I won’t even talk about commercial plumbing and heating because that would be stealing from a forthcoming blog post. Okay, here is what I know: during times of plenty, new home construction is very lucrative work for people in the contracting world. The orders for new houses keep growing month after month, money is rolling in and you can’t seem to find enough employees to meet up with demand. But then, as always, bad times roll in. Fewer orders for new homes, your existing builders have you by the balls and are squeezing you to lower your prices (even though new home construction is built on the low bid mentality, they still want you to go cheaper, work faster, do more with less)
Where I live, out here in Western Canada, new home construction has all but dried up. It’s always feast or famine in new homes, and I’ve seen the boom or bust cycles come and go ever since the early 1980’s. But what has struck me about this bust cycle is how fast the bust came. 18 months ago, new homes were going great guns and suddenly POOF – it’s over! A lot of home builders have shuttered their windows and closed the blinds. A lot are trying to keep afloat by doing a bit of commercial work and a bit of residential work if they can get it.
And that’s the thing about new home construction: it’s great work if you can get it but unless you’ve got something to fall back on during those bust cycles, you’ll wind up out of business.
For me, a good business person wants predictable, steady revenue. They want incremental growth and most importantly, they want to capture some market share. I have a saying: everybody’s gotta flush. When times are good and times are bad, people gotta flush. They need heating. Cooling. A roof over their head. They need electricity running their homes and from time to tome, those things tend to break down, get plugged, spark and leak or need complete replacement. That’s the land of milk and honey for the home services company. Something breaks, you call a repairman and he’s on his way in a truck loaded with thousands of parts. (Hopefully).
Look, I’m not here to slam new home construction. When times are good, it’s a great way to make money. But I gotta tell you, there are a lot of poorly constructed new homes in my city with badly installed HVAC equipment and plumbing that barely meets code. This happens because companies cut corners. They cut corners to make money because the big builders want you to do the same work for less and less every year! They’re freaking leeches! I would never buy a new home and I advise my kids the same: never buy a new house because so many of them are crap.
If you want to grow your business then you need two things: time and predictability. Both are available in residential repair and replacement. And you can REALLY grow your business if you’re priced right, unfortunately 98% of home services companies think that the lowest price is the only way to get the business. That. Is. Insane.
We can show you how to price yourself up to 50% higher than your competitors AND increase market share. We can show you how to run fewer calls but for more money and with happier customers.
If you’re in new home construction and you’re thinking about making the change to residential repair and replacement – the prime rib of contracting in my humble opinion, give us a call or fire off an email to email@example.com