Zerorez Coming to town. What have you seen in your market?

[ruff]

In that regard, Richard is right, they do come on pretty strongly- T.V. printed, radio, etc. So some clients are going to be exposed to it and their message (through fear, which I hate as a marketing tool) is going to raise a doubt in some people's mind.

For those it does, it is a good idea to be prepared in advance, which is what Tom is talking about. They don't seem to have much of a presence here in S.F. (those damn hills), however I had one client ask me about them.

The mail/email which Richard suggested, I don't know. I wouldn't. Just pound in your regular message, as I mentioned above, with potentially emphasizing your healthy equivalent advantage.

Be interesting if one used both methods and results could be measured.

 

[Desk Jockey]

I'd want my clients to hear the truth and formulate their opinion prior to the propaganda media blitz. If you wait, some clients could buy into the BS and believe that their system is better. Your response then will only sound like excuses instead of truth.

 

[Royal Man]

The advantage is that you only need to hit your list. While they have to blanket the entire town. Would think that highlighting that your service also leaves no residue would be sufficient. They have to hang their hat their limited usp of no resedue. You on the other hand can expand on the many other geat things your company offers.

 

[Mardie]

I'd want my clients to hear the truth and formulate their opinion prior to the propaganda media blitz. If you wait, some clients could buy into the BS and believe that that system is better. Your response then will only sound like excuses instead of truth.

So how does that work you give them your truth and they give you their money

 

[Desk Jockey]

Mardie the truth is worth paying for! ; )

 

[idreadnought]

The reason zerores has been so succesful is because they market a solution to a problem. Most the cleaners on this board don't leave an excesive residue in the carpet but as a cleaning industry several do. Customers have noticed this issue. My marketing actually includes items that address residues and what we do to eliminate them.

A simple step you could do to address residues even if your process isn't prone to leave them. Buy the encapuguard green product by bridgepoint. Mist this on the carpet after cleaning. This accomplishes two things, first it will address the residue issue by applying a neutralizer, second you can mention the green attributes to the product. I don't think the product is necessary to apply on every job because our process isn't prone to leaving a residue, however from a marketing standpoint is does a great job of separating us from other carpet cleaning processes.

 

[Royal Man]

The reason zerores has been so succesful is because they market a solution to a problem.

This thread just shows the importance of having and reinforcing your own USP. Leaving a residue is a very small or non existent problem for most cleaning clients. So I'm sure you can create an even more relevent USP and put zerorez in your rear view mirror.

 

[TomKing]

I met a ZeroRez guy he said the whole country is watch Indy. The folks coming in are not from the industry and have some deep pockets to get started. Should be interesting to watch. Drop a ton of money right before it gets cold.

 

[Ron Lippold]

We had a zero rez here and they didnt make it.

 

[renegade_cowboy]

We have zerorez and a clone of zerorez and I don't think or hear much about them.. I am my only competition.

 

[Chris A]

and a clone of zerorez

Ha!

 

[Greg Cole]

They are a formidable competitor. They target the O&O market . I severely underestimated them because of this and they have developed major market dominance over the last 5 years in ATL


Sent from my iPhone using Tapatalk - now Free

 

[burbuja2]

What is the O&O market?

 

[Mikey P]

Owner Operator

 

[burbuja2]

This franchise is heavily focused on marketing. The expenses to the franchisee, however, are so costly that some smaller operations could put a new ZeroRez franchise on its heels quickly unless the new franchisee had deep pockets. For example, a new ZeroRez franchisee must pay a franchise fee of $25K plus a territory fee for a market of 300,000 of $30K. This $55K buys you training which ZeroRez values at $9K. So you see, a new franchisee is already at a $46K deficit to a new o/o who starts up at the same time. Once the franchisee is up and running, he or she must pay a monthly royalty of 6% on gross revenue, not profits. Our hypothetical o/o does not have this top line expense. On top of that, an additional 2% is collected for national advertising, some or all of which can be used to sell new franchises. Last, the Company requires that an additional10% of a franchisee's gross sales be allocated to local advertising. So, after all this deducted from the top line, how much is left for the franchisee on the bottom line? I would strongly suggest that all independents step up the marketing efforts if a new ZerRez franchise appears in your area, since the new franchise may be financially vulnerable during the first year being saddled with all these expenses.

 

[Mikey P]

great post, thanks!


a Hydramaster rep told me that he was able to get ZR to switch to their CDS units when he showed them that it was costing them $85 to get the Aerotech into each driveway


That number was just for fuel and maintenance, not the actual cost of the AT....

