How Big is the Restoration Industry?
In a changing industry, demand for restoration franchise opportunities continues to grow
When you think of a restoration company, you might think of a storm chaser. Often armies of small restoration vendors will swoop into a community and knock on doors trying to make a quick buck — taking advantage of people in their moment of need before leaving town for the next storm.
Steamatic franchising defies this stereotype. We are all about building trusting relationships with customers in our territories, demonstrating that we are trained professionals who care about helping people. Our franchisees are local restoration experts, and we position them to be first on the list for plumbers, real estate agents, insurance agents, insurance adjusters and property managers to call.
“The people who are successful in any business build relationships,” says Stefan Figley, Steamatic President. “Good relationships in a community build a customer base, and that’s what we focus on.”
Restoration franchise for sale: Referral sources build more customers
Steamatic franchisees have designated territories based on population and the number of referral sources they can tap into. Referral sources include insurance adjusters and agents, Realtors, property managers, and plumbers.
With most of the restoration invoices paid by insurance companies, forming close relationships with adjusters and agents is a no-brainer. Realtors and property managers will know about buildings that need maintenance or restoration work, and plumbers are usually the first ones called to water-related mishaps.
Steamatic Chairman Bill Sims explains that in the past five to 10 years, insurance companies and businesses have increasingly sought services from national brands to take advantage of the consistency and standardization they provide. They trust that brands like Steamatic have properly trained and certified techs and franchisees, will do background checks on their employees and will have insurance to cover any issues. Plus, national brands like Steamatic have the experience to get work done quicker and claims closed faster.
The driving force
Restoration is a $210 billion industry, according to the independent research firm A.M. Best Co.
There are 170 million commercial losses and 40 million residential-commercial losses in the U.S. alone. An average water loss job is about $3,000, says Steamatic Development Director Joe Roland. But, he adds, they vary widely. A dishwasher leak might be a $1,500 cleanup job, followed by a $20,000 contract to dry out a commercial building after a flood.
Steamatic’s decision to stick with larger, exclusive territories and not crowd the market with larger numbers of small operators has worked in our favor. Our franchisees are often better positioned to capitalize on key referral relationships, and they can easily be the one point of contact that busy insurance companies want in a region.
With so much potential to earn, no wonder entrepreneurs are ready to be part of Steamatic franchising.