Big Box Sales Increase Impacts Remodeling Franchises

Last week retailers Home Depot reported their first double-digit comparable sales increase since 1999. Lowe’s also reported a 9.6% increase. Is do it yourself taking off again or does this mean more work for handyman franchisees with House Doctors Remodeling?

The 3 different customers that visit Home Depot and Lowes

Home Depot and Lowes market products to;-

1) Home owners who tackle their own home improvements (DIY)

2) Home Owners who hire professionals to install the products (DIFM)

3) Professional contractors who choose the products to install for their customers.

At House Doctors Home Improvement Service we see the improving housing market definitely making a difference. Home Depot and Lowes are big players in product sales. Our franchisees are big players in product installation. When Home Depot and Lowes sell their products it creates a ripple effect. Many of our franchisees are experiencing double digit growth.
The increasing business seems to be coming from all three categories DIY, DIFM, and professional contractors. Sales of products to remodeling companies and contractors is the largest revenue generator for Home Depot, with almost double the sales of the DIY customers.
Our franchisees have customers who come from two of the segments the big box retailers target. Some of our customers purchase products then hire our professional handymen to install them (DIFM) and others have our franchisees recommend a product as part of the remodeling service we offer.

Small Business confidence edging higher - good for franchising

Whether you are looking at starting a fast food franchise, a handyman franchise or a remodeling franchise recent news that small business confidence is improving is good news for franchising. Combine that with the fact that another recent study shows the positive impact that entrepreneurs are having on the creation of wealth in the world and now may be the time for you to move forward with your business ownership.

Small Business Confidence Edges Higher As Entrepreneurs Help Create World Wealth

In July the National Federation of Independent Business report on small business optimism edged up to 94.1 from 93.5 as the 17th volume of Barclays Wealth Insights, the study on the changing order of wealth creation shows that entrepreneurship is one of the leading creators of wealth in the world.
In my view these studies show that:-

1) Small businesses in the US are starting to feel good about where we are heading
and
2) The success of these enterprises have a dramatic impact on not only our own economy but also the world's economy.

This is also good news for franchising. Franchising is the gateway to small business ownership for many entrepreneurs. The survey showing confidence returning to the small business community is great news but not only that we also have a separate report telling us that entrepreneurship is now being recognized as one of the dominant creators of world wealth.

U.S. Needs More Entrepreneurs

We need more entrepreneurs. The age of American wealth being created by the entrepreneur may be coming to an end. The picture may be changing with America falling behind the rest of the world when it comes to creating entrepreneurial wealth. The study from Barclays, "Origins and Legacy the Changing Order of Wealth Creation," finds that the developing countries now lead the U.S. when it comes to wealth creation by entrepreneurs. One major reason seems to be that the U.S. is further along in the wealth cycle and has a much longer history of wealth creation while the up and coming countries still have first generation entrepreneurs.

America was founded by innovators and risk-takers, early entrepreneurs willing to sacrifice a certain way of life and working hard to create a better opportunity. At our remodeling franchise we see that same entrepreneurial spirit in action everyday through our franchisees.

Please let me know what you think.

Remodeling Franchise Finds Market Good For Business

This market is good news for a remodeling franchise. The latest quarterly report by the National Association of Realtors® shows median home prices continuing to rise in the majority of metropolitan areas in the second quarter.The improving housing market means more home improvements because confidence is returning and homeowners are again interested in maintaining and improving their properties. This increased interest in home improvements has led to many of our remodeling franchisees seeing double digit gains already this year.

Direct link between rising home prices and increased spending on remodeling projects.

The improving housing market has a positive effect on many home improvement businesses. For example at House Doctors we see a direct link between rising home prices and increased spending on remodeling projects.The NAR data shows the national median existing single-family home price was $203,500 in the second quarter, up 12.2 percent from $181,300 in the second quarter of 2012. In the first quarter the median price rose 11.3 percent from a year earlier.
For an area by area comparison see the NAR map http://www.realtor.org/topics/metropolitan-median-area-prices-and-affordability/data showing median prices across the US.

Homeowners realize that a remodel can be a good way to increase the value of a home in a growing market. One way of getting a cost versus value comparison of remodeling projects in different areas of the country is to use a tool available from Remodeling Magazine. The tool compares the National average cost for 35 popular remodeling projects across the country with the value those projects are expected to retain at resale.

Strong remodeling spending brings handyman franchise growth

House Doctors, our handyman and home improvement franchise, is growing at an unprecedented rate as a study from the Joint Center for Housing Studies at Harvard University shows that the general strengthening in the housing market over the past 18 months is translating into increasing spending on remodeling.

Latest remodeling activity data and information 

The latest data from the leading indicator of remodeling activity (LIRA) continues to show improving spending trends that are solid and on an upward slope. Projections also show a continued strengthening of the market through the end of this year and into the first quarter of 2014.
The LIRA is released by the Remodeling Futures Program at the Joint Center for Housing Studies at Harvard University in the third week after each quarter’s closing. The LIRA is a comprehensive study of the factors influencing the growth and changing characteristics of housing renovation and repair activity in the United States. The next LIRA release date is October 17, 2013.

Latest handyman and home improvement franchise data and information

At House Doctors we are seeing the fastest growth in years. Four new franchisees recently came through training for openings in Tennessee, Connecticut, Ohio and Michigan. Another six are already scheduled to come on board in the next couple of months and a number of others are already in the pipeline. Homeowners are more comfortable investing in their properties right now as consumer confidence returns and the growth in sales of existing homes increases. Continuing strengthening in the economy is leading to increasing spending levels on renovations and upgrades.

The growth in home sales and the rapid and steady growth in property modifications and maintenance we are seeing is providing more opportunities for our franchisees. Our model meets all of the requirements of busy professionals and aging boomers who need home repairs and home improvements done."

For more than 15 years we have brought homeowners and commercial property owners high standards of customer service, reliability, and quality workmanship. Every one of our locations is independently owned and operated. Today, we continue to expand throughout the United States by offering franchise opportunities