Jim’s Group franchise partners with LivingSocial
Australia’s largest franchise, Jims Group, has signed a partnership with LivingSocial to deliver deals on its various services to the daily dealers’ hyper-local, citywide and national audiences.
The first deal launched today is for Jim’s Cleaning division, offering a $49 Full House Clean (up to 3 rooms) normally valued at $150. Other Jim’s Group divisions to offer deals will follow with deep discounts on Jim’s Building maintenance, Jim’s Mowing and Garden Care, Jim’s Skip Bins, Jim’s Pool Care, Jim’s Test & Tag, Jim’s Trees and more.
Jim’s Group COO Richard Reid said the franchise hasn’t entered into the partnership lightly, having researched the market and selecting the best daily deals site to help build its business.
“By partnering with LivingSocial we are giving our 3200 franchises exposure to 1.5 million subscribers nationally.”
“One of the hardest parts of any business is generating leads. LivingSocial is a great vehicle for us to attract new customers and by offering the highest level of customer service, we will make sure our new customers come back again and again.”
LivingSocial ANZ CEO Colin Fabig believes Jim’s Group are a great fit for his company’s marketing model.
“LivingSocial offer a deal in multiple areas in each city daily as well as city wide and national deals offering the perfect platform for attracting new customers to franchises across Australia whilst promoting the brand nationally.”
Didnt Jim Penman come out and say that he was knocking back work to the tune of over 1000 calls a month? Why would they want to take on more work at a lower rate than their normal price?
Craig, there are 34 divisions of Jim’s, the 1000 jobs are in some areas, some divisions and some times of the year.
All Jim’s franchisees have the right to choose if the want to take on work. While I don’t take much, some people who have just started their businesses will want to take more work.
I know that Jim is always on the lookout for more good business minded people to become franchisees though.
Shameless advertising for your Franchise – “Nameless” so called “Franchisee”, why don’t you just be honest and admit you are from Jim’s Group Management? We are so annoyed at this partnership and so are a lot of other franchisee’s that are now and will soon be aware of what is happening….
And clearly “Nameless Franchisee Owner” or should I say Jim Penman (Jim’s Group Founder), you have not read this article because if you had you would have included a rebate for your franchisee’s in this so called partnership with Living Social…and you wonder why 89% of franchisee’s want you out of this group and considering launching a class action for breach of contract. Was this your last ditch effort and trying to make some fast money before you inevitable exit?!
http://www.dynamicbusiness.com.au/news/jim’s-group-founder-denies-franchise-troubles4548.html
So the Jims Group have just committed their franchisees to a 67% price reduction to generate leads which may/will impact the service they can provide their existing (probably) full paying loyal customers. When will business realise that customer attracted at such ridiculous (loss leading) rates rarely become long term (read profitable) customers; any short term gain will not deliver a sustainable long term business. The only possible winner here is Living Social.
A poor business person may look at it that way.
Jim’s franchisees actually look at the bigger picture. If they impress the customer with excellent customer service and quality workmanship, the customer is more likely to become a regular customer, yet never will if the workmanship is poor.
By impressing their new customer, and they convert that customer into a regular customer, the annualised value of the customer to the franchisee’s business will obviously be significantly greater than the discount.
I suppose that is the difference in attitude from a business owner vs someone who just wants to buy a job.
This partnership with Living Social is actually just another revenue stream for Jim’s Management Group that will not be passed onto the Franchisee’s. Good work Jim’s Group!
Correction! There are two groups that are going to benefit from this and that is Living Social and the Jim’s Group Franchise Owner. Franchisee’s are already working hard for Jim’s Group and are out there trying different ways to attract new business. Jim’s Head Office has seen their Franchisee’s advertising with Living Social and thought “hang on a minute, Living social is getting 100% (yes, 100%) of what our guys are out there doing and we are getting nothing – why don’t we do an excluse agreement with Living Social so we at least get a cut of what our guys are doing!’ Shame on you Jim’s Group! Not only is that slave labour as they franchisee owners have to put on extra resources to do the jobs, take the phone calls and do all the runnign around, whilst the whole $49 is split between Living Social and Jim’s Group!
