amazon’s new home services “opportunity” · 2015-03-25 · pressure washing, gutter cleaning,...

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In late March, Amazon.com announced the introduction of Amazon Home Services, a place where people can shop for someone to help with home projects, such as pressure washing. (The beta program actually quietly launched back in November.) This makes Amazon the most recent company to jump on the home service provider bandwagon – joining the likes of Angie’s List, Thumbtack, etc. – to connect its users with service providers. Amazon rationalized the need for their new program by explaining that once people buy items through Amazon, they often have to hire someone to install or service the purchased item. Now they can find those professionals through Amazon. Amazon currently lists several services that are offered by eClean readers, including pressure washing, gutter cleaning, snow removal, holiday light installation, window cleaning* and roof inspection/moss removal. (All are listed under the “Lawn and Garden” section.) Amazon is positioning this service to homeowners as a trustworthy, exclusive platform, and they are limiting who they allow to offer services on their site. Amazon says that on average, they are only accepting three out of every 100 service professionals in a metro area. To qualify, companies must be insured, licensed (when licenses apply), and pass a six-point background check. Amazon also researches online reviews of each company. Once approved, every technician that works for the company must pass a comprehensive background check every two years. If you’re a consumer, this probably all sounds pretty good. You can simply go to Amazon and find a reputable company to complete the service you need done. You can see what this company’s other customers have to say before hiring them. You see the estimated price up front, and you get to pick the day and time that works for you. What’s not to like? If you’re a cleaning company, Amazon touts that it’s a privilege to be included because they only accept the best of the best to be their service providers. But is that really true? Are the best contract cleaning companies even interested in something like this program? To find out, eClean recently conducted a reader survey about the new Amazon program. And I suspected, while a few companies have already applied and been accepted by Amazon, a number of cleaning contractors voiced that they want nothing to do with Amazon Home Services (or similar services for that matter). “Amazon” 25 Amazon’s New Home Services “Opportunity” By Allison Hester – Is it Right for You? Marketing

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Page 1: Amazon’s New Home Services “Opportunity” · 2015-03-25 · pressure washing, gutter cleaning, snow removal, holiday light installation, window cleaning* and roof inspection/moss

In late March, Amazon.com announced the introduction of Amazon Home Services, a place where people can shop for someone to help with home projects, such as pressure washing. (The beta program actually quietly launched back in November.) This makes Amazon the most recent company to jump on the home service provider bandwagon – joining the likes of Angie’s List, Thumbtack, etc. – to connect its users with service providers.

Amazon rationalized the need for their new program by explaining that once people buy items through Amazon, they often have to hire someone to install or service the purchased item. Now they can find those professionals through Amazon.

Amazon currently lists several services that are offered by eClean readers, including pressure washing, gutter cleaning, snow removal, holiday light installation, window cleaning* and roof inspection/moss removal. (All are listed under the “Lawn and Garden” section.)

Amazon is positioning this service to homeowners as a trustworthy, exclusive platform, and they are limiting who they allow to offer services on their site. Amazon says that on average, they are only accepting three out

of every 100 service professionals in a metro area. To qualify, companies must be insured, licensed (when licenses apply), and pass a six-point background check. Amazon also researches online reviews of each company. Once approved, every technician that works for the company must pass a comprehensive background check every two years.

If you’re a consumer, this probably all sounds pretty good. You can simply go to Amazon and find a reputable company to complete the service you need done. You can see what this company’s other customers have to say before hiring them. You see the estimated price up front, and you get to pick the day and time that works for you. What’s not to like?

If you’re a cleaning company, Amazon touts that it’s a privilege to be included because they only accept the best of the best to be their service providers. But is that really true? Are the best contract cleaning companies even interested in something like this program?

To find out, eClean recently conducted a reader survey about the new Amazon program. And I suspected, while a few companies have already applied and been accepted by Amazon, a number of cleaning contractors voiced that they want nothing to do with Amazon Home Services (or similar services for that matter).

“Amazon” 25

Amazon’s New Home Services “Opportunity”

By Allison Hester

– Is it Right for You?

