Forget about exotic vacations and fast cars; today's
consumers are interested in putting their money where they spend
the most time: their homes. Tired of living with the same old
kitchen cabinets, worn-out drapes and boring landscapes, homeowners
are redecorating, remodeling and replacing at record rates.
According to the Home Improvement Research Institute,
home-improvement product sales hit $158.9 billion in 1999, a 7.3
percent increase over 1998. And the institute predicts a growth
rate of 6.3 percent this year.
While do-it-yourself projects are still popular among certain
segments of the population, there's a growing trend among
consumers to pull out their wallets and seek assistance from
home-improvement experts. That means more profitable
home-improvement franchise opportunities for entrepreneurs.
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"People are more willing than ever before to spend money on
their homes," says Gerald Baldner, president of Kitchen Solvers
Inc., a kitchen- and bath-remodeling company that has 110
franchises in 31 states. In 1999, the franchise earned $11 million
in sales.
"In the past five years, we've seen a dramatic increase
in kitchen and bath remodels," says Baldner. "The growth
is due in part to a good economy and an increase in discretionary
income, but it's also related to the fact that nowadays people
feel freer to spend money on their homes. Years ago, you bought a
house and lived with it. Today, homeowners ask, 'How can we
make it better?'"
The demographic market fueling this home-improvement boom?
Generally, married couples in their late 30s or older who have
lived in their current home for at least five years and earn annual
incomes of $40,000 or more, says Lori Marshall, owner and president
of Decor-At-Your-Door International, a franchise specializing in
window coverings, flooring and wallpapering. Marshall started as a
franchisee with Decor-At-Your-Door in 1998, and did so well, she
bought the company in early 2000.
"Many of our clients tell us that, rather than buying a new
home, it's cheaper and easier for them to fix up what they
have," she says. "They like their home, neighbors and
school system, and they don't want to leave. By replacing
carpeting or putting up window treatments, we can provide them with
an effective way to spruce up their homes, and they're almost
always delighted."
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