There’s a special event in your town that requires more equipment — especially more handicapped-accessible units or a VIP restroom trailer or two — than you have in your yard. Because this event would stretch your company beyond its limits, you’ve never submitted a bid to provide portable sanitation for it in the past.
But this year is different. You’ve said to yourself: “What do I have to lose? I might as well bid on the high-profile event. I probably won’t get it, but if somehow the planets align and I’m chosen, then I’ll worry about how to pull it off.’’
A month passes and a letter comes in the mail. You’ve won the contract to serve the special event. At once, a celebration breaks out in the office … But the victory dance soon comes to a halt when the thought occurs to you: “Oh my gosh! What have I done? Where am I going to get the extra inventory to pull this off?’’
I’ll save the sermon about planning ahead for a later column. Right now, there are a couple of obvious answers to your predicament … And one that you might dismiss as implausible.
TRADITIONAL SOLUTIONS
First, call the accountant, or sit down and put a pencil to paper, to determine whether it’s a smart move to purchase the additional inventory for the event. After you invest the funds necessary to buy a restroom trailer or several high-end portable restrooms, do you envision being able to continue renting them often enough for the investment to pay off?
If you can’t make the math work right now for a purchase, you can look toward an equipment manufacturer or a large regional or national operator that might offer to sublease the bigger ticket items that will help you provide special service for this special event. This can be a good answer to getting your hands on the upscale equipment you may need on occasion, but can’t justify keeping in your yard permanently.
SOMETHING COMPLETELY DIFFERENT
The other option? How about asking your competitor across town to lend you a trailer or a few specialty units? “No way,’’ you say. “I’m not going to call the company I beat out for this great job and ask to use their equipment. If I’m lucky, they’ll slam down the receiver before unleashing a flurry of curse words.’’
That may be true. But if you’ve been a respectable competitor in the past and won the special event bid fair and square, you might be surprised to find a receptive small business owner on the other end of the line. Especially in these challenging economic times, you and your competitor might be able to work together for the benefit of both.
That’s what Jeff Wigley of Pit Stop Sanitation Inc., Marietta, Ga., has found in the two years and a few months since forming the Atlanta Working Group with several other PROs. As the contractors have become active in several non-competitive initiatives, like seeking certification for all of their route drivers through the Portable Sanitation Association International, they’ve become more comfortable leasing specialty equipment back and forth to fill each member’s occasional needs.
The Atlanta Working Group is an example of a strategic alliance that helps local competitors work together to raise overall customer service and industry professionalism. When they started meeting in July 2007, it was with the goal of advocating for the portable sanitation industry in Georgia. They never discuss prices they charge or any topic that could be construed as a violation of anti-trust laws.
Where Wigley once would have balked at asking a competitor for a helping hand, he now freely seeks to lease certain equipment from other group members and reciprocates when he is able. It’s a cooperation he values, especially in tough times.
“We’re all on our own out there, but in some instances it’s nice to have somebody to ask,’’ Wigley says of situations where he needs occasional help. “And if I’ve got something sitting in my yard and someone else needs it, heck yeah, I’ll rent it to them.’’
FRIENDLY COMPETITION
It’s not that Wigley doesn’t want to buy new inventory. He makes it clear he’s not slighting equipment manufacturers. But sometimes, he says, a PRO just can’t justify buying specialized equipment, and quality competitors appreciate the opportunity to sublease equipment when business is slow.
“It’s certainly better to call on a friendly competitor to help each other rather than have to say ‘no’ to a customer.’’ Wigley explains how he’s gone to other members for four handicap units for one event and an extra restroom trailer for another. “It’s a win-win for both companies.’’
So far the cooperation has extended to small numbers of equipment that most of the PROs don’t stock in big numbers, Wigley says. But he says he would have no problem asking for or lending out larger numbers of units when the transaction involves companies he respects.
Wigley makes the competitive nature of the members clear; they battle toe-to-toe for the same contracts.
“We compete like heck for the business. But once a customer makes a decision, you respect that and move on,’’ says Wigley. “When you have mutual respect for each other, you say, ‘I competed for that job and, by golly, he got it. Good luck to him. He might be the one calling me for two handicap units.’ ”
WORKING TOGETHER
Mutual respect is the key in forming a work group like the one in Atlanta. Each of the members has been in business at least 10 years and the companies share the same concerns about raising professional standards in the industry, Wigley says. He believes alliances like this could work in many areas where there are at least several competing companies.
There are a few other options for PROs to find common ground and strength in numbers. One idea is to create a strategic alliance with another company that isn’t a direct local competitor, but is still within driving distance to exchange equipment when necessary.
Another idea in an area with several portable sanitation companies, but occasional special events larger than any of the companies can serve, is to seek a partner to team with to submit bids. Say a music festival requires 300 restroom units for the crowds, two specialty trailers for the performers and VIP visitors and an intense servicing schedule over a 48-hour period. While you can’t handle the event by yourself, you could combine forces and equipment with another contractor to land the job.
ASK, AND YOU MIGHT RECEIVE
The best small business advice, especially for so many contractors working in survival mode these days, is: Don’t be afraid to ask. A loud click on the other end of the line may be the worst that can happen if you reach out to your competitor for help. And if he doesn’t hang up, you might be able to build a relationship that can help both of you for years to come.
