 | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  |
Competition
Competition is a way of life in a capitalist economy. Its positive influence is that it forces all to do their best and become
even better.
Its downside is that some competitors will employ any number of tactics to win market share, no matter how questionable.
Even when there’s enough work to go around for everyone, the dark side of competition is still a part of the business
landscape.
Times like this – when there are far fewer pieces of the pie to be had – creates a sense of desperation. And desperate people
do desperate things, as some portable sanitation business owners are doing and seeing in the wake of the residential
construction slump.
“In my area, people are panicking and in order to keep inventory out and keep equipment running, they’re lowering their
prices,” observes Harry Murphy, owner of Portable Rental Systems in Fort Collins, Colorado.
Russell Perkins sees that, too.
Perkins, president of Nature’s Calling in Charleston, South Carolina, notes that other portable sanitation operators are
looking out at their yards thinking that whatever they can get for their units is better than nothing.
“Unfortunately, the only person they’re hurting is themselves,” says Perkins, whose own business has seen a decrease in
the placement of portable sanitation units and roll-off containers. “We’ve tried to maintain our pricing integrity the whole
time. We’re actually trying to get a price increase while others are cutting prices to get work.”
And while Perkins has managed to get his asking price from some customers, it’s been a tough sell for others. But in all, he
says, business has been steady, even in the atmosphere of decreased opportunities due to the halting residential
construction market.
Murphy agrees that in a time when competitors are cutting prices to keep their inventory running, he sees no need to act
accordingly and instead seeks to raise his prices.
In doing so, however, he is evaluating his company’s services to improve them in order to justify the price increase.
“You’d better be sure that the service is good, your equipment is clean, your employees present themselves well, wear and
tear is resolved on the inventory prior to it going out, your delivery is timely and you follow through standard procedures,”
Murphy says. “You have to be on top of your game if you do it.”
Murphy says the drastic price-cutting behavior among competitors in the industry feeds into a “victim” mentality.
“People will say ‘If I’m too hard on billing and money, I won’t get the business. My customers are so good to me, I can’t
raise my rates’. That’s how this whole shift in business got going. They’re afraid to push it, to ask for more money.”
Murphy questions why portable sanitation operators conduct themselves as if they don’t deserve respect or should not be
reimbursed for what they do.
“We provide a tremendous amount of value for what they pay for services,” Murphy says. “(Customers) make money off of
us by keeping their guys on the job.”
As the fight for fewer customers heats up during the residential construction slump, pre-existing competitive issues, such
as image and ethics, remain a concern.
Years ago, there would be stories floating around trade show floors about how competitors would show up at the same site,
ready to do physical battle with each other over a job.
Perhaps competition has moved more away from using fists to using more sophisticated methods of conflict, but it is
possible to transcend any type of conflict and create an environment where everyone can peacefully co-exist, service their
own customers and enjoy expanding revenues.
Trade associations such as Portable Sanitation Association International (PSAI) are a prime example of different companies
networking together to elevate the industry so all benefit.
‘Friendly competition’ is possible, but some say in many cases, it’s not probable because of many issues that continue to
plague the industry.
“We are our own worst enemy as far as I am concerned,” asserts Murphy. “Our biggest problem is a lack of regulation of
portable restroom suppliers. Also, a lack of enforcement by regulatory agencies: local, state and federal.”
Murphy says while the Occupational Safety and Health Administration mandates a certain number of portable sanitation
units per workers at a construction site or agricultural area, there are no guidelines on use or times cleaned.
“It is my understanding the approximate capacity of most units is about 28 to 30 gallons, not to the brim,” he says. “I have
been in the trade for 15 years and have yet to see any large restroom provider be fined because the units are filthy.
“Our service goal is to assist our customers in making their project or event a financial success. So many providers do not
recognize this and want to put out cheaply- priced equipment and are unable to comprehend the concept that they must
make a profit in order to hire good staff and maintain their equipment.
“By letting equipment fall into disrepair, customers will soon lose respect and lower their expectations of what they should
be getting. It seems customers are afraid to demand better service as this is ‘just a portable toilet’.”
Perkins believes “business ethics are extremely important in our business and unfortunately, some of our competition does
not share our same ideas.”
For instance, Nature’s Calling does not actively recruit other companies’ drivers.
