the company, but the size of its commitment to excellence. At Millennium Facility Services, Austin Jones has made technology innovation and employee training the cornerstone of their success. “Exceptional service is about people. That’s why we invest heavily in training.”, Austin often emphasizes.  Additionally, Millennium is regularly using new advanced tech like LiDAR to enhance its cleaning services.

This dedication to going the extra mile on technology innovation and employee training has allowed Millennium to secure and maintain contracts that might typically go to larger firms. Austin's message to other small cleaning companies is clear: with innovation, dedication, and a relentless focus on client success, you can punch well above your weight in this industry.

What We've Observed in Large Cleaning Organizations

At Mero, we also work with cleaning teams doing nearly $500M in annual revenue. While their priorities are similar, their approach is often different:

They Integrate Technology at Scale

Large organizations have the unique ability to:

• Implement technology at scale, across hundreds of facilities simultaneously: We’re always impressed by the scale at which these companies can roll out new technologies. It's a significant advantage in terms of efficiency and consistency and can realize dramatic cost savings very quickly.
• Use data from various locations to identify trends: With their vast network of facilities, these companies can gather and analyze enormous amounts of data. The insights they gain often lead to impressive operational improvements. The best of the big companies use this foresight of trends to get out ahead in RFP sales processes.
• Develop custom solutions: Many of our larger clients have the resources to create bespoke technological solutions or reports. These custom tools can provide a competitive edge by enabling them to commit to metrics that other less advanced firms can’t commit to.

They Excel at Building Strong Client Relationships

What stands out about successful large cleaning organizations is their ability to:

• Maintain high levels of training and education: One area where large commercial cleaning companies can leverage their size to their advantage is with training and education. The cost of training and educating on a per person basis goes down dramatically with larger teams. With that, training and education are one of the best ways to ensure excellent service which is the heart of any strong client relationship. Successful large cleaning firms aren’t afraid to invest in talent.
• Understand client needs through long-term relationships: These companies leverage their long-standing partnerships to develop a deep understanding of their clients' evolving needs. It allows them to proactively address issues that their competitors get hit with.
• Tailor their offerings to match client expectations: With their comprehensive suite of services, large companies can customize their offerings to meet specific client needs. It's a level of flexibility that some clients really appreciate while they can save on costs by only offering what clients really need.

They Offer a Comprehensive Suite of Services

Large cleaning businesses benefit from:

• Providing a wide range of services: The ability to offer a one-stop-shop for all facility management needs is a significant advantage particularly when pursuing multi-facility contracts. At Mero, we’ve seen how attractive this can be to clients looking to simplify their vendor relationships.
• Investing in various technologies and equipment: The capacity to invest in a wide array of specialized equipment allows these companies to handle diverse cleaning challenges effectively.
• Properly integrated system: Large cleaning firms need their technology to integrate into other systems. For example, a large janitorial company will have existing Quality Assurance programs, payroll systems and other types of management programs. Once a big company has a new tech system in place many of their existing management programs immediately see benefit from the newly integrated tech.
• Certifications: With the rise of comprehensive certification programs for commercial buildings, like BOMA Best or LEED, large janitorial companies are well suited to service these buildings since they can spread the cost of green cleaning and sustainable purchasing programs across their 
many buildings.
• Positioning themselves as total facility management partners: By offering comprehensive services, these companies often secure larger, more lucrative contracts.

Example of a Nimble Giant

Christopher King and Hallmark Housekeeping Services exemplify how a large, successful commercial cleaning company can remain agile and innovative in a rapidly evolving industry. With over 20 years of experience and a reputation for serving prestigious buildings across Canada, Hallmark has not rested on its laurels. Instead, as Senior Vice President Christopher King emphasizes, they've embraced cutting-edge technologies to stay ahead of the curve. In a recent podcast, King highlighted how Hallmark is adapting to the challenges of variable occupancy levels and labor shortages by leveraging smart sensors, occupancy data, and robotics. By staying at the forefront of industry trends and technologies, Hallmark demonstrates that even large companies can be nimble, adapting quickly to changing client needs and market conditions while maintaining their commitment to exceptional service quality.

Conclusion

At Mero, we’ve had the privilege of witnessing firsthand how both small and large cleaning companies can excel in this competitive industry. Whether you're a small team leveraging agility and innovation, or a large organization capitalizing on scale and resources, there is one key principle to success that always remains the same: prioritize service excellence, embrace technology, and build strong client relationships.

The cleaning business will always be a service business at its core. But with new technologies making a real impact, there are exciting opportunities for companies of all sizes to stand out and thrive. As we continue to innovate at Mero, the entire Mero team looks forward to seeing how cleaning companies of all sizes use technology to elevate their services