I sold uniform programs which generated weekly revenue over a contracted time period. We manufactured our own uniforms, like an OEM.
Once a week, our trucks would come out to customer site, collect dirty uniforms, bring them back to the plant and wash them - this was part of our basic service.
Once a week, our trucks would come out to customer site, collect dirty uniforms, bring them back to the plant and wash them - this was part of our basic service.
Not only did we clean the uniforms, we would inspect and automatically repair or replace worn garments - this was one of our 'value added' services.
For all this, the weekly charge was around a buck and a half per change of uniform - approximately 15.00/week/employee.
If the employees paid, we called it a self-funded benefit of employment. If the company paid 100% we called it a company supported, corporate identity program.
The point is 'recurring revenue'. Each week our trucks would touch every single customer. Recognizing the potential, the company started adding soap dispensers and air fresheners to their rug and towel programs. Then the company bought the second largest First Aid kit provider. I didn't even know there was such a thing.
Soon, in addition to logo'd uniforms, we were renting mop heads, selling embroidered golf shirts and hats out of a catalog.
You see, the company recognized the value of customer contact AND recurring revenue - at a significant profit.
Not long after, Cintas bought a document archiving and destruction company - that's right, from uniforms to 'document management'.