“We understand the cost and time associated with hiring new people,” says Perkins. “It is a shame they have to resort to
these tactics. We like competition. But for once, sell your company, not just the price.”
Nature’s Calling has competitors who will “buy the job at any cost just to get the job,” says Perkins.
“It is time that we as an industry put stricter guidelines on people getting in the business,” he adds. “Let there be penalties
for wrongful doings. If attorneys can get disbarred and doctors can lose their license, we should have similar penalties.
Other professions respect their competition’s prices. We should, too.”
The nature of the business practically lends itself to a “low and poor image with most people,” Perkins points out.
“We really are in a similar business with plumbers, but they are more respected and paid more than people in our industry,”
he adds. “There are a lot of smart business people who understand our business and wish they made the money that some
of our successful people have.
“It is just not a glamorous industry, but the most needed and least paid on a construction site. I think all sanitation people
should be required to be in uniform and have stricter guidelines to enter our industry.”
While market share is important, it needs to be earned, not “bought”, Perkins asserts.
“We see a lot of new lawyers, doctors, dentists and the like come into a market. Do you think people shop them every time
they have to go? No. They have earned the customer’s business and they protect their industry. They do not slash prices
just to get a new customer. They are professionals just like we are.”
Brian Wintjen, Nature’s Calling’s general manager, has his own views about competition.
Wintjen does not care for “operators who market for new business by verbally assaulting their competition with false
claims, competitors who actively search out units on the street and propose savings to the customer without even knowing
the price - many times dropping the rate by $20 – and competitors who purposely damage restrooms or trailer units and
then proceed to make a sales call.”
Wintjen acknowledges that while a “poor image is automatically attached to the nature of our work, we can and have
improved our image.”
Strategies have included wearing uniforms; utilizing clean, good-looking trucks and equipment and training drivers in
customer service skills.
Market share is important for all portable sanitation service providers, says Wintjen. “However, some of the price-slashing
is more excessive than needed to win the price-conscious customer over,” he adds. “To add insult to our proper pricing,
they will put a brand new unit out at a construction site as well. That type of short-term market strategy usually will lead
them to selling their business in three to four years or going out of business as soon as more capital is needed.”
even better.
Its downside is that some competitors will employ any number of tactics to win market share, no matter how questionable.
Even when there’s enough work to go around for everyone, the dark side of competition is still a part of the business
landscape.
Times like this – when there are far fewer pieces of the pie to be had – creates a sense of desperation. And desperate people
do desperate things, as some portable sanitation business owners are doing and seeing in the wake of the residential
construction slump.
“In my area, people are panicking and in order to keep inventory out and keep equipment running, they’re lowering their
prices,” observes Harry Murphy, owner of Portable Rental Systems in Fort Collins, Colorado.
Russell Perkins sees that, too.
Perkins, president of Nature’s Calling in Charleston, South Carolina, notes that other portable sanitation operators are
looking out at their yards thinking that whatever they can get for their units is better than nothing.
“Unfortunately, the only person they’re hurting is themselves,” says Perkins, whose own business has seen a decrease in
the placement of portable sanitation units and roll-off containers. “We’ve tried to maintain our pricing integrity the whole
time. We’re actually trying to get a price increase while others are cutting prices to get work.”
And while Perkins has managed to get his asking price from some customers, it’s been a tough sell for others. But in all, he
says, business has been steady, even in the atmosphere of decreased opportunities due to the halting residential
construction market.
Murphy agrees that in a time when competitors are cutting prices to keep their inventory running, he sees no need to act
accordingly and instead seeks to raise his prices.
In doing so, however, he is evaluating his company’s services to improve them in order to justify the price increase.
“You’d better be sure that the service is good, your equipment is clean, your employees present themselves well, wear and
tear is resolved on the inventory prior to it going out, your delivery is timely and you follow through standard procedures,”
Murphy says. “You have to be on top of your game if you do it.”
Murphy says the drastic price-cutting behavior among competitors in the industry feeds into a “victim” mentality.
“People will say ‘If I’m too hard on billing and money, I won’t get the business. My customers are so good to me, I can’t
raise my rates’. That’s how this whole shift in business got going. They’re afraid to push it, to ask for more money.”
Murphy questions why portable sanitation operators conduct themselves as if they don’t deserve respect or should not be
reimbursed for what they do.
