The results of our first Big 10 PRO Survey of portable restroom operators echo many of the concerns you tell me about throughout the year. When I visit with PROs at the Pumper & Cleaner Environmental Expo, for instance, the talk often turns to the rising cost of running a small business, competitive forces that chip away at profits and the desire to improve marketing to gain more customers.
While the survey published here doesn’t offer any jaw-dropping surprises, it confirms that some issues seem to affect PROs everywhere. And maybe zeroing in on a few of those major concerns will help the industry forge ahead and make positive changes. In addition to sharing the data with you here, we’ll return to the numbers and additional comments from respondents in researching other stories throughout the year.
First off, I’d like to thank the 70 contractors who took the time to answer the Big 10 survey we posted late last year at www.promonthly. com. While the number of responses wasn’t overwhelming, we think it was a good first effort for a survey that we hope to make an annual tradition. Look for a new survey late this year. Then please go online and add your voice to the chorus of PROs willing to share information to advance the industry.
FAR AND WIDE
The survey drew responses from throughout the United States and Canada. Texas and Michigan led the way, with five contractors from each state weighing in with answers. Iowa and Illinois were next with four contractors each. Kansas, Wisconsin and Pennsylvania added three each.
I have a few brief observations about the survey results:
Most restrooms are serviced weekly
Once-a-week service is the rule for 77 percent of restroom contractors. Only a handful of contractors said that on average they serviced restrooms twice a month, and another small percentage said they serviced most restrooms more often than once a week. The obvious question this raises is whether or not a down economy is slowing service intervals? Or is weekly service almost always going to be the norm?
Most contractors charge between $80 to $100 per unit per month
The largest (42 percent) number of contractors said their units brought in an average of $81 and $100 per month, while 38 percent reported charging $61 to $80 per month. The 17 percent that charge more than $101 per month probably reflects regional cost differences and companies that believe providing great customer service requires charging a little more. When you see a very small number of companies charging less than $60 for a monthly rental, you have to wonder how many contractors find themselves locked in a “price war’’ situation.
The majority of companies that provide portable sanitation also pump septic tanks
According to the survey, portable restroom service and septic tank pumping remain closely tied specialties for most contractors. While there’s clearly been an increase in contractors exclusively providing portable sanitation, 55 percent reported pumping septic tanks and 46 percent said they service commercial septic and grease trap accounts. Perhaps somewhat surprisingly, 30 percent of respondents said they provide construction site services and 29 percent reported doing party or special event planning.
Some contractors made a point to add services they provide that weren’t listed on the survey, including trash pickup, plumbing, heating and air-conditioning service, and contaminated water cleanup.
Providing employee benefits is important
Four fringe benefits are of particular importance to PROs. Contractors reported offering paid vacation (67 percent), health insurance (54 percent), uniforms (50 percent) and holiday bonuses (49 percent). Slightly more than a quarter of the respondents also offer company parties, paid sick days and a retirement fund. A smaller number are offering benefits like flexible scheduling and health club memberships.
A few PROs elaborated on their benefits packages, saying they also offer employees personal use of company equipment, incentives for employees who land new accounts and lunch.
Building customer base is job one
Finding new customers was listed as the top priority for PROs (33 percent), not surprising in a tough economy that has beaten down construction accounts and focused competition on special events work. Fuel costs (27 percent) was the second highest response, followed by disposal costs (9 percent) and employee and customer retention (8 percent). Anecdotally, PROs remarked that government intrusion, rising insurance costs, the economic downturn, taxes and winter freezing were critical issues.
WHAT DO YOU THINK?
Take a look at the survey results and let me know if you have any feedback. Do the answers raise any questions you feel we should answer in future stories? Are there other questions you would like us to ask the next time around? Drop me a line at editor@promonthly.com and I promise to respond.
