Remodel business adds maintenance contracts

Maintenance contracts add profit and build synergy for your remodeling business.

10 MIN READ

Personality traits should also be considered. “It’s somewhat of an autonomous job, so they do need to be able to work on their own, take responsibility for the work being done — recognizing the need for and seeking help when necessary — plan accordingly, and follow it through,” Rudman points out. “Because the tech will be working in finished homes, it is important that they are trustworthy.”

The right employees can often take a maintenance program to the next level. Croom gives much credit for WhiteHall Professional Home Maintenance’s success to general manager, Bob Tutton, a retired marine, who has a degree in facilities management. Tutton joined the company about a year after Croom and his team had started developing the program. Tutton then spent another year putting the maintenance program together. He now oversees the operation.

More than likely, a remodeler will already have a handful of employees who fit the profile. All of Wardell’s service techs come from the company’s existing employee base. It’s also an excellent opportunity to offer employees a chance to grow with the company or to try something new.

The job’s diversity has led to virtually zero turnover for Harrelson’s Home Improvement Co. in Siler City, N.C. “The company is so varied, I can keep a lot of these multitalented employees working year-round,” says owner Mike Harrelson. “Because they have work, I have loyalty from them.”

SPECIALTY MARKETS While the remodelers interviewed for this story all agree that a maintenance program can typically work in any market across the country, there are a handful of niche markets that are ideal. High-end homes, like those in Wardell’s market, and vacation areas are top choices. Boardwalk Builders in Rehoboth Beach, Del., operates a property watch program from September through May for seasonal homeowners. The company will check on the home once every two weeks, or every 24 hours during bad weather. “It doesn’t really drive much income, but is more a service for previous customers,” owner Patty McDaniel says.

Another avenue is commercial or government organizations. Harrelson has an annual contract with a local family wellness center. He gives the center a set amount of hours at a regular rate, then helps them budget for emergency services. Harrelson also manages a 12-acre, 40,000-square-foot estate in nearby Greensboro.

CREATING SYNERGY One of the biggest advantages to setting up a maintenance program is the synergy that builds among a company’s entities. “It’s a good lead-generator for both sides of the business,” Gruber says. Home Check Plus employees performing maintenance are trained to keep an eye out for potential remodeling projects. Similarly, remodeling clients are informed about the maintenance program.

Traditional avenues of marketing and advertising can also be successful, including Yellow Pages ads and direct mail. But referrals seems to be the best marketing strategy. “Of all my business, 99.9% comes from word of mouth,” Harrelson says.

Rudman suggests talking with existing customers and explaining the benefits of the program. “The subcontractors the company works with can also be a good source of referral,” she says. “The neighbors of the homes being worked on by the company sometimes get to know the techs and will ask for work to be done.”

“It’s a good way to differentiate yourself in your market,” Wardell adds.

Amy Campbell is a senior editor for REMODELING.

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