Plumbing Africa April 2020 | Page 24

24 BUSINESS AND TRAINING 24 BUSINESS AND TRAINING Mark Pratt admits it has been a hard sell in South Africa, and for this reason three years ago it opted for a period of consolidation while it fine-tuned its model. It was relaunched in November last year with the opening of its first new franchise in some years. Drain Surgeon started franchising in 1989, but Pratt says they’d “parked the concept” for about three years until signing their first new franchisee in the Rustenburg/Brits area in November 2019. The initial Pretoria Drain Surgeon commenced in 1979 following his father’s (Glenn Pratt) experiences in Canada where franchising is rife, and in fact he had proposed to bring a Mr Rooter franchise to South Africa at that time. From that experience, he learned all the systems and knowledge. Amandla Plumbing’s franchising concept is similarly being reviewed at the moment for the same reason - it is working on its model and is not yet ready to talk about it. One reason franchising has not flourished in maintenance plumbing in South Africa, says Pratt, is that few firms have built up the longevity required to become a recognised brand that may be franchised. Firms which boast longevity and established name recognition either have unsuccessfully tried franchising or insist it is not their model. “It’s difficult to franchise something that doesn’t have longevity, brand recognition and everything that brand stands for, such as proven systems and service, because that is essentially what franchisees are purchasing. In the US some plumbing franchises are rated among their top 100 (of all franchises) and so there’s no doubt it should be bigger and more popular locally.” Another challenge in the profession is how many plumbers are one-man businesses from a bakkie, and simply view their operations as an income rather than a business which has sustainability beyond themselves (and consequently can later be sold as a going concern). “The traditional model of franchising is to appeal not just to the one-man plumber, but to investors who in turn set up a plumbing business and recruit plumbers and admin people. We have consequently reworked our model: to cater to that market (the private investor as well as the plumber); to look at it from an enterprise development perspective; and looking at the funding options. We are now ready with the new model and are aggressively marketing the franchise opportunity. “First prize for us in this relaunch would be for an existing plumbing business to decide to convert to a Drain Surgeon franchise – a plumber who knows the business but currently lacks that brand recognition. The reality for the one-man plumber is that when he decides to move on from the business after a lifetime of work, all he can do is sell his assets and shut the business with no value attached to it. However, the moment he purchases something like a Drain Surgeon franchise, he has something tangible. He has an exclusive right to regional use of the name and a source of business independent from his own efforts. Someone else can now purchase that business as being something which has years of goodwill attached to it and an existing customer base. It’s easily transferrable,” explains Pratt. Drain Surgeon group general manager Louis Minnaar says the plumber himself is the entirety of the typical plumbing business, and in many cases there’s nothing to on-sell, “Whereas when you have a history, a reputation and a brand, you can sell it. There’s a perception that a strong brand has more legs than an individual plumber’s name.” Minnaar explains how the brand is monetised in the case of Drain Surgeon. Its Google SEO (search engine optimisation) is so advanced that anyone googling for a drain cleaner will find Drain Surgeon. “In addition, we have a centralised 24- hour 365-day national call centre which takes all calls and despatches the nearest franchisee to that location. In addition, the franchisee gets training on our systems and marketing, and even technical plumbing information. All our systems are built around 40 years of experience, down to shopfitting the bakkie to ensure it has adequate spare parts and tools for the most likely jobs.” Burgess Plumbing’s control centre. Burgess is one of the largest and best-known plumbing brands in Johannesburg. www.plumbingafrica.co.za @plumbingonline @plumbingonline @PlumbingAfricaOnline April 2020 Volume 26 I Number 02