Author Topic: Aussie Pet Mobile  (Read 9169 times)

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Offline LenderFTW

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Aussie Pet Mobile
« on: January 12, 2007, 01:32:22 PM »
Hello all!

I was just wondering what some of you thought about Aussie Pet Mobile. I like the concept of the company and no real competitors other than some mom and pop folks.

I like the idea of NO real estate...

I currently own my residential building business and I'm doing pretty good! Unfortunately, I can see a downturn coming in the near future. I don't want to get out of my business altogether.

My idea was to get into APM and hire the folks I need and run it more as an absentee owner. I have been searching for information but keep coming up with the same basic information. Any help, thoughts or personal experience with Aussie Pet Mobile would be extremely helpful.

I'm also not married to the idea of APM. I am about 70k liquid and about 350k net worth. Any other opportunities that people find worth looking into would be great.

Please feel free to challenge any of this or throw out pointers about franchising. I would hate to invest in something only to find out I could have made a better investment socking the money into a CD or jumbo bonds. Ok, I'm starting to ramble...thanks for any help!

Offline Franchise Pundit

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Aussie Pet Mobile
« Reply #1 on: January 17, 2007, 12:28:58 AM »
there are a lot of mobile vets.

competition?  don't discount local groomers like PetsMart and many mom-and-pop groomer storefronts.  Pooch Mobile, Mobile Pets USA, and pet retailers and vets can compete...by saying there is no competition shows you need to do more research.  usually, when there is no competition it means there is no market.

Offline LenderFTW

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Aussie Pet Mobile
« Reply #2 on: January 19, 2007, 10:38:07 PM »
Those mobile groomers you mentioned are a joke. That is the same kind of thinking that believes Harry and Jo's Burger Shack is the same as McDonald's. There is absolutely competition from brick and mortar stores...That's why I'm thinking of MOBILE GROOMING! The one down side I keep running across is what if the big guys (PetsMart) decided to go mobile.

Offline LenderFTW

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Aussie Pet Mobile
« Reply #3 on: January 27, 2007, 07:52:45 PM »
Bump...Does anyone have anything to say about Aussie Pet Mobile?

I can tell you what I like about the company:

Executive type business-easy to keep my current company up and running.
No retail real estate needed
No mimimum wage employees
Providing a valuable service
I love the 24/7 call center
Predictable
Scaleable
Consumer willingness to part with money for time
Who doesn't like the vans? Rolling billboards.

Negatives:

How much money can really be made in  the business?

macro

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Re: Aussie Pet Mobile
« Reply #4 on: January 29, 2007, 07:10:33 PM »
Bump...Does anyone have anything to say about Aussie Pet Mobile?

I can tell you what I like about the company:

Executive type business-easy to keep my current company up and running.
No retail real estate needed
No mimimum wage employees
Providing a valuable service
I love the 24/7 call center
Predictable
Scaleable
Consumer willingness to part with money for time
Who doesn't like the vans? Rolling billboards.

Negatives:

How much money can really be made in  the business?

I'll add more

negatives:
  • virtually no brand recognition, so the franchisee will get virtually no leads that were not generated by them.  you're paying for some support...is it worth the franchisee plus ongoing royalty on gross sales?
  • you have to buy several trucks, so you can't work them all yourself.  you'll need to hire low paid staff with no supervision = slackers and irresponsible employees
  • i bet this business is quite seasonal.  can this be a full time job and earn you an income of $60,000+?  i doube it, so you money may be better spent elsewhere.

Positives:
  • Doesn't look like big box stores are getting into the business soon
  • Washing and grooming pets is a pain in the butt, so this can be helpful especially for elderly and wealthy owners.

Offline LenderFTW

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Re: Aussie Pet Mobile
« Reply #5 on: January 29, 2007, 09:30:08 PM »
You're right about brand recognition...This business will be advertising driven. But the one good thing, currently 70% of all customers are repeat customers. I could see being able to scale back the advertising money at some point. The vans would be at max capacity at 150 grooms per month.

The support(call center) is very much needed. In my research, when calling mobile groomers in my area, out of four companies...2 are no longer taking new customers and the other two would never call me back after multiple messages. The call center would allow people to call anytime they want, and actually talk to someone!

The employees to run the trucks would be pet groomers. They would be taking home 25% of the gross. That is usually much better than they would be making in a pet salon.

I would also guess the business is seasonal to some degree. But, people do spend a ton of money on their pets. Customers would range from busy working folks that don't have time to drop Fluffy off and pick him up. Elderly folks that don't want to go out and drive. This is also a pampering for the pet...less stress and more extras to upsell services. Never mind the customers with discretionary income that don't want to load up Fluffy and all his hair into the Mercedes.

Offline mesohungry

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Re: Aussie Pet Mobile
« Reply #6 on: February 03, 2007, 02:21:39 AM »
Lender

How much is the franchise fee and what royalties involved?  As mentioned before who will recognize this name?  Were you able to talk to any other franchisees to see if they are getting paid ?  This type of concept obviously has low barriers to entry and honestly it seems like something you could do yourself sin franchise fee and royalty hits.  Why not just create your own rig and take it from there?  If it's going to be heavy advertising to begin with the "franchise" is useless.

