In 1997, a 37-year-old computer scientist named Reed Hastings stepped into a Blockbuster video store to return – after its due date – a VHS copy of Apollo 13. After shelling out $40 in late fees, he thought there has to be a better way to rent movies. He went on to form a little company called Netflix. -Forbes June 5, 2017
“Disruption” describes a process whereby a smaller company with fewer resources is able to successfully challenge established incumbent businesses. Fireplace sales and installations represent a $5 billion annual value (per HPBA 2011 State of the Hearth Industry Report, Hearth, Patio & Barbecue Association).
Midtown Chimney Sweeps Franchising is disrupting this $5billion dollar industry by supplanting the traditional sales channels. Backed by such intellectual assets as hearth industry leaders, and the physical assets of thousands of customers organically gleaned from Google search results, Midtown is poised to recommend repair solutions for fireplaces to the end consumer right in the home after providing the chimney inspection results. This is an impossible option for traditional incumbent industry sales channels- the local brick and mortar fireplace store that waits for customers to walk in. Midtown can offer a precise approach to fireplace sales, with no brick and mortar overhead, providing the customer better value, and the installer greater revenue. The traditional fireplace stores are, tragically, nearly overpopulated and operating on lower and lower margins. Usually operated by seasoned industry incumbents, the fireplace stores are being disrupted by a new business model. Midtown continues to grow its digital and physical coverage of the nation.
Fireplaces are traditionally sold through a brick and mortar fireplace store model. When customers determine they need a new fireplace the customers locate and visit their local fireplace store, and purchase a replacement fireplace and have an installation done. Instead of waiting for fireplace sales client to come organically to the store, Midtown has adjusted its chimney sweeping business model to allow the chimney inspection process to yield full condition report yielding recommendations for repair or replacement. Midtown Chimney Sweeps was founded by a 35 year old college graduate who incessantly consumed business articles from MIT Technology Review looking for disruptive strategies for his family’s chimney care business.
The reward of joining a highly disruptive industry leader early on in the process is self-evident. But we always like sharing our opinion about what it is like anyways. The rocket sled ride is always exciting as value increases. Your friends may ask you how it is going with your new investment in the franchise you purchased. Your early investment in this disruptive company may make you a bit of a local celebrity with your friends when they discover that you invested in your own Netflix when the industry was waking up and Blockbuster was going into it’s sunset years..