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Current Pet Industry Statistics That Will Make You Want an SD Franchise

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Walking into a Splash and Dash Groomerie & Boutique is a unique experience. A bright eye-pleasing color palette and a clean smell are the first things customers notice—an inviting, upscale ambiance. Preferential dog owners looking for the healthiest all-natural foods and treats for their dogs know they’re in the right place.The toys are eco-friendly. The haircuts are adorable. Remarkably, the prices are affordable. Best of all, members get unlimited bathing and brushing services and discounted prices on spa treatments. Unprecedented grooming salons like Splash and Dash are rising up to meet the demands of American pet industry statistics.

Currently around 85 million U.S. homes, or 68% of the country report to have at least one pet. The number of pet owners has been steadily rising for the past few decades. Pet spending has also increased over 10% since 2015. Projections for this year are expected to reach almost $70 billion. This is amazing news since pet spending was at only $17 billion in 1994 when the American Pet Products Association first starting reporting pet industry statistics. From 2007 to 2009—the crux of the financial crisis—pet business actually grew more than 10%, showing the industry to be recession-proof. In times of hardship, people turn to their pets.

Pet Trends Rise

The reason pet industry statistics are continuing to grow is because of a cultural transition. At the center of this societal change is how we view our pets. 76% of pet parents state their pets as “beloved members of the family, according to a recent Fortune-Morning Consult Poll, while only 19% of respondents stated their pets were “well cared for, but still considered animals.”

Americans are treating their pets no different than human children.  

Harold Herzog, a professor of psychology at Western Carolina University, cites the demand luxury services and products as the spark for growing pet industry statistics. “If you look at the amount of money per capita we spend on pets, it’s absolutely stunning,” he tells Fortune Magazine. Millennials, the U.S’s primary pet owners, favor having a dog over kids with 42% stating that pet ownership is the key factor to entice them to buy property over having children or getting married.  

This makes sense. When last surveyed, 28% of Americans are living alone in 2014, over the 17% in 1970. Advancements in medicine have paved the way for many to live longer and adopt pets in their golden years. This cultural merging explains why these market trends are occurring—the majority of the population has the emotional space, money, and time to devote to their dogs. The evidence is even found in social media. Nationwide, one in 10 pets has its own social media account, according to Mintel, a market research agency.

The population driving pet industry statistics like these have prompted many animal lovers to forge a new and exciting career alongside animals.

Breaking Down the Pet Industry Statistics

Food

Of the $66.75 billion spent in 2016, nearly half went toward food. For anyone who has a pet, this is not surprising. Food costs account for 42% of the national pet parent’s budget. Another reason this spending surge is occurring is that more consumers are interested in holistic foods. As humans became more concerned about the ingredients in their food, the trend naturally translated into food trends affecting pet industry statistics. Grain-free, all-natural, human-grade, and organic foods provide more nutrients and a diet more typical of ancestral-wild dogs. Higher-quality food began proliferating the market in 2015 sustained by dozens of pet business start-ups that opened that year like TurboPup and Swifto.

The opportunity to be able to provide healthy and affordable choices is why Splash and Dash shops are equipped with grooming services and retail space. Customers dropping off their dogs for grooming can take advantage of a one-stop-shop. On top of this, any leashes, collars, or other pet supplies are available too.

Pet Services

Pet Services accounts for $5.76 billion of pet spending. This number is projected to rise to $6.11 billion in 2017. Upscale services like ‘pawdicures and doggie facials’ complement the gluten-free snacks that a more informed and willing-to-spoil pet parent wants for their dogs these days.

Offering luxurious spa treatments that gratify owners and provide care for a pet is a needed specialty. This is why Splash and Dash offer services like Aromatherapy, Pawdicures, Facials, DeShedding, and more. The health benefits can be seen in a dog’s coat, owners are happy because their houses and dogs are cleaner, and pet franchise owners are excited to be able to profit by providing these services.

Why You Should Consider Splash and Dash

The Splash and Dash grooming franchise is unique in the industry. The signature service  membership only exists at Splash and Dash grooming salons. The membership program  equips franchise owners. With the recurring revenue from the membership program, owning a grooming salon has more financial stability. Members pay for the monthly signature membership and can take their pets in for bathing & brushing any time they want—convenient and affordable. Membership is a recurring revenue that makes up one source of revenue for Splash and Dash owners.

