Paul Bigham joins a franchise - Planning For The Future
January 5, 2010
To combat increased competition in the future, HVAC contractor Paul Bigham becomes a One Hour® franchise.
When Paul Bigham hears about changes in the HVAC marketplace that can threaten small, independent contractors, the news doesn’t surprise him.
It doesn’t worry him, either.
He’s not surprised because the idea of increasing competition isn’t new to him –One Hour Heating & Air Conditioning® has been preparing its franchise owners for increasing competition for years.
And he’s not worried because the franchise has already helped him build a very profitable business, even as the competition grows. Bigham’s serves four counties out of its two offices in Sonoma and Solano counties in Northern California.
“It’s a tough business climate out there,” said Bigham, president of Bigham’s One Hour Heating & Air Conditioning®. “I wouldn’t want to be an independent contractor without the help of the franchise behind me,” he said. “With the utilities and big-box stores entering the market, it doesn’t make sense to do this without a support system.
“One of the reasons I joined the franchise is for the branding, strength and resources One Hour® provides,” he said.
The non-profit New Horizons Foundation took a long look at the future viability of the HVAC industry and concluded that in 2018, it will be much more competitive, with major players undercutting small, independent contractors. (See story on page 8.) Its study draws other conclusions, such as HVAC contractors will become leaders in the green movement and technology will become more dominant.
The challenges of running a business in a competitive climate are nothing new to Bigham.
After nearly losing his business years ago, he saw his revenues and profits increase tremendously with the help of AirTime® 500 and the One Hour franchise.
Now, he owns the largest HVAC residential replacement and service company in the four counties he serves. Bigham’s One Hour was also named the One Hour Franchise of the Year in 2008 because of its growth in revenue and profits and a willingness to help other franchise owners.
Bigham has become so successful at growing his business that he acquired four companies and increased his revenue an average of 30 percent a year over the past three years. His revenue grew from $2.4 million his first full year as a franchise in 2006 to $5.6 million in 2008. This year, based upon past performance and early results from the first quarter, he projects revenues of over $6 million.
“Our acquisitions helped us grow, but because of the tools from the franchise, we knew what we needed to do to succeed,” he said. “Once we bought a company, we introduced the franchise systems to perpetuate the success we already had.”
His company’s size and strength will help his franchise continue to dominate his market.
“Because of our financial position, we’re able to strengthen our brand through advertising, while other companies are cutting back,” he said.
The company also has a significant fleet of yellow vehicles labeled with the One Hour brand, which helps build awareness even more.
Bigham wasn’t always this successful, though. After specializing in new construction, he went in debt and nearly lost his business.
“At one point in my career, I had to go to work for another company,” he said. “My company was for sale, but I couldn’t get anyone to take it from me.
“I was trying to keep the place afloat, because I had other people working for me,” he said. “I couldn’t afford to pay myself, so I worked somewhere else so I could afford to pay my employees.”
Then, he decided to fight to keep his business.
“I couldn’t sell my business, and I didn’t want to file for bankruptcy,” he said. “It was either get help, or continue the path I was going down.
From that point on, he took steps to build his business. He focused on residential service and sales, implemented a proven business plan and beefed up training.
He also learned how to market his business more effectively and demonstrate the company’s value to customers so he could increase his rates and become more profitable. Based upon his success, he joined the One Hour franchise because he saw it as the next step in building his business.
“Branding made a lot of sense,” he said. “If you have a hamburger joint and want to grow your business, you’re better off being a McDonald’s® than Joe’s Hamburgers.”
He liked the image of the brand and the highly visible yellow trucks with the bold One Hour logo.
“I felt like one day the HVAC world would be painted yellow, and I wanted to be part of that,” he said.
- Bigham shared other reasons why his company will remain competitive in the years ahead:
- The ability to change quickly as the market changes. “As a contractor aligned with a franchise, we’re better prepared to face our competition,” he said. “Our competition can’t act as quickly as we can to all the changes. This will give us a huge advantage.”
He also likes the way the franchise gets its franchisees involved.
“One Hour asks for help from its members the people at the front lines,” he said. “Large companies get disconnected.”
- Power in the brand. “We brand ourselves as a home services company,” Bigham said. “People know what an HVAC company does, while Home Depot® and Lowe’s® are thought of as home improvement or hardware stores.
“Customers see us as the ones to go to if you have a problem with your heating or air conditioning.”
- Unbeatable guarantees. Customers like the One Hour promise, “Always On Time...Or You Don’t Pay A Dime!®.” Under this promise, if the technician doesn’t arrive on time, the service call is free.
Bigham’s One Hour also provides the U-Win® guarantee that promises 100 percent customer satisfaction.
“We put customers in a position where it’s impossible for them to lose,” he said. “They realize when faced with choices, taking the less risky choice is the way to go.”
- Alignment with the green movement, right along with its customers. His comfort advisors drive Toyota Prius hybrids, and his service technicians drive energy-efficient Dodge Sprinters.
The company also installs systems that meet the highest efficiency standards around, in turn giving customers a better value and the opportunity to earn the highest utility rebates and federal tax credits. Bigham said his technicians also use an extensive 152-point checklist to make sure every HVAC system is installed correctly and won’t waste energy.
- Training for the future. As HVAC systems become more complicated, his employees will benefit from the most upto-date technical knowledge provided through the franchise, The Success Academy® and The Ultimate Technical Academy®.
With webinars and other web-based training, the way the franchise delivers training has become more sophisticated and will continue to do so.
Bigham looks at the changes ahead as an opportunity to grow his business by providing value and peace of mind to the customer.
And he’ll continue to look to One Hour to show the way.
“We’ll keep ahead of the competition and the changes ahead,” he said. “This is a tough economy, and only the strongest will survive.”
If you would like to know more about One Hour and how to create a residential service HVAC business, call toll free at 1-866-491-7765.