Hungry

Offline LenderFTW

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Re: Aussie Pet Mobile
« Reply #7 on: February 04, 2007, 12:12:39 AM »
The franchise fee is 25k per territory...I was thinking of 3 territories(75k). The people I talked to are making money after about 18 months to 24 months. The total cost to get up and running with 3 vehicles on the road would be about 200k, plus the purchase of 3 Mercedes vans over the span of 18 months. The reason I wouldn't do this alone is because I have no experience in the pet business. I'm looking at this strictly as an investment. I would not be working more than 15-20 hours per week. I just don't have the time to start a business from scratch, I have a business that is doing well. I wouldn't try this on my own for the simple fact that I can't train groomers...they are the real folks making this business happen.

What about Bond's magazine? Is that a reputable source for information? I noticed that Aussie Pet was in the 2006 top 100. Thanks for the input! Keep it coming!  :)


Offline Franchise Pundit

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Re: Aussie Pet Mobile
« Reply #8 on: February 05, 2007, 02:41:53 AM »
The franchise fee is 25k per territory...I was thinking of 3 territories(75k). The people I talked to are making money after about 18 months to 24 months. The total cost to get up and running with 3 vehicles on the road would be about 200k, plus the purchase of 3 Mercedes vans over the span of 18 months. The reason I wouldn't do this alone is because I have no experience in the pet business. I'm looking at this strictly as an investment. I would not be working more than 15-20 hours per week. I just don't have the time to start a business from scratch, I have a business that is doing well. I wouldn't try this on my own for the simple fact that I can't train groomers...they are the real folks making this business happen.

What about Bond's magazine? Is that a reputable source for information? I noticed that Aussie Pet was in the 2006 top 100. Thanks for the input! Keep it coming!  :)



Are you assuming that you would manage day-to-day operations of 3 units working 15-20 hours per week?  Even with assuming that all scheduling is outsourced to the franchisor, that still seems a bit ambitious.  Car accidents, people calling in sick, appointments taking longer, drivers 'disappearing' for a few hours, equipment and supplies breaking, theft of supplies/gas/equipment, injuries, legal liability claims, drivers getting lost, customers showing up late/not paying, etc...are some of the time-consuming phone calls and headaches a manager will want to be involved in to keep customer satisfaction high enough for repeat business and referrals.  Multi-unit franchise ownership works great if you have a competent, trusted full-time manager or yourself managing the operations and daily activities.

Offline michael webster

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Re: Aussie Pet Mobile Finances
« Reply #9 on: February 05, 2007, 08:00:31 AM »
According to their UFOC information, http://134.186.208.228/caleasi/PDFDocs/004410050.PDF,
50% of their current assets are in receivables, almost a million dollars.  That is usually a sign that the franchisees are behind in their payments - I wonder why that is.
Michael Webster
665 Bedford Park
Toronto, Ontario

Visit: http://www.franchise-info.ca

Offline LenderFTW

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Re: Aussie Pet Mobile
« Reply #10 on: February 05, 2007, 12:04:52 PM »
Nice to know that information about accounts receivable. How should I pose this question to the president on discovery day? Just come right out and ask why they are so high, and where is that money coming from?

Franchise Pundit:

I would have a full time manager/dispatcher taking care of those day to day matters. My 15-20 hours per week I was thinking of handling those irritated customers, marketing, PR, and all the nightly reporting and deposits. As far as drivers going missing, I intend on having a GPS Nextel that I can locate them and just double check to make sure they are moving around. If the groomers aren't bringing in the daily money requirement they most likely wouldn't last long.

This would all be fine if the manager is doing his job. Another headache to worry about...but how do other multi-business owners handle this? At some point, you have to put the people in place and hope for the best. If things are not working then I would most likely have to make perssonnel changes.

One other thing: Does anyone know of a decent spreadsheet to do a cash flow analysis?

I guess Hungry really hit on the main topic. Is this worth the 75k and royalties to get up and running in a business that I have to spend 3-4k a month to get a customer base in place? They will provide training and groomer training and have the advertisement slicks already complete. I would have to follow the system and just see from there. The real question is whether or not I'm getting enough for spending 75k and with three vans on the road about 2k a month in royalties.

GRRRR!! This process is so painful. I'm struggling with the whole idea of franchising! I thought it would be a fairly simple concept since I see so may franchises popping up around me.

Either way, I believe this is a great business, a service that I feel would be well worth paying for from a customers perspective.

The average groom price in the company is 66-$100. The average van will groom about 4-7 pets per day. The average rebook rate is about 70% according to the UFOC. The hard part is the 150k to get the vans out and about 50k in working capital and advertising. Then tack on the van payments of $850 per van. Then pay a manager about 32k per year, groomers take 25% of the gross revenue per van.

My head is about to explode.... :'(

Offline busmagroomer

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Re: Aussie Pet Mobile
« Reply #11 on: February 12, 2007, 06:43:48 PM »
If you have not had your discovery day yet, I will give you the following questions to ask.  You can also ask existing Franchisees these questions:

1)  Is it reasonable to start a business where you hire groomers who have no experience in grooming, put them through 80 hours of training and then place them in a van by themselves to start grooming pets?

