IMPROVE

Introducing The Largest Home Improvement Centre in Canada.

“Everything under one roof”

Recently there has been a lot of talk in the Toronto business community regarding the opening of Canada’s largest Home Improvement Centre. We have met with the representatives of the company responsible for the development of this project in order to get information first hand.

The news about the opening of Canada’s Largest Home Improvement Centre has created a lot of speculation. Please tell me about it?

The idea of such a Centre is not new. Many Centres like this successfully operate in Europe and Asia. Extensive marketing research tells us that there is a big demand for a Home Improvement Centre like this one in Toronto.

What is this Home Improvement Centre all about? 

We call it IMPROVE, a fitting name because we plan to assemble about 400 Show rooms occupied by companies engaged in the home improvement and construction businesses.  IMPROVE can also be looked at as a permanent construction trade show.

What is the scale of the construction site?

This is something we can really brag about: Our massive 310,000 square foot Centre will be built on 21 acres of land strategically located at the epicenter of the GTA.

Such grand construction plans could be quite time consuming. When do you plan to complete construction?

The grand opening of IMPROVE is scheduled for the beginning of 2013.

What is the main idea of this Centre and what makes it different from already existing malls and centres?

We are talking about three independent and highly successful business ideas here: The idea of a trading Centre (plaza, mall) The idea of competing businesses located within the same area, much the way that some automobile dealerships operate. The idea of an on-going construction & renovation trade show.

IMPROVE is a condominium-based Centre that offers a full spectrum of construction goods and services. All show rooms will be sold to private businesses. Each Show room will be approximately 500 square feet. The Centre will also feature different restaurants, bars, meeting rooms, and conference halls for presentations of new technologies and services. At this time we are negotiating for the creation of a TV show, which will be produced right from the Centre. At IMPROVE business owners, designers and other professionals will be able to introduce themselves and their businesses directly to the public. The idea of a Centre with ”everything under one roof” also gives us unlimited opportunities for the creation of different sub projects.

In addition to the traffic generated by the physical space, the vendors will also benefit from the traffic generated by the virtual space that will be created by our comprehensive website. In todays business world this virtual space can be even more valuable than the physical space.

What can you say about the chosen location?

The concept is centered on an industry that generates Toronto’s greatest single annual revenue, revenue that accounts for 8.7 billion dollars. It is a North American mind set to invest mostly in real estate. Most Canadian families live in their own houses and apartments. As the financial situation of a family improves they usually either renovate their existing house or sell it and move to a bigger and more expensive one. They then again renovate according to their own taste. Another point is that often times the quality of construction in new buildings leaves much to be desired and owners have to add improvements and renovations. Be it a new house or an old one, there will always be something that needs improvement. This is exactly where we can help.

Unlike many countries, Canadians tend to spend more money on real estate and invest proportionately more in renovations of their properties. And, as you know, properties need constant renovations.

Another positive factor that supports the growth of the real estate market in Toronto is the large amount of immigrants arriving in Toronto and the GTA. On average 100 to 150 thousand of new immigrants come to the GTA annually. This can be compared to the population of an entire European city moving to Toronto every few years.

Impressive numbers. How can you describe the advantages that potential customers will get by choosing your Centre over the existing plazas and small stores?

The variety of brand names that can be found right on the spot.  The range of quality products and prices that suit different income groups. The negotiable delivery terms.  These are just some of the things that make us so unique.

How are you planning to compete with the giants like the Home Depot or Rona?

We are not competing with them. We are not creating new businesses. We are just creating an environment where existing businesses can work together in one place and increase their profits.

At IMPROVE customers will get a better, personalized service by speaking directly with the owners - professionals who know their businesses. Customers will be able to negotiate terms of purchase directly with them. Consumers will be offered not only a larger variety of goods and better prices but also convenient delivery terms.

This is an attractive idea for business owners who are currently investing in Home Shows. How do you compare yourself to a Home Show?  

Our major advantage is that IMPROVE will be open year-round, while these home shows can be visited only once or twice a year. Customers can come to our centre and get all the necessary goods and services right when they need them and not several month before or after the renovation. Our show rooms will be built permanently and will offer a greater variety then the short-term home show pavilions. The admission will also be free, which makes it more attractive to potential customers who currently have to pay around $50 per family for a one time visit to a home show.

Good point. What else can you offer suppliers?

Right now there are more that 15,000 businesses working on the home improvement /renovation market. They are scattered throughout the GTA. In order to successfully operate businesses they need to attract new clients and increase their customer base all the time. Which means they need to advertise their services and/or participate in different Home shows. Both options can be prohibitively expensive.

What are the advantages of being a show room owner at your Centre as compared with participating in a Home Show regularly? 

