Okay - longwinded it is! (Wrote this on the plane... by the way John Jacobs - that was pretty damn funny.)
Here are the questions... go ahead and skewer me!
Lisa
-What is the story of Kay Blatchford and when did you take over her plant?
Kate Blatchford is my mother. Our family was in the rug business on the retail sales side, antique and semi-antique investment rugs. We began with a rug gallery in Rancho Bernardo, then bought a La Jolla gallery (Rugs & Arts of Persia) from Val Arbab (the woman who trained Ellen Amirkhan as an appraiser, and also apprenticed my mother in weaving skills). We offered a little cleaning and repair throughout this time, literally my brothers and me as kids washing the rugs on the driveway behind our La Jolla location.
The wash and repair became a separate location inland (more room) in 1990. My parents divorced around that time, with my father taking the gallery business, and my mother taking the service business (which at that time only generated a few thousand a month gross). She and I and eventually our team, built it up to what we have today. Started as 2000 square feet, charging 50-75 cents a square foot for 95% wholesale business (work for other rug dealers) – now 10,000 square feet, a team of 8, $4-$5 per sq ft, with local and out of state clients shipping us specialty work.
-It's my impression that you live in Arizona now. If so who is running the plant and how many employees do you have? Does your plant pump out clean rugs all year long? How many individual rugs last year?
I lived in Arizona for the past 2 years when I took over as CEO of Piranha and directing the cleaning marketing division of the company. I moved back to California a few months ago now that the heavy lifting is done. Our rug plant has 8 employees, and I got their “okay” to leave for a 2 year hiatus, because I knew it would be a full-time responsibility to restructure plans over at Piranha. We have systems, a massive referral system, and constant repeat business year-round, so my mother and wash supervisor Andrey and office manager Dana have run the show during that time.
My role in the company had by this time, developed into one where I was not physically in the office daily, but just a day or two a week. My main focus is more strategic, developing the referral networks, educating both clients and referral sources (through articles, workshops, training) as well as insurance networks and systems development.
We handle approximately 100-150 rugs a week year round, with occasional spikes (with the fires our volume more than tripled both times we had city-wide fires.) My wash supervisor Andrey has personally washed more than 1.5 million square feet of rugs, he’s been with us over a decade. Many on our team have been with us long term, and we charge what we do so that they can be paid well.
That said – there are plants that handle 700-1,000 rugs a week, many at $1-$2.50 a square foot (in Los Angeles they are under a dollar). We have strategically remained a rug workshop, more of a boutique, than a high-volume operation. It allows us to have strong relationships and high service with our clientele, and is our model for
superior work and service. There are some great large operations – it just has never been a goal of ours to grow to 30+ employees – our model is highly profitable, and keeps up our passion toward rugs and the people who own them. We have a very distinct company culture.
I began a rug training and coaching business about a decade ago as a response to a horribly inaccurate article written by some Rug Lady about how if you cannot identify what country a rug is from, you can’t clean it. My Rug Secrets coaching program helped train scores of cleaners on getting into the business. That has been on hold for about 3 years, but I’m getting ready to train again, this trip to Canada was a small trial rug clinic for my new focus on the latest textile training. So my entry into the training world was an accident (though I was training consumers locally on rug care and rug buying). And as with many accidents, they often result in very lucrative financial opportunities, and I really enjoy training the rug craft.
-Please give us your definition of a Rug Studio and a Rug Plant. Which do you consider your operation and has our country gotten over saturated with rug cleaners due to too many Gurus selling equipment, juice and the Armenian Dream?
I guess my definition for a Rug Studio is similar to what I call a Rug Workshop – being a “big” business but keeping that small, specialized feel. What we traditionally refer to a Rug Plant is a large mechanized conveyor-belt rug cleaning operation. So I guess the difference between RS and RP is the first is like a car detailing company, while the second is the automated car wash. At least that is how we market ourselves, personalized textile service for the rugs they love. We treat them as if they were our own.
The rug retail market has been commoditized – but this does not mean that there are not a number of valuable investment textiles, or low price rugs that the owners care for enough to professionally clean. Our volume has grown through the fact that the market has grown substantially.
Most homes today have rugs – so no, there is no market saturation. As long as you are a skilled marketer, there is business opportunities all around you in small and large cities. But now it’s the American Dream more than the Armenian one, because the heavy-service angle of business – the “experience” and the relationship – is a uniquely American business model.
-Any plans on leaving Joe and putting on a pink Guru head wrap?
You will never see me in pink … just FYI.
