HUGE OPPORTUNITY in a MASSIVE MARKET

The following article appeared in the Summer 2011/2012
issue of Franchise New Zealand magazine.

STOP PRESS: Due to high demand we have just launched regular Introductory Franchise Information evenings. These evenings are held in Parnell, Auckland.

Drinks and nibbles are provided. At these evenings you will learn all about Refresh and the fantastic opportunity it offers franchisees to grow businesses that deliver a great income, and that will become very valuable businesses that can be on sold for a multiple of earnings. Please click to register for the next date that suits you. Franchisees do not need to be builders.

Refresh Renovations has more work
than its franchisees can handle

Not all franchises take off like a rocket, but Refresh Renovations (Refresh) has done just that. The business opportunity was identified by Traffic, a leading business and marketing strategy firm. Traffic provides strategy and marketing services to many of the largest corporate brands in New Zealand. Refresh launched last year after more than five years in development and has already brought on its first 10 franchises. The group is overloaded with work, and their biggest problem is managing growth.

You Don’t Need To Be a Builder

This is no small business we’re talking about: a Refresh franchisee should aim to reach around $3 million turnover with 3-5 years. “But they don’t need to be builders themselves,” explains Peter Butler, Refresh Renovations franchise manager. ‘What we’re looking for are people who understand how businesses operate. They will possibly have a marketing, general management, or sales (e.g. real estate) background. Refresh franchises employ builders and project managers. Some franchise owners may choose to enter into business with a builder who brings the hands on experience.

A Huge, Poorly Served Consumer Market

“The renovation market is bigger than the fixed line and mobile telecommunications market,” says Peter. “Our market research estimates the market at a conservative $5.7 billion, yet until Refresh, there were no large, well known brands.

“You’d expect the industry to have several very large operators, but it doesn’t. And that can lead to trouble. A recent survey by the Department of Housing revealed that 30% of customers have a dispute over renovations, and 19% - nearly one in five! – is a major dispute. That’s a lot of unhappy customers, and that’s where the opportunity lies.”

So how has this situation developed? “Builders and tradespeople tend to use renovations as fill-in work between building new homes, which they find easier in terms of customer expectation management. Builders are practical, and tend to focus on the building work itself, rather than the business and customer management side,” says Peter. Renovating requires specialist trade skills, however what really sets it apart from other sectors of the market is that it requires on-going customer consultation, great communication and excellent planning and organisation.

This huge market is largely serviced by one man bands and tradespeople. There’s a fantastic opportunity to deliver better value to customers through a more sophisticated and professionally managed organisation.

Refresh’s Business and Marketing Strategy Is Very Impressive

Refresh Renovations has very quickly established itself as the authority on renovations in New Zealand. Over 14,000 people visited Refresh’s information rich website last month. Refresh has built an impressive consumer marketing database of over 25,000. Additionally, Traffic, the owner of Refresh has just launched New Zealand’s first renovation focused magazine. It’s called ‘Renovate,’ and it hits the stores nationwide on December the 1st. Refresh will feature prominently in the magazine, and it will be a great vehicle for continuing to grow brand awareness.

Refresh is creating a national brand which brings together people with the right skills to manage complex renovation projects. Refresh provides franchisees with sophisticated systems and processes for keeping their costs down and profits up.

99% of Businesses Would Love To Be In This Position

The combination of good systems, good buying and plenty of work would be attractive in any industry, but in the traditionally boom-and-bust building industry it’s especially appealing. Richard Wood (developer) and Tahlia Jones (interior designer) joined forces to purchase Refresh Franklin earlier this year. Richard explains: “We realised there was a huge gap in the market for renovation specialists and, as we discussed possibilities, we came across Refresh. When you look at a franchise, you want fantastic marketing which generates real leads, has an instantly recognisable brand and has great systems in place. I’m a great ideas person but I’m not good at systems and that’s what I needed. I felt the founders of Refresh had the marketing and managerial experience in their CVs to drive a really good brand, and they’ve proved me right.

Being a new business, I expected we’d be bumping along at the bottom for a year or two, doing a couple of bathrooms here and there and that sort of thing. But after only three months, our immediate problem is how to cope with the workload. We have four builders working full-time and our architect working on a dozen current schemes – all big value, too. So at present we’re in the position of being able to pick and choose our jobs. I’m sure 99% of all firms would love to be in this position, especially given the current market situation.”

Richard says that what is needed to run the business above all else is great people skills. “Neither Tahlia nor I are hands-on builders. Being able to listen to and talk to clients is the vital part. Knowing that you’re going to put smiles on their faces by delivering a great result makes that easy!”

GET IN TOUCH – REFRESH IS KEEN TO HEAR FROM YOU

Peter says that anyone seeking an opportunity with Refresh should contact him immediately. “We’ve awarded 10 of our 60 nationwide franchises already and we’re keen to appoint the right people into the remaining 50 quickly. Once the network is established, our focus will be on growing all of the franchisees to increase our market share”. If you’re looking to build an asset for your future, a surprisingly small up-front investment could secure that for you – but hurry!

“Economies of scale make a lot of difference in a market this size,” Peter adds. “We plan for 60 franchisees. By sharing systems and resources the costs per franchise will be kept right down. In addition, we have support from some of the biggest names in the building industry and we deliver real value to our franchisees through accessing previously inaccessible purchasing deals”.

Read more background about Refresh and Traffic here.