What should I check before buying a cleaning chemicals distributor?

A distributor of cleaning chemicals sells to janitorial firms, institutions and similar accounts, often by delivery route. It differs from a shop that sells supplies to the public, and from a maker. It depends on relationships on both sides: the suppliers whose lines it carries and the customers who reorder. A buyer’s checks should follow those relationships.

Supplier and line agreements

Ask for every agreement with the makers whose products the business carries. Find out whether the territory is exclusive, how long each agreement runs and whether the supplier must approve a new owner. Ask the same of any private-label sourcing, where another company makes products under the distributor’s own name. A line that cannot move to you may be a large part of the business.

Customers and equipment on site

List the accounts and see how much of the business a few of them represent. Ask which are under contract and which simply reorder. Many distributors place dilution and dispensing equipment at customer sites. Find out who owns it, where it is, and what happens to it if the customer leaves. See what to check in a duct cleaning business for a similar service-account review.

Routes, stock and storage

Ride along on a delivery route if the seller allows it. Look at the vehicles, the driver arrangements and how orders are taken. Count the inventory and ask about slow-moving or damaged stock. Ask how chemicals are stored and handled, and read what environmental checks you need before you rely on any warehouse.