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chipsaway franchise
Comments
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Just remember - Chipsaway's business is to sell franchises. Not to help you turn a profit once you've bought one!We need the earth for food, water, and shelter.
The earth needs us for nothing.
The earth does not belong to us.
We belong to the Earth0 -
How this manifests itself to individual businesses depends partly on CRM and developing a large, loyal customer database. I have found the opposite to be true TBH, it's just that getting customers through the door requires different skills in a recession than out of recession. You just have to find what works, then do it and fine tune it until you get the right results. Business is still there in abundance, taking advantage of that depends on embracing a certain amount of change and trying new things. As they say, if you're standing still in business you're actually going backwards.
Colino's assertion that it's the trade that keeps a franchisee's diary full however could not be further from the truth, especially for those that are truly entrepreneurial, and for those that aren't, well they probably should be employed rather than self-employed IMO.
What type of cars do you sell?0 -
Without wishing to sound patronising, because that certainly isn't what I want to do, I think you need more of a grasp on how business works to be able to understand this concept. Some businesses lend themselves very easily to the franchise model and when they do, developing a network of owner/operator/investors is a far more solid way to expand a network. Not always clear to see why, when you haven't been involved on a personal level, but IMO it's a no brainer when the nature of the business lends itself to franchising.
Probably a smaller wedge in almost every case than establishing a brand from scratch. It would cost much more to expand your own brand to the level of the brand you are buying into with a franchise, and doing so whilst still wet behind the ears in business ownership would be too much for most people in my experience.
I ran my own printing and publishing company very successfully for many years, so I do know how business finance works. The only reason it isn't going now is because I sold out to my biggest competitor."There are not enough superlatives in the English language to describe a 'Princess Coronation' locomotive in full cry. We shall never see their like again". O S Nock0 -
Chippie, when you speak to people in person, do you make a point of calling them, "Sir" in that most patronising of fashions?
I have certainly no intention of telling you my business interests on a forum, but while I have two competing "immaculators" that are in almost every day (not Chipsaway funnily enough), both have been through the franchise route (a sensible way if you have no business grounding) and moved on to independence within 5 years. Both also have given up the beginners mistake of chasing the extra £15 they can get retail and know, as trusted guys, they can make a better living doing 4-6 jobs at different traders and working inside their workshops.
Only the mega franchises like McDonalds are actually worth staying with, the smaller, personal service based businesses, you will have exhausted their bible in 12-18 months.0 -
thenudeone wrote: »Just remember - Chipsaway's business is to sell franchises. Not to help you turn a profit once you've bought one!
Agreed their aim is top sell franchises, but, if they don't help you to turn a profit they too make no profit other than the initial franchise fee and continual franchisee failure harms the brand. Why would they not want to help, they have a vested interest in your success?0 -
Chippie, when you speak to people in person, do you make a point of calling them, "Sir" in that most patronising of fashions?
No I don't and I have not patronised you. I took issue with your advice but I have not patronised you.I have certainly no intention of telling you my business interests on a forum, but while I have two competing "immaculators" that are in almost every day (not Chipsaway funnily enough), both have been through the franchise route (a sensible way if you have no business grounding) and moved on to independence within 5 years.
Not revealing your business interests is your perogative and no problem. I don't mind explaining mine as I have nothing to hide and a lot of experience in the OP's field of interest. Sorry but I have no idea what you mean by immaculators, is it an American term? I assume by your reference to ChipsAway that your mean SMART repairers. Yes, it suits some to go independant after a certain time and I have several friends who have done so. However, to a man, they have no axe to grind with the franchisor, it was simply a business decision based on personal preference. I also have dozens of friends who have chosen to stay within the franchise business and thrive on the back of an established brand. It doesn't mean one is right and the other wrong, it just indicates that people are different, in the same way that some car sales businesses are franchised main dealers and others are independant. It doesn't mean one is any better than the other, it's just an alternative offering.Both also have given up the beginners mistake of chasing the extra £15 they can get retail and know, as trusted guys, they can make a better living doing 4-6 jobs at different traders and working inside their workshops.
