Whether landscape contractors like it or not, selling home services through chain megastores like Home Depot is big business, capitalizing on an aging generation’s desire to lie back while others keep their home and yard in tip-top shape. This is evidenced by trends such as ServiceMaster’s recent push toward residential customers and its renewal as “America’s Home Service Company.” “Eventually, every homeowner requires service,” said Jonathan Ward, chief executive officer for ServiceMaster, in a June 21 Lawn & Landscape Online news article. “We’re convinced there’s a future in the retail channel for ServiceMaster.”
These feelings are shared by those on the other end of the partnership, including Bob Nardelli, chief executive officer of Home Depot. According to an article in the June 24 issue of Fortune magazine, Nardelli identified the obvious need to move toward home services. “Do-it-yourself is shifting to do-it-for-me,” he said in the article.
However, marketing home services to residential customers through chain stores such as Home Depot is not necessarily an easy fix, since residential customers have high expectations for home services, Ward reminded. As a result, this presents challenges in terms of “quality, consistency and compliance,” noted Arthur Martinez, former chief executive officer of Sears, which unsuccessfully attempted home service offerings a few years ago.
According to Fortune, Nardelli is realistically considering these obstacles, but feels a strong financial base and future acquisitions or alliances with service providers will allow Home Depot to offer home services from a “franchise” approach. And, he remains optimistic about the revenue these services will bring to the company. “Five years out, it should be $10 billion,” he said.
The author is Assistant Editor – Internet of Lawn & Landscape magazine and can be reached at kmohn@lawnandlandscape.com. This article was compiled from Lawn & Landscape and Fortune magazine articles.