Category: Business Essay

Sales Strategy

Sales would commence through the qualification of leads that would have generated by the Perfect Cleaning Services’ marketing campaign. The interest created through the distribution of brochures would help in generating interest in the company. People would call to inquire about the services that the company offers. The company would furnish potential customers with information on the charges over the phone. The company plans to charge its customers a fixed charge of $35 per hour. As such, the time that employees spend cleaning the customer’s room would be the major factor to determine the price. The company wants to explain to its customers the reason why it charges a fixed price.

The company would also explain the training systems that its employees go through. This would leave the prospective customers with the impression that the company is different from other companies in the industry despite its small size. As such, the company will do all possible to ensure that its customers are satisfied with their cleaning service. This would enable it to gain more customers who may be dissatisfied with the cleaning services of large cleaning companies.

Calculate the price

Calculate the price

 

Sales Forecast

The first month activities would involve setting up the company. Therefore, it is highly unlikely that so much business would be transacted. The company would have to deal with various legal and accounting issues and, at the same time, purchase office equipment. After undertaking these activities, the company would develop an employee manual. It is vital for the company to ensure that all these activities are undertaken properly.

In the second month, the company would start experiencing some activity. The company would begin prospecting new clients. Jobs, in the first week, would be undertaken by the administrator and two employees. After gaining more contracts, the company would hire two more employees. Therefore, the company would have two employee teams. By the end of the fourth month, the company expects to have one more team. Having three teams of employees would be enough until the seventh month when the company expects to organize the fourth team. After experiencing success in cleaning students’ dorms, the company would start cleaning dorms of other colleges that are near our university during the sixth month. This is the major factor that would necessitate the company to hire a new employee team in the seventh month.

The sales forecast of the company is based on the assumption that demand for the company’s services would increase at a steady pace. The assumption that a significant proportion of new clients after the second month would be from referrals through word of mouth is also taken into consideration. The company also assumes that it would gain new customers while retaining existing customers. The forecast for the company is conservative. It is highly likely that the company would take off as it may provide superior services compared to its competitors. However, it would not be good to have an aggressive sales forecast.

Sales forecast  
Sales Year 1 Year 2 Year 3
Student Dorms $150,000 $155,000 $160,000
Dorms of other universities $120,000 $130,000 $145,000
The subtotal direct cost of sales $270,000 $285,000 $32105,000

Distribution Plan

The company primarily will be engaged in cleaning carpets and hard surface floors, window cleaning, as well as upholstery cleaning. The company would mainly focus on the provision of interior cleaning services. To improve customer convenience, the cleaning services would be available any day of the week. Customers may request to be provided with the service according to their specific needs. Provision of the services would help customers save time and energy undertaking the services. It would also enable customers to enjoy staying in a clean and attractive dorm and house. Provision of the activities would also enable customers to have extra time for entertaining their guests, taking part in their hobbies, or undertaking any other activity they may want.

Perfect Cleaning Services has a business model that is similar to the business-to-consumer model. As such, the company would market its services directly to customers. The company would have a smaller company base compared to companies in other industries. Buyers of the company’s services would be students who live in hostels. Students may require the services on demand or enter into a contract with the company for the provision of the cleaning services. The company’s distribution channel is significantly different from that in the consumer market. In this market, companies have a large customer base. Customers make purchases according to their wants or needs.

Perfect Cleaning Services would have a shorter distribution channel due to its distribution model. It would sell its products directly to consumers. This would necessitate the company to strive to maintain good relationships with its customers since the relationship is one of the factors that gives companies in the industry a competitive edge. The company’s representatives would meet with its customers regularly. Customers would air their opinions during these meetings. This would help in improving the services that the company offers. Therefore, it is vital for the company to have good sales representatives. The company’s owners would also meet with customers regularly. This would show customers that the company values them.

The company would supply the service to its customers directly in their dorms or homes. The company would provide services through contracts. Customers have the option of choosing a one-month contract, two-month contract, three-month contract, six-month contract, or one-year contract. The company would offer certain discounts depending on the type of contract that a client chooses. However, during the first few months, the company would not provide its services using contracts. It would first strive to gain customers’ trust through the provision of high-quality services. After the seventh month, it would introduce contracts in order to plan its activities more effectively. After the end of a contract, a customer may either renew the contract or withdraw it.

The company intends to open an additional office in a year. The office would cater to students in dorms of other universities more efficiently than having a single office. Depending on the market conditions, the office may also cater to clients who would like their premises or homes cleaned. This would necessitate the company to employ additional employees to clean and market the company’s services.

Distribution budget  
  Year 1 Year 2 Year 3
Salary of a sales team $60,000 $70,000 $80,000
Office administration expenses $30,000 $40,000 $40,000

Competitive Environment Analysis

The company’s main competitors would be franchised companies that offer cleaning services. Service Cleaners would be one of the major competitors of the company. Some of the strengths of Service Cleaners include name recognition and large size of the company. The company has twenty-five employees. It is one of the largest cleaning services companies in the region. Since it has a large number of employees, one employee may clean a customer’s premises and another would clean it the next week. As such, it may not provide consistent services. The company charges $25 per hour.

Maids for Hire is another top competitor of the company. Some of the major strengths of this company include name recognition and size. The company has twenty employees. It is the second largest company in the industry after Service Cleaners. The company is insured. Lack of consistency is the major weakness of the company. The company also charges $20 per hour.

Mary’s is also one of the competitors of the company. One of the major strengths of the company includes the fact that it is individualized as its owner, Mary, runs the company. The major weakness of the company is that Mary does not have any employee. In addition, she is not insured. Mary has several loyal customers. However, she does not have room for new customers. She charges $15 per hour.

The company would venture into the cleaning service industry despite the fact that there is stiff competition in the cleaning service industry. The industry has a high demand. In addition, a significant number of maid/janitorial services have huge waiting lists since they are unable to meet demand. Furthermore, most of the maid and janitorial companies are “mom and pop” operations, which do not have enough employees.

Customers that want cleaning services are looking for high-quality services. However, not all companies in the industry offer quality services. The data collection clarified this fact. Most people use different companies since they are yet to find a company that would actually satisfy their need for quality.

Most large cleaning companies specialize in cleaning residential areas and office blocks. These companies have neglected the cleaning of re