Author: Brett Knox
January 7, 2025 - 5 MIN. READ
Your customers deserve more. But what does "more" mean exactly?
"More" can take the form of bundled services, personalization, or support, just to cite a few examples. Offering these extras has a name: a value-added business model.
For contractors, the value-added approach is proving to be a strong differentiator and an effective way to grow profits. Plus, it’s easier to implement than you might think.
Read on to explore what the value-added contractor business model looks like and how to make it a reality.
The value-added approach is an effective trades business model because it improves the perceived value of what you offer.
However, perceived value for the same service can vary greatly from one customer to another. With personalization, the value you offer remains consistent since you’re tailoring your approach.
In the trades, personalization will mostly take the form of an HVAC, electrical, or plumbing solution that you can design and implement to fit the unique needs and budget of each customer.
Here’s how you can communicate the value you offer:
Electrification solutions are particularly important for contractors who want to put customization first. Between smart home products, renewables integration, or energy management systems, electrification technologies allow you to design systems that reflect the lifestyle of each customer.
Are you offering energy audits? This in-demand service is a great starting point for adopting a value-added business model.
During home or business energy assessments, you can share personalized recommendations and help customers better understand which solutions would benefit them. Energy audits can lead to installing customized HVAC and electrical solutions that reduce energy consumption and save money.
This focus on energy efficiency and sustainability creates value for commercial customers by directly supporting their Environmental, Social, and Governance (ESG) goals. With 9 out of 10 executives describing ESG initiatives as critical to their business, establishing yourself as a partner for sustainability is a smart move.
Energy efficiency is just as important to budget-conscious residential customers. Many of these residential customers have strong environmental values and will prefer a contractor who can turn these core beliefs into something actionable with a heat pump or solar panel integration.
A simple way to boost the value of what you offer is to bundle your services with a maintenance plan. Offering ongoing support can enhance confidence in the new HVAC or electrical solution the customer is purchasing, and preventative maintenance helps your customers save by catching issues early.
For your business, maintenance plans with a subscription model translate into recurrent revenues and positions you as the ideal partner for commercial facilities. This is especially true when maintenance needs become more complex and include ongoing monitoring for building automation solutions as well as preventative checkups.
Regular maintenance calls are also an opportunity to stay in touch with customers and bring up your other value-added services, such as energy audits or designing customized electrification solutions.
Partnerships extend the range of services you offer, allowing for an innovative contractor business model that creates value through bundled services. For customers, not having to shop around for multiple services is a plus, and having access to the combined expertise of two or more professionals results in higher performing electric or HVAC solutions.
Here’s how you can implement this value-added model:
The shift toward value-added contracting is essential for staying competitive in today's market and for growing profit margins. Whether you're just starting to explore energy audits or are ready to dive into comprehensive electrification solutions, the opportunity to grow your business through value-added services has never been greater.
Raiven is here to help you take advantage of this opportunity. Thanks to our contractor group buying program and smart buying tools, you can build a strong buying process and unlock savings on all the parts and materials you need.
Stacking affordable materials, clear project planning, and value-added services will instantly make you one of the best contractors in your area!
Summary: Your customers deserve more. Our latest blog post explores how to make "more" happen through a value-added business model that leverages new services such as customization, maintenance plans, or energy audits.