2)  Is it easy to hire groomers (ask this of the Franchisees)?

3)  What is the disposition of the Van assets after they are acquired?  In other words what are they worth if you were to liquidate?  What are they worth after the de-identification process.

4)  How often to the 70% repeats actually repeat (every 6 weeks, 8 weeks, 10 weeks, etc..)

Now, you must consider many things with this or any Franchise.  The number one is Brand Equity.  Ask 10 Pet Owners in your community if they ever heard of them and see how many have.  If any say yes, than ask what they think of them.

Speak to groomers or chat with them on boards such as groomers.net or groomertogroomer.com about what it takes to have them join a grooming business startup.

Check to see any RipOff.com reports but remember there are two sides to every story.  There are bad Franchisors and bad Franchisees.

Evaluate the cost of doing this yourself vs. using a Franchise. Hiring Marketing spend but less on Royalties and no territory restrictions. 

I personally spent a lot of time with them, including a discovery day.  They are nice people but they had the most one-sided UFOC's that I evaluated and evaluated over 12.  One sided is not bad if you are considering McDonalds or Friendlies but not if someone has no brand equity.  I declined Aussies offer.  I decided to go it alone for many reasons.  The reality is the mobile grooming is tough but a great opportunity.  Either way, you will work 12 hours a day, six days a week on this.  Not 15 to 20 hours.  Do not do this unless you can devote this kind of effort for the first 18 months.  I will say this, it is alot of fun.

Spend time trying to find those that left the Franchise and really take time to understand why. 

Hope this helps.


Offline busmagroomer

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Re: Aussie Pet Mobile
« Reply #12 on: February 13, 2007, 08:27:43 AM »
Also have a look at this.  It is a matter of public record and in the state of Maryland, they had a pretty stiff slap on the wrist.

www.corp.ca.gov/pressrl/06/corp/nr0612.pdf

see #32.  Again there are two sides to every story but when you become a target of the state, there is usually some good reasons behind it.  I do not know who the MD Franchisee was but it is likely that the settlement inhibits them from speaking with you, even though the FTC prohibits language in a settlement that would prevent a potential Franchisee from contacting and speaking with a Franchisee that left the system.

Offline busmagroomer

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Re: Aussie Pet Mobile
« Reply #13 on: February 13, 2007, 08:30:21 AM »
Sorry, I left out a letter "E" in the link.

corrected link >>  www.corp.ca.gov/pressrel/06/corp/nr0612.pdf

Offline LenderFTW

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Re: Aussie Pet Mobile
« Reply #14 on: February 13, 2007, 11:49:31 PM »
Busmagroomer:

I have had a discovery day and really enjoyed the time I spent with these folks. They are working hard to build the brand! I can say this with all certainty...The franchisees are still the ones doing mostly all the work, but that's what has to happen to people that get in on the ground floor.

The groomers are the hardest peice of the puzzle. They do have a nice opportunity to make more money than working in a brick and mortar store, and groom less pets.

I do think it's feasible to hire the "right" person to do the job...they do offer extensive follow-up training after the initial 80 hours.

As far as the van holding it's value...I would think another franchisee would take it off your hands for the money owed on the vehicle. As long as the previous owner kept the van in clean and good working order. Let's face it, there will always be someone willing to take the equipment or the entire business off your hands for the right price. Your line of questioning leads me to believe that you are assuming failure.

I have talked with mnay current franchisees and they are in fact having high rebook rates. Who cares how long in between? If people like the service and come back that is the most important factor. I'm sure all customers are different. This would not be a one van operation, this would be a fleet of vans with constant marketing to keep penetrating the market.

Good idea about talking with groomers to see their side of the story about working for a startup. Although they would still be making pretty good money on the minimum daily pay schedule with tips.

As far as working 15-20 hours per week. I would expect looking at things from your vantage point that it can't be done. The only reason you say that is because you work 12 hours a day, 6 days a week. One van is an owner/operator...that may be great for you, but I'm looking for something more. This business, like may others, can easily be run as a part time owner. Will I spend more money before I break even? The answer is absolutely yes! Will I be able to keep my other business and still bring home nice money while this business is growing? Again, the answer is yes!

And I really don't care why someone left the business, unless I see people running for the doors :) (Which in his case it's not). That franchisee was most likely a bad franchisee or had differences with the franchisor that couldn't be worked out. I would rather focus on the people that are growing the business and havinf fun. Those are the stories that I would rather listen to all day long.

I have thought about doing this myself. By the time you add evrything up you are saving about $35,000 of upfront cost. To me this just is not worth giving up that support line. The royalties are what keeps bringing me back to the idea though...Those royalties, like any franchise add up over time. The problem is just the groomers getting training and being trained on the van. Also, no software to help capture information to properly market the business. Hmmm...I'll keep banging my head up against the wall over this one.

Well, I'm glad to hear that you enjoy your van. Keep having fun! Thanks for the input.