the digitally driven home improvement business
TRANSCRIPT
Slide 1
Chicagoland West
The DIGITALLY DRIVEN
Home Improvement Business
May 29, 2009ANDY ONCALL Chicagoland West3s071 Route 59, Unit 111Warrenville, IL 60555630.821.7777
Raise $90,000 of growth capital for fast-growing home improvement franchise located in Chicago's affluent Western suburbs.
ANDY ONCALL Chicagoland West (AOCCW) is the highest grossing business in ANDY ONCALL Network of 50 nationwide businesses.
A strong local brand and sound business plan focused on using technology to drive down cost of lead acquisition has the business well prepared for impressive profits.
See the ABOUT INVESTING page on my website for detailed information about rates of return and terms of the investment.
Objective
ANDY ONCALL Franchising
Chattanooga, TN, Established 1999
Estimated 2007 Revenue: $19 Million
50 businesses in 21 states
Targets the growing home improvement market
Harvard and NAHB studies confirm market stability and growth.
Primarily focuses on the smaller project segment where competition is scattered one-man handyman businesses.
The Business Model:
Target higher income customers with excellent customer service, guaranteed quality and reliability as differentiators.
Use established direct mail advertising (Valpak) to acquire leads.
Franchise owner receives 50% of revenue from each job.
No A/R or Inventory.
Scalable structure using subcontractors flexes with demand.
Large, exclusive territories prevents destructive competition.
In mature business, owner's profit share should be 20% of sales.*
* ANDY ONCALL Franchising
Across all age groups, successive generations are continuing to outspend their predecessors, leading to record-level spending and solid growth in the coming decade.
Spending approaching $300 billion / yr.
Homeowner spending to increase by 3.7% annually between 2005 and 2015.
* August, 2007 Report from Joint Center for Housing Studies, Harvard University
National Long Term Outlook for Homeowner Remodeling Activity*
Data from 2008 NAHB Study Confirms Positive Industry Trend and Territory Demographics
An ANDY ONCALL Business is Resilient
Post-Recession Recovery in 2003 Portends 2009 Growth ($K)
ANDY ONCALL Chicagoland West
Territory Profile and Historical Sales Performance
The Exclusive Territory
Highest income zip codes in DuPage County and The Fox Valley, located in the Western suburbs of Chicago.
Population of over 1.1 million; avg household income of $88k.
Income ranks territory among the top 5 of US counties.
Annual Market: $600 Million* in home improvement spending.
Sales Performance
First to achieve $500k in less than one full year of business.
Doubled sales to $1 million in second year.
9% contraction in year 3 (2008) compares to avg of 16% at the top ten grossing ANDY ONCALL businesses.
2008 Recurring Revenue: 39% of Sales
26% in 2006, 37% in 2007
* US Census Bureau and Foundations for Growth in the Remodeling Industry Harvard, 2008
ANDY ONCALL Chicagoland West
Key Elements of DIGITALLY DRIVEN Initiative
Leverage Email to obtain significant benefits at a very low cost
Over 85% of AOC customers are happy to provide Email addresses
This is a mega trend in the advertising industry.
Web-based Advertising
Using savvy business partners to maximize the visibility of our website to customers searching for services we provide.
We reach customers who are looking for help instead of trying trigger demand via traditional advertising (TV, Radio, Direct Mail, etc)
Enhanced Website Presence
Our website is the digital storefront for our business. It must be easily accessible, and provide superior service for visitors.
Transactional Emails: Quick Response and Professionalism
Welcome Notes, Appointment Confirmations, Thank-you notes
Post job Quality Survey allows us to quickly address formerly hidden issues.
In 2009, our quality score is 98%!
Using Email to follow up on cold leads increases close rate
Conflicts are more easily resolved when both parties have time to think before communicating. Customer satisfaction improves.
Email Marketing via Monthly Newsletters: Brand Reinforcement
Soft-sell; focused on preventative maintenance information
Call to action for seasonal repairs and maintenance.
