House of Paint is a specialist paint store with products ranging from decorative paints and treatments to the specialist range of automotive finishing and paints, industrial products and wood finishing products.
The set up costs for a House of Paint store is between R2500 and R4500 per square metre. There is a once off joining fee of R65,000 plus VAT.
Minimum Total Investment
R1.2 – 2 million
- There is a once off joining fee of R65 000 plus VAT.
- The set up costs for a House of Paint store ranges between R2 500 and R4 500 per square metre. This is made up of R1 700 to R3 200 per square metre for stock and R800 – R1 300 per square meter for fixtures, fittings, computers and assets etc. All initial capital for the set up process is due upfront for a new operation and the availability of this capital will need to be verified.
As a result of the range that is to be accommodated under the brand to facilitate a destination appeal to a customer, the minimum size of the store that House of Paint will accept into the family is 200 – 300 square meters of net retail trading space (excluding offices) under roof.
A typical House of Paint Hardware store should achieve a minimum of R800 per square metre sales at a gross margin between 30% to 40%, this being dependant on the product mix and various factors, like differing volume sales of some categories at various levels of gross margin. This will not be the case if you sell large volumes of Building Material Supplies. The objective of the House of Paint brand is to deliver a return on investment in excess of 25% per annum.
Based on the initial turnover projections of the store, the member is to also allow an additional 30% of the value of the start up capital, as working capital. Unencumbered cash of 70% of the start up cash is required.
This cash flow value does not form part of the initial start up costs.
We offer you the advantages of being part of a larger synergy, while still allowing you to be independent!
The House of Paint Advantage offers you:
- A strong brand, making your store a destination / landmark store in your region
- Access to a wide range of product; including House of Paint’s Exclusive Brand Programme which not only differentiates you from your competitors, but drives higher margin
- A comprehensive multi-media marketing strategy which provides you with the support your store requires ensuring its success
- The House of Paint Support Team will assist in the design, development and launch of your new store
- An array of support services – Buying, Marketing, IT and Business Development.
- Increased return on investment in the long term purely due to the House of Paint Brand Goodwill
- A flat organisational structure which allows for online decision making! No delays.
- The financial strength of House of Paint in terms of inventory purchasing, critical mass and import alternatives.
- Tailor made retail outlets and solutions that suit both the operators and their specific market place.
- House of Paint offers a turn-key like service on how to build the brand and create a House of Paint atmosphere where people love to shop and constantly monitoring trends to stay at the forefront of all customers’ home improvement and hardware needs. House of Paint encourages the member to participate in the setup and follow through process.
- High level national, regional and local advertising campaigns
- Participation in Regional Meetings and National Executive Committee Meetings
- House of Paint provides a comprehensive brand guide that focuses on key areas such as Logo Specifications, Standards, Store Segmentation, Exterior Signage, Interior Signage, Store Types and Profiles, Branding Activities included all branded material such as vehicle branding and store uniforms.
- House of Paint is truly the only group who has developed strengths in the “all encompassing” field of finishing. House of Paint has made it “their business” to be able to support members in all facets of the business and in different markets who have different demands.
One of the most important considerations for a retail store is the location. The House of Paint Group interacts with a number of expert personnel, property and market consultants that identify and negotiate the correct areas, locations and sites for the House of Paint Business. House of Paint has a fluid database of sites, both short term and long term that are on the books from time
Training and Support
There is a team of Retail Specialists available at all times to give you operational support, guidance, suggestions and analysis of the performance of your business to assist with future planning for strategic direction, expansion and growth opportunities to maximize the retail efficiencies in your store, as well as ensuring you enjoy the total range of benefits of being part of the Group.
A service training programme is also offered covering subjects across the retail spectrum including:
- Retail Knowledge
- Cashier Skills
- Telephone Answering Skills
- Product Knowledge
- Service Skills
- And a number of other courses that are designed to add value to your business by improving the skills level of your staff and motivating your most valuable asset, your people.
House of Paint also outsource courses on Financial Management, Business Management and New Generation Leadership (ensuring you have a successor) through various colleges. The majority of these programmes are recognized and endorsed by the Wholesale and Retail SETA for NQF training in South Africa.
House of Paint – the newest member of the Mica Investment Holdings – a new beginning
House of Paint, the brand, has a new lease on life as the most recent addition to the stable that currently houses the very successful member driven Group, Mica Hardware. House of Paint is a specialist paint store with products ranging from decorative paints and treatments to the specialist range of automotive finishing and paints, industrial and wood finishing products.
With only 20 quality House of Paint branded outlets nationwide, House of Paint is managed by a small team of retailers who are passionate about the success of members in everything they do, providing a full support system in training, marketing, finance, merchandise and store development. The House of Paint format is based on voluntary trading which allows for ease of buying and the stimulation of entrepreneurial flair and decision making at store level.
