When it comes to selling jobs, educating consumers about what things actually cost is a big part of the hurdle. Most homeowners go through sticker shock when they find out what their remodeling project will actually cost.
But what if homeowners came to contractors with a good understanding on the project scope and costs — and all contractors had to do was convince them that they’re the best firm to handle the job?
That’s the vision of a new online home improvement service that offers homeowners interactive scope definition tools and dynamic cost estimates they can use to request RFPs. Called Emprove (a marriage of “empower” and “improve”) the service is launching in Las Vegas and will expand to the greater Los Angeles and Phoenix areas in 2019 before a nationwide rollout.
“The way it is now is that you have a well-intentioned contractor looking to provide a good service to a well-intentioned consumer who needs their service. But that’s not enough,” said James Noel, CEO of Emprove. “They both need to have clarity around the project scope and expectations.”
He points to surveys from Zillow that show 72% of homeowners plan at least one home improvement project over the next year. But those same homeowners struggle with how to pay for those projects and understanding how much things really cost. “They’re going to have sticker shock when they realize the vision for their kitchen doesn’t actually only cost $10,000. It’s actually closer to $45,000,” he said.
Most online home improvement services don’t address this need. Instead, they simply help consumers find contractors, Noel said. But Emprove seeks to educate consumers about project costs and even provide a preliminary cost estimate — before it connects them to contractors. “All indications of market data point to the fact that consumers are not well informed,” he said. “This is going to fill a vacancy that’s not provided for in the market.”
Once homeowners submit their proposals, contractors in the Emprove network receive a preliminary RFP that includes important details such as parking availability, HOA approval, material storage space along with homeowner-created style boards, to help contractors decide whether to respond to the RFP.
Contractors who decide to respond can then visit the home and do a project interview before making their own bid. Even though contractors essentially must bid against the cost estimate the platform created, Noel said it’s no different than bidding against competing contractors. “It’s your job as a contractor to convey value,” he said.
So how does Emprove create its cost estimates? Noel said it’s informed by his 15-plus years as a commercial contractor doing conceptual estimates along with comprehensive industry cost surveys and local market data including labor and material costs. “We have a very comprehensive data engine,” he said. “We’re not looking to do what contractors do. We’re just looking to better inform the consumer and we expect that our pricing will be in line with the market.”
At launch, Noel said Emprove will focus on the inside of the home. But he expects it to expand to exterior projects sometime next year. While there’s no fee to respond to an RFP, contractors who win RFPs pay a “success fee.” That’s $99 through the end of the year. But the fee goes to a tiered rate after that of:
■ $49 for project cost of $0-$1,000
■ $199 for project cost of $1,001 – $2,500
■ $249 for project cost of $2,501 – $5,000
■ $499 for project cost of $5,000+
Compared to the money contractors currently pay just to get leads, those fees are a bargain because they represent informed clients who are ready to sign, Noel said. “They’re spending time chasing and calling right now,” he said. “So they should be happy about receiving an email with a detailed proposal. We have weeded out the consumers who aren’t quite ready.”
