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Toolbox for the Trades Growth

De-Seasonalizing Your Business for Stability and Profit

⏱️ 30:00 🎀 Jackie Aubel, John Conway
AUDIO EPISODE
De-Seasonalizing Your Business for Stability  and Profit
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Chapters

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  • 0:46
    Meet Jackie and John
    Host Jackie Aubel introduces guest John Conway, COO at Redwood Services, and the episode's topic: de-seasonalizing a service business.
  • 3:31
    Best Advice: Not Price
    John shares the best advice he received: most customers prioritize quality service over the lowest price.
  • 6:54
    John's Journey into Trades
    John recounts his start in the HVAC industry with his father's business and his career progression.
  • 11:30
    Redwood Services Approach
    John explains how Redwood Services differentiates itself from typical private equity firms by partnering with existing operators.
  • 20:00
    Risks of Seasonality
    John discusses the financial risks of having a highly seasonal business and the importance of consistent revenue.
  • 27:01
    De-seasonalizing Strategies
    Strategies covered include adding new trades, seasonalizing marketing spend, and utilizing aged equipment tags.
  • 40:43
    Building Membership Base
    John elaborates on the importance of a strong membership program and sets a benchmark of 350 agreements per technician.
  • 49:05
    Overcoming Technician Mindset
    Discussion on how to motivate technicians to sell memberships and new systems by breaking down the value.
  • 54:59
    People-Related Challenges
    John highlights the importance of appreciating and investing in employees as the biggest growth challenge for stable businesses.

Speakers

J
Jackie Aubel
Host
J
John Conway
Chief Operating Officer at Redwood Services

Key Takeaways

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Most customers value great service and quality over the lowest price, so contractors should price profitably and focus on delivering superior value.

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Combat seasonality by adding complementary trades like plumbing and electrical; these services tend to be less weather-dependent and provide year-round demand.

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Strategically adjust marketing spend throughout the year; invest more in 'shoulder months' (e.g., February-April) when demand is naturally lower to maintain lead flow.

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Implement a system to tag aged equipment during service calls, allowing for targeted outbound calls to these customers during slower periods to generate new installation leads.

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Build a robust membership program with a goal of around 350 agreements per service technician to create a steady stream of recurring revenue and service opportunities.

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Educate technicians on the true value of membership programs and new system sales, demonstrating the long-term benefits for the customer to overcome sales resistance.

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Prioritize employee appreciation and foster a positive company culture, as happy and engaged employees are crucial for sustained growth, retention, and attracting new talent.

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