 

[burbuja2]

Thank you, Sir. And to continue my point. Let's say that a ZeroRez franchisee and I start our respective businesses on the same day, that we each devote the exact amount of capital to the business, and that I spend $9K on my own initial training. After a year, who wins? I start out with a $46K advantage. Further, I don't have to pay a monthly royalty and dubious advertising fee to someone who is limiting my territory and services. This monthly savings alone (i.e., 8% of gross revenue) would then allow me to nearly double the amount I could spend on local advertising vs. the ZeroRez startup. Even assuming that we each receive the same amount of business, I'm still ahead by $46K.

 

[Mikey P]

And you don't have to drive a 200 mile radius that the biggest radio station in the Bay Area broadcasts too..

 

[Shane Deubell]

That might be true comparing an o/o independent to an o/o franchise but some people enter this industry with serious capital, i know its hard to believe.
If you have capital/management skills you can grow a franchise way faster then an independent. Tons of details we have to figure out through trial/error and they just go,go,go from day one.

 

[ruff]

Which brings us back to the issue that an O/O should emphasize and capitalize on his or her advantages.
It will be foolhardy for an o/o to go marketing wise, tat for tat with a franchise.

An o/o/ should cater to his strength. Attention to detail. Not being a franchise. Personalized service. Taking the time to do it right. More knowledge than a franchise operator. Knowing and remembering your individual clients. Offering extra beyond the actual cleaning. Being an adviser not just a cleaner. and the list goes on and on.

Competing with a franchise or any large company via advertising is going to 'war' playing by their rules. Do not play by their rules.

Read Sun Tzu- "The art of war"- http://en.wikipedia.org/wiki/The_Art_of_War though not made in America its universal wisdom definitely applies.

 

[FB19087]

looks like I just watch the wrong channel...caught their spot on "The Daily Two" this morn pushing duct cleaning

http://bcove.me/fmda9840

 

[TomKing]

Here it is talked to a local distributor today. They stated the new zerorez company has 16 million backing them. The distributer is putting together 4 trucks for them so they can go after the O/O and in return not buy chemicals from them. How does that make any sense?
Can you really buy enough business? Greg?

 

[Shane Deubell]

$16 million in the carpet cleaning industry

WOW, we had a smaller version here when someone "independently wealthy" bought a franchise and blew it up. They just had too much money and a brand to work off, game over...

Welp, at least torrey and ross have a job to look forward to....

 

[Torrey Express]

Why would we be scared of them?

4 TMs? I bet 30 new O/O start every year.

The city is growing. I'm getting getting smarter just through trial and error. I'm not big anyways so the worst that happens is I stay one tm and sell the new one I bought.

I really do like the point that Tom brought out about "Voice".
And how if they do start pounding radio and other avenues that us smaller companies can't afford to use, it will stimulate the minds.
I've had customers tell me they saw a Stanley commercial and remembered to call me.

What industry doesn't deal with this issue, or won't in the near future? None I can think of.

Glad I have diversification in services too. I could make a living and loose half my residential work.

 

[Desk Jockey]

I believe Torry is right and I doubt they will take anyone's work, where you will feel their presence is your current clientele will question the sales pitch of Zero Residue and are you providing the same or better cleaning. A metro that size has plenty of room for competition and if they weren't negative in their message it would probably help to stimulate cleaning.

 

[Mardie]

I believe Torry is right and I doubt they will take anyone's work, where you will feel their presence is your current clientele will question the sales pitch of Zero Residue and are you providing the same or better cleaning. A metro that size has plenty of room for competition and if they weren't negative in their message it would probably help to stimulate cleaning.

I heard through the grapevine that within 10 years Zerorez will have all but eliminated all TM , OO from the CC industry.

 

[Desk Jockey]

Don't hold your breath.....no Mardie do hold your breath!!!

It's been tried by many big boys over the years and I believe that no matter how great you market, marketing will only sustain you for so long without value. If they are price merchandisers and they don't include value in what they are offering they will just go by the wayside like any other wantatakeovertheworld.

 

[Mardie]

Don't hold your breath.....no Mardie do hold your breath!!!

It's been tried by many big boys over the years and I believe that no matter how great you market, marketing will only sustain you for so long without value. If they are price merchandisers and they don't include value in what they are offering they will just go the wayside like any other wantatakeovertheworld.

I hope you caught that razz thing on my statement. LOL

 

[Desk Jockey]

Yes sir I did!

 

[Torrey Express]

What's more is I've heard from a distributor that they sell them a butyl prespray to use.. Soooo they just use a zero res rinse?

Maybe I'll start anther name and call it High Rez and say everything the opposite that they say.