Here’s a question for you: How many companies could survive with just 10 good customers? Not many, right? In fact, a lot of businesses must be constantly attracting new customers because their previous ones move from one option to the next based on convenience, price, or whim. As a result, these companies spend a lot of money on marketing and advertising in order to attract a sufficient number of customers to maintain their current level of sales and continue to grow. But what if you had 10 big customers who you did work for year after year, and who provided you with $100,000 worth of work each year? That gets you to $1 Million in annual sales in a franchise business where your initial investment was less than $80,000.
So, who are these 10 customers and how do we find them? Well, at Klappenberger Painting & Handyman, there are a few companies like this that all my franchises are doing work for which spreads the wealth, provides better coverage for the customer if they have multiple locations, and creates more opportunities for work in the future.
For example, we do work for Medstar which is a medical facility with two dozen major hospitals and 380 walk-in clinics. All of our franchisees are averaging $123,000 per year from this one account. The work we do includes painting, carpentry, small remodels and handyman services.
We also have developed great relationships with retail chains like Crate and Barrel, Verizon, Bass Pro, J Crew, PJ Welinhans and Cracker Barrel restaurants where we do all their painting on a semi-annual basis. We are averaging $57,000 in 2018 and that is expected to increase significantly in 2019. We currently have the opportunity with PJ Wilinhans in the Philadelphia and New Jersey markets to do approximately $900,000 worth of work over the next year or so.
In addition, we are expanding our relationships with some major property management companies such as Long & Foster. They provide us with a steady flow of work that includes, painting, handyman, and power washing. We are looking to start our ideal franchise owners off on the right foot.
Developing these kinds of relationships for and with our franchisees allows them to build significant businesses that continue to grow because they have customers like this who will give them repeat work. Some of these are large projects that can rapidly increase our revenue and demonstrate our capabilities and expertise to other companies we want to attract. This is another example of how, at Klappenberger Painting & Handyman, we work hard and smart to help our franchisees succeed. Contact us to start a franchise with us!