It’s tough work trying to make a profit in the plumbing, HVAC, electrical or roofing business. Depending on where you live, it’s often a tight market and competition is fierce among home service providers. Yet in every market, there are always one or two companies who don’t seem to suffer the way your company does. And you know they’re probably a hell of a lot more expensive than you are. (Admit it. You know it’s true.)
So how do they do it? How are they able to capture the lion’s share of the market while at the same time offering the same kinds of services you provide, but for more money than you charge?
They figured it out. Simple.
No, I’m serious.
Chances are, the owners of those companies started their businesses in the back of a truck just like you did (or are doing). They priced their services according to time and material, just like you. They went and did repairs, just like you. They gave prices over the phone, just like you. They dropped off bids (just like you) instead of actually sending in fully trained commission sales people to close sales. (Something you don’t do.)
They probably scratched their heads and wondered how the hell they were going to manage to move ahead of the pack when they were literally scrambling to meet payroll.
Does any of this sound familiar? Look, I’m not here to blow smoke up your behind. If you’re reading this, you’ve probably spent some time on my website and you’re probably a business owner who is wondering, just like the top 5% in your market once wondered, “how the hell do those guys do it?”
I’ll tell you how right here, right now: The owners of those businesses decided to change.
They made a mental decision that somewhere out there, somebody must have the answers that can help them turn their businesses around. They recognized they were on a treadmill alongside all their competitors and that treadmill is called “The Lowest Price Machine”. They realized that you simply cannot in a THOUSAND YEARS, grow your business while being the cheapest place in town. They decided to change because if they didn’t, market forces would continue to drive them down, making them less and less money every year until they were out of business.
Those business owners had to change their mindset as well. They had to recognize that while being a repairman is a noble and honorable calling, it ain’t exactly the way to make a lot of money. They had to embrace the fact that value was something their customers craved. Five star service and yes, they would have to upsell people to make more money.
And I think that’s one of the reasons a lot of business are afraid to change: they don’t want to be salesmen. They don’t want to have to ask for the business. They just want to go, do the repair, present the bill and walk out the door to the next call. Smart sales coaches call it”The Conundrum of Human Nature”: literally knowing what you have to do to change things for the better and then doing the complete opposite. It makes no sense, but you’ve been doing it for years. We all do. And it takes a true leader to bust out of that mindset and make the change for the better.
I’ll be blunt: if you want to make the change, most contractor groups (you know the ones – they always have big conventions in big hotels every year) will charge you about $1500-$2000/month to do it – and that’s just to be a member. There’s also the cost associated with accessing their programs and services on top of the monthly fee.
That’s another reason why some contractors refuse to make the change: they are working on razor thin margins to the extent that they may not have a spare $1500 to invest in making their business more profitable.
But imagine if that $1500/month brought you in an extra $10000 a month! What kind of growth would you experience then?
Home Service Profits doesn’t charge $1500-$2000/month. Our approach is different in that we’ll charge you $250/month for email, phone, Skype support. We charge an upfront price for all our courses which can be delivered in your shop and customized to meet your needs. And if you can’t afford that, we’ll sell training packages that can help you get the ball rolling on everything from how to answer the phone to how to run a service call.
Do you want to make the change? Do you want to grow your business? Are you itching to give us a call but afraid that you can’t afford it? Look … make the call. There are solutions out there – affordable ones. The mere fact that you are still reading this blog post points to the truth of things: you know it’s time to make the change, but do you have the courage to do so?
It’s your business. It’s your choice. There is a better way. We can help.