With the backing of National Supply Partners that allow for the best value to shelf for the member in everyday quality treatment, paint and finishing products that make the members more profitable and able to deliver the best to their customers at a relative market price, House of Paint is destined to grow exponentially in the coming months.
House of Paint – The Model & Company Operating Structure
House of Paint has a completely transparent operating structure and flat management design to ensure that all members are continuously aware of changes and developments within the company and to affect swift decision making. The company is structured as follows:
- Mica Holdings
All the House of Paint Trademarks and intellectual property is housed in House of Paint Holdings which has four (4) directors. These positions are reviewed annually by means of a democratic voting process to ensure efficient and effective control of the business.
- Mica Investments
Mica Investments is the operational company which is managed according to all the Rules and Regulations of Corporate Governance and is represented by the National Executive Committee (NEC) made up of four (4) Mica Holdings Directors including the Managing Director, four (4) elected members from the House of Paint store base.
Monthly NEC Meetings take place to review the Financial Performance of the Business together with the alignment and implementation of the agreed strategic initiatives.
- Members’ Marketing Fees
Based on the completion of a detailed Marketing Assessment for each and every individual member, the member contributes to his specific marketing requirements plus 40%. This 40% goes towards branding and other high level House of Paint Brand initiatives. These costs and relative income are transparent and are reviewed on an ongoing basis and in the instance that possible savings may be achieved these savings are passed directly onto the member automatically. All member and supplier marketing income / rebates goes into direct expenditure on the House of Paint Brand therefore House of Paint Members pay no royalties and there are no other hidden costs.
- The Competitive Edge
Due to House of Paint’s low cost operating model, the supplier rebate requirement for the administration of the House of Paint Support Centre is minimal which allows the suppliers to trade competitively with each and every House of Paint member.
All House of Paint’s Preferred Suppliers are specifically graded to ensure maximum support for the supplier whilst ensuring the member remains competitive and is able to offer their customers the correct assortment of products. The members’ throughput is analysed every month where opportunities are identified in order to continually improve supplier performance or loyalty which in turn has increased supplier loyalty to House of Paint. House of Paint partners with their suppliers at a strategic level to ensure the supplier also sees benefit from the House of Paint Relationship in terms of increased support.
- Advertising and Product Forums
The marketing and product forums are facilitated by House of Paint Support Centre but are fully represented by members not only regionally but with sound product and marketing experience. This wealth of experience ensures effective supplier participation, product category detail and effective marketing initiatives.
All members are encouraged to be shareholders. This ownership fosters collaboration and knowledge sharing and increases commitment. When the time is right, the shares in the company will be made available for purchase as shareholding makes the business transparent to all its stakeholders.
Why own a “House of Paint” franchise?
By using the power of recognition of the House of Paint Brand, your customers will associate you with a specialist paint brand in South Africa. As a new brand in the South African market, huge commitment will be made to growing the brand positioning and values so that customers immediately identify with the House of Paint and its offering. The added value of being affiliated with the House of Paint Group is that your customers will experience world class service, having outstanding product, solutions and knowledge and offering expert advice and value for money.
By combining the buying power of more than an individual, House of Paint is in a position to offer you competitive deals on quality product in the specialist paint market. This allows you, as a member to be extremely competitive whilst ensuring a healthy margin.
House of Paint not only continues to build the power and pull of the brand through dedicated product promotions where they distribute over 1.1 million fill colour price and product promotion leaflets through South Africa every month, the business has a focused, multi-media brand development and maintenance strategy.
The product promotions in the business consist of carefully selected merchandise that is promoted at competitive prices whilst retaining a volume related margin for the store. The result is an increase in the number of customers to your store who have been enticed to experience your range of product, service, advice and potentially increase their spend in your store on that particular visit and in the future.
House of Paint keeps up to date with trends in the market place and as such is committed to developing all the facets of communication platforms and media including the new technologies like Mobile and Social Networking. Together with a dynamic website, the digital media, coupled with the product promotions and brand advertising through magazines and where possible radio and TV, makes a powerful marketing package for the members.
There are numerous other benefits offered like group credit card rates for stores, annual rebates for purchases through the House of Paint Group, House of Paint IT Support, as well as continual innovation and improvements made at a national level in areas that potentially add value to and reduce costs for the members and the House of Paint Businesses.
Who is ideal for us?
(Profile of the ideal franchisee)
House of Paint is looking for hands on entrepreneurs with 3 – 5 years retail exposure or who owns their own paint finishing outlet who would like to join and make use of expertise and support of South Africa’s expert paint group.
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