Lisa, you should get your facts straight. Jim’s Group do not make a cent from this deal.
The money from each and every job goes to the franchisee and there is not even a lead fee charged on each job.
Jim’s franchisees pay one flat fee per month, plus lead fees. Our fees do not increase the more work we do and the more money we make. We do pay a lead fee if we take work from the call centre, but I don’t very often because I have built a business of regular customers. I only occasionally take a lead if a customer moves or something.
“Nameless” so called Franchisee Owner (probably really working for Jim’s Group Management), I do have my facts straight. For starters my husband is a Jim’s Franchisee and this has nothing to do with franchisee fees – as clearly you have not read my comment correctly. What you are referring too is the Jim’s Group fees NOT the new Living Social deal/partnership that will generate more revenue for Jim’s Group & LS and not be passed onto the Franchisee’s.
I don’t expect Jim’s Group to admit that they are getting a cut of the 100% take of what Living Social is making of other franchisee’s who advertise with them because that would cause an uproar – but why else would you bother partnering up with anyone unless there was a financial gain. There is no way Jim’s Group would let group buying websites take 100% of the revene off their franchisee’s and not take a cut.
So let me tell you a few more facts of how this Living Social deal went down for my husband earlier in the year. They charged customers double figures for his service (which I will protect for fear of retribution from Jim’s Group), which was advertised with set terms and conditions and the deal was that LS retained 100% of the amount advertised on their website. My husband asked for it only to be sent out to a specific region but instead LS sent it out to the whole of Sydney. This meant he was getting non-stop calls from people who were outside his area – clearly a waste of time and very frustrating. LS didn’t care or listen about what his requirements were, they were just interested in pushing the boundaries and seeing how much they could make. He is not the only one that has that experience with LS. I know other merchants who have advertised with LS and been totally screwed on the deal and giving no room to on-sell or cross-sell.
Yes, it is up to the business to give the customer a good experience so that they come back but for this particular industry all we came across was bargain hunters and no loyalty – just people looking for a good, cheap deal and not even bother to read the terms and conditions.
My original point being – if there is only work required in some areas, why not do the deal exclusively in those regions, rather than all across Australia? and at a time when the franchisees need the work?
If Lisa’s husband is not happy with the deal as he sees that he is not getting value from it, then how was it passed through Jim’s system, when franchisees supposedly have control and can vote franchisors out?
I agree with Lisa, in that the explosion of the ‘deal’ websites combined with the mindset of our society in that everything needs to be on sale will not lead to many of the users of this daily deal coupon becoming regular customers… Jim’s management should stem this perceived ‘we get a cut’ mentality and show the franchisees the contract showing that they don’t get a cut from living social.
Any gardening company can knock back calls in the busy periods of the year when it is impossible to get a contractor to mow the lawn; the same goes with an air conditioning mob in the middle of summer; the business should be structured so that the franchisees are able to make hay while the sun shines, and do other work when it doesnt.
Lisa – are there other franchisees like your husband who have expressed their displeasure? There isnt anything about this deal or the displeasure on the Jims forum?
Jim’s Franchisee – I find it hard to believe you are a franchisee by the words which you use in your posts –
“our franchisees” “jim’s franchisees” “they” – only on occasion do you use the word “I” when referring to yourself as a franchisee.
There is nothing a franchisee can do. In the end they bought a business model. If they don’t like it they can try to sell it. I say TRY …. the only people that make money from that is Jims Group too. I too have been involved in a few different franchise systems now and Jim’s is by far the worst. If you are in it, get out, you don’t need them. Run your own business your way.
Check out what the CEO Richard Reid has been up to in the past. Check out his own checkered business history. Dooooodgy.
Well played Jim’s. Just got off the phone with the central booking to learn my area isn’t serviced. I live 5 mins from Fremantle in WA. If that isn’t a serviced area, I don’t what is.
Maybe you should have consulted with current franchisees to see if they can handle the extra workload, cause this makes the business as a whole look like they don’t consider supply and demand issues, but rather just take the advertising without being able to deliver.