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Refresh Renovations Franchise

Discussion in 'Renovation & Home Improvement' started by JKWS, 5th Aug, 2015.

  1. JKWS

    JKWS Well-Known Member

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    I've been reading into a new building renovations franchise that's landed in Australia after a very successful launch in NZ.

    What the franchisees offer the clients is a full design and build, and project management service.

    The business has some credentials and quite recently won the Deloitte Fast 50 award, which recognized them as one of the 50 fastest growing companies in NZ. Refresh started in NZ around 4-5 years back and have since grown to have 35 franchisees in NZ and one franchisee in Victoria, and are looking to start other franchises in other states soon. The parent company for Refresh is called Traffic, which is a marketing and business strategy company catering to large industrial multinational companies. So that's what Refresh was born out of, a very strong business, marketing and professional background.

    So rather than dealing win a builder you would be dealing with a project manager for any renovations, from preliminaries through to design and construction.

    What's everyone's thoughts on the models advantages and disadvantages?

    These guys will have some serious buying power, thus reducing the build costs and passing on savings. Do you think they will survive the cut throat Australian Market?
     
  2. thatbum

    thatbum Well-Known Member

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    At first glance, I don't really see how they're significantly different from any other renovation/building company that does renos.

    Are you thinking its something different?
     
  3. JKWS

    JKWS Well-Known Member

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    I guess being driven by a large marketing company was what surprised me. Wouldn't that make it the first scale business group to actively seek and enter the small renovations market?

    This isn't the traditional father and son team that have managed to build a successful business and franchise.
     
  4. bob shovel

    bob shovel Well-Known Member

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    I think this will take off! Pretty sure I invented it in my head and they've stolen the idea!

    After my 3 minute assessment at 3am to understand what they do... I like it! I wouldn't use them and doubt people here would but I think it will work. (bang for buck lacking, I'll get to it)

    They are targeting the people wanting work done around the house but don't know who or what to use for each section, they are packaging up a number of jobs for the client and then they subby out to the painter, plumber, handy man etc

    Eg. Mrs Johnny cash wants:
    bathroom updated- new vanity and taps replaced
    Kitchen - appliances renewed and door handles replaced, new fancy mixer and sink
    Backyard- water feature and some paving done

    To the unfamiliar that's daunting, not knowing who to call for what job and what area. You get a plumber in to do the bathroom, you'll get charged plumber hourly rates to replace the vanity when youcould get a handy man to do it.
    Break the jobs up differently and you get the trade into each area as needed.
    Handy man - replace vanity, door handles, sink
    Plumber - taps, mixer, water feature plumbing
    Sparky - appliances, Water feature wiring
    Landscaper - paving and positioning of the weeing statue

    It's an exaggerated example but the way I think it would work as a very rough guide. Probably find they are linked or similar to the "jims" type operation, lots of different contacts on the go

    Now bang for buck that us PCers love probably not going to happen as they'll be charging you for a PM (this pm is Project Manager) to come around do a brief, get the list together, manage the trades, sort out the bills. But as many here on PC are budget wary and wanting to create equity you'll do it yourself or use your current pm (property manager) that your Already paying to look after the works.

    Plus throw in a small extension, sun room or patio which already charge super exorbitant amounts they'll do the other odd jobs with it. I worked for a plasterer many moons ago and we did a small sun room ceiling. the boss heavily overpriced it as he didn't want the job, he paid me double cause he felt guilty for getting the job! And patio type company was happy with his price. The company was notorious for over the top quotes but always had work coming in.
     
    Last edited: 6th Aug, 2015
  5. Hanison

    Hanison Well-Known Member

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    Is this not very similar to what smith & sons does here in Brisbane ?
     
  6. JKWS

    JKWS Well-Known Member

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    Smith and son's were as a result of hard work and great timing. Refresh is a marketing and strategy base group "like Richard Branson's virgin group" seeking and entering the market in a very targeted manor... Shaking up traditional methods
     
    Last edited: 6th Aug, 2015
  7. JKWS

    JKWS Well-Known Member

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    I've also left out one important detail, the franchisees who are buying into Refresh are not tradesmen or builders. Any old joe can buy in and start running your projects!

    Compared to Smith and Son's requiring you to be a licensed contractor with HOWI
     
  8. Arkitek

    Arkitek New Member

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    Sadly these franchisees and the franchisor know nothing about building, design or trades.The franchisor takes 7% for fees & marketing right off the top so the property owner pays these costs plus an additional franchisee % to "PM" the project, although they have no knowledge or training in the industry. They just follow a marketing system. At the end of the day, the customer then actually pays for the builder to do the work. Surely, a property owner would be better to engage an experienced builder who specialises in renovations to ensure qualified advice and avoid being overcharged. I have seen similar marketing systems come out of NZ and they all fizz after a while. Does anyone know what the franchisee's % cut is with this one?