[John Kelly]

I have had a Chem Dry leaflet delivered today, the first I can ever recall in my area, and it's offering 10% off.
This was from an established franchise.
As I have mentioned in earlier posts, Chem Dry is a CARPET CLEANING franchise. However they have been so succesfull at marketing the fire & flood side of the business that they now have the lions share of that market, hence the purchase by Homeserve.
Homeserve are now beginning to buy up all the unsold areas and also offering to buy out established franchises. This will have the result that the existing companies will loose out on all the work they were picking up in the loop, basically if you were in an area with 4 licenses and only 2 were sold those 2 companies would get all the work. Once the 2 spare were sold the original ones work would halve.
This is what is now happening, as well as ex DRL guys buying up vacant licenses.
I believe through time Homeserve will start to cream off all the insurance work to their employees leaving the Chem Dry franchises with their carpet cleaning businesses which they will have to push hard to maintain their turnover.
In short guys expect a lot more competition in the near future.
One plus point, it can help you to get your price up.
Oh and don't forget all that free advertising thier getting on the BBC with disaster masters. Doesn't matter what you think of them, that Chem Dry name on the vans and clothing which keep flashing up on the screen is planting a subconsious message in peoples minds. When they are looking through Yellow Pages etc and they see a Chem Dry ad, their mind will subconciously remember it.
Masters of marketing!!!

[HolmansUKLTD]

lol

[Liahona]

For what it is worth, Chem Dry are the most successfully marketed carpet cleaning company in the world, What and how they do whatever it is they do is irrelevant........ They arent the biggest in the world but they may well be someday..... Best, Dave.

[craigp]

i know chem dry get all the insurance work but thats about it, they get very little domestic where i am,

 masters of marketing?

i know one fancisee in my town lives in a coucil flat in one of the poorest rundown suberbs there is.

[Doug Holloway]

Hi Guys,

In this area there are a couple in YP and one who places exactly the same , fairly boring ad in the local rag every few weeks.

They are just another competitor who quote high prices and probably do a reasonable job so I have no fear of them.

I believe the market will always control the number and type of CC's in any area so just be professional yourself and market yourself well.

Cheers

Doug

[John Kelly]

The just of the post is although they mainly do insurance work now, this is going to and is changing. Therefore they are going to be trying a lot harder to obtain cleaning work. Also their head office has set up a new department solely trying to obtain national carpet cleaning contracts.

[Dennis]

Also their head office has set up a new department solely trying to obtain national carpet cleaning contracts.

They had that 10 years ago and got virtually nowhere then.

[Doug Holloway]

Hi John,

Take your point but mine is that CD are more likely to displace other large overhead CC companies rather than small efficent CC's like us.

Cheers

Doug

[John Kelly]

Doug

You may be right. But I believe with the financial clout some of them have got, they will, if they wanted to. make inroads into the domestic market, maybe not everywhere.
Don't forget forget some of these guys turn over hundreds of thousands of pounds and have the finance to launch major marketing campaigns.

[Robert Watson]

The Edinburgh book came out in December.
Chem-Dry ad. Full colour, Full page. 
thats a first in this area for a carpet cleaner,
I wonder if they will be there next year ?
" Have you had any other quotes madam?"
" Yes Chem-Dry."
YES    the jobs mine, and I get a good price.

[Robert Watson]

By the way, I never slag off competitors.

[Liahona]

I meant to say in my last post but forgot...... In the states Chem Dry are known for being cheep but am I to pressume by the comments that here they arent? I dont care as you know what I charge just curious. Best, Dave.

[Robert Watson]

Dave.
Not here mate.
For what it costs to set up, run and advertise,
no way its going to be cheap.

[Liahona]

Ok, cheers for the info, do they have a set charge or are they free to charge as they feel? Best, Dave.

[Robert Watson]

  Sorry no idea.
All I care about is the fact I`v got an unprompted testimonial
saying how much better Blah Blah Blah 

[PaulKing]

Just goes to show read the small print, had a similar situation arise as myself a sub-contractor to a now Homeserve company, at least they offered to employ us the now ex-selfemployed sub contractors.

I did love that phone call, " sorry we are'nt going to pass you any more work as of next week" BUT " would you like to apply for a job with our new directly employed network, you get free uniforms and van"

Most important thing is to remeber it is their ball and they decide you plays with it. They may just be testing the water to see how it works out and may not take it further. If it was me I would be asking questions and battening down the hatches.

[Liahona]

At the end of the day does it make any difference what Chem Dry do or dont do, not like there isnt enough work out there for all of us. Best, Dave.

[PaulKing]

"does it make any difference "

Not a lot

But it's good to know what their reasoning is,and whats happeniing in our industry and like it or not Chem Dry are a major player, so it's relavant.

[Robert Watson]

Yes Paul,
your correct, hope this turns into a good thread. 

[Shaun_Ashmore]

A big ad or a small ad it doesn't get rid of the volume of carpet cleaners in the yellow pages or newspapers. Mrs will always ring them and probably another different company, you can't buy national domestic contracts as Mrs only has her carpets cleaned say once a year.

Loads of advertising for 1 franchisee will bring in work by 'buying it in' but it won't be cost effective as soon as they see the book profit of that side of the business they will stop advertising and then that part of the business will go from the public eye.

Shaun