How Much Can I Make?
Increasing demand for restoration franchises creates a potentially lucrative opportunity
How much can you make with a Steamatic restoration and cleaning franchise? That’s really up to you! Steamatic is a versatile business that offers several ways to generate income. It’s also easy to scale, and the market for restoration business is enormous. Add in cleaning services, and you have ample opportunity to grow as large as you want.
There are three general ways you can increase sales:
Add trucks and staff. Within each individual territory, you can add trucks and techs. The more trucks you have, the more jobs you can schedule. If you spend more time and resources marketing for new customers, you can keep each new truck fully scheduled and generating revenue.
Maximize additional services. You can grow your restoration business as large as you want by building quality relationships with referral sources, doing excellent work and growing one job at a time. You can also scale your Steamatic franchise by fully expanding your additional services. You could grow duct cleaning into its own division, staffed with dedicated trucks and techs if you wanted. The same goes with carpet cleaning and our other services.
Add territory units. Each Steamatic exclusive franchise territory includes about 200,000 people. Adding a second or third territory unit can double or triple the number of customers you can serve.
Here’s our earnings claims from our recent Franchise Disclosure Document Item 19. It details typical gross sales from our franchisees, and we’re proud that we have a higher average revenue than most other cleaning or restoration franchises:
|Category||All||Top third||Middle Third||Bottom Third|
|Average Percent of Services Devoted to Restoration Services||67.78%||68.95%||67.38%||58.91%|
|Average Gross Sales||$1,100,870||$2,021,339||$882,678||$530,087|
|Average Percent of Services Devoted to Cleaning Services||32.22%||31.05%||32.62%||41.09%|
With an average Steamatic franchise owner making just under $1.1 million in revenue and the top third making about $2.2 million, Steamatic has some of the highest earnings in the industry.
“There is money to be made in our business,” says Steamatic Chairman Bill Sims. “Part of it is the fact that the industry is recession-proof. Insurance companies have the money. They would rather save money by restoring something versus replacing it.”
Steamatic franchise opportunities: What makes Steamatic a high-margin business?
Steamatic’s hub-and-spoke business model explains how we find diverse ways to earn revenue, making our franchisees more profitable than a cleaning franchise or restoration franchise alone. Whatever the time of year or state of the economy, there is work to be done.
There is always a business or homeowner who needs their carpets, rugs, flooring or air ducts cleaned or who has suffered through a disaster involving fire, water or mold.
“The thing I like about being a Steamatic franchisee is the ability to operate four businesses under one roof,” says Dwight Morse, who has had his Hot Springs, Arkansas, franchise since 2001. “Most franchise companies seem to have tunnel vision and only concentrate on one source of revenue. With Steamatic, we are able to concentrate on residential and commercial cleaning services such as carpets, upholstery, tile and grout, and wood floors. We are also able to promote air duct cleaning and water, fire and smoke damage restoration. With Steamatic, we have built a business of clients with a steady stream of revenue, along with being the first company called for emergency services.”
Franchisee Bill Henry, in business since 1995, agrees that having several ways to make money is smart.
“If one isn’t working, you can make another one work,” says the Northridge, California, Steamatic franchisee, of jobs ranging from water damage mitigation to fire damage restoration to air duct and carpet cleaning.
Protected, larger territories help franchisees increase their sales
Our territories are larger than those of most competitors — who divide up areas with a population range of 60,000 to 90,000. Because our territories cover a population of 200,000 people, each territory has many referral sources — insurance adjusters and agents, Realtors, property managers and plumbers — and thus more business opportunity.
“Our larger territories drive our higher revenue,” says Steamatic President Steve Willis.
Because our territories are exclusive, franchisees can make sure their marketing dollars are spent on referral sources and insurance companies, businesses and residents. This cuts down on confusion as to who should be called when they need service.
Franchisee Dwight Morse in Little Rock, Arkansas, says the customers in his territory know he’s the go-to guy for residential, commercial and industrial services.
“Customers like making one call for everything they need,” Dwight says.