I am wondering if anyone on here offers an electrical home maintenance plan to customers? And if so, if you have been successful at being profitable with it? And what that looks like? I have been in business for myself for over a year now, I have used the same platform for managing things for a little less than a year, and I have several hundred customers contact info in my platform, and just thinking of ways to monetize it.
Electrical home maintenance plan
- Thread starter Eli1211
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mopowr steve
Senior Member
- Location
- NW Ohio
- Occupation
- Electrical contractor
I say if you can come up with the man-power to do scheduled maintenance for homeowners ——-go for it!
The thought has crossed the my mind but not sure how it would do. Finding the kind of customer with the mentality to spend money every year on maintenance issues with their electrical.
The thought has crossed the my mind but not sure how it would do. Finding the kind of customer with the mentality to spend money every year on maintenance issues with their electrical.
hbiss
EC, Westchester, New York NEC: 2014
- Location
- Hawthorne, New York NEC: 2014
- Occupation
- EC
Exactly. You can probably suck some Millennials into believing they need it, but anybody with any homeowner experience will know that electrical systems don't require much in the way of maintenance.
-Hal
ptonsparky
Tom
- Occupation
- EC - retired
Reminds of back when….
Employer had a customer that wanted her humidifier serviced every year. Being a newbie I was sent. So I cleaned it. Looked like no one had ever touched it. Cleaned the lime off the elements and out of the tray. Found out later, when the boss asked what the hell did I do over there for four hours, the normal procedure was to turn it on and wipe the dust off the exterior.
Yes, immersed elements in a water tray. Only one I’ve ever seen.
Employer had a customer that wanted her humidifier serviced every year. Being a newbie I was sent. So I cleaned it. Looked like no one had ever touched it. Cleaned the lime off the elements and out of the tray. Found out later, when the boss asked what the hell did I do over there for four hours, the normal procedure was to turn it on and wipe the dust off the exterior.
Yes, immersed elements in a water tray. Only one I’ve ever seen.
I’m not thinking so much as scheduled maintenance, but as purchase our plan (whatever we end up calling it) and IF something happens you will save tremendously. Electrical insurance essentially. Cost would be around $15 a month. Perks would be, 30% off our services, never pay emergency rates, priority scheduling, a yearly safety inspection of your electrical system (where I can point out things they may want to consider having done that would add to the safety of the home, example adding GFCI outlets where they need to be), etc…There are two other EC in the area that I have found that offer something similar. I was hoping to come across someone on here who was doing this or they had at least taken a shot at it. I’m going to move forward with it and see how it goes! Thanks for the feedback.
Fred B
Senior Member
- Location
- Upstate, NY
- Occupation
- Electrician
I would check with an attorney whether this amounts to an "insurance" policy that would require a reserve balance be maintained for in the event of a catastrophic event causing multiple claims at same time, if what you are proposing is similar to the many home "warranties" that are currently being marketed.
Do you have a large customer base to market your "insurance" to? In order for it to pay off your "premiums" would need to meet or exceed any "losses" from the "give-aways" you are promising to your insured. If every customer was to "take you up" on the policy promises what would that look like to your bottom line. Can't count on upselling to every or even most customers to make up for any losses on making good on a policy claim.
Do you have a large customer base to market your "insurance" to? In order for it to pay off your "premiums" would need to meet or exceed any "losses" from the "give-aways" you are promising to your insured. If every customer was to "take you up" on the policy promises what would that look like to your bottom line. Can't count on upselling to every or even most customers to make up for any losses on making good on a policy claim.
You would do all that for 180 a year?
You will spend more than that on the safety inspection alone.
I guess good upsells would be worth it if they bit.
brantmacga
Señor Member
- Location
- Georgia
- Occupation
- Former Child
The point of these plans is to retain customers; you won’t make money off the plan and you certainly won’t make money giving them 30% off. You can’t bill it monthly; they have to be invested for a year at minimum.
When we did it, the discount was roughly 10%. The average service customer that signed on would usually even out on their savings vs service plan investment. Once they realize that, they’re no longer signing up.
