Maximize Your Revenue in the Elevator Industry
Oct 29, 2024The elevator market size was an estimated $85.2 billion industry in 2023 and is projected to reach $110.5 billion by 2028... let that sink in. Every dollar we earn from our elevator business contributes to this yearly number. It’s important that we are always looking for new ways to enhance our earnings. The elevator industry is full of untapped revenue potential, and with a little creativity, you can elevate your business to new heights—pun intended. Don't fall behind by not pursuing some of these innovative ways to maximize your earnings potential as an elevator entrepreneur.
Expand Your Service Offerings
One of the most effective ways to increase revenue is by diversifying your service offerings. It may seem like common sense, but we must think outside of the box and beyond traditional elevator installation and maintenance. Here are a few ideas to get you started:
- Preventive Maintenance Contracts- While this may sound like a repair service, preventive maintenance contracts can be a significant revenue stream. Offer customers the option to sign up for regular inspections and maintenance at a fixed rate. This provides a steady income and can strengthen the relationships you have with your customers. You can create tiered plans based on service frequency—monthly, quarterly, or annual—which allows clients to choose what fits their needs.
- Modernization Service- This is a no-brainer. Buildings age, so do the elevators. Those elevators will need upgrades to stay compliant with safety regulations and improve energy efficiency. By offering modernization services, you can target older installations and help clients enhance their systems. This will position your elevator business as a solution provider that not only fixes issues but improves overall performance.
Getting creative will help in this aspect. If you can carve out a unique niche as a service offering, you can really make a difference in our industry. Chris Carey created a company focused on elevator cleaning and environmental solutions. Brad Hoersten saw a big communication problem when he was working in the sales sector of the industry. He created an entire app called ElevatorZip that streamlines and automates this process to enhance repair sales. This is innovation and we have to keep the creative ball rolling so we can plan for the next big thing.
Leverage Technology
In today’s digital age, technology can be the catalyst for increasing your earnings. It can be intimidating to keep up with the changing tech aspects of the elevator industry but it’s important to stay updated. Here’s how you can leverage it:
- Smart Elevators and IoT Solutions- Consider investing in smart elevator technologies. IoT-enabled elevators can provide valuable data on usage patterns and maintenance needs. Offering these modern systems not only attracts tech-savvy clients but also creates other opportunities. You could end up with ongoing service contracts for software updates and data analysis.
- Online Platforms and Apps- Developing an app or an online platform for customer interactions can streamline communication and create additional revenue for your elevator business. You could create a portal where clients can schedule maintenance, access their service history, or monitor elevator performance in real time. This is an added value for your clients and can set your business apart from others.
Training and Consulting Services
Another potential revenue stream is offering training and consulting services. Many elevator companies need help understanding compliance requirements, safety standards, and maintaining best practices. By positioning yourself as an expert, you can provide training workshops or seminars for other businesses in the industry. Here’s how:
- Industry Workshops- Host workshops or training sessions focused on different aspects of elevator management—safety protocols, emergency procedures, or even marketing strategies for elevator businesses. Chances are, you’ve been to something like this, so why not lean more into it? Also, charging a fee for attendance can create an additional income source. Creating your own workshop will also help establish your brand and your reputation as a leader in the field.
- Consulting for Property Managers- Partnering with property management companies can also be worthwhile. Many property managers lack in-depth knowledge about elevator systems and their maintenance needs. You could open a new revenue stream by providing consulting services that help them understand how to manage and maintain their elevators.
Explore Vertical Integration
Vertical integration involves expanding your elevator business to include different stages of production or service delivery. This could mean:
- Manufacturing Elevator Parts- Let’s say in your elevator business, you buy parts from other companies, or hire people to install the elevators, or contract out maintenance. That means you rely on many different businesses to get your job done. Vertical integration is deciding to do more of that work yourself. So, instead of just buying parts, you start making them. You also hire your own team to install the elevators and handle maintenance. This way, you have better control over the process, save some cash, and make sure everything works smoothly together. It’s like making your own pizza instead of ordering out; you control the ingredients.
- Supplier Relationships- Building good relationships with your suppliers is a smart move. Try to negotiate deals for buying in bulk to save cash and look for chances to sell products that go well with your services, like safety systems or monitoring tools.
Utilize Marketing and Brand Positioning
Good marketing can also boost how much money you can make. Here's what you should consider:
- Digital Marketing- Invest in digital marketing to reach more people. A great website that shows up in search results can bring in new clients. Use social media to show off your projects, share positive reviews, and connect with your community. Online ads can also help you target specific groups or areas. Sometimes it’s best to outsource this to someone that knows a thing or two about search engine optimization and how to leverage an elevator company in the online space.
- Brand Partnerships- Think about teaming up with other businesses, like construction or property management companies. Working together can help both of you reach more customers and create chances to promote each other’s services. Network. Make friends. That way, when your partners come across clients needing services in the elevator industry, you are only a phone call away.
So, there you have it. By expanding what you offer, providing training and consulting, utilizing vertical integration and technology, or using smart marketing, you can find new ways to earn revenue in the elevator industry. You can be a part of that projected $110.5 billion market size in 2028.
It’s understandable if these suggestions seem unattainable right now. If you’re just starting out as an elevator entrepreneur, I’m here to give you the tips you need to see the bigger picture. As you continue to grow and expand, you should always keep the long-term goals in mind. The opportunity is there—it just takes some creativity and confidence in your craft to execute.
Here’s my 3 takeaways for maximizing your earnings potential as an elevator entrepreneur:
- Find a problem in the industry and solve it. Create a solution and add it to your list of service offerings.
- Leverage technology and integration to save money.
- Invest in digital marketing and partner with other businesses to reach more customers and improve your visibility.
If you missed this week’s podcast episode featuring Brad Hoersten and his journey to building ElevatorZip, click here to watch The Elevator Entrepreneur
As always, stay safe out there, and I will continue to empower my fellow Elevator Entrepreneurs.
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