Gutter Genius

NATIONAL DREAMS RUN IN CLEAN GUTTERS / NEW IDEA FOR KEEPING LEAVES OUT HAS LOCAL MAN THINKING FRANCHISE
New Idea for Keeping Leaves Out Has Local Man Thinking Franchise

Issue: 03/09/07 | From: Richmond Times - Dispatch
By AARON KREMER

Tim Staub knows gutters and gutter protection can drain a homeowner's bank account as fast as water pouring through a downspout.

The devices that keep leaves out are often more expensive than the gutter itself.

Three years ago, the former business executive bought GuttaGard and renamed it Elko Products. Staub, who has a background in industrial management, spent $50,000 developing a better system and renamed the new product Elko GuttaPro, which featured a clip that snaps on to gutters and a low-profile design.

Staub said GuttaPro is so popular, he has decided to pull it off the market and reintroduce it as a franchise called Gutter Genius, which will deal in all things gutter including the installation of the product, now called Gutter Genius.

"We'll do gutters, clean them, repair them, replace and protect," said the Indiana native, whose previous management experience includes stints with 3M, Monsanto and Sampson Paint Co. "Anytime anybody in America thinks about gutters, I want them to think about Gutter Genius."

He'll also sell directly to consumers as Gutter Genius DIY (Do it Yourself) and will be on QVC in April to showcase the product.

There are more than 50 gutter protection products on the market, ranging from $3 per linear foot to more than $25 per linear foot.

Staub said Gutter Genius can install its patented gutter protection for $4 a linear foot. He charges an extra dollar a foot for second story homes and a little extra for complex roofs. A 2,500- square-foot house would cost about $500.

His advantage, he said, is that he manufactures 130 feet of the product a minute in his plant, which is off Midlothian Turnpike. That allows him to undercut the competition and create a competitively priced service.

"I'm trying to bring some realism to a market that's completely over hyped. It's just metal over a gutter. They sell technology on surface tension or how strong a product is. More often, they sell on fear," Staub said, referring to painful ladder falls often featured on TV ads.

Staub said he wants to franchise Gutter Genius based upon the model of 1-800-GOT-JUNK. "What I like - he [Brian Scudamore, the founder] built a low-cost franchise. The franchisees don't need offices or phones."

Staub plans on setting up a call center in Richmond.

Several dealers from the East Coast have signed on. The product is profitable and well received by customers, dealers said.

Bernie Bourchard has been installing GuttaGard for years and plans on becoming a Gutter Genius dealer in Long Island.

"Other gutter protection companies offer similar products, but more complicated, and they take more time to install. The clip he designed, it makes it easy to pop the guard on and secure it, and once it's on it doesn't come off. It saves us a lot of time on the installation process and gives us better returns," Bourchard said.

Gutter Genius will compete with other gutter franchise companies, including Gutter Helmet and LeafGuard.

Doug Roswurm currently installs Elko's product and will also become a Gutter Genius dealer in Columbia, S.C. "You've got three tiers of products; the Home Depot screens, which collapse over time, up to the high end product from a franchise like Gutter Helmet."

Then there's another 50 products in the middle, he added.

"Tim's taking it directly to the public. He can install for half of what the big names companies like to do. About two months ago, we offered a price on a large home, some 400 feet of gutters. My installed price was one-third of my competitors."

Staub is still completing the franchise plan, which will instruct franchisees on everything from what vehicle to lease to how to manage employees. The Gutter Genius Web site is still under construction.

"The key thing in order to sell a franchise is I have to have a business model that works just as well in Omaha as in Richmond," Staub said.

The new product with the clip cost $50,000 to develop, Staub said, while the franchise development cost around $250,000.

Staub said he has had success selling the previous product, but he wanted more.

"The product works well, but that's just part of the puzzle."

"This is more fun. . . . Who has the opportunity to build a national brand? I am a growth guy. I'm not happy just hanging on making a living. I don't play golf. I create businesses."

THE RESUME

Name: Timothy G. Staub

Born: 1959, Terre Haute, Ind.

Education: bachelor's degree in industrial management, University of Illinois, master's, Kellogg School of Management, Northwestern University

Employment History: President and chief operating officer of Cellfor; president and CEO of Sampson Paint Co.; positions at 3M, Monsanto Co., and Olin Corp.

Family: Wife, Joanie; daughters Jenna, 11; Abigail, 9; and Olivia, 9

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