Explore the Pros and Cons of Adding More Services to Your Home Performance Business
Thursday, July 26th, 2018 by Hal Smith
Do you have any desire to transform your home performance business into a business that is passionate about “Customers for Life”? Most home performance businesses are “One and Done.” That means that, for example, customers only insulate their home one time. So, if insulation is the extent of your services, you will only be connecting with that customer once.
Let’s take a look at both business structures. It’s a conscious choice! There are pros and cons to both options. This break out will help you look at both sides and take a deep look at the pros and cons of each type of business.
“One and Done” type offering, like insulation.
- You can focus and be very good at a small work scope, typically insulation and air sealing. Hopefully, this minimizes your headaches.
- You can specialize and be better prepared and more efficient at a narrow work scope.
- It is much easier to get people to understand exactly what you do! Your elevator speech is relatively short.
- Not a lot of repeat customers. You are always finding new customers, although you can still plant the seed for referrals.
- You have to say to the customer, “Sorry, we don’t do that” when they ask for other services.
- You may need to refer others or subcontract the work.
- When work slows down in one area you don’t have other work to switch to.
- You may lose jobs to companies who offer a broader, more comprehensive work scope.
“Customer for Life type approach”. You offer a variety of products and services.
- You almost always can say, “Yes, we do that.”
- You can look at the home with your eyes wide open, always looking for other opportunities.
- You end up with a lot of repeat business because the customer gets to know you and trusts you. They call time after time. Year after Year.
- Your marketing budget becomes very low because of your repeat customers.
- You never seem to run out of work when you have a broad scope of services.
- Customers typically seem happier when they can trust and count on one contractor rather than many!
- You can set up annual maintenance agreements and get reoccurring revenue.
- You never ever get bored!
- You truly own a sustainable business that can be sold or passed on to future generations.
- You must hire a lot of people with different skill sets to perform a well-rounded work scope.
- You are managing a lot of different skill sets as well as many different personalities.
- This type of business typically includes HVAC, which leads to 24/7/365 emergency service type coverage. Be prepared to run a 24/7/365 business.
- It can be overwhelming at times.
All that said, Halco has developed a customer for life type business.