A single participation in a home show can cost between ten and twenty thousand dollars. This is a very big expense and also an inconvenience for companies because they need to interrupt their routine work, ask clients to come back later etc. During these Home Shows the participating companies also have a limited time frame for setting up and taking down their displays and they invariably will not be able to show all they have. They also need to have special warehouses to store items left over from the Show. This can be a big problem. The quality of show room presentation at IMPROVE will also be decidedly better.

How convenient will IMPROVE be for consumers?

Our watchword is convenience. Convenience for everyone involved. We don’t have to prove that IMPROVE is a very convenient place to shop.  It’s obvious. All we need to do is to inform people that we exist. We are planning to do that by the following marketing initiatives:

We start with an impactful amount of dollars that has already been allocated within the development budget for our Grand Opening.

After the Centre’s opening, the individual show room owners will pay a small monthly advertising fee of $200. This is substantially less expensive than even local newspaper advertising. By consolidating these funds we will have an annual advertising budget of over one million dollars. Even big companies cannot afford this size budget. We will be represented everywhere: on TV, radio, in the newspapers, Internet etc.

If I might make another point on the advantages of leveraged advertising: Business owners need to invest several thousand dollars per month just to get their name recognized. Even this cannot guarantee them a large number of clients and cannot compare to the traffic generated by IMPROVE. Advertising can be ineffective and money will be lost. By paying a similar amount of money or even less at IMPROVE, business owners can pay off their properties and at the same time attract a large number of clients.

Free “word of mouth” advertising will also play an important part in our campaign. People who have been in the Centre will tell their relatives, friends, and neighbors about it. Why drive around the city looking for hard wood flooring when you can simply go to one place and find 10-15 show rooms selling all kinds of it and offering more attractive prices and delivery terms?

The real plus for the show room owner will be the increased number of customers coming into each show room. Two or three existing customers visiting each show room will create thousands of people visiting the Centre every day.

The location of the Centre is also extremely important. Every day over 300,000 cars drive by the Centre.

Everything is so much more convenient with IMPROVE. Let’s say you are planning a big renovation and you need everything HERE and NOW. What do you do? In the past you had to spend hours of your time searching and driving around town. You’d go to Richmond Hill for bathroom equipment, to Mississauga for hard wood and tile, to downtown for lamps and wallpaper. At IMPROVE you can find everything you need. You can compare quality and prices and buy products that you choose right on the spot. You don’t have to go back to another part of the city to get something that might not even be there by the time you arrive.

All you will need to do is walk through our Show rooms, choose the best quality and price for the products you need, negotiate the delivery terms convenient for you, sign the agreement and leave a deposit. That’s it. You can go home. Our sales associates will take care of the rest. What is important is that all goods get delivered to clients’ addresses. This means no waiting in lines, no mess and no overstuffed warehouses. The concept of IMPROVE is that of a upscale design centre. You can bring your whole family here. There is a lot to do: kids play rooms, lounge areas, restaurants, cafes and beautifully decorated halls wit bright windows.

Why is it better for business owners to buy Show room units rather than to lease them?

When you buy a unit for doing business as opposed to renting it you have two opportunities to make money:

You are buying the traffic of potential customers interested in buying goods, not just browsing. This target group of customers is very valuable. Those who participate in the trade shows know that having such customers brings profit to their businesses.

You are also buying a property that will invariably increase in value.

One last and very important point: People care more about things they own. It’s a well-known fact.  IMPROVE owners will make sure that their stores are well decorated and meticulously maintained.

You only work with well-known, well-established companies. Could you name some of these?

DHA Design Studios is well known for its design projects for the Yorkdale Shopping Center, the Promenade Mall, the Fairview Mall, and Bayview Village. DHA will be responsible for the designing of IMPROVE. They have designed many of the major malls and plazas in Toronto and have been awarded a number of well-known nominations and prizes www.ghadesign.com).

The architect Torplan Consultant Inc. is known for creating a number of commercial buildings in Toronto. The well-known construction company, the Berlock Design Built Ltd, is one of their loyal clients.

The Backroom, one of the most successful and creative marketing agencies in Toronto, deals with the advertising and promotion of IMPROVE. www.thebackroomagency.com)

Harris Sheaffer LLP. is responsible for legal issues. This firm is the GTA leader in condominium law www.harris-sheaffer.com).

We also work with such companies as Weston Consulting Group (www.weston-consulting.com), Krcmar Surveyors Ltd www.krcmar.ca) etc.

Why did you choose this particular location?

We chose the area specifically for its location. We didn’t want to build IMPROVE in downtown because there is no space there. No room for development. No room to grow.  And our Centre is big!

