Your Customers’ Aren’t the Only Ones Feeling the Pinch
Your costs as a vendor or supplier have increased. The assets you service and install have all increased in price along with their parts. The cost of finding and retaining technical talent to do that work is higher due to the labor shifts of recent years. Administrative costs are increasing, taking away your hard-earned resources simply to keep the business running. Inflation and rising interest rates are impacting you and your customers as well — delaying key asset purchases and causing reduced spending and hiring. Clearly, rising facility maintenance costs are a top concern for everyone.
While your customers will still have to invest in facility maintenance in order to sustain operations, we recently noted that they’re going to be looking for ways to offset that cost and consolidate where they can. Your customers will expect vendors such as yourself to deliver more and more value in the months and years ahead amid these rising facility maintenance costs. One of the most immediate ways to achieve that is by partnering with a facility management aggregator company.
Here, we’ll explore a few ways that such a partnership enables you to reduce your costs and add value to customers in need of your support — whether that’s HVAC/R, lighting, plumbing, signage, or any other facility maintenance discipline.
How Working with an Aggregator Helps You Mitigate Rising Facility Maintenance Costs
1. A New Revenue Stream
One of the most immediate advantages of working with an aggregator to reduce facility maintenance costs is the fact that it opens up a new source of revenue for your business. Depending on your location and the opportunities available, you’ll be connected with recurring facility maintenance work in addition to your current clientele. Most often, aggregators have relationships with larger brands with multiple locations, so you’ll have plenty of opportunities to support them in managing their assets and locations.
2. Program Management
Another reduction in costs comes on the administrative side thanks to your team not having to devote so much time to coordination and communication. If you were to grow apart from an aggregator relationship, you’d eventually need more admin-level support for scheduling calls, coordinating workflow, dealing with suppliers and customers, and so on — adding to your overhead. Instead, your aggregator partner will handle this for you using a variety of account management and technology solutions that keep everything moving.
3. Uniform Scopes of Work
Unexpected situations and service calls as well as scope creep in general can lead to delayed project completion and thus delayed revenue. While situations and emergencies will always happen, working with an aggregator helps to reduce this because it develops consistent, uniform scopes of work across all locations to be serviced in a client’s footprint. As a vendor, you’d be assigned consistent work such as preventive maintenance on HVAC/R systems or lighting system upgrades. Unless otherwise specified, this would be the work that you’d execute at all assigned sites — keeping your costs down thanks to known products and parts, no need for additional expertise, and no delays in project time.
4. CapEx Asset Replacement
Another way that working with an aggregator helps to reduce your facility maintenance costs comes through CapEx asset replacement. This is another net-new revenue opportunity that helps to offset rising costs because it brings more money into your business. Rather than reactively replacing units at clients’ locations when they break down or need extensive repair, the aggregator will work with the client at the start of a program to proactively replace outdated or underperforming assets using CapEx resources. This gets all assets ordered in one go and ensures that the client isn’t likely to suffer any issues due to aging or damaged assets.
Become a Vendor for CLS Facility Services
As a leading facility asset management aggregator in the U.S. and Canada, CLS Facility Services works with vendors such as yourself to provide a complete portfolio of capabilities to companies across multiple industries. For more than 50 years, we’ve helped some of the largest brands maintain high-performing assets and facilities thanks to a wide network of partners with whom we have an average relationship of more than 12 years.
If you’re looking to reduce your costs this year and are looking for new ways to grow, we’d enjoy the opportunity to meet with you and learn more about your business. Getting set up as a vendor with CLS Facility Services is an efficient process — we just need some information about your business and a commitment from you to maintain certain service timelines.
When you’re ready, you can learn more about the process and get started here. We look forward to partnering with you!