Hello everyone,

I was hoping to get some advice from some of the larger, more established owners on this site on how to go after the larger accounts.

Here’s the thing...We are no longer just a small Interiorscaping company and after 6 years, we have made a name for ourselves in our area, with plenty of enthusiastic referrals.

Question is, how does one go about trying to get some of the really big accounts? You know, hospitals, airports, malls...

I’m well aware of the pitfalls of price wars, I’m not even interested in competing on that level. I’m also well aware of the responsibility and personnel needed to maintain these large accounts. As I said, we’re no longer a small operation in our market.

This question comes because a hospital in the same city we’re located in recently remodeled and I found out that a competitor of ours supplied the plants in the new wing. I’ll take the blame for missing the boat, but I was hoping everyone’s combined experience could help me out.

I’m just curious--those of you that have large accounts such as these, how did you come by them? By referral, or cold calling persistence? Were they sent out to bid? If by persistence, did you simply find out the name of the VP of Operations and hound her until she agreed to talk to you?

I’m not looking for someone to do the work for me, just a point in the right direction.

Thanks all,

Bill Forrest

Bill: I’m not sure the "big guys" will reply to you here, and you didn’t post your e-mail address for a private reply, so I’ll take a shot at it for you (being a "smallscaper", too).

First, are you fully insured (probably $3 million umbrella, $1 million general liability per occurrence, $1 million auto, and statutory workers’ comp limits for your state)? Can you and your techs pass security background checks? Have you been in business for at least 5 years doing this type of work? Can you qualify for Minority, Small Disadvantaged, Women-owned or other certifications with the SBA and your state? These are the big talking points that large corporations and institutions stress when soliciting bids and proposals from contractors, for whatever kind of work...interiorscaping, landscaping, plumbing and heating, drywall, you name it.

Second, can you supply enough qualified, experienced technicians to fulfill a large contract if you get it? Many large corporations, governmental agencies, hospital chains, etc. require that the service personnel doing the work have three years’ experience as interior plant maintenance technicians if they will be assigned to the account. And some government contracts require that you pay a minimum hourly rate to personnel assigned to that job (a rate that may exceed your normal rate of pay for other accounts).

Third, can you handle the response/turnaround time that such accounts may demand from time to time? That is, do you have the necessary financial resources to purchase a large quantity of plants and containers on relatively short notice and get them installed in a timely manner while still managing to complete your "regular work" on that account and the others you maintain?

Fourth, if necessary, can you replace a tech that the client judges to be unsatisfactory without major upheaval to your company’s normal business routines? This sometimes happens on large accounts (small ones, too, but it’s not such a huge issue with one of those)...a facility manager decides he/she doesn’t care for your tech’s attitude or looks or whatever, and you might need to find a permanent replacement pronto or risk losing the account.

These are just a few of the "flies in the ointment" that don’t always occur to business owners and managers of smaller, newer interiorscape companies when they begin eyeing up new business on a grander scale than, say, Dewey, Cheatem and Howe, Attorneys at Law. Think them over now, before you get in too deep.

Clem

Bill, as far as getting your foot in the door- I think relationships help a lot. For example, develop relationships with organizations such as the local chamber of commerce. And, read the business sections of the paper for announcements of building projects and/or businesses moving in to town. The largest mall company, General Growth Properties, really won’t even consider individual bids for malls. Consider a sub-contracting or networking approach to tackle those bids. Good luck! Lynnae.

Bill,

First keep in mind the points that clem made above. The larger accounts need to percieve you as major player in your area.

Your large accounts will fall into one of two categories.

The first category is the corporation that automatically goes out to bid every few years (usualy 3-5 around here).

For these, you just have to get your name onto the bid list. This usually entails a couple cold calls followed up by a letter with a card etc.

The problem with these is that they usually go for the lowest bidder. It also means that you will be going through the same process a few years down the road.

It’s hard to get excited about your work if you know that 3 years down the road the job will be going out to bid...no matter how good your work is.

The second type would be the corporation that, once they have found their interiorscaper they tend to stick with it. This is because it is not worth risking getting a new vendor to save only a few dollars.

The only way to get these accounts is pretty much luck. It’s all in the timing. Did the competitor mess up? Did the old property manager retire? Is the ficus in the front lobby dropping leaves today? Are they moving or expanding?.... These are the types of things you need to look for.

How you get your name in front of the right person could be a combination of cold calls, postcards, faxes, emails, etc. Get them from as many different angles as possible.

Good luck!

JK

Everyone,

Thanks for the great advice. I apologize I didn’t return to check the responses.

Clem, that’s a great list from you. Yes, I had anticipated many of those. We’re a big enough player to deal with a lot of those issues. Sorry I don’t include an email. Too much spam and garbage when I post it on this site.

Lynnae, thanks--I had a feeling the networking approach would be the key.

John, good advice, thank you. We have a couple of those big corporations on our client list, you’re right, it is all in the timing.

I guess you all answered my question, the answer being that its a combination of many things, and that these projects are put out to bid. Do we even want these low margin types of big accounts at all--that’s the question I’ve been trying to answer.

Thanks again,

Terry

"Do we even want these low margin types of big accounts at all"

That IS the question to ask yourself Bill.

In our case, the answer is inequivocably NO. Would much rather have four high-margin, quality oriented accounts any day over the big mall down the street.

Steve

Steve, that’s great advice coming from someone like you, your position in the Industry in the market you’re in.

It would seem that those of you that have more experience than I do are trying to tell me something.

We’ve never been the lowest bidder anywhere. I’ve always been proud of that. Though it would be nice to bring a thousand dollar a month account on board, I had my suspicions that it wasn’t worth it in the long run.

Maybe we’ll stick to the quality corporate customers who pay on time and aren’t so high maintenance/low margin.

Don’t feel bad thinking any of you talked me out of it! Instead, I think you might have saved me some headaches and hassle in the long run, and made me feel better about our position in our own market.

Thanks again

Bill, don’t get me wrong here. Tt’s great going after and earning those thousand dollar + a month accounts.

AS LONG AS THEY’RE NOT REALLY SUPPOSED TO TWO THOUSAND DOLLAR + A MONTH ACCOUNTS.

Ooops sorry. Didn’t mean to shout. Yeah I did! :)


Steve