Interloc Kings Inc (subsidiary) DD: This is their 3rd subsidiary and it's profitable as well...
This doesn't cut/paste well (from the Annual), but it has some key DD imo... They plan to Franchise Interloc as well...
I have a feeling snow removal is making a lot of money this winter.lol... On top of the packed Snakes locations... Imagine if they start adding $50k-$1,000,000 GROzone deals into this equation....
Landscape construction and snow removal services
InterlocKings Inc. was incorporated in the Province of Ontario in April 2009 and was 100%
owned by Roger Mortimer. Over the last four years, clients and revenues have consistently
increased. The business leases many trucks, tools, machinery and equipment to facilitate the
growing business all while paying the employees and owner salaries and having no outside
funding or capital ever injected into the business.
During this initial growth phase due to the very well received model by our clients, we have been
able to meet and develop very positive and powerful relationships with other contractors,
manufacturers and suppliers of the industry throughout Markham and Toronto. Through
experience, we learned about all the different products and installation methods throughout the
industry and have our own processes which help the installations go smoother and faster
compared to the originally accepted and used methods.
The main goal of InterlocKings Inc. is to become one of the largest installer and supplier of
interlocking and paving stones in North America as well as becoming the largest winter service
company in North America by way of franchising and reproducing the current proven business
model across targeted regions; as well as by developing the stone brand and eventually
manufacturing the pavers in our own facility.
Products & Services Description
InterlocKings Inc. supplies and installs residential and commercial hardscape construction
projects including interlocking stone driveways, walkways, back patio’s, retaining walls and
steps, fences, decks, pools, etc during the summer season and is one of the largest residential
winter service provider in Markham for winter maintenance services covering approximately six
hundred homes in the off season.
We have completed a vast array of projects stone and wood related from wheel chair ramps at
Pizza Pizza locations to custom waterfalls, sauna’s, backyard kitchens or the coordination of group stone and fencing projects with homeowners or homebuilders to allow for larger scale
projects where work is completed for half of a street or a whole street as opposed to individual
households. We target anything stone or wood related for installation on the exterior of
residential/commercial and industrial properties.
Using our connections to suppliers and manufacturers we are exploring the option of having our
own specific type of stone made that will be stocked and promoted by some of our current
suppliers for the use by all contractors and homeowners in the area. There are billions of square
feet of paving stone purchased and installed globally on a yearly basis and some of the stone
suppliers we use have locations as far as Illinois, Michigan, New York, New Jersey, Ohio,
Wisconsin, Massachusetts and of course all across Ontario, to name a few. A supplier in
Markham has expressed interest and willing to stock our product and promote it to their clients
when it is market ready. By capturing a percentage on all stone sold across North America or
even globally, to be used by all contractors for installation, we believe that revenues could
rapidly grow within the first three years of the product being available to the market. Since stone
installations are seasonal and only approximately two thirds of a given year provide the weather
to allow for installations in Ontario, having the stone brand and/or franchises in Southern states
will help keep the sales going year round.
The winter aspect of our business was created to keep our employees busy year round and
offers a needed service that has never been captured by an individual company on a large
scale. Part of the reason we have been able to expand as much as we have is due to the aging
population we have. Over the past four seasons we have grown to become one of the largest
residential winter service company in Markham to cater for the desire and need by the average
person for our service. As we decide to expand to more and more houses across Markham,
York Region and the Greater Toronto Area, our number of seasonal customers will increase
exponentially and it is a business model that can be replicated in all of Canada and Northern
United States. Most households just physically cannot provide the service for themselves for
reasons such as injuries, disabilities, aging population or simply because people do not wish to
do it themselves and therefore want to pay to have it done for them.
Marketing Strategy
Between 2009 and 2014, InterlocKings Inc. has been able to establish a proven business
model that has been successful in Markham, Ontario. Our goal is to replicate this model to allow
for franchising opportunities within the industry throughout the rest of Ontario, Canada and the
United States. By supplying the knowhow, trucks, equipment and advertising based on
experience and our proven trackrecord while showing other existing contractors or individuals
looking to get into the industry how to run a successful InterlocKings Inc. franchise for
themselves, we will be able to receive the initial setup cost and yearly franchise fees all the
while developing and establishing the brand name across different regions of the country
We originally broke into our industry using a very competitive pricing strategy that was still
profitable. As our name brand and reputation spreads, we will be able to increase our prices by
almost double over a period of time. This is possible since one of our main competitor on
average charges almost double what we charge. While the installation costs and time will
remain the same on a per job basis, the margins and profitability on each project will increase
significantly. Using this model we have put numerous contractors out of business in the area
and will continue to do so while capturing more and more of the market share of the regions we
are involved in.
In the early stages of the Company, we have not had large advertising budgets because word of
mouth referrals have started a snowball effect that has been growing. With a larger team of
estimators, we would be able to handle more business and get more jobs done at a faster rate.
We are looking at acquiring other contractors in our space to add to our sales, experience,
employees and equipment.
We plan to increase and expand our advertising radius in order to substantially raise our
contract numbers and revenue amounts. We currently serve only a portion of the City of
Markham were able to capture enough clients to be one of the leading contractor in all of
Markham for residential service numbers. If we complete a large advertising campaign and our
plan is successful, we could increase our total number of contracts from approximately 300 to
5,000 within a two year period. We believe this plan would allow us to have approximately
$1.5M to $2M in additional revenue.
For the snow removal business, each truck we put on the road can service anywhere from 80 to
110 residential homes depending on the route. Each year that goes by, our customers become
more and more dense within the areas that we service and we are able to get routes done faster
and add more houses per vehicle. This allows us to keep each truck within a one or two block
radius during service times and therefore we can service a larger amount of customers than any
other contractor within the same amount of time and have less of a gas expense and wear and
tear on the vehicle. We have streets in Markham where almost half the street use our service or
anywhere from six to twelve homes on the same street as opposed to most contractors who
travel around from one area to another servicing one home at a time. This strategy similarly to
the interlock in order to break into the market, our pricing was able to be on the lower end,
however as more and more contractors get knocked out of business by our company and we
further monopolize the industry, we will be able to peg prices at a higher level and more in line
with what some of the other higher priced competitors charge.
We plan to run franchises in Markham where blocks of 500 customers could be allotted to
independent owners or kept as a larger franchise and expanded to other cities across Ontario
and Canada. We are also looking at the City of Brampton which is similar in scale and can be
easily set up using the model we have in Markham. We are also targeting the City of Toronto
which has over 1 million households.
Target market
According to the Interlock Concrete Paving Institute (“ICPI”), the North American Concrete
Paving industry covers a total surface area of 478 million square feet or 44.4 million square
meter representing 1.4 square foot or 0.13 square meter per capita. Growth rates are projected
to be 2.7% in the United States and 7% in Canada.
In 2012, ICPI succeeded in lobbying Congress to include the firstever permeable pavements
provisions that were conceived by ICPI and offered for consideration on Capitol Hill. In doing so,
ICPI has created new law, and established that permeable pavements are now a technology for
use under the auspices of the U.S. Department of Transportation (USDOT). There has been a
steady increase over the last three years in permeable pavement sales with a growth of 3.8% to
5.1% between 2009 and 2011 covering just under 30 million square feet. 78.4% and 21.6% of
the permeable pavement sales were placed in commercial and residential applications,
respectively.
According to David Smith, director of the new Concrete Paver Institute, the use of pavers in the
US may double within the next 4 to 5 years.
