1-800-GOT-JUNK? LLC - Name Change to 1-800-GOT-JUNK? in 1998

Name Change to 1-800-GOT-JUNK? in 1998

In 1998 Scudamore made the decision to change both the company's name and its phone number to 1-800-GOT-JUNK to provide more marketing punch. The number already belonged to a state agency in Idaho, and it took him several weeks to convince the official in charge to give it up. The company subsequently painted the number in large type on the sides of its trucks, enabling them to double as mobile billboards. 1-800-GOT-JUNK? staff also had begun using several "guerrilla marketing" tactics to promote the firm, including putting signs on telephone poles, placing company flyers on homeowners' doorknobs between deliveries, and parking trucks near stores like Home Depot where potential clients might lurk. Later, the firm's employees would don blue wigs and stand at intersections to wave signs advertising the company.

Scudamore's years of experience as a junk hauler had given him ample time to hone his own approach to the business. Declaring his goal to be "the Federal Express of junk removal," he focused on earning a reputation for service, reliability, and professionalism, projecting expansion to a total of 30 locations by 2003. He was the sole owner of the firm, having shed an early partner, and its growth had been financed entirely through internally generated funds or loans that had been quickly repaid.

In 1999 consultant Paul Guy quit to open a location of his own in Toronto, Ontario, kicking off the firm's new franchise program. The franchise fee was $20,000 plus a royalty of 8 percent of revenues, as well as 7 percent to fund the call center and 1 percent for national advertising. With truck and office rental and other initial expenses, the total start-up cost was in the neighborhood of $50,000. Many new franchises were started by people who had grown tired of their careers in the corporate world. The entry costs were relatively low, and after several years of hauling junk themselves while the business grew, they could hire college students or other young workers to do the bulk of the manual labor.

The company's Vancouver headquarters handled all incoming orders and scheduling of pickups, which helped standardize customer service systemwide, and also allowed individual operators to focus on doing field work, rather than dwelling on administrative tasks. Orders could be placed via the call center or the company's web site, and a completed order would be routed to the local franchise via the Internet and scheduled in a two-hour window. The franchisee called customers to confirm arrival time about a half hour ahead, and then made a follow-up call afterward to verify that they were satisfied.

The firm's typical pickup fee was $300 for a 15-cubic-yard load, which included two hours of labor. Additional labor was $22 per hour. Jobs were typically scheduled a day or two in advance, but same-day service was also available. A franchisee might expect to do as many as eight or more pickups in a day.

The company's staff wore uniforms and presented clients with a printed price list—a stark contrast to the stereotypically shabby appearance of the small-time trash hauler, whose fee might vary depending on the perceived size of a customer's wallet. The firm required that each truck be washed daily, and if they were not maintained well, the company could cancel the franchise.

1-800-GOT-JUNK? did not accept hazardous materials such as paint or chemicals, and attempted to recycle most of what was picked up. Drivers got first dibs on usable items, though most were taken to charitable organizations like Goodwill Industries. The firm's fees included the cost of dropoff at a local dump, which gave its employees an incentive to recycle, as it was usually free or even sometimes generated a small amount of revenue. As much as 60 percent of what was picked up was recycled. Approximately three-fourths of the firm's business took place between April and October, when moving or home renovation projects brought much work.

All of 1-800-GOT-JUNK?'s operations utilized the firm's own JunkNet software, an Internet-based application that each franchisee used to get daily scheduling information as well as to perform management, payroll, and accounting tasks. The software also could send text messages to drivers' cellular telephones.