The Science behind My Floor Franchise Franchise
Yes, that’s right, science. Our system model has been tried, tested and fine-tuned through over 20 years of serving the flooring industry. We know what works, and we know what’s best avoided.
Definition of system:
A set of instructions, followed a certain way, to achieve a specific goal.
Our system involves certain algorithms to maximize efficiency. It’s this high efficiency that achieves the goal you and I share: yielding a profitable business. With this basis, our successful system model has evolved into a scientific formula. To understand this formula, we must first understand the 80/20 rule.
Understanding the 80/20 Rule (or Power Law Pareto Principle)
In 1906, Italian economist Vilfredo Pareto created a mathematical formula to describe the unequal distribution of wealth in his country. Pareto observed that 20% of the people owned 80% of the nation's wealth.
Joseph Juran, a Romanian-American business theorist, stumbled on Pareto’s research work 40 years after it was published, and named the 80/20 rule Pareto’s Principle of Unequal Distribution.
Read the full Wiki page here: Pareto principle
The 80/20 rule maintains the theory that 80% percent of the output from a given situation or system is determined by 20% percent of the input.
Joseph Juran extended Pareto’s Principle in business situations to understand whether the rule could be applied to problems faced by businesses. He observed that in quality control departments, most production defects (roughly 80%) resulted from a small percentage of the causes of all defects (roughly 20%). This means that 80% of complaints made are from 20% of the services. Juran described this phenomenon as "the vital few and the trivial many."
Following the work of Pareto and Juran, the British NHS Institute for Innovation and Improvement (established to support the transformation of the British NHS, through innovation, improvement and the adoption of best practice) discovered that:
- 80% of innovations come from 20% of the staff;
- 80% of the decisions made in meetings come from 20% of the meeting time;
- 80% of a company’s productivity comes from 20% of its staff.
That is to say, 80% of your success comes from 20% of your efforts.
Look closer and you soon discover that about 20% of your clients will produce about 80% of your income. In turn 20% of your income will come from 80% of your clients.
80/20 rule in the Flooring Industry
When I applied this 80/20 rule to my flooring company Austin Hardwood Flooring Inc., I analyzed that 20% of my clients were bringing in 80% of my income. I quickly realized that the big jobs were rare to obtain. Big jobs composed just 20% of my workload but made up roughly about 80% of my income.
Big jobs composed just 20% of my workload but made up roughly about 80% of my income.
Hardwood vs Carpet vs Tile
In comparing carpet, tile, and wood flooring (hardwood flooring, vinyl plank and laminate floors are all considered “wood flooring” here) I found that wood flooring jobs were 20% of the workload available. Yet complaints received against every $10,000 of wood flooring jobs made up only 20% of all customer complaints compared with every $10,000 from carpet or tile jobs making up 80% of all customer complaints.
Why? Because one will have to deal with a much larger customer base in order to make the same amount of money from carpet and tile installations, as they would for wood floor jobs only.
Here are the facts, let's compare.
According to HomeGuide.com:
Average carpet cost
|National Average Cost||$1,597|
|Average Range||$880 to $2,315|
Average tile cost
|National Average Cost||$1,672|
|Average Range||$825 to $2,520|
Wood flooring labor cost
|National Average Cost||$4,213|
|Average Range||$2,311 to $6,115|
Wood floors wins the higher paying installation labor cost.
We mentioned that according to HomeGuide.com, the average cost to install hardwood flooring is $4,213 with most homeowners spending between $2,311 and $6,115.
This can potentially generate $120,172 to $317,980 per year in labor only if doing at least one average labor installation job per week.
...one would have to see about 80% more customers when installing carpet versus installing wood floors to make the same income
According to HomeGuide.com, the average carpet labor job is between $0.50-$1 per sq. ft. versus the average wood flooring at $3-$9 a sq. ft. That would mean one would have to see about 80% more customers when installing carpet versus installing wood floors per week to make the same income.
Science says the smaller the customer base, the fewer the customer complaints. One would rather have fewer people to deal with if for example one only did 4 wood flooring jobs a month on average versus 12-20 carpet jobs a month in order to generate the same income.
Labor cost to install tile vs wood flooring
According to HomeGuide.com related to flooring/wall tile cost, the average cost to install tile is $1,672 with most homeowners spending between $825 and $2,520. Whereas wood flooring labor costs average between $2,311 and $6,115.
