Brian Scudamore is a serial entrepreneur who likes to get rich doing the chores we dread. He’s already built an over $100 million dollar empire around taking out the trash; now, he’d love to scratch another chore off the list of things many of us hate to do: painting your home.
Scudamore believes he can remake the painting industry and make millions doing it, so CNBC gave him 60 seconds to prove it. Can he convince a panel of experts his idea has what it takes to succeed and more importantly can he wow you with his Power Pitch? Click the video to find out.
Scudamore’s first venture was a junk removal business called 1-800-Got-Junk? He says he started the company with $700 and a pick-up truck; today it’s taking out the trash to the tune of $100 million in revenue annually.
But he didn't stop there, now the CEO wants to make millions by painting homes.
"Fifty-one percent of Americans surveyed say that the biggest obstacle in the way of painting their homes is that it takes too long, it's too disruptive," he said.
Scudamore said he came up with the idea when he was faced with the task of painting his own home. Not interested in the hassle of doing it himself, Scudamore hired a house painter named Jim Bodden who brought in a team that completed the entire house in just one day. Scudamore was so impressed by Bodden’s business that he partnered with him to build a nationwide painting company that specializes in painting homes in a single day.
Assuming people would be as impressed as he was, he called it WOW 1 DAY! Painting. It’s simply a home painting franchise that differentiates itself by finishing jobs super quickly. Just about every paint job the company takes is assigned the manpower necessary to get it completed in just one day.
In Scudamore’s words, “Real painters do it in a day.”
And if that doesn’t wow his clients, his workers even leave a bouquet of fresh flowers and a thank you card when they’re done.
Scudamore said the company is already profitable and so far this year it’s brought in $4 million, he’s projecting $10 million in revenue system wide by the end of 2013. As the key investor in this Wow 1 Day! Painting, Scudamore has a big stake in wanting to see the company succeed.
When Power Pitch panelist and real estate entrepreneur Don Peebles, who owns a multi-billion dollar development portfolio of residential and commercial properties, asked if the company could really guarantee all jobs be completed in a day, Scudamore replied, "We've got the systems in place, we paint homes all day long in a day...our biggest challenge right now is a marketing challenge....educating the consumer that speed and quality together make wow."
The company told CNBC that 90 to 95 percent of all jobs are single-day painting projects. For larger jobs, clients are told up-front that it will take longer than a day. And in those cases, the company offers to put the client up in a hotel for the night and throws in a $100 gift card for dining out.
Since its launch in 2010 the company has grown to more than 20 franchises across the U.S. and Canada. Right now, its business is 75 percent residential and 25 percent commercial, but Scudamore expects commercial jobs to take the company to the next level, as the potential for revenue is much higher.
"We got great early success. In fact, faster growth than my first brand 1-800-Got-Junk," Scudamore explained.
But painting someone’s home is more complicated than taking out the trash, so quality-control may be a bigger issue in the painting business than it was with junk, a point raised by Power Pitch Panelist Jack Hidary, "Consumers in today's economy, they love … instant gratification. At the same time these are people's homes, people care a lot about their homes. So the quality and quality assurance really has to be there. That's sometimes tough in franchises." Hidary is no stranger to startups: He founded Dice.com and SambaEnergy.com.
"Every business that's based on customer service, especially when you've got the word wow in your name, that's a high bar you're setting," Scudamore told CNBC.
The company sends all its franchise owners to what it calls the WOW 1 DAY! University, it’s a Vancouver-based learning center that provides a training program for franchise owners to deliver to their employees. They can also benefit from the company’s relationships with Sherwin Williams (SHW) and Glidden/Dulux (PPG) , which offer discounted pricing on paints. But franchisees face tough competition from the likes of Home Depot (HD) which also offers professional painting services, and a crowd of other franchise painting companies like CertaPro Painters, ProTect Painters, Five Star Painting and Fresh Coat Painters to name a few.
Watch the video and see if Brian Scudamore’s house painting startup has what it takes to wow you. Scudamore faced CNBC host Mandy Drury @MandyCNBC along with Power Pitch panelists: real estate entrepreneur Don Peebles, and Samba Energy & Dice founder Jack Hidary @jackhidary.
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