Creating Subscription Plans for Your Business

• How it works
• What Subscription Business Models Should You Consider
• How do you set up a plan?
• Tips for Success

As a home improvement company looking to implement subscription services into your business, it's important to offer a range of options that cater to different homeowner needs while ensuring each plan is profitable and sustainable for your operation.

At the same time, remember that a subscription is worth WAY more than simply the recurring fee from the subscription. Think of subscriptions as the most effective marketing tool you’ve got.

There is a universal rule in business: it’s much easier to sell to existing customers. Re-engagement is the name of the game with any service business. Acquiring a new customer can cost five times more than retaining an existing customer. Increasing customer retention by 5% can increase profits from 25-95%. But the extra fee is nice…

How it works¶

A quick story for how this worked for a local plumbing business near me in the Hudson Valley. My wife is a florist and with her shop comes a lot of maintenance: HVAC, plumbing, electrical. She recently had her HVAC company come out to service her mini splits and they offered her a discount if she signed up for their $25/mo service plan. They only offer one subscription tier, which I think is a missed opportunity, but my wife is now their lifetime customer and will spend a sizable amount with them every year. But she’s also saving on each visit, making it a win-win scenario for both businesses.

So how did they get the sale? They turned a basic visit into a super effective sales call and they had a plan that made sense to my wife.

What Subscription Business Models Should You Consider¶

There are a million different ways to think about subscriptions for your business. Ultimately, it depends on what kind of services you provide, but generally speaking, you can mix and match from the options below when thinking about what you should offer.

We strongly recommend including a free option as well as tiered subscriptions. The free option gets you coming back to their home regularly, with a strong upsell potential for those clients as you build trust.

How do you set up a plan?¶

Here's a guide to setting up your tiers

Start with a Free Offer¶

Don't do anything that you can't afford to do. Keep it simple and profitable for your business. A great way to handle a free offer is to offer a periodic home visit for your customers and the AI assistants from EcoHome. This gets you in the door for new projects, keeps you top of mind, and provides a ton of value for your homeowners. It's a killer way to build trust.

Add a Basic Maintenance Plan¶

This plan is your entry-level offering, perfect for homeowners who want to cover the essentials without a hefty commitment. Think of it as a bi-monthly health check for homes. For a handyman, this could be things like:

• HVAC filter changes
• Basic safety inspections
• Gutter clearing
• Quick plumbing and electrical checks

Offer it at a price point that's attractive to new customers but still reflects the value of your work. Consider including a small discount on additional services as a perk.

Elevate to a Standard Care Plan¶

This is your mid-tier option, aimed at homeowners looking for a bit more than just the basics. Monthly visits might include:

• Everything in the Basic Plan
• Seasonal maintenance work
• Minor repair jobs

This plan should be priced to reflect the added value and frequency of visits, with perks like priority scheduling for extra jobs and a discount on larger projects.

Introduce a Premium Concierge Plan¶

Your top-tier offering should cater to those who desire a comprehensive, worry-free maintenance solution. This could involve:

• All services from the Standard Plan
• Emergency call-out availability
• Annual detailed home reports
• A personal project manager for consultations

Price this plan to reflect its premium nature, offering exclusive benefits like a dedicated service manager and discounts on extended services.

Here are some ways you can think about this for different trades:¶

You can check out more ideas for other trades here

Offer Customizable Add-Ons¶

Not every homeowner's needs will fit neatly into one of your plans. Offering add-ons or custom service packs allows for personalization, ensuring you can cater to unique needs without complicating your service structure.

Tips for Success¶

• Flexibility is Key: These plans are starting points. Adapt them based on what you know about your customers and what's feasible for your business.
• Localize Your Services: Consider the specific needs of homes in your area. For instance, in snow-prone regions, winterization services might be a valuable add-on.
• Make it Personal: Rename the tiers to align with your brand and the unique value you provide. "Gold" and "Platinum" are standard, but don't be afraid to get creative!

Remember, the goal of these subscription plans is not just to generate steady income but to build lasting relationships with your clients. By offering a range of well-considered plans, you're providing flexibility and value that can set your business apart in the competitive home services market.