Although tile labor is higher than wood floors with wall tile labor running between $7- $35 per sq. ft. compared to wood flooring at $3-$9 a sq. ft., most tile jobs are smaller in size than wood flooring jobs. Most tile jobs will be restrooms, entry ways, shower walls, backsplashes, laundry rooms, and kitchens. Some tile jobs may be larger, such as a whole house, or a shopping mall for example, but this type of tile work will be only about 20% of tile jobs.
Wood flooring is the answer.
No call backs on loose carpet restretches. No tile cracking due to concrete cracks. No grout discolorations. No loose tiles.
Wood floors do not become loose and require a “restretch” or cracked tiles replaced. Hollow spots can be injected with a special glue, (proper leveling prevents this).
Pound for pound, carpet jobs pay 80% less than wood flooring jobs. Tile jobs in general are 80% smaller in size per in comparison to wood flooring jobs. Don't get me wrong, tile jobs are good money and so are carpet jobs, but wood flooring is the 80% in the long run when it comes to efforts vs results.
Refinishing wood floors
In the Northern States where pier and beam floors get mostly 3⁄4” solid wood floors nailed down and finished, wood floors get to be refinished at a later time. This can build long-term residual potential income by clients calling you back for refinishing. The market for sanding and finishing wood floors is big.
Note: Click- together vinyl plank floors are becoming more and more popular. Easier to install, vinyl plank flooring installations are very profitable in labor.
Training is key for success
Our system is designed to provide superior service and website presence for you that will bring you qualified clients.
We provide training to show you all the special techniques and formats so you can be successful in proper speedy installations. This is training that you and all your installation staff can review over watching videos. These instructional videos will show anyone to be way ahead of any beginner rookie installer. This will teach and train your team to work in unison to a system designed to perform successful and speedy installations.
So what are the advantages to owning an My Floor Franchise Franchise?
- The My Floor Franchise brand name
- Franchise advertisement campaign strategies
- 80% of a company’s productivity comes from 20% of its staff.
Internet advertising is the cornerstone to our market success. The My Floor Franchise franchise advertisement campaign strategies have been perfected by years of trial and error. Marketing can make or break any business especially if not done the right way.
The My Floor Franchise advertising strategies are proven to work in the maximum of the 20/80 rule. How? Let’s give you one example of this in providing you a snapshot of our ‘negative keyword’ list in one of our Google AdWords campaigns.
What is a ‘negative keyword’?
There are other strategic parameters involved for a successful Google AdWords campaign such as geological targeting, keyword ad grouping, analytics, and more. However one of the key factors is a powerful ‘negative keyword’ list. A ‘negative keyword’ prevents your ad from being triggered by that keyword (or phrase). Your ads aren’t shown to anyone who is searching for that keyword or phrase. This is also known as a negative match. Why is this strategy so important?
Here are 3 examples of common scenarios
Let's say Bob, a flooring contractor who lives in Orlando, Florida, signs up for a Google Ad campaign. Bob will want his ad to show up for “hardwood flooring” in Orlando, Florida because that's where Bob lives.
A housewife in Orlando, Florida is Google searching for a good hardwood flooring cleaner and types in or ‘Ok Googles’ the phrase “hardwood flooring cleaner”.
Bob's Google Ad shows up on the first page and the housewife clicks on it. It will take a few moments before she realizes that Bob's website is about a wood flooring “installer” and NOT a wood flooring “cleaner”, so she presses the back button on her phone and continues to search. Bob is charged for that click between $3-$5 depending on the bid for that search term.
Bob then adds the word “cleaner” as a ‘negative keyword’ to the ad groups negative keyword list. Basically this negative keyword list option tells Google Ads not to show Bobs ad for any search containing the word term "cleaner".
What flooring installation contractor wants to show up for “wood floor cleaner” in any Google search? When someone clicks on Bob's website in the Google Ads, like it or not Google charges Bob for that click.
The only way to avoid showing up for a “wood floor cleaner” is to add the word “cleaner” on the negative keyword list.
Another example would be: Mary who lives in Orlando, Florida is searching for a wood floor installer named Steve she has heard of, and even been referred to in the past, but Mary lost Steve's contact information.