Keeping ANDY ONCALL visible increases recurring revenue.
Referral Program: Rewards Happy Customers, attracts new business.
Alert Emails: Sent on Eve of Storms, Weather Emergencies
Strategic Use of Email Converts Underutilized Customer Database into a Lead-Generating Asset.
Search Engine Optimization Generates Organic growth
SEO experts make our website more attractive to people searching for our services by moving our name to the top of search listings.
Keyword Advertising Drives Website Traffic.
Keyword analysis partners analyze date from major search engines and focus advertising spending on most productive search terms.
By continually reviewing search activity, advertising spending is optimizing, lowering cost per lead.
ANDY ONCALL appears most prominent position on search engine pages.
Banner Advertising Drives Brand Awareness and Increases Website traffic.
Re-targeting will place ANDY ONCALL banner ads on the screens of customers how have shown prior interest in our Website.
Key Elements of web-based advertising.
Keyword Advertising Drives AOCCW to the Top of Internet Searches
Multiple Landing Pages
Highlights our deep expertise in multiple trades.
We currently have 13 different landing pages for our website.
Each landing pages can be converted to a cut-sheet for customer visits.
Testimonials greatly increase credibility.
Customer photos, names, city and types of work performed provide an impressive endorsement for the business.
Direct links to portfolio of work performed further enhances credibility.
Video testimonials provide the ultimate endorsement experience.
Push to talk functionality lets customers receive a phone call from us seconds after clicking button on website.
Custom Maintenance Reminders make ANDY ONCALL indispensable.
Customers request customized home maintenance reminders via Email.
Hello, Mr. Smith. It is time to change your furnace filter.
Website Enhancements Will Drive Increased Business.
Our Website is Attractive, but Requires Add'l Investment to Maximize it's Value to the Business.
Homeowner associations and commercial property managers consistently spend funds on professional repair and maintenance services.
In 2008, AOCCW generated $48k of revenue in this segment
A relationship-driven business, and needs to be treated differently from the core homeowner business.
Customer Service Manager serves as the point person
Once the relationship has been established, this becomes a recurring revenue stream.
Funds are needed to establish regular mail-based contact with B2B customers with a focus on testimonials, professionalism and creative pricing.
Business to Business (B2B) Growth Will Help Stabilize Revenue
Recurring Revenue in 2006 = 26% of sales; in 2007 = 37% of salesDIGITALLY DRIVEN Marketing an enhanced B2B Focus Reduces Costs and Revenue Volatility
Bob Steinmetz (55), Owner
29 years of corporate experience
BSME: Notre Dame; MBA: Carnegie-Mellon
Business development, financial management
Brian Ruments (37), Field Service Manager
10 years construction / supervisory experience
BS: Business Management; US Navy Veteran
Field Support, Commercial Customer Contact, - On-Call 13 hrs / day
Maribel Barron (36), Office Manager
11 years corporate experience
BA: Business Translation and Communications
Customer Service, Scheduling, Bookkeeping
Management Staff
Experience, Professionalism Is A Competitive Advantage
We believe in people! When you call us, no complicated computerized voice mail system greets you. We have people who answer the phone.
No fear for one year! We will fix any workmanship issues free of charge for one year.
What we say is what you pay! We honor our quoted labor price unless the scope of work changes.
We clean up! When the job is complete, the work area will be clean and all debris will be removed.
We step up! We inspect our work with you. If any accidental damage occurs as a result of the work, we make sure it is repaired at our cost.
We play by the rules. We abide by the State of Illinois Home Repair and Remodeling Act.
The ANDY ONCALL Difference
The Best Guarantee in the Business
01/27/09
01/27/0901/22/0901/22/09
2002 Recession200120022003Chattanooga$462$452$620Marietta$616$540$726TOTAL$1,078$992$1,346-8%36%2008-09 Recession200720082009Chicagoland West$1,001$914$1,026-9%12%
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