A recurring revenue stream combined with opportunities to educate customers on health benefits in the retail space is why many investors are choosing a brick-and-mortar location over mobile grooming. Also, for those who are business-minded but have limited experience in grooming, the Splash and Dash franchise business model caters to individuals with any professional background. Many current owners worked in an industry outside of pets like Wanda Camper in Gaithersburg, Maryland—who worked in government contracting before opening her shop. The pet franchise trains shop owners thoroughly for success with on-site training and support with terminal software that makes operations much easier. This allows owners to focus on customers.

For more information on how Splash and Dash can launch you into owning a small business in the pet industry, click here!

 

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Three Growing Areas to Start Successful Franchises

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With all the hype thrown around,  it’s hard to tell what’s legitimate and what’s greasy. When you research different franchises, there’s a lot of pageantry involved with Discovery Days and the boasting of irrelevant figures. Buying a franchise should look more like a partnership, even with the big guys. It is illegal to disclose how much any individual franchise location will make, and past profits will be included in the FDD. This puts future franchise owners in a precarious spot. This is why transparency and research are the road lines in the street of due diligence. So what are the successful franchises and what are the sinking ships?

Looking at the industry as a whole helps future owners get a comprehensive peak at their possible ROI. The three industries that dominate the franchise market are also the fastest growing: Quick-Service Restaurants, Pet Services, and Maintenance.

Let’s examine each to see the pros and cons of investment.

Quick-Service Restaurants

Since 1955, when the golden arches first opened their doors to franchising and burger gourmands alike, the fast food titans have reigned the market. This has forced newcomers to innovate. The new models are designed with a more upscale ambiance. A popular model is the quick customizable menu choices that were first popularized by Chipotle. One step further, are the all-natural healthier alternative chains who are gaining huge traction, like Panera Bread.

Although in the past two years, McDonald’s did close around 750 locations. In the same time period—the chain opened 1,000 additions to their international location count. These openings offset the failing locations. The net 300 additions are keeping the franchise afloat. If anything, this is indicative of a shifting market and how franchisee ambition can make or break the success of a restaurant.

One thing is for sure, whether you plan on opening a Subway or a Taco Bell you’re well within an industry that will not budge.

The Pet Franchise Industry

Many have found a way to translate their love for animals into owning successful franchises in the currently exploding pet industry. Pet ownership is on the rise with 84.6 million homes in the U.S. reporting to own pets. In response to the demand for pet food, care, medical services, and dog leashes franchising in all-things-pets has become a lucrative and joyful experience for franchise owners.

The industry has been steadily rising since the early 90’s.  Spending really took off during the recession and 2015 when spending increased by almost 11%, or $6.47 billion.

This new demand opened the floodgates for workers ditching corporate America and finding better opportunities owning anything from a pet grooming franchise to a dog training center. Mobile grooming is also taking off. Many pet owners prefer the convenience of getting their dog’s grooming done from their house. The dual pet grooming shops that also sell retail items have seen enormous growth too. These franchises model the mom-and-pop pet store but have profitable business concepts like recurring revenue to continually push the business forward. The advantages of these concepts are proliferating into successful franchises.

As pets become more of a staple of American life, and the norm becomes thinking of them as children who should be spoiled as such, it is evident this industry will continue to swell.

Maintenance Franchises

Low start-up costs, the inevitability of everything getting dirty, and eventually breaking is the recipe for dozens of successful franchises in the maintenance industry.

Maid services, lawn care, electrical, and appliance repair are just a few niches within the second largest segment in the franchise domain. Maintenance franchises make up 12.6% of the market. This growth welcomes handymen everywhere to put their practical skills to money-making uses with proven business models.

The best franchises to research are ones with environmentally friendly messages and solutions. As more awareness of carbon footprints and sustainability increases, many customers will opt for eco-friendly products and services. Consumers are typically willing to pay higher costs for cleaner solutions.

Franchises like NaturaLawn of America, Mosquito Squad, and You’ve got Maids are all great places to start the search. However, be wary of franchises that have come into some controversial heat in the last few years. A few companies have been sued for fraud and other unethical business practices and publicity of this nature is not the brand you want to represent. All litigation will be disclosed in an FDD.

The Secret to Successful Franchises Everyone Knows About

Yes—research, instincts, and finding the perfect match are all crucial when shopping around for small businesses. But the real reason franchise owners earn their ROI a year after opening—then go on to expand and earn considerable wealth—is they were able to take a critical look at themselves.

Owning a small business takes dedication. You are in a constant flux of creativity. When market trends shift out of your favor, how do develop a marketing campaign to bring customers back? When construction begins on the street in front of your shop, how do you endure the shortage of foot traffic?

The answer is passion.

Find out what you are passionate about. Then you will not only be able to reach successful heights, but the everyday challenges of owning a business will play an integral factor in your happiness.

Good luck!

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