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Years ago we used to work for a 'home warranty company', it went something like this, a local Realtor would include a 1 or 2 year policy as a perk when working for first time home buyers, then if anything broke in the house the new homeowners would call the 800 number and they would send out the appropriate trade.
The insurance would pay us some flat minimum fee to show up, and we'd collect a $50 copay, then we'd have to get authorization to make further repairs.
I'd say 99% of the ones I went to were completely new and clueless homeowners and could be done on the minimum;
tripped GFCI, broken off light bub in the socket, noisy vent fan, tripped overload in disposal or wall heater, and to many plug in space heaters on a circuit.
The policy would not cover much more than the minimum, a few times I tried to bill them for a panel change out and it was lots of extra paperwork, I have no idea what the policy cost.
When our rates went up one time we lost the contract, but then some of the homeowners continued to call us and just pay us, so I think the policy was worthless.
The insurance would pay us some flat minimum fee to show up, and we'd collect a $50 copay, then we'd have to get authorization to make further repairs.
I'd say 99% of the ones I went to were completely new and clueless homeowners and could be done on the minimum;
tripped GFCI, broken off light bub in the socket, noisy vent fan, tripped overload in disposal or wall heater, and to many plug in space heaters on a circuit.
The policy would not cover much more than the minimum, a few times I tried to bill them for a panel change out and it was lots of extra paperwork, I have no idea what the policy cost.
When our rates went up one time we lost the contract, but then some of the homeowners continued to call us and just pay us, so I think the policy was worthless.
brantmacga
Señor Member
- Location
- Georgia
- Occupation
- Former Child
The policy you are referring to is about $500 for the average home.
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- Location
- Placerville, CA, USA
- Occupation
- Retired PV System Designer
I would suggest an attorney's opinion on what language could keep a "prepaid electrical maintenance plan" from falling under the supervision of the state Department Of Insurance.
Prepaid legal service plans have been an employer perk for quite a while.
Prepaid legal service plans have been an employer perk for quite a while.
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jeff48356
Senior Member
- Location
- Livonia, Michigan
No doubt! Millennials will spend money on anything like it's nothing!
It would not be an insurance plan. Brantmacga, touched on what I have going on in my head in regards to the plan. It would essentially be another way to maintain a loyal customer base. Yes, we would bill them once annually, at $165 for the year, so if 100 people sign up that’s over $16k we can count on annually. The $165 covers the yearly electrical home inspection. Most homes need electrical upgrades, so hopefully I can sell people on those at a 10-20% discount. We are not the cheapest contractor around and not the most expensive, so I think even at a discount there is still money to be made there. I’m in the Midwest, things tend to slow down in the winter, so I would make that bill due for everyone in the winter. I agree 30% off our services may be a bit much, 10-20% may be wiser. Consulting an attorney may not be the worst idea. However, I do not believe this amounts to insurance. We plan on rolling this out after the holidays, if it’s a bust, then it’s a bust, but I just wouldn’t be me if I didn’t try things for myself lol
Brantmagca, I did not consider the fact that people may start to realize that it essentially evens out. Maybe we will be able to sign up more new people than the existing we lose. I don’t know. I’m just always thinking of ways to continue to be more profitable and grow. If it doesn’t pan out, then it doesn’t, but I gotta take me shot.
Why did you pick $165?
Is there someone offering competitive services at 15 per month and you’re just trying to undercut them?
brantmacga
Señor Member
- Location
- Georgia
- Occupation
- Former Child
The member plan fees are not a money maker. The discount you give them evens out with their fees, and anything above that you’re just giving them money back. The sole reason for a plan like that is customer retention; they would be more inclined to call you for the discount plan they’ve invested in.
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electrofelon
Senior Member
- Location
- Cherry Valley NY, Seattle, WA
Obviously that is a gross overgeneralization. I'm not sure most people even realize what age group a millennial is. I in fact am one year shy of being a millennial (I'm 42). Thus many of the younger forum members here are millennials.
ptonsparky
Tom
- Occupation
- EC - retired
IIRC, the only one I think I recognize are the Boomers.
Now what was the subject at hand?
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