From Nickel-and-Dimed to Premium Priced: 3X sales & Drastically Increased Profits in 4 years

pexels-leeloothefirst-8962460

Background

A $13M (at the time) janitorial company specializing in large commercial office cleaning and periodic maintenance like floor polishing and metal restoration. The company had top-line growth but less than 5% profitability, leaving little cash for growth initiatives or owner distributions. Leadership believed they could not raise prices and were stuck in commodity pricing.

Solutions

We identified & implemented the following strategies to improve cash flow:

 

  • Implemented monthly profitability scorecards with root cause analysis for bottom-performing customers.

  • Trained customer service teams to identify and sell high-margin add-on services during daily building inspections.

  • Ended unprofitable contracts while retaining and winning back clients who valued the service.

  • Correctly priced all new contracts to ensure sustainable profitability.

Conclusion

Through our pricing and customer profitability review, we helped this janitorial company boost its bottom line from 5% to 15% while tripling revenue in four years — all without sacrificing service quality. Sales increased from $13M to $40M; profit went from $250k to $7M.

Solutions

Challenges

  • Net income misleading leadership into overlooking true cash position

  • Some practices highly profitable while others operated at a loss

  • Profitable practices subsidizing underperformers

  • No clear debt service or working capital benchmarks in place

Benefits

  • 25% increase in top-line revenue from high-margin add-on work

  • 100% increase in bottom-line profitability in year one

  • Revenue tripled in four years

  • Bottom line percentage increased from 5% to 15%

  • Improved client retention and reactivation rates 

 

Save money, make money, stay out of trouble, have fun.™

BGW Accounting Firm
footer-bg
FINAL WORD

tired of typical?

Our passion lies in partnering with growth-oriented, private, closely held businesses that are frustrated by being stagnant and are ready for lasting change in their businesses and their lives.

LET’S SEE IF WE’RE A FIT
STAY CONNECTED

We have a pretty great podcast & insights that dig into issues you really care about.
Copyright 2026 BGW. All Rights Reserved.
BGW is the brand name under which BGW Advisors, LLC provide professional services. BGW Advisors, LLC practice as an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable law, regulations and professional standards. BGW Advisors, LLC and its subsidiary entities, which are not licensed CPA firms, provide tax, advisory, and other non-attest services to its clients. The entities falling under the BGW brand are independently owned and are not liable for the services provided by any other entity providing the services under the BGW brand. Our use of the terms "our firm" and "we" and "us" and terms of similar import, denote the alternative practice structure conducted by BGW Advisors, LLC.