From Operating in the Red to 1500% Increase in Revenue
We did a complete analysis of the company from operations to which social media they were using and everything in between. We found that there were no systems in place, labor costs were high, and kitchen exhaust cleaning was too risky especially with competition driving prices lower and lower. Since the majority of customers were restaurants, we decided it would be best to remain within that vertical.
We chose to utilize the Blue Ocean Strategy to Eliminate, Reduce, Raise, and Create a new market for Nectarine Clean. One of the cornerstones of our own business model, we felt this would be perfect for Nectarine Clean.
We decided to remove any services that we considered:
After careful deliberation, we eliminated kitchen exhaust cleaning, restaurant deep cleaning, tile and grout cleaning, drive thru cleaning, graffiti, and all residential services.
We also got rid of the use of ad platforms such as Facebook Ads, Google Ads, and Thumbtack (costing over $100/week on sending, not winning, bids alone). We did away with the need for a physical location by only utilizing what could be fit onto one truck. Finally we removed any service under $250 to establish a minimum travel rate, which gives us more focus and time on the clients we would rather have.
We knew that most restaurant owners and general managers have a lot on their plate, no pun intended, so we aimed to make entire process fast and smooth.
We then set out to create a new market. After exhaustive research we hit gold:
Restaurant Equipment Detailing
But a business relying solely on a service that happened once or twice a year isn’t a very good model, so we sought to expand our reach. We thought of potential non-customers- businesses who either use power washing services because they have to, they purposefully choose not to use them, or have never thought about it due to being in a distant market.
We decided to target non-traditional businesses that could benefit from Nectarine Clean’s services:
During this process we saw a lot of overlap with the hospitality, property management, contracting, and transportation industries. We deduced that by providing only services that can be offered to these markets, we would be able to streamline inventory management cutting costs dramatically. And while expanding our target market to include new non-customers, we should be able to increase profit margins exponentially.
We put everything together and chose to re-brand Nectarine Clean as a mobile pressure washing company for businesses within the food industry:
Their value proposition became:
After implementing strategy, we figured out a price point for services, built the inventory management system, a sales system, and got the business up and running. Now it was time for getting the word out to businesses. We wanted to use only 4 channels: Facebook, Instagram, LinkedIn, and email marketing.
Our research indicated that for the new business model Facebook would not be a good engine because their algorithm restricts business posts unless you pay. We decided to link our Instagram updates into the free groups that didn’t restrict views, however Facebook was our least used channel.
We wanted one more social media channel to offset stepping back from Facebook. We chose LinkedIn, an incredibly under-utilized resource that put Nectarine Clean directly in front of decision makers. We wanted to use that as a channel to promote content and establish relevance as an industry innovator.
Surprisingly pressure washing itself is also incredibly visual, often generating thousands of views on platforms such as Reddit for being “Oddly Satisfying” to watch. This was our strongest channel as we acquired followers of some of the most notable restaurants in Chicago.
Finally, our main approach for generating leads was utilizing simple, personally written, cold emails. We generated high quality leads and plugged them into our sales system and the results greatly exceeded expectations.
Within the first two months we saw sales begin to grow and halfway through the second month Nectarine Clean landed their largest client to date. Within 12 weeks we completely turned the business around and they were able to finish the first year off profiting.
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