Valuing Employees, Customers Helps Skilled Trades Companies Combat Inflation

As inflation continues to rise worldwide, the high cost of doing business is on the minds of company leaders, from the small business owner to the CEOs of the largest corporations.

This is particularly true of home service company owners who have been besieged with issues since COVID-19 began interfering with the way we do business in 2020.

Between the supply chain interruptions that have prevented contractors from replenishing their necessary inventory and the uptick in energy costs created by inflation and global conflicts, home service business owners have been hit hard with operating issues.

But it’s not all been bad. With more employees working remotely from home, the demand to renovate home-based workspaces, specifically, and improve home comfort systems, in general, has helped drive new business to residential service companies.

In order to remain competitive in the market, many plumbing, HVAC, lawn care and electrical service companies have had to rethink how they present themselves to their customers. Not only do these residential service providers need to streamline their own operations to save money, they also need to provide their customers with money-saving options.

Join the Club 

One of the best ways a contractor can show their worth to their home service customers is to provide them with a club membership or maintenance program.

Most home service clubs provide free, routine maintenance checkups and discounts on repair costs. If your company can show customers how a more efficient HVAC system saves them money on energy costs and repair bills, you can earn client trust and repeat business, especially during the shoulder months when repairs slow down.

But your customers should never have to be club members to receive excellent care. Focusing on providing quality service and making it easy for your customers to do business with you, even when times are tough, can help you succeed when the economy is struggling. Customers want to do business with companies they trust and with those that are reliable enough to show up on time and prepared.

Satisfied customers are also a rich source of referral business. If they give you a sparkling review online, make sure they also feel comfortable dropping your name. Offering referral incentives makes it easy and beneficial for them to recommend you to their friends and family.

It’s Easy to be Green 

The data and market measurement company Neilsen reports that 75% of Millennials are eco-conscious to the point that they are willing to change their buying habits to be more green, but that doesn’t always translate to older generations.

Since most homeowners are people from older generations, your team may struggle to market energy efficiency to this group of customers, but pointing out the savings can turn any homeowner’s head.

Typically, 43% of a home’s utility bills go toward heating and cooling it. By recommending “green” products to your customers, you can help them offset the inflation of energy prices by as much as 50%.

By centering your services around smart thermostats, energy efficient HVAC systems or water heaters and by offering services like energy audits, you can endear your company to your customers. Homeowners like it when you can show them how following some simple tips or purchasing the right equipment can save them money while also investing in the future of the home’s comfort systems.

Streamline Your Operations

Economic downturns can also create problems for the home service business owner internally.

While you may be concerned that customers might hold off on spending for repiping or may try to get another year or two out of their old HVAC unit, there are business decisions you can make to take the pressure off your team.

That might mean you have to spend a little money to ensure your company can make it through the hard times.

For example, investing in inventory, fleet or field service management software may cost you some money on the front-end, but the savings it can provide can mean the difference between surviving and thriving.

Outside of payroll, inventory is the biggest cost for most contractors. If you are able to keep track of your existing equipment, predict when equipment will need to be repaired or replaced, and improve your demand forecasts, you can save time and money by limiting equipment loss. Streamlining your fleet management and dispatching can help you get the closest available team to the right location, saving you hundreds of dollars annually on gasoline and labor costs.

You should also consider using technology to handle some of your more standard functions. Helping your customers book service for themselves online and using artificial intelligence to help you write processes or provide marketing assistance are two ways that modern technology can help you build your business during an economic downturn.

At CEO Warrior, we rarely recommend cutting your marketing and customer service teams during a recession because these functions earn your company the business it needs to survive. But, AI, chatbots and online booking platforms can supplement your current marketing and customer service teams so they are more efficient.

Invest in Your Team

While it may seem counterintuitive to spend more during an economic slowdown, if you consider it as an investment, it begins to make more sense.

Well trained employees provide your company with a competitive advantage because they better understand the latest trends and technologies. They also see that they are valued, which helps you keep the employees you have and allows you to attract the employees you need.

When employees are trained, they understand their jobs better, resulting in higher worker satisfaction. This increases their productivity, allowing your team to get the most out of their workday.

Companies like CEO Warrior, for example, provide your team with the leadership skills they need to help your company overcome disruption and improve your company’s processes and efficiencies, which help you save money.

While we have seen inflation fall from its 2022 heights, its effects may linger as people return to work or struggle to regain buying power. Until then, you can help your home service business stave off the challenges of the economic slowdown by investing in your customer service and employee well-being.

Written by Jason Noel.

Have you read?
Measuring Green: Environmental Performance Metrics and Strategies for Sustainable Business Practices.
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Leadership Excellence: Practical Approaches to Managing Perfectionism.
Jeff Smith, BlackRock Former HR Executive, Reveals How Psychology Can Shape Leadership Success.

This report/news/ranking/statistics has been prepared only for general guidance on matters of interest and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, CEOWORLD magazine does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.

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