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Small-Business Profile
Home remodeling on TV spurs local industry
By Danielle Birkin

Scott Miller, left, owner of the local Kitchen Tune-Up franchise, uses a jig to line up holes for cabinet knobs as he reconditions a kitchen with Bob Henderson. The company offers a variety of kitchen “tune-up” options for homeowners.
Photo by Steve Marcus

Americans have been bitten by the remodeling bug, a craze precipitated in part by cable television shows such as "Sell This House," "Flip This House," "Trading Spaces," "While You Were Out" and "Design on a Dime."

The home renovation industry even has its own network — HDTV — and trends indicate that the kitchen is among the most popular rooms to upgrade, both for aesthetic purposes and to increase homeowners' return on investment.

Scott and Cindy Miller are well aware of these facts and are ready to assist Southern Nevada homeowners when it comes to enhancing the look of their kitchen cabinetry.

The Millers are the owners of the local franchise of Kitchen Tune-Up, a nationally franchised home improvement business providing cabinet refacing; one-day cabinet restoration and reconditioning; new custom cabinetry; and cabinet accessories such as organizers, roll-out trays, handles and knobs.

The couple purchased the Las Vegas outlet of Kitchen Tune-Up in 2001, a move that Scott Miller attributes to serendipity.

"It was more or less dumb luck," said Miller, who previously worked for eight years as marketing director for a successful sports consulting company, which was bought out by a dot.com company and quickly became more about the bottom line.

"After the buy-out it just wasn't fun anymore. Then a friend of mine started a construction business, and he introduced me to an individual who was retiring and selling the local franchise of Kitchen Tune-Up (originally founded in 1992), and that was it. I hate to use the word destiny, but I was just looking to do something else."

Miller said the franchise, which they purchased for $200,000, appealed to the couple because it was an existing business that was already up and functional. In addition, Miller has a background in construction, so it seemed like a natural fit.

He said the business has tripled in size since he and his wife took the reins, with gross annual sales increasing from about $100,000 to $400,000 in the last five years.

Kitchen Tune-Up
Owner: Scott and Cindy Miller

Year founded: 1992

Address: 330 E. Warm Springs Road

Type of business: Kitchen cabinets and remodeling

Workforce: Five

New cabinets account for about 20 percent of the company's business, he said, and cost $5,000 to $10,000, depending on the materials used and the size of the kitchen. Refacing runs $5,000 to $8,000 and brings in 40 percent of revenue, while reconditioning runs $600 to $1,000 and comprises 30 percent.

The remaining 10 percent can be attributed to miscellaneous accessories and other services such as new countertop installation, which Miller said is typically subcontracted out to other companies.

Heidi Morrissey, vice president of sales and marketing for the South Dakota-based corporate headquarters, said Kitchen Tune-Up was originally founded in 1986 by her father, Dave Haglund, who recognized a niche for cabinet reconditioning and continually added new services while providing competitive pricing and outstanding customer service.

The company currently has 310 operating franchises in the United States, a figure that has been growing steadily as homeowners continue to pour money into residential restoration projects.

Morrissey said that according to the National Association of Home Builders, Americans spent an estimated $210 billion on residential remodeling in 2005, passing $200 billion for the first time.

"People get the itch from magazines and television shows dedicated to home remodeling," Morrissey said, adding that kitchen and bathrooms rate as the top rooms to upgrade. "There's also a greater understanding that when you do something to your home it's an investment. For our grandparents, if you had the same countertops, for 40 years that was fine, but now it will change the value of the home, and people will change their cabinetry just for aesthetic reasons."

The kitchen is also considered the homiest room in a house, she said, so why not make it more appealing?

"When you have a party everyone, hangs out in the kitchen, and kitchen design has gotten much more open and flowing," she said.

"Before, kitchens were walled up, and the person who was cooking was alone back there, and it was where you hid your dirty dishes and clutter."

Miller said the local franchise — which completes about 15 projects per month — is mobile, bringing samples to homeowners and assessing their needs and desires.

"We discuss what you envision for your kitchen, and then we develop a working model of what we can provide," he said.

Recent Kitchen Tune-Up clients include Jon Huneycutt, who enlisted the company's services to reface his cabinets at his home in Silverado Ranch.

"(Other companies) just wanted to build a new set, but I already had the guts of the cabinets in place and there's nothing wrong with it. I just didn't like the honey oak color. So I went to a darker red maple, and it looks like we have a brand new set," said Huneycutt, who owns a local solar pool heating company and is remodeling his entire home, starting with the kitchen.

"It took them three days, and everything was on time and friendly, and they clean up, which is key. The granite guys left glue and nails all over the place, and we were always tidying up after them."

Miller said challenges to running Kitchen Tune-Up include staying abreast of remodeling trends as well as retaining quality employees.

He said local competition is primarily limited to companies selling new cabinets.

"As far as reconditioning and resurfacing, there are maybe one or two," he said, adding that a small-business owner must be willing to persevere in order to succeed.

"We have rivals just like everybody else, but it's how we deal with problems that set us apart from the competition," he said.

"It's hard work to own your own business, but it beats the heck out of working for someone else. There's a lot of business out there, and you just have to get out there and chase it down."

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