Marketing

Page 2: Amazon’s New Home Services “Opportunity” · 2015-03-25 · pressure washing, gutter cleaning, snow removal, holiday light installation, window cleaning* and roof inspection/moss

How the Program WorksAs already mentioned, Amazon’s

approval process takes a number of things into consideration – licenses, insurance, customer reviews on the web, and a thorough background check.

Once approved by Amazon, there are two ways for service providers to set prices. First is a basic per-job estimate. For example, in looking up “Pressure Washing” under a specific zip code, I find two different options: “Pressure Washing” or “Hire a Pressure Washer.” If I choose “Pressure Washing,” I’m brought to a screen that asks what I need to have pressure washed. Decking? Driveway? Home exterior? And I also have to select the size – less than 2,000 square feet or more than 2,000 square feet. With each selection, an estimated price pops up, showing who the price is coming from, and a promise that the estimate is backed by Amazon’s “Happiness Guarantee.”

In the case of zip code 90210 (I chose that as my test zip code since the service is not yet here in Little Rock), the estimated price for a less than 2000 square foot home was $250, while it was $479 for a more-than-2000-square-foot home. (One company – a maid service – showed up for the lower price range, and one company – an electrician – showed up for the higher priced option.)

If I add a service to my shopping cart, I’m then given an array of dates/time slots from which to choose. Once added to the cart, Amazon sends the information to the service provider who gave the estimate, and they take it from there. Amazon collects the payment from the customer after the work is done, and then pays the service provider, minus a commission.

Again as suspected, the vast majority of those who answered my survey were not comfortable giving a price based solely off of the square footage. There was no way to know what the home was made of, how many stories, where it was located, etc. Granted,

as a contractor, you do set the price for the estimate. And it is supposed to be an estimate – which you are allowed to change if the job requires more than anticipated. However, Amazon assures customers that the listed prices are accurate the large majority of the time. Beyond that, customers may be unhappy about you changing your price, leading to a negative review on Amazon.

Secondly, under this option, customers are picking the window of time that they want you to come out, rather than allowing you to provide options to the customer. In reading through reviews of the two companies that popped up under my search, most were positive (none of them had anything to do with pressure washing, however). The negative ones largely were because of time issues. For example, here’s one that showed up. (Note that I changed the company’s name):

“XYZ’s team did install my bathroom ceiling fan okay, but when I hired him to come out to do another job, he canceled on my last week, and then this week didn’t return my messages at all! The last time we spoke he said he was getting very busy with Amazon orders, and that he would need to move me around a lot. I guess if you can stay at home all day and are willing to reschedule twice and it doesn’t bother you or your job, go ahead and hire him.”

There is a second option for service providers, which Amazon refers to as “custom services,” and it appears to be more contractor-friendly. These services allow for more detailed information for an estimate. Window cleaning appears to fall into the “custom services” category, and there is a second pressure washing category: “Hire a Pressure Washer.”

Using “Hire a pressure washer” as an example, customers are asked the following questions: • What surface do you need cleaned (deck, patio, sidewalk, walkway, siding, garage slab, driveway, multiple, other.)?• When do you need the service? (In the next few days? Other?)

Then there are some boxes the customer may need to check:• This is a commercial property• I need this service on an ongoing basis• Technician will need a ladder for this project

26 eClean Magazine

If we can build a mutually profitable relationship, we will not stand by and miss the market shift.

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• Technician may need to access hard-to-reach areas (e.g. attic, crawlspace, etc.)

Then, in step 2, customers are asked to provide as many details as possible. From there, the request is sent to Amazon’s service providers and Amazon sends the estimates to the customer. The customer is told to “pick a pro” and then is billed once the service is satisfactorily completed.

What’s (Not) to Love? On the one hand, it costs nothing to

become an Amazon Home Services provider, except the time it takes to apply. Instead, Amazon handles the billing and collects the payment, keeping as much as 20 percent of the money.

For some contractors, this is ok. After all, it’s basically a customer that Amazon dropped into their lap. For example, one contractor who responded to the eClean survey has already signed up with Amazon, and has “immediately had new customers.” (A couple of others have joined but have not gotten work yet. Another contractor was approved, but said he has to contact Amazon to find out why his company is not showing up as a service provider.)

Some contractors said they would be willing to try the Amazon program except that the percentage they are taking is too high. Here are a few survey responses:

“My biggest concern is most of the pricing I have seen on the Internet is too low to sustain our company goals and profits needed to stay in business.”