I’ve worked with Joe now for 10 years, as a product and coaching curriculum developer, a marketing tools creator, and a strategic planner for our work in this industry specifically. My expertise in coming to Piranha was my experience in going from that 50 cent wholesale model to changing our marketing messages to move us to that $4-5/ sq ft 95% retail model. I know the power of education-based marketing, and how to communicate that to attract the clients you want, and repel the ones you do not. I am a big believer that business is a partnership, and not everyone makes good partners so sometimes you need to “fire” clients.
Joe is the most brilliant marketing and business mind I’ve ever come in contact with. I’ve had the opportunity to team up with him on marketing plans from small mom-n-pop service companies to large multinational billion dollar service and products corporations. His thinking and modeling is so beyond most business owners, that most miss the gold they’ve been exposed to. The fact that he is still involved in any way with the cleaning industry is really an opportunity for anyone in it, because his material specifically for this business has made tens of millions for cleaners and restorers.
As far as me becoming a guru… I do coach with Joe for our Platinum program and Gold group but I don’t consider myself a guru at all – not even in the rug arena. Gurus are one-way, talking
AT you… I like to collaborate and facilitate others to reach their bigger futures. I’d rather be in a small hands-on workshop than on stage for 1,000. Though being on stage at Rich Cleaner Conference is fun now and then.
-Ethical Services, any regrets? Would you do it again?
Ethical Services was launched before my arrival at Piranha, though I was asked to chair the advisory council to handle consumer questions and any complaints. I know what you are referring to, the original copy on the website with the directory, but I also know that this complaint is approaching being about 9 years old now. It’s a non-issue.
What I loved about the original site was that it was the first website in our industry to allow consumers to post open reviews on companies and create a semi-self-policing model. And it generates to this day thousands in jobs of consumer referrals for its members. My only regret is that we did not roll it out to multiple industries from the beginning – we are now building that model out with our internet team.
-Please define the type of Carpet Cleaner who does best under Piranha tutelage. And the worst.
“Right fit” clients for Piranha are resourceful, they see the opportunity within challenges, and have big future goals they want to achieve.
There are many business owners who complain about their companies non-stop, but do nothing to make it any different. Their only action is complaining. Many will buy a program or product, set it up on the shelf, and then assume that is all they need to do. They want the magic pill.
Our best members take action. They know a better future is BUILT, and not handed to them. And so they seek out the best tools and blueprints to get them there. We have the largest collection of testimonials, case studies, and financial statements to reflect exactly Piranha’s impact on companies in this industry and several others. So if a cleaner or restorer is serious about doing it right, and willing to test and tweak and keep moving, then they will become lifetime clients of ours.
-What are you most proud of accomplishing during your time on the
IICRC Board?
This is tough, because at the time I was on the board there was a pervasive culture of corruption and entitlement in their leadership – or at least a good percentage of the leadership. So though there was of course committee work and responsibilities I think the thing I’d say I was proud of was actually speaking out on conflicts of interest that others were afraid to mention.
I was lucky in that I did not have a school, or an
IICRC-teaching position that meant that some of the power brokers could “hurt” me financially by slowing up course approval, or not approving a flood house set-up, or taking longer time to process paperwork to hold up my revenue stream. Others did experience this, and so would keep quiet. They’d complain in the halls, but not vote the same way in the rooms. Not all of them, but enough to not create real progress.
I also questioned the large marketing budget that had no trackable mechanisms to even determine a return on investment – an area they continue to fail on. They do image advertising for brand building, when they do not have the amount of money needed to do that successfully (like Coke or Starbucks).
I also was not a fan of the COA Seal of Approval tests with the “scientific soil” that was only dry particulate and implying it emulated “real” dirt in homes. This was another strategy to create revenue from cleaners and manufacturers due to lessening sales of carpet. I was not a supporter of
IICRC coming out to support this program, which was done behind closed doors and not in an open forum with the entire board. I felt it hurt our credibility with the cleaners to have Rug Doctor approved, and some of the top truckmounts not. That was just my opinion, perhaps the SOA program is better now.
That said,
IICRC has cleaned house, and is on a very strong path that looks very promising. I was happy for the experience on the board, and will likely contribute to some committees in the future.
-Do Piranha members get the push to become
IICRC members?
Yes, we push education in your craft period – with
IICRC being one of those avenues, as well as RIA and other supplier-based training programs. However, we stress that many
IICRC courses do not have hands-on training to the extent that they should. For example, in the fire course, you cannot go out the next day and know how to DO the job you just got certified for. This is why we support other training as well that incorporates hands-on. This is also why, though I sat on the RCT committee to help write the rug cleaning curriculum and course, I chose to not teach the
IICRC course. There is too much pressure to teach the test, and I actually wanted to teach real rug cleaning and real world scenarios to avoid problems, correct mistakes, and generate business.
