The 3 ways to make money in the home service industry. PERIOD!

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When I say period, I mean it. This is it. Three ways. The holy grail if you will. Now I know you are going to say this is obvious, but I don’t think the average home service industry really realizes how obvious this is! People are always talking about the bottom line. What they need to make the company float. Well if you need more to make your company profitable, I have the answer. You ready? Think you can handle three tasks? Okay then…

#1. Increase profit margins by increasing your prices.

This is never the first thing people want to do, but it is the quickest, and sometimes easiest way to bump up your bottom line. The problem with doing this every time you need a boost? People are going to stop coming to you for service. It’s difficult in the home service industry to find a balance sometimes. The average consumer wants to pay as little as possible for service. Especially when it’s something they have to fix. I often remind customers that putting a little more out now will save money down the road. If you invest that extra $100 in a new garage door opener, for example, you will have a better warranty, better return on the investment when it comes time for resale of the home and lower maintenance costs during the duration of your ownership!

Now, there are times when you need to be sensitive to people’s needs. I was doing a job for a single mother the other day. Her opener was broken and really needed to be replaced, but she just didn’t have the funds to purchase an opener that day. I was able to repair the current opener so she can save for a new one. I walked away from that $90 job (which honestly didn’t even cover my overhead!) with a lifetime customer who was so satisfied with our service she wrote a glowing 5 star review on Yelp. You can’t pay for advertising like that! Chances are she will tell all her friends about us as well. Cha Ching!

#2. Begin booking new clients.

Obviously, you need to advertise in order to get new clients. However, not all advertising costs your company money. In my article “Book More, Spend Less”, I refer to the power of the review. The least expensive advertising you will ever have is a good customer review. Get your current customers to rate you and you will discover that the new clients come to you!

I have my techs tell the customer that we would love a review. We always explain that if they feel we did anything less than a 5 star job, please let us know right away so we can correct the issue. Sometimes it’s a simple request from the customer to have the tech explain the buttons on the new garage door opener one more time; or having the tech sweep the garage out! Little things like this, really being attentive to your current customers, will pay out in the long run. They will begin recommending you. When they write a great review, they give you a personal recommendation that goes a long way with potential new customers. We get a lot of customers from Yelp, Google, and Angies List based off our 5 star rating.

#3. Increase the frequency of your calls.

Following up with clients is a great way to increase the revenue of your company. Not only will it allow them to feel more comfortable with recommending you to other people, but it develops a committed relationship. They will think of you first when there is any kind of issue. No need to look up someone online first!

But frequency doesn’t just apply to past customers, it applies to the number of jobs done in a day as well. It is often more beneficial to hire another technician so that your company is able to take more calls. Yes, that means that your overhead may go up a little because you are paying another person, but being able to add 5-7 jobs each day will make up that difference very quickly.

In short, there are only three ways to make money and each of them may cost you a little in the beginning. You may see a brief drop in customers if you increase prices, but the clients that stay with you will make up the difference with a higher ticket. You may need to spend a little on advertising, but the clients that brings in will outweigh the cost in the long run! And if you have to hire one more technician, adding those extra jobs on the schedule will bring in that cost and then some! Don’t be afraid to spend a little to increase your overall revenue. You will be glad you spent that, and at the end of the day it will only seem like a drop in the bucket.

Tommy
As a leading authority on branding and market recognition, Tommy aims to help other service businesses reach their full potential.

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