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Monday
Feb082010

Scrappage Scheme Helps Home Maintenance Franchise 

The government’s boiler scrappage scheme has boosted Blazes’ enquiries by 1,000%.

The scheme, which was announced in Alistair Darling’s pre-budget report at the end of last year and launched on 5 January, aimed to encourage the estimated 4.5 million households with G-rated boilers to replace them with A-rated boilers that emit less carbon.

The response from the public has been so enthusiastic that the Energy Savings Trust, which oversees the scheme, has struggled to clear the backlog of applications. In the first month alone, around 40,000 people applied for the £400 cash-back vouchers, snapping up a third of the 125,000 available.

Steve Bate took on a Blazes home maintenance franchise in October 2009 as a bolt-on to his existing business.

FS Blog: How has the scrappage scheme effected customer enquiries?

Steve Bate:
Since the boiler scrappage scheme was officially announced in January 2010, I’ve gone from taking roughly ten calls a week to over 100!

FS Blog: How have you coped with this?

Steve
: It’s a nice problem to have, and I know that once the scheme finishes things will become more manageable. It shows how any changes made at the top end can be so successful for individual operators, such as myself.”

FS Blog: How is business at the moment?

Steve:
There’s been a bit of a reprieve while people wait for their vouchers to come through, but the great thing is that we’re getting in front of more of our target customers, and my database of prospects has ballooned over the last few weeks.

Nottingham-based franchisee Chad Hussein started his new business in November 2009, running it alongside another day job. He says:

“I’m getting a lot more enquiries and now have a bigger database as a result of the scheme. A lot of people just want information, so it’s important to qualify them on the phone.”

He continues:

“The scheme is helping to speed up the conversion process. For people who are ready to get a new boiler, the £400 voucher is the extra little nudge they need.”

With more than 30 areas of the UK already covered by Blazes nationwide network of fireplace, heating centre showrooms and franchisees, managing director, Michael Eyre, is optimistic about 2010.

“Blazes’ home-based franchise is a relatively new concept, yet has enjoyed a rally of responses from potential franchisees since it came to market a year ago. This demonstrates that we’re doing something right,” he says.

Michael continues:

“It’s a fantastic proposition for individuals who either want to work full-time or part-time, with key benefits that include low-to-no overheads, complete autonomy and a good income. Now, with the boiler scrappage scheme, there’s even more opportunity for people who want that additional revenue stream.”

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