During This Season, We Take Time To Reflect On The Good Things We Have... Like Our Partnership With Our Customers. We Appreciate Your Continued Business And Hope That The Holidays And The Coming Year Will Bring You Every Happiness And Success!
SUPPLY 330-483-3400 • ValleyCitySupply.com
At first, there were plenty of scoffers. “Most people thought I was an idiot,” he says. But last year, Tompkins’s company decorated homes and businesses for almost 200 customers. He limits the number of contracts he accepts each year to fulfill them in a timely manner because the season is so short. “It’s not a huge money generator, but it’s a supplement. And I don’t lose 30 or 40 percent of my workforce when things slow down, so I don’t have to rehire and retrain new people next spring.” Bringing holiday cheer to clients’ homes also generates an automatic feel-good factor, which means satisfied clients may return for other services. “What I didn’t project is that some of my lighting clients became landscaping clients,” Tompkins says. “That’s been huge for us.”
GETTING STARTED Getting started in holiday lighting doesn’t necessarily require a big investment. Starting small is one way to learn the business. “Approach a few of your existing maintenance or install clients with whom you have a good relationship,” says Nick Schriver, general manager of Decorating Elves in Tampa Bay, Florida. “Take on a few projects the first year to find out if it’s something you really want to do.”
Most of the profit comes from labor, with margins running from 15 to 45 percent. Many contractors learn the ropes from companies that offer classes, videos, manuals and webinars to guide startup. Others become part of a franchise, which provides training, marketing advice and ongoing support (initial costs are around $7,000 plus royalty fees). “As much as anything, a franchise buys you experience,” says Brandon Stephens, president of Christmas Décor in Lubbock, Texas. “That way, if you run into any issues, we’ve probably encountered the problem before and can help you troubleshoot.” Make sure to begin planning early. “One of the biggest mistakes contractors make is trying to add the service as an afterthought,” says Brad Finkle, president of Creative Decorating in Omaha, Nebraska. “The season creeps up fast. You’ve got to have everything ready, such as where you’re getting the products from before the rush hits in November.” Also, don’t forget to contact your insurance company to discuss whether or not you’ll need additional coverage. continued on page 28 The Growing Concern | December 2018 | 27