We push our restoration members to get WRT and ASD – but to also expand their thinking by attending Dewald and Bolden and TES courses. You can’t marry yourself to one method or option – you need to not be taught what to think, but HOW to think. This goes for anything, not just restoration. Piranha sponsored a sold-out ASD and restoration symposium both at Dri-Eaz last year, we are big about advanced education and the marketing systems to land those large losses.
-Necker Island Hot Tub.... Who needs to trim their damn toe nails?
Necker Island was one of the most amazing trips and experiences of my life … but I have no idea what you are talking about. I was not in the hot tub, so it was not me, that I know for sure.
-One of my Admins here wanted me to ask you why a hot 40 something like yourself is not hitched yet..?
Ouch! 40-something label and I only just turned 40 – no fair!!! At least I get the “hot” in there…
You can let your Admin know I was holding out for Tiger but I guess that’s not going to happen – LOL! (I think it’s amazing that women knowingly being a booty call get so much press – and cash – and don’t get crucified by the media for it. It’s an “achievement” for them, and a shock for Tiger. Granted, he’s an idiot for exposing himself like this, but none of these women need to be glamorized like this. I also hate the fact that it implies the only way a woman can make it big is by sleeping their way to it.)
Sorry… off my soap box. I don’t know why I’m not married. But I have never seen that as a problem because I have a fun social life, so nothing really feels like it’s missing. But I also am from a divorced home, and honestly cannot think of any of my married friends I have who are really over the top happy. Happy couples seem to be the exception to the rule , at least here in California.
There is a lot of real work needed to create a healthy, growing, fun relationship – especially a marriage. I’ve seen a lot of what does NOT work, not as much on what does. So, if it’s meant to happen, it will, and if not then I’m going to continue to have an amazing life no matter what. That’s just how I’m wired.
-Are there certain types of Cleaners who would do better under Howard rather than Joe? And vise verse...
Cleaners who need constant hand holding and reinforcement are not a good fit for Piranha. We have no patience for people who say they want results but are not willing to work for them. We want to work with true entrepreneurs, people coming in wanting to transform their company, and they are ready to jump to action with the right tools to make it happen.
I have no exposure to any case studies of what Howard has done for anyone, but his business is a fraction of the size of Piranha so I’m sure those needing that hand holding one-on-one babysitting would get that more from his company. So if you are really needy – that might be your best route.
It’s really comparing apples to oranges though. We succeed only when our members do because our programs are built around lifetime value of a client. I have members who have been in our $15K Platinum group for going on 7 years… you don’t pay that amount of money unless you are getting many times that back in return. Plus, we have levels from $125 a month to that $15K program, and all points in between, so no one can ever say they can’t afford us. Even our top performing marketing tool for repeat and referral business, the Client Newsletter, is only $80 a month. I plug people in that all the time, and after a few months they have plenty of revenue to bump up to the other packages and memberships.
This year I also implemented a Buyers Group for all of our membership levels that saves them 10-50% on products and services from a host of Partners – and I’ve had one company alone this year save over $10K from all of their cleaning and restoration supply purchases this year. We say that we are a school for entrepreneurs that pays you to attend, because if you implement anything you make your money back several times over… and now with our Buyers Group, even if you implement nothing and just buy your normal office, cleaning, restoration goods, you make money by saving it.
That said, I don’t pay any attention to Howard or any of the former Piranha Members who have become sellers of marketing and coaching services. It’s inevitable that over time people you work with branch off to compete, that is just life. But all of them think it’s super easy to do what you do, and then they learn there was much more behind what’s been achieved. Just like when your techs go off and try to open another cleaning company – and then they crash and burn. They only see one side to the business, and you can’t be a success by copying others all of the time
.
-What are the top three most successful rug plants in the U.S.?
Hmmm. I’d say Rug Renovating (NYC), Robert Mann Carpets (CO), and D.A. Burns (WA). Those are well-run, well-marketed, good reputation operations. I’m sure Ken Snow’s Hagopian would be on this list also, but I’ve not seen his operation – he’s a great rug stud though, LOL. Ellen Amirkhan also has a fun plant.
-Who do you want to sit next to at the Mikefest Dinner Party?
I don’t know if I’ll be there … but if I do make it, I’d say Bill Bruders because I’d like to pick his brain about building such a phenomenal company as Legends Brands and Dri-Eaz. They put out some of the highest quality pieces of equipment, and their instructors are second to none.
-Do you support Factory Farming?
As long as it tastes good, does it really matter?
Thanks for all of the questions … sorry I wrote so much! I need Jeff Cross to edit here like he does my rug articles - LOL.
Lisa