“This type of service just turns customers into price shoppers and service providers into a commodity.”

“A flat fee would work better”

“If Amazon can get the pricing right, then their percentage does not have to be a deal breaker.”

“If we can build a mutually profitable relationship, we will not stand by and miss the market shift.”

For some, the idea of paying anyone a

finder’s fee – even a small percentage -- is an idea they cannot stomach.

“We do not like to pay ‘click pimps’ for leads. Unless the market dictates, we will find our own customers organically.”

“Like the newly acquired Angie’s List’s Concierge Service, this is imposing a barrier between vendor and customer. Never, under ANY circumstances, would I include my company in such a scam.”

(To Amazon) “You and your Homejoy, Thumbtack, Task Rabbit buddies need to just go away. You’re reducing the earning potential of each worker.”

While many contractors agree with this last respondent’s sentiment, these types of services do not appear to be going away. In fact, if anything, there are more – including Google – on the way. So while you may not be willing to join them, there are plenty of companies that gladly will. As the saying goes, if you can’t beat them join them. Only in this particular case, it’s more appropriate to say if you won’t join them, you must figure out how to beat them.

.

.

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28 eClean Magazine

Why did you start your own business? To be your own boss? To set your own hours? To spend more time with your family?

Noted author, speaker, and business owner Howard Partridge has asked these questions to thousands of small business owners. And it’s the questions he’ll be asking attendees of the 2015 Pressure Washing and Window Cleaning Convention, August 7-8 in Washington, D.C.

“The reality is that most small business owners become slaves to their businesses,” Partridge explained. “There’s very little family time. The business consumes their mind 24/7 and they spend a large portion of their days putting out fires.”

But it doesn’t have to be that way. On August 7, Partridge will teach 2015

Convention attendees“How to STOP Being a SLAVE to Your Business and Transform It into a Predictable, Profitable, Turnkey Operation!”

Partridge has helped coach business owners in nearly 100 different industries, but the cleaning industry is particularly close to his heart as he has owned a carpet cleaning business for 30 years. That’s why he was especially pleased when Convention Coordinator Thad Eckhoff asked him to come to the August event.

“In the cleaning industry, we tend to focus on the technical nuances of what we do, but we forget about the business side. Understanding the in’s and out’s of cleaning is important, but some of the most technically savvy people are bad at business,” Partridge explained. “To really grow your business, you have to focus your energy on the business side of your business. That’s what will get you where you need to be.”

Specifically, during his keynote address, Partridge will help convention attendees examine five key areas of their businesses:

1. Marketing: Everything you do to attract prospects to your business

2. Sales: Everything you do to convert prospects into paying customers

3. Operations: Everything you do to service your clients

4. Administration: Everything you do to track your numbers

5. Leadership: Effectively communicating your vision, mission and purpose.

During his presentation, Partridge will uncover the components necessary to allow small business owners more time to pursue the things that are important to them. He will also reveal the number one reason that small business owners don’t succeed like they should.

Bonus Presentations“Howard Partridge’s keynote presentation

will be worth the cost of admission to the 2015 Convention in and of itself,” said Eckhoff.

However, in addition to the keynote presentation, Partridge will also be hosting a breakout session on Saturday, August 8, entitled “How Smooth is Your Ride?” In this interactive session, Partridge will help participants go through a powerful assessment of their business vehicle to see what is working and what needs to be fixed. Attendees will also discover 50 systems that every business must have to be phenomenally successful. And… you’ll take your assessment home with you as a blueprint to retool your business.

A Final Word“My philosophy is that to be successful, you

must surround yourself with people who have already been where you want to go,” Partridge explained. That’s why he has worked closely with well-known leaders such as John Maxwell and Zig Ziglar. “One of the key ways to grow your business is to attend events, such as the 2015 Pressure Washing and Window Cleaning Convention.”

To register or learn more about the August 7-8 event, visit www.TheHugeConvention.com.

Howard Partridge is a noted speaker, author, and business owner. He began teaching his systems to other business owners in 1998, and has become the exclusive small business coach for the Zig Ziglar Corporation, a founding member of the

John Maxwell Coaching Team, and currently helps small businesses

worldwide improve their businesses, which in turn is helping them change their lives.

