Why home services business are so popular
There are many profitable businesses and one of those is definitely in home services. There are over thousands of companies in this space ranging from all sorts of home services such as cleaning services, plumbing services, painting services, electrical services, aircon services and really many more to mention.
Partly the reason is quite obvious as almost every home owners will require such services unless of course they know how to do it themselves. This is unlike cleaning your home or performing your laundry with the help of washing machine and clothes dryer, for home services, at times we just require a professional to do it. As we already know, there are so many homes in Singapore regardless in private or public housing. So you can expect a lot of people who would love to open up their business in this space and provide their services. The best part, such services are almost recurring means it’s expected that the home owners will require the services over and over again.
Due to this, you can see that this home services space is kind of over saturated with many businesses compete with one another in this cut throat business. In fact, it used to only be the traditional sort however today it’s getting even more digital. Traditional in the sense where people used to browse through newspaper, yellow pages, flyers to locate the services they require and calling them directly. However in this digital age, e-commerce has exploded in this space where you can now order your services directly from your computer or mobile devices. The choices is huge and it’s really the consumer world.
Some business owner choose to focus only on a single nice, example on cleaning services whereas some would prefer to offer all of it. The thing about e-commerce is there’s actually 2 kinds. One is where the company offering the services themselves are going digital where customer could place the order online, including online payment. The other is where a middleman opening up online marketplace connecting consumers and service providers. This is useful especially for service providers who are not really visible online. They would join such platform and list their services, especially those having high traffic in order to have their service offering known to others. In such model, these service providers may need to compromise a little. This means since they are not actually spending money to advertise themselves, but instead leveraging on online marketplace, they may have to compromise on the commission cut to pay the online marketplace.
Take for example aircon services, they may actually be charging $40 per unit for general aircon servicing however because they had to pay for the platform commission, they will only receive about 80% from the $40. There used to be a time where online marketplace is all about selling products such as shoes, gadgets, furniture, portable aircon, toys or even air purifier. As of 2019, there are more than 10 online marketplace websites in Singapore focusing on home services. Companies such as Kaodim, Flair, ServisHero, Plugbear, Ovvy, Zowedo and really many more are all competing in the same space.
This is the reason why SGTUB was launched slightly different., instead of being a typical online marketplace, ie a shopping website where people pay and order for service instead or product. To know more on, check out SGTUB.com
To close off, we would say consumer can expect to have even more choices in the years to come given that the home services business is very lucrative and it will explode soon.