How A Benjamin Franklin Plumbing® Franchise Is Prospering In This Tough Economy
January 5, 2010
The president of one of the most successful Benjamin Franklin Plumbing franchises shares her secrets.
It’s business as usual at Benjamin Franklin Plumbing® in McKinney, TX.
In this tough economy, that’s a good thing.
The franchise, owned by Keresa Richardson, has grown every year since it was formed in 2000, and she expects it to continue growing this year.
“In fact, our highest monthly sales ever were in December and January,” Richardson said.
Texas has been more fortunate than other states, she said.
“Last year, we didn’t see as much of a slowdown while the rest of the country was struggling,” she said. “We never had a real estate bubble to burst.”
That doesn’t mean Richardson can take a break and glide through the recession. She constantly positions the company for any challenges ahead.
Already, the Texas economy is starting to slow down, and she’s facing more competition from plumbers who have relocated to her state.
But she’s not panicking. Instead, she’s sticking to her plan, working harder to market her company, watching her numbers more closely and taking steps to improve customer service.
Because Richardson and her husband, J.R., have been in business for 26 years, they know to expect shifts in the market, and they know how to react.
Along the way, they developed ways to recession-proof their business and excel.
Richardson and her husband own three companies under The Lawton Group. One company focuses on commer cial plumbing (new construction), another specializes in commercial service and repair (plumbing, HVAC and refrigeration), and Benjamin Franklin focuses solely on residential service and repair.
The companies reached $17.5 million in revenue in 2008. Benjamin Franklin alone had $4 million in revenue last year. Based upon past performance and early results from the first quarter, revenue is projected to increase by 12.5 percent to $4.5 million in 2009.
The franchise, one of the most successful in the country, is well liked in the Dallas-Fort Worth area it serves, and it’s quickly becoming a dominant player in its market. The company won two Consumers’ Choice Awards in Dallas last year and has been included on the Inc.® 5000 list of the fastest-growing private companies in the United States for two years in a row.
The Richardsons’ hard work and success have allowed them to support the community in numerous ways, something they plan to continue this year.
They also recently completed their new home, Chateau Le Reve, French for “House of Dreams,” a four-story French chateau on a lake. They collect wine and enjoy hosting wine tastings in their home.
And while many companies are laying off employees, their managers earn six-figure incomes, giving them the luxury to pursue their favorite hobbies and the time and money to spend on their own families. Lawton Group also provides retirement plans and health benefits for all employees.
Market, Plan And Work Smarter
There’s a good reason her Benjamin Franklin franchise had such high sales in December and January, Keresa Richardson said.
“I spent more money on marketing to increase my calls,” she said.
Her franchise invests in a combination of radio, live TV, direct response and Internet marketing. She uses a multi-layered approach to build the brand and prompt customers to call.
She also tries new marketing methods to keep up with the times.
“There’s no such thing as one size fits all,” she said. “Every year, marketing changes, and you have to change with it. In the old days, you could put a Yellow Pages® ad in the phone book and the phone would ring. Those days are gone.
“People are inundated with all types of marketing messages now,” she said. “You have to market smarter and work at it.”
For example, during the past two years, Richardson drastically reduced her Yellow Pages advertising and is spending more money on Internet advertising and direct response.
Richardson offered other strategies that can help you recession-proof your business:
- Have a plan. It’s always important to have a plan, said Richardson, who plans 10 years ahead. She sticks to the plan but makes adjustments as needed.
- Watch your numbers. Because Richardson watches her numbers every day, she can take action immediately when her company doesn’t perform as well as she thinks it should.
“If you see your phone is not ringing, make adjustments,” she said. “Get your marketing pieces out there. Make outbound calls. Do whatever it takes, every day, to work your plan.”
Richardson uses a daily management report to give her a complete snapshot of the state of her business every day. The report tracks a wide range of performance figures, from the number of calls coming in and appointments for the day to closing rates and average tickets.
- Take advantage of the situation. A recession is a great time to acquire companies that fail, and find great employees who have been laid off.
In addition, this is a good time to buy radio and TV ads, because the media is willing to negotiate better advertising rates, Richardson said.
- Find and use the right tools for you. Benjamin Franklin provides the right tools to help business owners run a successful, profitable company in any economic climate, she said.
“They meet you where you are and show you how to grow, starting with baby steps and progressing to a young company, a mature company and eventually, to a profitable company,” Richardson said. “They provide the methodology, branding, name recognition and marketing tools.”
The organization also gives franchise owners access to some of the best minds in the business, including other franchise owners who are willing to share information about what works for them.
- Improve performance with training. A weaker economy, coupled with a desire to slow the company’s fast growth, is providing a great time for the franchise to train its employees.
“Fast growth is very dangerous,” Richardson said. “You need to hone your skills and systems and make sure everyone in the organization knows their job description and how to perform it.”
The franchise trains employees at every level, and resources from Clockwork Home Services® make it easy and convenient for them to do so. Richardson’s employees have attended The Success Academy®, webinars, internet-based Clockwork University™ and business seminars, all offered by Clockwork.
- Build your brand … and your reputation. “When other plumbers go out of business, you can get a greater percentage of service calls, especially if you’ve been branding yourself and have a good reputation,” Richardson said. “These are the times you should have prepared for five to 10 years ago.
“If you’re an excellent contractor, provide value, run your company with integrity and build a good reputation, these things see you through tough times.”
In a way, success begets success. And Richardson plans to continue to grow; hire additional, qualified employees and reward them for performance; keep an eye out for companies to acquire; support the community; and provide customers with great service and value.
It’s all part of the plan.
