AllSafe
6 Feb 2008

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Allsafe Energy Efficient Products was originally established as a cooperative by four independent retailers

in Queensland. Then known as the Allied Woolmen Insulation Group, the four founders manufactured a proprietary range of woollen insulation and related products. These products proved immensely popular and the group grew quickly with new members being added to the group. Soon, the group extended along the Queensland coast and into Northern New South Wales.

The founders foresaw the increasing interest and concern in energy conservation and deliberately sourced a range of energy efficient products to meet this growing demand. In addition, individual cooperative members became accredited residential housing energy consultants with various governmental agencies and local councils.

As demand grew, so did the Allied Woolmen Insulation Group. However, with each additional member, the group became less consistent as each member selected and stocked product independently of the others. As a result, the group could not fully take-up the opportunities presented to it in the market.

Growth challenges: Adopting an efficient go to market model is essential to capture demand

By 2006 the Allied Woolmen Insulation Group had grown to more than a dozen members. However, as in many cooperatives, the group’s presentation and retail offer was inconsistent. Demand, especially for energy efficient products and related services continued to rise dramatically. It was obvious the significant increase in demand for insulation, solar hot water, photo-voltaic cells and other energy efficient products would not be realised unless a new “go to market” model was developed and implemented.

The group’s structure, which had been so valuable in its formative years, was now potentially hindering its growth. So to was the group’s name - Allied Woolmen Insulation Group. The founders believed the name needed to change to reflect a greater focus on a wide range of energy efficient products. And so, Allsafe Energy Efficient Products was born.

The Solution

Working with the Allsafe founders, DC Strategy evaluated the business and determined an owner-operator model would provide the opportunity to realise the growth the founders desired. Of critical importance for the founders was the need for a corporate structure that reflected their individual exit plans. Several alternate structure models were evaluated and the optimal model selected and developed. The team then fully developed the chosen owner-operator business model including the financial and commercial policies which would provide the desired level of control whilst recognising the need for varying product ranges from store to store. In addition, the DCS team developed the Allsafe recruitment system to enable the founders to recruit quality owner-operators, comply with all the relevant legislation and help mitigate potential risks. Protection of critical intellectual property was also a key element in the development of the Allsafe business. This development phase provided the structure, policies, procedures and protocols necessary to drive Allsafe’s continued and more rapid growth.

The Outcomes

Allsafe has progressed from a loose cooperative into a formal franchised model and is now poised to deliver the growth the founders desired but which was not possible under the original cooperative model. Consistency of product ranging across the network is now possible whilst, the business model still allows each network member the ability to recognise unique climatic conditions and stock products accordingly. The specific franchise model selected and developed for Allsafe allows for considerable growth over an extended period of time. This structure recognises the growing consumer concern for the environment. That concern is driving significant increases in demand for energy efficient products – demand which Allsafe is now poised to capture.

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