After exhaustive research we decided to place IMPROVE close to the Highway 407. It takes one minute to get to the Highway 7, Four minutes to Highway 400. Steeles and Keele streets are close.  It couldn’t be more convenient! Yet another advantage: The construction of a new Spadina subway extension has already started. We are planning on running a shuttle bus between Steeles West subway station and IMPROVE.

What will the price be for each show room unit?

The approximate price per unit will be in the area $300,000.

Will investors be able to buy units?

Actually we are not interested in investors. Real business owners are our target group.

Why? Isn’t your main goal to make as much profit as possible?

Not exactly. We are not planning to sell off all units and leave this project. Our goal is to implement the project, get the Centre working and generate revenue. After that we plan on starting IMPROVE Centres like this all across Canada.

What do you think about the size chosen for the Centre?

The size is ideal. We wouldn’t be able to reach a level of service and give such a variety of products in a smaller area. That’s why we decided on that size.

What about maintenance fees? 

I will not be able to give you the exact figure by the time the Centre is ready to sell, but let me assure you that the maintenance fee will not be high since it will be divided among all the show rooms.

Let’s go back to a previous question. What determines the show room price?

We have nothing to compare it to. There is no similar Centre here. Maybe Pacific Mall, but the units’ prices there are extremely high.

How would you compare it to Pacific Mall?

Pacific Mall is located on Steeles Avenue. They mostly sell cell phones there. Just to get an idea, the price for one unit the same size as ours at Pacific Mall can cost well over one million dollars. According to MLS a 290 square foot unit costs $725,000.

But the consumer base at Pacific Mall is very different. 

Exactly! At Pacific Mall a person can spend at the very most a couple thousand dollars. At IMPROVE people who plan big renovations could spend hundreds of thousands of dollars.

What a difference!

Our goal is to capture not one group but to attract all of the large, multicultural population that exists in the GTA.

Can I get a mortgage to buy a unit at IMPROVE?

Yes. That’s the beauty of it. Our potential Show room owners won’t have to pay the whole price of a unit up front, just a very reasonable down payment. It’s like buying any condominium. Later income generated by doing business in the Centre will allow them to make the monthly payments.

Here I would like to emphasize, that by buying a Show room in our Center you are not only buying the property, but more importantly you are buying the traffic. The level of traffic in our Centre can be compared to that of Yorkdale, a very busy and highly successful mall.

No other single business, even a business located in the central part of the city, can expect to have such a large number of people interested in its products or services.

I would like to emphasize one more detail: No one will be given exclusive rights to sell some particular product or service. If somebody offers a triple price for being the only one selling, let’s say toilet bowls, the offer will be declined.

Even if it’s a toilet bowl made of gold?

Or even platinum and…and singing. We will also not allow show room owners to create big stores. This would negatively affect small businesses, and our goal is to support them. We have already developed a list of restrictions that will work for the benefit of all businesses operating in IMPROVE. For example, selling toys or clothes won’t be allowed. We are Home Improvement Centre, and we will stay true to our vision.

Let’s assume somebody wants to buy a unit after all of them have been sold and the Centre is in full operation. Will they be able to do that and what will they have to pay?

It will be possible, like in any condominium, but the price will be higher. A lot higher by all forecasts.

Did you work out the hours of operation of the Center? Will Show room owners have to decide that?

This will be a joint decision. We are discussing this right now. One condition has to be followed: No show room is to be closed or stay empty during the Centre’s working hours. It is strict, perhaps, but it works for the benefit of everyone.

You mentioned some of the designers who worked on famous plazas such as Bayview Village. The fact that they agreed to create your Centre almost guarantees that everything will be done to the highest standards.

That’s exactly what we are trying to achieve. Everything has to be absolutely first rate.

Here is a loaded question: What can prevent you from realizing this ambitious plan?

There is really no point in even discussing that.  Nothing got in our way initially and now that the project has been approved by the City of Vaughan, I can say for certain that nothing will prevent us from realizing the IMPROVE project.

Who came up with the name IMPROVE?

The Backroom, the marketing company responsible for the project’s promotion, came up with the name. There was initially some hesitation about the name, but after discussion we came to the conclusion that the name IMPROVE is exactly what we need because it conveys the initial idea of the Centre “to make better” to IMPROVE.

That said, let’s talk about improvements. Some clients prefer to shop for their house’s renovation with a designer who gets paid by the hour. Can you imagine how many hours they would have to spend driving from store to store looking for specific products? At IMPROVE everything is in one place, under one roof!

It will be beautiful, comfortable and convenient!

One last question: How come no one in Canada came up with this brilliant idea before?

Well, here we are.  The first!

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IMPROVE

on Steeles/Keele 

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