Some people look in a yard frequented by dogs and see a mess. Ray Hays looked in that same kind of a yard and saw gold.
Now he doesn’t mind taking crap from his customers all day long.
 Ray Hays says the pet waste collection industry has been run by informal labor for a long time, but times are changing. |
"Let’s not kid ourselves, this is not a sexy business," said Hays, president and CEO of Doo Care, a business that literally picks up what dogs leave behind because they can’t flush a toilet. "But once you look past the poop and look at it from the MBA perspective, this is a very viable business."
Nat Truitt, an entrepreneur in Glen Ellyn, Ill., started the company in August 2006 and quickly began developing many clients, both commercial and residential.
Hays, who is a franchising veteran of more than 17 years, was an initial skeptic of Doo Care.
He laughed when a business colleague told him to investigate Doo Care. But after taking a closer look at Doo Care’s comprehensive business systems and financial results, Hays got over the poop stigma and realized the concept was a future franchise leader waiting to be taken to market.
The company partnered with investors, including Hays, to launch a second operation in Tucson
"I was looking for a high-growth service business and my research showed that the dog waste business was both lucrative and under serviced," Hays said. "When you combine those factors with a solid business model, technology and marketing, you have a recipe for success."
While Tucson’s Doo Care franchise is still relatively new, the Chicago operation takes in nearly $22,000 a month in revenues with a profit margin of nearly 55 percent.
"It really is low overhead and very efficient," Hays said. "This is not about scooping poop. This is about building an extensive, productive and efficient route and adding on to it."
Hays wants to take Doo care to the next level. He is also president of DC Franchising LLC, the franchisor of Doo Care. Hays launched the franchising program in November 2007 with an aggressive plan to open 250 franchises over the next five years. Besides Tucson and Chicago, Doo Care is operating in Cincinnati and Dayton, Ohio.
The company expects to sell 15 territories this year. This month, Hays will add Phoenix. Next, Hays has his eye on opening Doo Care franchises in Southern California, Las Vegas and Denver.
The investment for a single franchise is an initial fee of $24,500 and available capital of $38,398 to $56,996, including the fee. Mutliple territories have capital requirements of $53,098 to $71,696 or more, depending on the number of territories.
"Those who have contacted us with an interest in owning a Doo Care franchise are smart business people who see beyond the poop," said the 39-year-old Hays. "I have fielded calls already from 30 different states for franchising opportunities."
Doo Care has built a brand and business methodology combining the power of marketing with efficient operating procedures to drive sales and control costs, while capturing market share and providing superior customer service.
"I love that they just come like clockwork," said Lori Riegel a customer of Doo Care for her greyhound and schnauzer terrier mix. "What I really like, is that I was paying my daughter $5 per week to clean the yard. I always had to fight with her. She would tell me ‘you can give me $3 I don’t want to do it all.’ But coming home to a clean yard is just wonderful."
Typically, a customer pays about $10.40 per week for Doo Care’s service.
"Although when people have let it go for a while, the initial visit can be a little more," Hays said.
Most customers set up a weekly schedule for Doo Care to come by and take care of the waste.
To be environmentally friendly, Doo Care uses BioBags made from corn free of genetically modified organisms that are biodegradable. Using regular plastic bags and sending the poop to the landfill creates waste that doesn’t break down.
"To be able to do something good for the environment with something as simple as dog poop is amazing," Riegel said. "In a way, I’m reducing my dog’s carbon footprint. It is a small difference but it is a difference."
The company also offers composting as one of its options for the collection of waste as well.
Besides individual residences, Doo Care’s clients includes businesses, apartment complexes and homeowners associations.
"If someone comes to look at a place to rent but there is pet waste all over the place, the business could lose potential customers," Hays said. "Also, it is a health code violation to let the accumulation of pet waste occur. It can carry diseases and you don’t want children playing near that."
Despite what some might assume, Hays says his business is not one that caters to the rich.
"Our clientele is very broad," he said. "We cater to busy people. People who would just rather do something else with their family during the weekend. It also is a huge draw for people with disabilities and the elderly. They don’t have to worry about doing it."
While there is no national brand in pet waste disposal, Hays says in five years there will be and he wants Doo Care to be that household name.
"I’ve been looking for several investors to partner with to really push this over the edge," Hays said. "We are doing really well right now, but we just need a bigger war chest to take this to the next level now. Roughly 40 percent of U.S. households have dogs and have to cope with dog poop. This has largely been a cottage industry that’s been poorly managed, poorly marketed and run by informal labor. This is a sector that is in a state of evolution and Doo Care is well positioned to become the predominant brand that consumers will associate with this business."
Doo Care and DC Franchising LLC
(520) 829-3110
www.doocare.com
Pet waste removal company conducting weekly removal of waste at residences or commercial properties. DC Franchising LLC sells the franchises of Doo Care to different markets. Plans to have 15 franchises sold by the end of 2008 and 250 in five years.
4021 E. Grant Road, Suite 202
Contact reporter Joe Pangburn at jpangburn@azbiz.com or (520) 295-4259.
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