As every business owner knows, the economy is not predictable and the constant fluctuations can wreak havoc on your business. Although many business experts predict that 2018 will be a good year for HVAC/R contractors, many are adding or expanding services to help combat the unpredictability of consumer spending habits. Since most contractors have a loyal customer base, it is relatively easy to add new home services to their portfolio and reap the benefits of having additional streams of revenue.
According to an article in The News recently, Paul Stalknecht, CEO, ACCA, stated, “We’re really excited about the fact that more and more contractors are recognizing the need and the mindset to ‘own the home.’ We’re seeing more contractors getting involved in more areas of the home, like the whole-house building envelope, home automation, security systems, and even some that are getting involved in media and sound systems for the home. Those of them that do that have a tremendous upside in their business for the coming year.”
If you’re looking to add additional home services to your business portfolio, here are some things to keep in mind:
- Customer Research–The first step is to conduct research by asking your customers what types of home services they are currently or will be looking for in the near future. Your customers are the best source of information when it comes to what they are going to do in their homes, so make sure that you’re leveraging that valuable resource to help you grow your business.
- Research the New Service Offering–Make sure you have a complete understanding of the new service you are considering so that you can assess the value of the service to your customer and your business.
- Become a Subject Matter Expert –You will need to have deep knowledge of the new service offering to ensure that your customers trust you and look to you as an expert.
- Know Your Competition–Take a close look at the businesses currently offering the service you are considering, in order to understand how they are positioned in the market and what their strengths and weaknesses are.
- Staffing vs. Partnerships –Since the new services you are considering may require a different skill set than your current staff currently offers, consider the costs, timing and availability of talent that will be associated with hiring new employees versus creating partnerships with contractors who already provide the service.
- Marketing the Services – Make sure you know how potential customers look for the services you are adding to your portfolio, to ensure that you’re marketing to the right channels.
- Sales Process –Take a look at your current sales process and determine the best way to position your new service offerings to encourage your existing customers to hire you for a wider portfolio of services.
- Customer Service is Key –As with everything that comes with owning a service business, customer service is integral in ensuring that the customers are satisfied with all services delivered. When you add a new service, it’s important that your customer service team pay close attention to how these services are performed to make sure your loyal customers become raving fans.
The benefits of adding ancillary services to your business are huge. Many contractors who have added electrical, security, technology and home automation services have reported that their accounts increased dramatically year over year. In addition, contractors report that employee retention increases by being able to hire a variety of skilled tradesmen.
Source 1™ HVAC Supply Centers have access to a wide variety of products and can assist you in determining the best products to use for expanding your service portfolio. Visit www.source1hvacsupply.com to find your local store and get started today.