Before his 20 years in corporate America and his MBA, Mike Wickam spent his college summers working in the plumbing business.
Wickam has tapped that background, along with his marketing and turnaround expertise, to more than double sales at Mr. Rooter Plumbing, the Fridley-based franchise he acquired in March. The franchise now averages more than 80 service calls a week, up from 35 a week the month before the acquisition.
"This was a really solid business," Wickam said. "But it really needed that modern touch in marketing and my approach to management."
The company now does less phone directory advertising and more online marketing and customized direct mail. On the management side, Wickam introduced health and dental coverage, profit-sharing and a written compensation plan. Mr. Rooter offers full-service plumbing and drain cleaning services to residential and commercial customers, with round-the-clock service at no extra charge and free quotes based on the job, not by the hour.
"We're not in the plumbing business, we're in the serving customers business," Wickam said. "I'm here to help my employees get to their next step. When they do that, that means they're doing a great job here at Mr. Rooter and that turns into more satisfied customers and better employees."
To expand commercial service, Wickam is offering regular maintenance programs to help restaurants and commercial properties avoid large repairs.
Wickam's franchise location has 13 employees; he expects 20 a year from now. He operates 10 trucks and is hiring to add another.
Gross sales per work order averaged $497 for the 174 Mr. Rooter franchised businesses that were open for all of 2011, according to franchise disclosure documents filed by the Dwyer Group, its Texas-based holding company. Starting a Mr. Rooter franchise requires a total investment of $60,000 to $150,000, including a franchise fee of $29,500, plus payment of 5 to 7 percent of gross sales.