You’ve heard it said there are only two things you can count on in life and that is death & taxes. I would contend there is a third component you can bank on, “Things deteriorate over time”!
There is an actual chart that accountants use to apply to the life expectancy of products that are used in our homes and businesses. This is known as the “Standard Estimated Life Expectancy Chart for Homes”
- Paint 7-10 years
- Roof 15 years +
- Air Conditioning 5-7 years
There is no question that the property service industry is based upon NEEDS, not wants.
Where does that leave the business owner? The key is not to convince your customer to fix their roof, for the roof itself by leaking will let them know. The business owner’s job is to provide a better product, perform a greater service and create a better customer experience and SHOW UP!
This is called gaining market share.
In years past gaining market share was a much more complex matter. Today it’s a matter of SHOWING UP. That’s right – just show up. Have you listened to your friends and family and colleagues complaining about how they have tried to get a repair done and the contractor never shows up or if they do, they are unprofessional, overpriced and lack commitment?
Customers want service providers that will answer the phone and that can be trusted to do what they say. You do this and you will have all the business you need plus more.
The property service industry had their best year in 2020 during the pandemic. They grow during a recession and a pandemic, (your grass needs cutting regardless of the state of the economy).
The global home services market is expected to grow 18.91% per year from 2019-2026. Though many providers faced hardships at the start of COVID-19, the industry has since rebounded.
Source: https://www.verifiedmarketresearch.com/product/global-home-service-market-size-and-forecast-to-2025/
As people retreated to their homes, consumer spending followed and there was an unexpected boom of economic activity around the home. This shift in spending to the home from activities like eating at restaurants or traveling, combined with existing strong demographic, economic, and cultural tailwinds has resulted in considerable growth in the size of the total addressable home service market.
No longer are homes strictly assets we use to force us to save—they are the new center of our personal and professional lives. Home spending decisions are more and more being driven not only by pressing maintenance repairs, but now also by enjoyment, utility and lifestyle.
The housing stock continues to age, with the average age of a home now over 40 years old, and continuing to age as the rate of new home construction – between 500,000 and 1,500,000 new units per year – is not enough to bring down the average age of the 141,500,000 existing housing units.
Conversely, the younger millennial generation is hitting its peak homebuying age (early 30s), meaning a new influx of homeowners looking for their dream home is putting upward pressure on the demand for remodeling.
Source: https://www.angi.com/research/reports/market/#ixzz76f6A61M2
Besides the great demand that is driving the property service industry, another reason to consider owning a franchise in this space is that it is typically a low cost of entry and can be home based initially and not tied to a real estate lease or physical building. These businesses can be easily scaled into multimillion dollar enterprises and can create a nice recurring income into the future.
Property Services is the place to be in 2021 and beyond.