PART OF THE FAMILY

Aussies are spending more on premium services for their pets.

Australia has one of the highest rates of pet ownership in the world, with statistics showing that more than 60 per cent of households have a pet.

Despite minimal growth in the total number of pets over the past five years, Australian owners are spending more on each animal in terms of premium products and services.

Figures in IbisWorld’s Pets and Pet Supplies Retailers in Australia 2017 report show that pet services is the fastest-growing sector in the industry, with large retail chains rolling out an expanding array of pet-related services. These include grooming salons and DIY dog washing, ID tag engraving, aquarium water-testing services and puppy schools.

Inside Franchise Business gets the inside story from two franchised petcare brands, Aussie Pooch Mobile and Blue Wheelers...

1. What makes your brand different from others in the market?

APM: One of the big differences is the work we do in the community, raising funds through the Variety Club so children with special needs can have assistance dogs. Our franchises also help raise funds for animal-related charities.

Other differences include the flexible franchise packages we can tailor to a prospective franchisee's budget, a lightweight trailer and large exclusive territories. We lead our industry in the area of social-media presence and innovative services including our latest Doggy Facial.

BW: Our all-weather mobile s alon is one of our key points of differentiation. Shaped like a big blue dog, it advertises your business everywhere you go, giving you an exceptional marketing advantage. We are the only mobile dog-grooming service with its own training school for franchisees.

2. Are there advantages in being a mobile business?

APM: Having a mobile business, as opposed to an actual premises, gives the franchisee the flexibility to work the days and hours they want, and also to be able to take holidays. Our mobile unit gives the franchisee the ability to promote their business throughout the territory. Not having staff members or premises also helps reduce running costs.

BW: From a franchisee’s perspec tive, outgoings are lower on such items as rent, plus there is more ability to manage their day. Most of our groomers are booked out often weeks in advance and know what their week will look like on their Blue Wheelers business software Mate system. Our groomers are trained to keep their customers close to home and to build ongoing relationships with rebookings.

3. How important is customer loyalty?

APM: C ustomer l oyalty i n o ur b usiness i s extremely important as 80 per cent of our customers re-book on a regular two- to four-week basis. One of the benefits of providing a service to the family pet is that customers generally treat the dog as part of the family and prefer to have the same person providing that service. This enables the franchisee to build solid relationships with the customers and their pooch.

BW: C ustomer l oyalty i s t he k ey t o a ny successful business system. We train our franchisees on how to attain a further booking at the end of each service. It is a well-researched fact that most dog owners do not like to change their groomer.

4. What are some benefits of the franchise?

APM:

• Award-winning franchise system with

more than 26 years’ experience • Localised advertising and marketing to

launch the franchisee

• Lightweight, weatherproof mobile

dog-wash unit

• Exclusive franchise territory

• Guaranteed income

• Full training, including government-recog

nised certificate courses.

BW: Our low start-up costs are one of the initial benefits. It is possible to start with either Blue Wheelers or Dash DogWash with as little as $10,000. Our training, business system and support team provide you with the keys to success. Our Blue Dog mobile salon or Dash DogWash yellow kennel also advertise your business as you go about your day.

Another benefit is that we charge a flat management fee. We do not take more as you earn more, and we keep all your outgoings low because of buying strength with 180-plus franchisees on the ground. While you can start a dog-grooming business on your own, you will invariably take years to reach the level of business our new team members attain in months.

5. Do franchisees have access to the franchisor’s buying power?

APM: Yes our franchisees have access to our exclusive range of products and marketing materials at reduced prices thanks to our bulk buying.

BW: Our team has exclusive access to a complete range of goods and shampoo/ grooming products made just for Blue Wheelers. These special formulations are the best products in the market - we know, because we have tested countless alternative products over the past 11 years. We have bulk-buy opportunities for marketing and promotional items, and partnerships with insurance and vehicle companies. Our new-for-old (regardless of age) insurance policy on our Big Blue Dog mobile salon is a real benefit.

6. What costs can a franchisee expect?

APM: We have various new franchise packages ranging from $15,000 to $40,900, and existing franchises are also available.

BW: Initial set-up costs for a complete Dash business start from $9999, with a low-interest lease-to-own finance package. For Blue Wheelers, the same package starts from $24,999. Flat management fees are $175 a week, combined with lead costs through our call centre of about $2.10, mean our team has low ongoing costs. The flat-fee structure means the harder you work, the more you earn for

yourself and your family.

7. What are some challenges of the business?

APM: C hallenges v ary f rom f ranchisee to franchisee. The most common challenge or fear that people have coming into this business is reversing a trailer and/ or cutting dogs’ nails. Both these are covered during the training process so the franchisee is confident from day one. Whatever challenges our franchisee may come across, we provide ongoing coaching and training to help them overcome these.

BW: T he m ain c hallenge i s t aking all the lessons you are taught at Blue Wheelers training school and putting them into practice without changing them. Some franchisees can take a perfectly round wheel and try to make it square. We know our system works well through all the years of experience we have poured into it. As with any new skill, it can be a challenge in the early days as you build your confidence as a skilled groomer..

8. Do franchisees have territories?

APM: Y es, o ur f ranchisees h ave exclusivity to their territory.

BW: Yes, we provide a marketing territory that is your area to build. Support areas are available if necessary. We certainly don’t want you travelling very far as this is a waste of your time and money.

9. Is multi-unit ownership encouraged?

APM: As a rule we find an owner/ operator archives far greater success than if a Blue Wheelers or Dash business is run under management with staff. We have a handful of businesses run this way, so it is permitted but not necessarily encouraged.

BW: Although most franchisees choose to work in their one territory, we do encourage multiunit franchising. Many franchisees have taken on extra territories with the help of self-employed representatives.

10. Do you agree with IbisWorld that growing competition makes specialist pet retailers struggle to differentiate themselves?

APM: In regards to large pet “retailers” there may be some truth to this, as we have seen with the grocery and fuel sectors. However our “service industry” business is based on building solid relationships with our customers. Our service started with a generation of customers who grew up in households where chores were shared, and now we have the next generation coming through where everything is outsourced.

BW: I would strongly disagree - it is not about the quantity of competitors in the market, it is all about the quality of the work, and we are all about “doesn’t your best friend deserve the best?”.

11.How significant is the humanisation of pets as a part of the family?

APM: This is a major factor in the success of our business. Our customers want to know that their family member (the dog) is receiving the best possible care. All our franchisees are fully trained in all aspects of the franchise system, including caring for the dog during the service and animal first aid. Customers do not want different people handling their dog so become loyal, regular clients.

BW: It is essential. Dogs are members of our family, and Blue Wheelers often refer to their customers as their “fur babies”. Many of our team members say that if they could take all the dogs home at the end of the day, they would. Mobile dog-grooming has proven to be recession proof as people will always spend money on their beloved pets. They might not buy a new car or take that trip, but their “children” always come first. We are focussed on educating customers about the necessity of keeping their dogs well-groomed on a regular basis. No different to children, dogs need to be bathed, brushed and have their hair cut - and believe me, dogs are often far more grateful than the two-legged family members.