Who is Our Competition?
Re-Bath franchise faces no significant bath remodel competition in the massive middle-class market
When the founders of Re-Bath introduced a fast, affordable and beautiful solution to remodel hotel bathrooms, the bath renovation industry was invented overnight. Since then, bath remodel competition hasn’t kept up. The Re-Bath brand has become iconic and rightly so: the Re-Bath remodeling franchise has remodeled millions of American bathrooms since 1979.
Since the bathroom remodeling industry sprung up around us in 1979, a lot has changed. New brands have entered the market, and thousands of general contractors now offer full bathroom remodeling. Normally, so much bath remodel competition would be a sign that the bath renovation industry is saturated, but that is not the case with the market today.
If we think about the market in three segments, with low-income, middle/upper-middle income, and high-income being the categories, the massive middle-class segment is wide open for the taking. In this segment, our only competition is small-time general contractors who do not have the name recognition, corporate infrastructure, and access to products to compete with Re-Bath.
“This is a very exciting time to be a part of Re-Bath,” says Jeremy Wallace, Director of Franchise Development with Re-Bath. “While there is significant competition in the lower third and upper third of the bathroom remodeling industry, we are entirely focused on going after the middle third segment of the market: those with incomes between $40,000 and $100,000. We are squarely targeting the middle and upper-middle class. This segment is almost entirely without competition, save for small-time contractors, and as of now there is no national brand that dominates this very lucrative segment of the industry. We are aggressively pursuing this segment and have comprehensive plans to become the dominant brand.”
Why is Re-Bath more successful than our competition?
Re-Bath franchisees are running lucrative businesses; we are a nationally known brand with millions of bathroom remodels under our belt. As a brand, we’re committed to developing innovative products that are well ahead of market trends, and our latest product offering — natural stone — is pushing us into the middle- and upper-middle-class market where there isn’t significant bath remodel competition.
“Our primary customer base consists of college-educated women, ages 45 and up, with annual incomes averaging $75,000,” says Curtis Ray, Director of Production for Re-Bath. “We’re really appealing to the Baby Boomers and those who are in the ‘aging in place’ segment. They’re requiring assistance, and we have the product offering to make aging in place a reality.”
We capture the wide-open middle- and upper-middle class market segments, and that is evident in how much our bathroom remodeling franchise owners earn in comparison to the small-time general contractors who most directly compete with Re-Bath. According to the U.S. Bureau of Labor Statistics, the average general contractor brings in about $93,000 a year in revenues. Meanwhile, the average Re-Bath franchisee generates seven figures annually in gross sales.
Why such a striking difference? For starters, general contractors don’t have the extensive, ongoing corporate support that Re-Bath franchisees receive. We help with nearly every aspect of the business to maximize profitability: from training your employees to properly install all of our product offerings, to supplying franchisees with our product offerings, to negotiating deals with trusted manufacturers to help our franchisees affordably get the products they need for full bathroom remodeling jobs.
And we’re faster. One of the biggest differentiators between Re-Bath and the average general contractors we compete with is time to job completion.
“We’re more successful than our competitors because our installation process is much faster than the rest of the industry. It takes us one to three days in wet areas, and the full bathroom remodel is done in three to five days,” says Marty Rasmussen, President of Re-Bath. “The average time for the rest of the industry is three to five weeks. We have one franchisee who will remodel 1,000 bathrooms this year, which is many jobs per day.”