How to STOP Being a Slave to Your Business

Keynote Speaker Howard Partridge2015 Pressure Washing & Window

Cleaning Convention

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Spring Showers of Savings Bring More BUSINESS!

April is a trying time for cleaning companies. The wet weather and burgeoning plant life, anywhere except the desert, brings lots of, mud, pollen, and other types of dirt and debris into establishments and homes. Getting it all out again is the real trick, and usually at a high labor cost.

They don’t call it “spring cleaning” for nothing. Of course, that’s what cleaning businesses and supply houses like us live for!

It’s time to gear up the staff and put out the fliers, boys and girls. Spring cleaning specials need to be part of the overall yearly profit plan. Let’s jumpstart the old noggin with this idea list:

• Special this weekend only:

• Thunderstorm Special – We’ll clean all of your carpet for $XX.XX per room.

• Feeling Pollinated? Can’t see out your windows? For only pennies a pane, we’ll relieve your pain and heal your sight!

• Dust Out Extravaganza – Been trapped all winter inside? Want to get a fresh start? We’ll detail the inside of your home for $X.XX per square foot.

• Spring Cleaning Special – Get clean inside out only $XX.XX for Y!

By Rick Meehan, Marko Janitorial

29 eClean Magazine

Markting

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“Acrylic Floor Finish” 30

• We’ll detail the inside of your home for $X.XX per square foot.

• Spring Cleaning Special – Get clean inside out only $XX.XX for Y!

• Tired of the Cold or Flu following you? Let us eliminate all those pent up germs from the long winter with a thorough cleaning of all surfaces using our premium disinfectant. Clean and Healthy for only $XXX, a small cost to pay.

Sure, the list above is just a sample of possibilities. We each know what our businesses are capable of, and those must to be taken into consideration before investing in costly advertising. The point here is to take advantage of the season.

Never let an opportunity for increased profits to slip by. Or, perhaps your company is swamped with business already (not!)?

Although heavy duty cleaning like we’re talking about here is labor intensive, and usually more costly, the volume that can be had during this season must be considered.

The eggheads call it “economies of scale” when we give price breaks for larger volumes of work. The theory is that the more business we have, the lower our costs per hour. The theorists probably never used elbow grease to the same level as cleaning personnel, but regardless, the idea is to generate more business by offering seasonal price breaks on specialty cleaning projects. This goes way beyond the mop bucket and the vacuum cleaner. Be creative in your presentations, flyers, pricing, and get down to real profit-generation by utilizing your commercial cleaning outfit’s greatest abilities. Jobs must be generated to stay profitable. Get the idea mill going right away for spring cleaning; otherwise, your competition will outdo you! The jobs are out there right now!

About the Author

Rick Meehan is the Vice President of Marko Janitorial, a full-service janitorial supplier. To learn more, visit www.MarkoInc.com.

May May 20-21: Power Wash Store Event: 2015 Circuit Training, Milwaukee, WI, www.PowerWashStore.com

June

SeptemberSeptember 10-12: United Association of Mobile Contract Cleaners (UAMCC) 2015 National Convention, Charleston, SC, www.UAMCCevents.org

2015 Calendar of Events (May – November)

June 28-29: Power Washers of North America (PWNA) Regional Certification Training, Calgary, Alberta, www.PWNA.org

August 7-8: The 2015 Pressure Washing & Window Cleaning Convention & Trade Show, Washington, D.C., www.TheHugeConvention.com

August

Oct. 9-10: Southside Equipment Networking Event, Louisville, KY, www.SouthsideKY.com

Oct. 20-23: International Sanitary Supply Association (ISSA) 2015 Interclean, Las Vegas, NV, www.ISSA.com

April 22-25: Cleaning Equipment Trade Association (CETA) PowerClean 2015, Las Vegas, NV, www.CETA.org

Oct. 28-31: International Kitchen Exhaust Cleaning Association (IKECA) Technical Seminar, Kansas City, MO, www.IKECA.org

October

Nov. 12-14: 2015 Power Washers of North America (PWNA) National Convention & Trade Show, Charlotte, NC, www.PWNA.org

November

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April marked eClean Magazine’s 3-Year Anniversary

Thank you for your support!

(Now go have some cake)