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Fortunately, there are some aspects that appear to be shared by many BSCs. According to Mike Nelson, vice president of marketing for Pro-Link, Inc., a jan/san-focused marketing and buying group based in Canton, Massachusetts, knowing and understanding these aspects can help distributors better serve their BSC clients as well as build stronger and more profitable business relationships with them.

For example, according to studies and published reports, BSCs appear to have some similar purchasing habits when it comes to janitorial supplies and paper goods. They also share many common business realities, such as dealing with demanding customers, client retention challenges, high worker turnover, training and education needs, and tight profit margins and cash flow. Understanding these issues and having a bit more insight into the BSC mind-set can pay dividends for the astute distributor.

Market Overview

Some industries are scrutinized very closely and constantly. The housing market, auto industry, and many high-tech industries are watched closely, and trends and directions in these industries are reported as often as every week. The BSC segment of the jan/san industry, however, is evaluated much less often, and in-depth studies about the industry are released only on an occasional basis.

For this reason, says Nelson, the first step in improving relationships with BSCs is to get a better understanding of just who they are. According to research conducted by Pro-Link:

• BSCs represent the largest single market segment for distributors, accounting for approximately one-third of their business.
• BSCs are also the fastest-growing segment of the jan/san industry, growing at nearly 20 percent in recent years.
• There are an estimated 55,000 BSCs in the United States. The majority of them are very small operations, but approximately 20 percent of them have 20 or more employees. Fewer than 100 firms have more than 1,000 workers.
• Almost 70 percent serve just their local communities, making them good targets for local jan/san distributors.
  

One of the reasons this segment of the industry is growing so fast, Nelson believes, is that facility managers have come to the conclusion that it is more cost-effective to outsource or hire contract cleaning services than to have them performed by in-house staff. In some cases, the savings can be as much as 20 percent. Additionally, many managers find hiring a BSC eliminates the need to supervise the custodial crew. Instead, their concerns focus mainly on the results of their work and the cost-effectiveness of the firm hired.

Another reason to expect this industry segment to grow is the fact that more and more office buildings are under construction throughout the country. Studies report that the largest account penetration for BSCs is in office buildings.