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Home Service Club

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  Home Service Club business.

  Business Overview

  A home service club is a business or association that provides its members with a referral service for locating reputable companies that provide home improvement, home repair, and additional home services, such as lawn maintenance. Your next question is probably, why would homeowners and contractors pay a membership fee to belong to this type of club? Because each year, thousands of homeowners find themselves caught in situations or even scams where they have paid in part or in full for home renovations or services only to find the company that is providing the service has not lived up to the contract obligations, or the work completed has not been done properly. Likewise, firms that provide these home services would also be happy to pay a membership fee because they would have limited competition for the contracts, and the leads would be prequalified by the home service club. The basis for operating a home service club is simple. In exchange for a yearly membership fee, homeowners receive access to reputable contractors who provides an automatic 5 to 10 percent discount on all labor and materials, as well as written warranties on all work completed. Contractors who are members in the home service club receive access to the membership base with limited competition'meaning that there are only two or three firms represented in each category, such as two lawn-maintenance firms. Additionally, the leads that contractors receive have been prequalified by the home service club.
  Marketing a home service club is best achieved by using two different methods. The first is to set up a display booth at malls and home and garden trade shows to attract homeowner members. The purpose of the display kiosk is to provide potential members with information about the home service club, as well as to close the sale on site. Closing the sale on site can be accomplished by providing a value-added product or service like reduced first-year membership fees or a free monthly club newsletter. To gain contractors for membership in the club, simply set presentation appointments with the owners of these firms or hold a general invitation meeting and present the benefits of club membership to a large group of contractors at one time. Marketing a home service club can also be done by hiring subcontract sales consultants to promote and sell memberships. While this marketing method reduces the overall profitability of the company, it can provide a faster approach to establishing the needed homeowner and contractor membership base.
  Once a home service club has been established, the business has the potential to generate very large yearly profits. as the cost to operate the business is minimal. The business can be started and operated from a homebased office. Providing a home service club can be successful, and once all the operational bugs have been ironed out, this type of business lends itself perfectly to national expansion on a franchise or license-to-operate basis.
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