We have been in business over 20 years, with over 15 years being a focused commercial window cleaning, and more recently power washing company. When we started the window cleaning there was very little competition in our areas. This is back in the day when you would charge $5 for the outside of a store front. The same is $12-15 now. I have noticed the volume of competitors increase and the market tighten. The way we pursue commercial windows has changed and the types of accounts we look for has altered as well. We are in a great geographical area, Philadelphia, NJ, DE, market. Those of you who have been at this a while have you noticed the marketplace change over the years? Do you think it is cyclical or a permanent maturing of the competition and growth in the industry? Unfortunately some of the maturing of the market is from old employees going into business for themselves. We do create our own competition at times.
I think in my area you could attribute 25% of it to maturing market syndrome. And the other 75% of the problem to it being cyclical. I’ve been watching the storefront market for almost 16 years now. It seems like there is 3-year waves of competition.
people are excited when things are new
they tend not to care after awhile (or move on to other interests)
a mature area has more that don’t care, good enough, etc
(add to that the tightening since '08 the “irrational exuberance” of the mid 2000’s was the best thing ever, never to be seen again)
Hey Chris, there definitely seems to be waves of competition and then it quiets down again. With some competition I am seeing more resiliency which in part I hadnt seen in years past. Perhaps the overall economy has forced people to be more diligent about their work as the market is tighter? We grow every year so we are doing well in the face of the changes but it seems the marketplace is a little more saturated, on the commercial front anyways. It always has been competitive. Residentials are a smaller percentage for us but what are you seeing in your market with homes?
Recently I got an old storefront customer back from a newbie who lasted about three years and petered out.
I have seen similar patterns with the residential market. I’m a bit north of you but… I haven’t really noticed the influx of newbies lately. In all the years I ran ACWC - Only one person that went out on their own is still around today. They seem to be doing pretty good.
I have noticed a couple of the larger companies getting bigger and expanding.
Chris, we have the same experience. There have been several over the years who thought they could make a go of it on their own. The longest I saw anyone make it was just ovef 3 years. The shame is the energy they expend on a failing venture could have been used to help grow a stable thriving company. It really is the paradigm of the grass is greener elsewhere. We have been of the mindset that there is sufficient business out there it just requires ingenuity to find it and bring the value to retain it. The competition we run into is mostly small companies or single operators. We have been breaking more into a new market niche. The larger contracts are more difficult for small companies and impossible for single guys.
