Record for Calbarrie franchisees

New starters secure lucrative contracts with the help of head office

The new influx of Calbarrie franchisees in the last nine months has generated over a million pounds worth of contracts already. Four of the 2005 new starters have secured big contracts from target customers with the help and assistance of the head office team.

The portable appliance testing - or PAT - franchise has grown dramatically since its acquisition by the Castle Estates Group in 2000. With 25 franchised areas working with the corporate team, there are currently over 80 engineers carrying out the essential safety testing of electrical appliances in the workplace.

With 800 per cent growth in the last four years, Calbarrie and its franchisees are winning contracts from local councils, police authorities, the ambulance service and blue chip companies every month.

PAYBACK
“When you consider that a council will have, say, over 50,000 items to check every year, the potential payback for a franchisee gaining the contract is fantastic,” says Chris Gibson, the Group Franchise Director.

Franchisees have followed the system taught on their training course and, with a proven record of accomplishment all over the country already, getting onto tender lists is relatively straightforward. Once a tender comes up the head office team, under the leadership of Ian Panter, Calbarrie’s Development Director, bid for the business and make a professional presentation to the award committee.

Around 75 per cent of tenders are successful and, when the contract goes to a competitor, it is usually at an unacceptable price for the company. “We don’t enter into price wars,” says Ian. “We offer a quality service at the right price and wouldn’t be doing either Calbarrie or the regional franchisees any favours if we simply cut the price to get the business.”

This joint effort is exactly why Calbarrie started franchising the service in 2000. The potential of a local management franchisee developing business is paramount, with the expertise of the sales team to clinch the deal.

SYSTEM
Jeff and Michelle Keyworth joined Calbarrie in January 2005 and, after completing their induction training, set about building their new business. They were not strangers to franchising and, prior to joining Calbarrie, operated a successful franchise for many years. They were looking for a growth market and a change in sectors - and PAT seemed the obvious choice. Model franchisees, they have followed the system and have developed a database of potential clients, including the local Suffolk Council.

The council awarded the contract to Jeff and Michelle after some months in the tendering process. The result is a four-year contract with a value of over £1 million for the couple. It means a rapid recruitment drive to carry out the testing. Straight after being awarded the council contract, the police authority awarded another contract to the Keyworths with another 40,000 items per year to test.

So after less than nine months in business these contracts alone will generate over £1.25 million turnover for the franchise. The bonus is the other corporate work that is due from centrally negotiated national sales business and, of course, the local contracts of over 2,000 items that they have secured through following the system.

CONTRACTS
Other franchisees have won some excellent contracts this year as well. Dave Hotchkiss and Jackie Hyde also started in January and, after gradually building a local reputation for PAT testing, they have recently been awarded contracts from Avon and Somerset Police and the Ambulance service - another 100,000 items per year from two accounts.

In addition to these two contracts, Dave and Jackie have secured Bristol Airport and a number of large businesses in the Avon area.

Steve Livesey has operated his franchise for three years in West Sussex and has recently been awarded the West Sussex County Council contract for another four years. This contract will keep three engineers employed full-time and has allowed Steve to develop other business in his territory.

Paul and Gill Kirkby joined in March and, within three months, they secured the Tameside Council contract with over 50,000 items per annum that require testing.

Admiral Insurance, South Wales Police and many more similar companies have decided to use Calbarrie in recent months, with over three million items contracted for test over the next four years.

“This is the tip of the iceberg, and with a network covering the whole of the UK anticipated by the end of 2007 we can start to approach true national branch business,” says Ian Panter.