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Building a business on remodeling savings
Remodeling experts Olov Strole and Chad Commers are offering to share what they say is among their best tools: Contractor-style discounts on home-improvement products for homeowners using their Remodel Card.
Members,[link widoczny dla zalogowanych], they say, take advantage of discounts of 20 to 50 % on appliances, flooring, light fixtures, cabinets, countertops along with other products from 24 home-improvement retailers. And retailers gain through getting business from what the Remodel Card partners characterize as purchase-ready customers.
The savings have been enough to enable some members to attempt repair or remodeling projects they otherwise couldn't have afforded, Strole and Commers said.
The credit card is a great fit for tough economic times, i was told that. Many householders interested in remodeling tight on money to invest and fewer use of credit.
"People are on an inferior budget because loans aren't just like they was previously,[link widoczny dla zalogowanych]," said Strole,[link widoczny dla zalogowanych], that has run his own residential remodeling company for nearly nine years.
"They might not be able to get a home improvement loan, they may not have access to the equity they had," said Commers,[link widoczny dla zalogowanych], who has bought and remodeled residential and commercial investment properties and has worked in the family's property management business. "So rather than getting everything done at once they need to chip away in internet marketing. This allows these phones chip away while still receiving the discounts they really should be getting."
Contractor-style discounts, which run about 29 to 30 percent, could make the main difference between launching a project or suppressing,[link widoczny dla zalogowanych], the happy couple say.
Strole,[link widoczny dla zalogowanych], a Swedish immigrant who gone to live in this country 13 years back, said the idea came to him a few years ago.
Strole and Commers launched the company this year and introduced the credit card last year. In between,[link widoczny dla zalogowanych], they spent 1 . 5 years creating a website an internet-based card purchase system and negotiating discounts with local retailers for example Warners' Stellian and Muska Lighting and national companies such as Sherwin-Williams and ABC Supply. Commers comes with an entrepreneurship degree in the University of St. Thomas while Strole studied business at the University of Minnesota.
Remodel Card member Craig Mueller of Dellwood said he and his wife saved $2,500 on carpet alone as they used the credit card as part of a larger remodeling project that also included updating your bathroom. Worries about getting a lower degree of service simply because they were while using card quickly proved unfounded.
"We were able to do custom work with a large tile provider and get some professional advice," Mueller said. Not only did the tile are available in affordable however i would argue one of the greatest values was the advice that people also got."
Tom Clouse,[link widoczny dla zalogowanych], vice president/service manager of the fabrication division at Minnesota Tile and Stone, said partnering with the Remodel Card would be a "no brainer" because of the additional product sales it generates for the Minnetonka granite countertop and tile retailer.
"We get to educate the shoppers and the company is happy they saved money," Clouse said. "With the economy the way it is, it is a great way to cut costs and then perform some remodeling,[link widoczny dla zalogowanych], countertops,[link widoczny dla zalogowanych], tile, flooring, whatever. That's no investment on our end,[link widoczny dla zalogowanych], and then we had you win."
So far Strole and Commers would be the company's only employees. They project revenue of $400,000 this season.
Marketing efforts include making appearances at home shows, including Minneapolis Home Garden Show, running Feb. 29 to March 4 at the Minneapolis Convention Center.
Strole and Commers hope to build local membership as quickly as possible this season and will turn to expand to other cities beginning the coming year. They're also approaching major Twin Cities employers who could offer the card to employees transferring here,[link widoczny dla zalogowanych].
The average savings on projects so far continues to be 29 percent,[link widoczny dla zalogowanych], Commers said. He offered this example as one example of the Remodel Card's potential savings: A member who buys $2,000 in products would save $600 with the average discount around 29 to 30 percent. That $600 in savings would pay for the Remodel Card's first-year charge with $100 to spare.
"If they're spending $2,000 or even more -- carpeting in a basement, carpeting inside a family room -- they're going to visit a benefit far above the price of the credit card," Commers said,[link widoczny dla zalogowanych], based on the average discount members have experienced to date.
While the discount varies among retailers, it typically applies to everything in the store, with some exceptions for appliances,[link widoczny dla zalogowanych], Commers said.
The expert says: Alec Johnson, associate professor within the entrepreneurship department in the University of St.
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