Now this is where I feel you have a misconseption about the ChipsAway franchise. I have had a ChipsAway franchise for almost 15 years. In that time I have NEVER targeted trade work in my territory. Indeed, when I bought the franchise I made it a condition of my contract that I would only target retail customers. In all that time I have only ever completed around 10 trade jobs per year and these were from dealers in other parts of the country who sold cars to people local to me and delivered them with damage present. They ask me to quote them, I give them a normal retail price which in my case is around double what they pay in the trade and they either take it or leave it. If they can't or won't pay the price it's of no consequence to me. I will also only complete the work after they have paid a pro-forma invoice as in my opinion, they are notoriously slow payers, and I am too busy to chase them. I would also estimate that at least 80% of ChipsAway franchisees are now purely retail. Many have car care centres where, in my case (and I have 2 centres) we have a throughput of 10 cars a day per unit, on average all year round, servicing purely retail clients.
My choice to focus on retail was again purely a business one. Look at it this way (These figures are only for illustrative purposes and apply to my own area and exclude Vat. Trade figures are taken as an average from several friends who work in the trade):
Average repair value: Trade £45 Retail £95
Vehicles per day: Trade 6 Retail 10
Days waiting for payment: Trade 30 from end of month Retail 0 (payment taken on day)
Trade operators obviously go to 2 maybe 3 locations per day and work on hopefully 2-4 cars at a time. We work in the same place all day repairing 10 cars with on average 2 repairs per car. There are also occasions where a dealer wants 1 small repair doing on 1 car and is desperate! If they want to keep that dealer happy the operator will have to travel and carry out that single repair, which at trade rates isn't exactly financially viable for them, but they have to do it. We too have instances where someone may only want a small trim repair or a mirror casing repair, but that's no problem as they come to us.Only the mega franchises like McDonalds are actually worth staying with, the smaller, personal service based businesses, you will have exhausted their bible in 12-18 months.
Don't know what you mean by "exhausted their bible", but after nearly 15 years we are still growing year on year, even through the recession and have no interest in "jumping ship". Why would we? I receive around 10 qualified leads per day from Head Office and generate many more than that from my own local marketing.
However, one question I would like to ask you is this:
Why do you think main dealers, fleet companies, windscreen replacement companies, vehicle delivery companies etc from other parts of the country, call us directly to repair vehicles they have damaged which happen to be local to us, when there are dozens of independant competitors around here? Just a thought.0 -
All franchises are there for one reason only: to siphon your bank account weekly to allow you to use their "good name". They couldn't give a stuff whether you make enough turnover to pay their fee, let alone make any profit. If the customers don't come and the phone doesn't ring after the honeymoon period is over, you'll be looking for alternative employment just like every other struggling self-employed bod out there.
The only way to succeed is:- be the only person around for 30 miles that does what you do, or
- be a master salesman to keep your head above water if there is one other person within 30 miles offering the same service as you.
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All franchises are there for one reason only: to siphon your bank account weekly to allow you to use their "good name". They couldn't give a stuff whether you make enough turnover to pay their fee, let alone make any profit. If the customers don't come and the phone doesn't ring after the honeymoon period is over, you'll be looking for alternative employment just like every other struggling self-employed bod out there.
The only way to succeed is:- be the only person around for 30 miles that does what you do, or
- be a master salesman to keep your head above water if there is one other person within 30 miles offering the same service as you.
Hi Dave. On what do you base this opinion? I have 3 businesses all in completely different fields and am about to set up a fourth. Your picture of things is certainly not my reality. Things are thriving!!0 -
On ten years of holding two franchises, both with different well known brand firms. Both would have left me high and dry (probably bankrupt) if it weren't for my own efforts in marketing my own good name in competition with the franchise.Hi Dave. On what do you base this opinion?
Therefore you are either offering a unique service in your area or an excellent salesman. The affluence of your area is also a factor. Congratulations on your success.I have 3 businesses all in completely different fields and am about to set up a fourth. Your picture of things is certainly not my reality. Things are thriving!!
Do you put this down to your own efforts, or the franchise package alone generating all your business?0
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