Start Your Own Lucrative Radon Measurement Services

  Make Thousands of Dollars through Your Own Radon Measurement Services

BUSINESS PLAN FOR START UP RADON BUSINESS

INTRODUCTION

Radon is an indoor air pollutant and is known to cause lung cancer. USEPA ranks this next only to smoking as causative agent for lung cancer deaths. USEPA estimates total number of deaths as 20000 to 30000 per year in USA. This is preventable if tested and fixed. Most of the homes can be fixed for a cost under $1000.

USEPA has fixed action limit as 4 pCi/L and recommends mitigation if the levels exceed the action level.

Homes with radon concentration exceeding this level are found in all States, the percentage of such homes varies from State to State. USEPA has a map that grades different States for the low, high and very high radon potential.

BIRTH OF RADON INDUSTRY

After detecting very high concentrations (3000 pCi/L) in a home in State of PA in 1986, Federal and State governments have taken action to educate homeowners to test and fix the homes. Large amount of free educational literature is available on the topic. The educational efforts have continued both by USEPA and States. Surgeon General of United States has issued a Health advisory: " Indoor radon gas is a national health problem. Radon causes thousands of deaths each year. Millions of homes have elevated radon levels. When elevated levels are confirmed, the problem should be corrected". Statement (1999) from President Clinton is typical of another such effort. See Appendix 1.

USEPA survey indicated that 75 % of the members of the public have heard about radon, indicating that their campaign has been a success.

Even though States and USEPA did large number of initial investigative measurements, it is the private industry that is in the forefront for giving measurement and mitigation services to the members of the public. These industries were born mostly after 1989.

USEPA undertook the certifying and regulatory responsibility for these industries. Recently (1998) USEPA has privatized the certifying responsibility to nonprofit organizations (NEHA and NRSB). Some States have their certification programs. These are instrumental in improving the quality of the measurements provided by the industry to members of the public.

RADON MEASUREMENT INDUSTRY

There are more than 1000-licensed radon Measurement Service Providers in the country. Some provide full service and some use the services of other Service Providers. Majorities of them are home inspectors.

Radon measurements are provided to the members of the public during buying and selling of homes (real estate transaction) and also to those who like to measure radon in their homes to understand the risk (health related) or to prepare home for selling in the future.

Home inspectors are ideally suited for this business, since they can couple this with their normal home inspection. This will add to their income.

Market intelligence report of 1996 indicated that radon measurement business is about $30M ($21.5M in measurement and $8.5M in equipment) and is growing at a rate of 10 to 15%. Currently the measurement industry is estimated to be in the range of $30M to $35M. The total numbers of measurements are estimated to be 3 to 5 million measurements in one year.

 

The market depends upon the marketing activities. Example: A mailing to 700,000 customers of Washington Gas through their monthly bill generated revenue of about $40,000.

Because USEPA firmly believes that radon is one of the serious indoor air pollutant, the campaign is proceeding. This may also add to the growth of the industry.

Home inspectors can enhance the market by suitable communication with realtors and other campaigns.

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Usually home inspectors charge $100 to $120 for 2-detector E-PERM test and can add to a nice addition to the normal inspection fee. There are inspectors who add a nice $50,000 $60,000 by providing radon measurements using E-PERMs, in some areas.

 

START UP AND RUNNING COST OF STARTING RADON MEASUREMENT BUSINESS

 

Step 1

Take NEHA or State approved initial training and pass the test. The cost is in the range of

$500 to $1000, depending upon if one has to travel. There is video course ($125 from Rad Elec), if you wish to avoid travel and an exam fee of $125.

Step 2

Purchase E-PERM Start up kit for $2995 (special discount is applicable to Amerispec inspectors). This is sufficient to do 20 to 30 tests a month. For add on cost of $600, the capacity can be doubled.

Step 3

Obtain necessary certification (from States or from NEHA) for using E-PERM for your radon measurement services.

Annual certification costs may vary from State to State. It could be $250 to $500 depending upon State.

Step 4

Market your services. Rad Elec provides marketing accessories. Start the services.

Usually home inspectors charge $100 to $120 for 2-detector E-PERM test and can add to a nice addition to the normal inspection fee. There are inspectors who add a nice $50,000 $60,000 by providing radon measurements using E-PERMs.

If 20 tests are done each month, the revenue expected is about $2000 per month.

SERVICES NEEDED BY RADON BUSINESSES

Answers to the questions

Initial Training

Certification assistance

Radon chamber services

Continuing education training

Purchase of equipment

Marketing assistance

Promotional materials

Membership of related professional associations

Answers for specific questions

Rad Elec provides free information on all the above topics by phone and by Internet (www.radelec.com).

RADON MITIGATION INDUSTRY

This is also a large industry estimated to be of $100M in $200M and has doubled in the past five years.

Mitigators also need certification. This profession needs some construction experience. In some States same company can not give both measurement and mitigation service.

Requirements are similar. Equipment cost may be in the range of $200 to $300 for each mitigation. Hours needed per mitigation may be about 4 to 6 hours. Revenue expected is about

$800 to $1000 per mitigation. More information is available in radelec.com site on links to mitigation.

 

Appendix 1

The White House
Washington

National Radon Action Week, 1999

Warm greetings to everyone observing National Radon Week, 1999

Each year, we set aside this time to raise public awareness of the health hazards posed by radon. Prolonged exposure to high levels of this substance -- which is a radioactive gas occurring naturally in rock, soil, building materials, and well water -- causes lung cancer and contributes to thousands of cancer deaths annually. Because radon is odorless and invisible, high levels of the gas can build up in millions of homes and other buildings without being detected by residents. Fortunately, however, there is a simple test to determine the level of indoor radon and appropriate reduction techniques available that will work in virtually any home.

The Environmental Protection Agency has been a leader in educating Americans about the risks of indoor radon gas and in helping all our people to safeguard their homes against this silent killer. Working in concert with both public and private health and educational organizations, the EPA has developed a strategy to demonstrate both the ease and the importance of testing every home and other buildings for radon. Millions of Americans have already performed this simple and inexpensive test, and hundreds of thousands have taken action to reduce dangerous levels or radon in homes, schools, and office buildings.

I commend all those who are participating in special activities during National Radon Action Week to raise awareness not only of the dangers of exposure to radon, but also of the measures we can take to reduce such exposure. You are helping to create a healthier environment for us all.

Best wishes for a successful observance.

[Signed]

Bill Clinton

 


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