“We provide a tremendous amount of value for what they pay for services,” Murphy says. “(Customers) make money off of
us by keeping their guys on the job.”
As the fight for fewer customers heats up during the residential construction slump, pre-existing competitive issues, such
as image and ethics, remain a concern.
Years ago, there would be stories floating around trade show floors about how competitors would show up at the same site,
ready to do physical battle with each other over a job.
Perhaps competition has moved more away from using fists to using more sophisticated methods of conflict, but it is
possible to transcend any type of conflict and create an environment where everyone can peacefully co-exist, service their
own customers and enjoy expanding revenues.
Trade associations such as Portable Sanitation Association International (PSAI) are a prime example of different companies
networking together to elevate the industry so all benefit.
‘Friendly competition’ is possible, but some say in many cases, it’s not probable because of many issues that continue to
plague the industry.
“We are our own worst enemy as far as I am concerned,” asserts Murphy. “Our biggest problem is a lack of regulation of
portable restroom suppliers. Also, a lack of enforcement by regulatory agencies: local, state and federal.”
Murphy says while the Occupational Safety and Health Administration mandates a certain number of portable sanitation
units per workers at a construction site or agricultural area, there are no guidelines on use or times cleaned.
“It is my understanding the approximate capacity of most units is about 28 to 30 gallons, not to the brim,” he says. “I have
been in the trade for 15 years and have yet to see any large restroom provider be fined because the units are filthy.
“Our service goal is to assist our customers in making their project or event a financial success. So many providers do not
recognize this and want to put out cheaply- priced equipment and are unable to comprehend the concept that they must
make a profit in order to hire good staff and maintain their equipment.
“By letting equipment fall into disrepair, customers will soon lose respect and lower their expectations of what they should
be getting. It seems customers are afraid to demand better service as this is ‘just a portable toilet’.”
Perkins believes “business ethics are extremely important in our business and unfortunately, some of our competition does
not share our same ideas.”
For instance, Nature’s Calling does not actively recruit other companies’ drivers.
“We understand the cost and time associated with hiring new people,” says Perkins. “It is a shame they have to resort to
these tactics. We like competition. But for once, sell your company, not just the price.”
Nature’s Calling has competitors who will “buy the job at any cost just to get the job,” says Perkins.
“It is time that we as an industry put stricter guidelines on people getting in the business,” he adds. “Let there be penalties
for wrongful doings. If attorneys can get disbarred and doctors can lose their license, we should have similar penalties.
Other professions respect their competition’s prices. We should, too.”
The nature of the business practically lends itself to a “low and poor image with most people,” Perkins points out.
“We really are in a similar business with plumbers, but they are more respected and paid more than people in our industry,”
he adds. “There are a lot of smart business people who understand our business and wish they made the money that some
of our successful people have.
“It is just not a glamorous industry, but the most needed and least paid on a construction site. I think all sanitation people
should be required to be in uniform and have stricter guidelines to enter our industry.”
While market share is important, it needs to be earned, not “bought”, Perkins asserts.
“We see a lot of new lawyers, doctors, dentists and the like come into a market. Do you think people shop them every time
they have to go? No. They have earned the customer’s business and they protect their industry. They do not slash prices
just to get a new customer. They are professionals just like we are.”
Brian Wintjen, Nature’s Calling’s general manager, has his own views about competition.
Wintjen does not care for “operators who market for new business by verbally assaulting their competition with false
claims, competitors who actively search out units on the street and propose savings to the customer without even knowing
the price - many times dropping the rate by $20 – and competitors who purposely damage restrooms or trailer units and
then proceed to make a sales call.”
Wintjen acknowledges that while a “poor image is automatically attached to the nature of our work, we can and have
improved our image.”
Strategies have included wearing uniforms; utilizing clean, good-looking trucks and equipment and training drivers in
customer service skills.
Market share is important for all portable sanitation service providers, says Wintjen. “However, some of the price-slashing
is more excessive than needed to win the price-conscious customer over,” he adds. “To add insult to our proper pricing,
they will put a brand new unit out at a construction site as well. That type of short-term market strategy usually will lead
them to selling their business in three to four years or going out of business as soon as more capital is needed.”
| By: Carol Brzozowski |
 | |  | |  | |  | |  | |  | |  | |  | |  |
Serving the American Liquid Waste Industry Since 2002