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My desire is not to tick anyone off here. This post is intended to come together in common ground and conclude what we as Board of Directors propose to Corporate so we can move forward.
So, to recap the last week or so from those State Owners that have posted, we recommend to Corporate…
1. $20-$60 a month in a year or so when the economy gets better is the maximum additional fee we could charge not to bankrupt many operators.
2. Combining money that goes to State Owners and Corporate can be confusing at best and needs to be separate by definition.
3. What operators need the most is corporate sponsored internet advertising right now! Left over funds can go towards Radio and T.V. ads (CDs) promo’s, and operators or willing to pay $50-$100 a month for it, for the good of all, even though they themselves may not want it or are convinced yet that they need it.
So we need to to convince them that it will benifit all, and that every area should pay the same price?
Is this what I’m reading?
My desire is not to tick anyone off here. This post is intended to come together in common ground. I hope we can find that.In working with my operators, I’ve observed this.
The bigger area’s see and feel a real need for better internet advertising. No debate from me.
Communities under 60-80k feel a real need for radio and T.V. ad’s. Television advertising (along with the new logo’s and van “raps”) have helped bring credibility and area dominance to a whole new level. An example is Rich Bollin, Ft. Madison, IA. (77.5k, two counties) Two factories and railroad yard, shut down, 20%+ unemployment, He lost 10% of his business that year, compared to the year before. He turned to T.V. ad’s. In the next two years, half of his competitors folded. He experienced a 21% increase the first year, 39 1/2% the second year. Most jobs haven’t come back, he is just getting a lot bigger chunk of the work. Again credibility and dominance was the factor, he credits T.V. ads as the biggest factor. I can give three other similar examples, of operators who are increasing totals and credibility that credit T.V. ad’s as the single biggest contributor. They have used the corporate T.V. ad’s as well as their own. They are pleeding for me to get corporate to produce more T.V. ads just as much as the larger communities are pleeding for better internet advertising.Here is some info that may be something else to nah on.
Chem-dry sells areas for their starting price for areas 40k population and under. As the population is higher so is the price up to so much population. when the population goes above that, they have to purchase another franchise, with more equipment.
This can get confusing but I’ll try. Let’s say their cap is 200k. If you purchased a Chem-dry in xyz, AL, population 1 million, your purchase would buy you, 200k population @ three royalty fee’s. They still have 4 more franchises to sell in that total area. (no exclusive rights, they could be neighbors) If they sell to five, and the population increases, Chem-dry will sell yet another.
Is anyone interested in this. Should I continue?Remember, salesmen are not always honest… Get the promises in writing or consider them empty promises. They are more concerned about their commissions than they are about your business. They have spent a lot of time and mostly slanted research to hook you for a whole year of monthly payments. Be cautious. If you feel you are dealing with a slick used car or Kirby salesman, you more than likely are not getting the best deal or advise. My suggestion would be to start out small. They usually only offer you discounts when you commit to spend more $ the following year. Consider a budget as Mr B. Sutton said -before you sit down with them-. If you get behind, they get ugly. I don’t mean to come accoss negitive here. But know what and who you are dealing with. Find out from your customers and/or chamber of commerce what is the most used book and at what locations. See if the most used book is in your desired area for cleaning. Meaning, if the most used book is in the slums, who cares, know your target area. I’ve hear to many times about what phone book sales people have done. There is a reason not to trust them.
I maybe opening myself up for a lot of fall out here, but here I go…
If you have lost complete faith & trust in Cody Howard and M-CO INC, perhaps it’s time to sell. If the corporate office goes down, so does everybody else. If operators are land rich and dirt poor, economy 101 says -sell some land- If an operator can’t afford an extra $20 a month, in most cases they have a money management problem and should look serious at considering a budget. Every franchise I can find the franchise fee’s exceed $200 per. In area’s where cost of housing has doubled every 5-10 years and are seeing the value drop 40%, the investment is still better than in most areas. If it dropped 40%, it sounds like a great time to buy! If the focus is on gloom and doom that is what you will receive. If the focus is on how can I succeed, you will. If a person is focused on fault finding, they will succeed, and still not be any better off. I believe Cody Howard has proven himself to have the very best interest in the best of the whole, long and short term. I choose to support him and his final decisions for what is best for this business.After thinking on this a bit, when people ask “you what church you go to?” (and many people do) ask them what church they go to keep track of it and when you have some time between appointments, stop by and use this person(s) as a referral. It would hurt to ask the customer if you could use them as a referral. “We clean for allot of churches, can we use you as a contact person for a referral?”
Of operators I’ve known to advertise with christian radio, it’s about 50/50 weather or not they felt successful. Many stations have been willing to trade services at least the first time advertising. You might run a radio only special to get a more accurate feel for the results.
Wow!
I am very impressed with the synergy and response. These are some really great ideas. My thoughts are really in support of the combination of the total response. And again I’ve never seen an example of state owners in “the whole is greater than the some of it’s parts” more than I have this week.
I agree the products need to create profits sufficient to support the corporate office.
I would be in favor of a set monthly fee from each owner for the creation of radio and TV ads. I feel that as each owner is ask to participate more ideas for ads will come forth.
ie synergetic ad ideas from operaters only costly $20 a month for production cost or charge $40 a month from each owner to pay an ad agency for their thoughts and production cost. ($ figures be adjusted to the proper cost.) I think if Cody offered the owners the option we could see more ideas than perhaps the office could handle…. and call it an advertising production fund, leaving each city owner the cost of advertising in their territory. They still keep their independence as an independent franchisee.
In turn, sell the need as needed to… keep the compititive edge nationanally and internationally. (didn’t forget you Dennis)
As far as allot of thoughts are concered, I keep asking myself, is this the best road to go down? My sincere answer is… I don’t know either.When I was in chem-dry the corporate office sold to stores that would sell for almost the same price as the operator could buy it for. (Killed local sales) Also with chem-dry, the local operator had no say. That being said, I sold to the local furniture store (for about 10 years now) Bottles of mixed spotter for $7.50 each, and told them they must sell them for $20.00 (the same price I do)(or $19.99 if they insist), Let their customers know of the life time free refill! Call me for details! The life time free refill applies when they have cleaning done, or it is a $10 charge.
What I like most about this is the endorsement that goes with the sale!
It has been a good response, they sell about 20-25 a year as well as they pass on about 20 referrals a year. We also clean for them.
P.S. La Grande, Oregon is 13,027 in population. Wha who!Don, I’ll try to answer that.
I have seen many times where the best product doesn’t always win. The most determined almost always wins. If we focus on building a relationship on trust and honesty, with customer satisfaction, we will always eventually win and win big!!!It is true clorox will brighten the best…
Color fast bleach isn’t near as hard on your pads as regular clorox… but you’re free to learn that yourself.I just want to say, I am so grateful to be apart of this company! This company has some really great minds that share for the benifit of us all.
This tread is an example of that!
It’s great to part of the Heaven’s Best Family, although I must admit we have a few “mAD sCienTistS” ha ha, life is really great!Brian, I can’t wait for your next book!
I also did this years ago. I warn you, some competetors get steamed! One was angry enough to tell me in public how he felt about me “giving away work”. On the flip side the cash flowed, the van was noticed in public, and my bills got paid. The only down side for me, was when it snowed 8 plus inches.
P.S. snow is a four letter word…1.John is our contact person from our corporate office, work through your state owner.
2. State owners got certified in Nov. 2008 and operators will get certified as they attend their regional seminar. (Don’t want to miss it)
John could tell you more concerning Tandus, but I can tell you things are headed in the right direction, even though things do take time. Some corporation boards and websites are slow.
