Increasing Opportunities in the Carpet Cleaning and Restoration Industry

2. Succeeding in an Era of Increase Opportunities • According to the Cleanfax 2016 Carpet Cleaning Benchmarking Survey, 60% of participating business owners said their revenues increased during 2015, and almost 22% said they increased significantly. • For 2016, 23.2% expected their revenues to increase significantly, compared to 21.7% for 2015, and 39.3% expected their revenues to somewhat increase, compared to 38.7% for 2015. Only 10.6% thought 2016 revenues would decrease. • Just 8% of the responding owners/corporate managers said their business was a franchise operation and 75.6% had been in the carpet cleaning business for 11 to more than 30 years, with more than 30 years the largest category, at 28.3%.

3. The Inside Story on Carpet Cleaners • Of those responding to the Cleanfax survey, 28.8% (the largest percentage) said their business was 90% residential and 10% commercial while 24.4% (the next largest percentage) said it was 80% residential and 20% commercial. • 20.4% (the highest percentage) said they charged $101 to $125 to clean a living room, dining room and hall. For a flight of stairs, the highest percentage was 23.6% at $35 to $39 and for a sofa, $75 to $99 was the price range for 40.5% of respondents. • As during 2014, referrals generated the most new customer leads, at 94%. Social media increased slightly from 63% to 67%; print media declined slightly from 50% to 47%; and radio advertising more than doubled from 5% to 11?%.

4. Restoration Companies Are Busy…Counting Their Money • 19% of businesses in the restoration/remediation industry responding to the Cleanfax 2016 Restoration Benchmarking Survey said they expected 2016 revenues to increase significantly and 46% to increase somewhat, compared to 34% for 2015. • Estimated annual revenues of $750,000 to $1.5 million continued to be the largest percentage during 2015, at 17%; however, it was a few points lower than 2014, when it was 19.2%. • The largest percentage of restoration companies, 26%, said their business mix was 80% residential and 20% commercial. The three busiest seasons for these companies are winter, 29%; summer, 28%; and spring, 23%.

5. An Insider Perspective • Weather continues to be the largest factor affecting revenues, but the percentages are quite different than 2014, when 29.1% said it was a positive factor and 16.4% said it was a negative factor. For 2015, the percentages were 22% and 23%, respectively. • The average hourly rate for water damage restoration was $98.00; fire/smoke damage restoration, $86.00; mold remediation/abatement, $105.00; contents restoration, $80.00; biohazard/trauma cleanup, $152.00. • As with carpet cleaners and during 2014, referrals also continued to be the top source for new customer leads for restoration companies during 2015, at 95.8%. Digital media and social media decreased slightly while networking and direct mail promotions increased.

6. Impacts on the Industry • As is the case in the self-storage industry, an increase in existing home sales can have a positive impact on carpet cleaning opportunities; and the National Association of Home Builders forecast 4.832 million existing single-family homes will be sold during 2017. • Although the growth of household formation is forecast to decline slightly for the period 2015–2020, the average annual increase will still be in the range of 1.23 to 1.34 million, providing many new customers for carpet cleaning and restoration companies. • More carpet cleaning customers are expressing a preference for technicians with Institute of Inspection Cleaning and Restoration Certification (IICRC). In the restoration field, 69% of employees are Water Damage Restoration Technicians (WRT).

7. Advertising Strategies • For those carpet cleaning and restoration companies without the budgets to use TV effectively, recommend an ad on the weather page of your station’s Website, with messages relating to the current weather condition and the need for carpet cleaning or restoration. • Although TV generates a small percentage of leads for carpet cleaners, show them why it should be a part of their media mix to reach the valuable “regular users,” as described on page 4 of the Profiler. • Offer a discount (described as a gift for being a new homeowner in the community) to first-time homeowners of an existing home to have the carpets and floors thoroughly cleaned prior to moving into the home. Use these opportunities to ask for referrals.

8. New Media Strategies • Not only is it important to review and respond to all online customer reviews to generate greater interest among “regular user” carpet cleaning customers, but also share photos and videos of the similar type and size of homes the company has successfully cleaned. • Videos are compelling content for restoration companies’ Website and social media use. Show the process of restoring a home or business. Share videos from other sources of the inside of homes after a natural disaster and explain how you would do the job. • Be involved in the community and share good works on social media. Sponsor a scholarship; volunteer to clean the carpet of a low-income senior or family; or contribute time to restore the offices of a charitable organization following a fire.