When I joined Hoffmann Brothers in 2016, I didn’t understand why a service business like ours might be the best place to work in uncertain economic times.
I now have 3 reasons to believe it's true.
1. Consistent Demand
Unlike many products and services, demand for our services is largely insulated from economic cycles.
Pipes burst and air conditioners go out regardless of how the economy is doing. They must be repaired or replaced.
We've had nearly 10 years of solid, predictable growth despite down economic cycles, a pandemic, and high inflation.
2. Profitability
Service businesses (residential service businesses in particular) tend to be very profitable. Customers place great value on the quality of their service experience, which results in strong gross margins.
Those profits put our business in a position to make substantial investments in training, compensation, benefits, and the latest tools and technology.
Those investments help us stay in a position to continue delivering excellent service to our customers, and the cycle continues.
3. Customer Priorities
Post-COVID research has shown that homeowners will invest heavily in their homes to ensure that the critical systems provide the convenience, comfort, safety, and reliability they desire.
When faced with budget constraints, homeowners prioritize these factors above many other discretionary spending categories.
That means our customers would rather forego eating out, travel, luxury goods, and entertainment before sacrificing the convenience, comfort, safety, and reliability of their home's HVAC or plumbing systems.
I didn't fully understand all that 8 years ago.
But needless to say, I am grateful to work alongside so many talented service professionals in one of the most resilient (and in-demand) industries in this great country!