Mary says “Ok Google, search for ‘Steve wood floor installer near me’”. Since Bob’s ad is programed to show up in Orlando, Florida as a wood floor contractor, Bob’s Google Ad will show up and Mary clicks on it.
But Mary only wants Steve, why? Because Steve is the wood floor installer that was referred to her. So likely she clicks the back button and continues her search.
Again, Bob gets charged for that click. There goes another $3-$5 down the drain for Bob. Although you may justify that perhaps by saying "Mary might take interest in Bob's company once she's on Bob’s wood flooring company’s website", the odds of that happening are slim and Bob’s money is more wisely spent on showing up for a search term like “wood floor company” or “hardwood floor estimate”.
In the beginning of any ad campaign there is a learning curve in which penalties are paid out to discovering what the proper negative keyword list is going to be. Situations like the following are very common.
Let's say Fred who lives in Orlando, Florida is moving to Chicago, Illinois. Before Fred moves however, Fred wants to hire out a flooring company in Chicago to redo the floors of his new home in Chicago.
Fred Google searches “wood flooring Chicago”. At the time of search performance Fred, who is currently located in Orlando, Florida will see Bob’s Google Ad pop up on his phone. Fred then clicks on it without giving it a second thought, even though the ad said "Bob's Hardwood Flooring". Fred soon realizes that he clicked on Bob’s wood flooring website which is located in Orlando, Florida and not in Chicago, Illinois. And once again Fred kindly exits Bob's flooring website to continue his search for a flooring company located in Chicago, Illinois
Once more, Bob gets charged for that click. It won't take long before Bob’s ad campaign runs out of money.
Our English Dictionary
The good thing is that Bob soon realizes slowly that his ad campaign strategy needs to account for the fact that the English dictionary is full of words, names and expressions. Bob needs the 80/20 rule principle applied here. One can say that 80% of all searches will be false alarms and only 20% may bring in qualified visitors to Bob’s website.
Unless however, with a powerful negative keyword list Bob’s Google Ad campaign can now only strategically show up in Orlando, Florida for only the right searches. This increases the rate of return per click per visitor on Bob’s Google Ad campaign.
Examples of negative keywords
Below I have listed negative keyword examples actually found in the My Floor Franchise negative keyword list. Although these can be adjusted, the baseline of the list will bring in qualified leads. There are thousands of negative keywords words, take a look at the first 3 letters of the alphabet “a”, “b”, and “c”:
The list goes on.....
As you can see, that’s 833 just for the first 3 letters of the English alphabet. For a flooring company it is far more profitable to show up for a misspelled “woid floor near me” than “wood floor condo near me”
Our system runs your ad thru thousands of negative keywords before showing up in the searches. This is a huge major advantage to your My Flooring Franchise Franchise monthly advertising costs. Every dollar spent on Google Ads will be efficient and your odds of qualified leads converting increase exponentially.
Additional advantages of our flooring business model
NO storefront overhead required:
The freedom one gets when not having a central location or not needing one is priceless. Most franchise systems require some kind of storefront which adds to overheads and commitment to a certain place or location. Although you can have a storefront if desired, it's not necessary. Some people might have the resources already in place to open up a store front and that is ok to.
There are more flooring contractors than they are flooring stores. You do not need an office to install floors consistently. If you follow our system correctly, a storefront isn't necessary. As an installer most of your time will be spent out in the field transforming people’s homes or businesses.
Being a self-starting flooring business owner, you can have all of the liberty to control your work capabilities. You are not supposed to answer anyone and to run after approvals. Being your own boss, you don’t have a common leg pulling environment around you. You will likewise get the opportunity to choose when you need to work and make your own work schedule. They say time is money. However time is more valuable than money. The ability to control your time schedule is freedom. Being truly independent means having this control over your time.
Formal training you can watch anytime
When I first started installing back in 1999, there were hardly any classes one could take. When I found one, it was some kind of weekend seminar with no way to go back and watch the training again. Today however technology is on our side, and our training videos are key. Hands-on is the very best experience one gets. However this is true only after you have the right instructions and follow a system. Once you learn our system, then hands-on experience will be like 80% more efficient versus only 20% without the proper guideline training. If you are building a house first you need a blueprint. The same applies with installation. We have a system that can enhance your installation abilities so that you can install a large volume fast and correctly. We provide proper training that will get you to par.