If you’re an electrician and are considering starting your own business, you’ll need to be sure who your target market is and, more importantly, who isn’t.
Broadly speaking the target market for electricians is anyone who needs electrical work done. This could be homeowners, businesses, and even government organizations. But not everyone will want to hire a freelance electrical contractor or even a small electrical firm. Some people, especially organizations, may insist on working with a large company or specialists in certain fields.
So, knowing what your expertise is and aligning the services you plan to offer with the needs of your target market will be essential for your success.
In this article, we will analyze the target market for electricians by studying the reasons why someone may need the services of an electrician. Then we will review the factors that can influence a customer’s decision to select one electrician over another.
Keep reading!
Who is the Target Market for Electricians?
So who needs an electrician? And why?
Our aim is to understand the target market for electricians by answering these two questions. Once you understand who looks for an electrician and why they need one, you will be able to offer services that your target market will actually have a need for and you will be able to craft marketing messages and strategies which will resonate with your target audience.
So based on this segmentation criterion, here are the some of the important segments of the target market for electricians:
- Homeowners
- Commercial businesses
- Landlords and rental property managers
- Industrial clients
- Owners of Electrical Equipment
Let’s look closely at each of these.
1. Homeowners
Homeowners are perhaps the most common target market for electricians. Many homeowners will need to hire an electrician at some point, whether it’s for a new construction project, a renovation, or electrical repairs.
Examples of electrical work in a house include:
- Installing new outlets
- Wiring a new room
- Adding landscape lighting
- Fixing a broken circuit breaker
- Replacing an old fuse box
- Running cables or wiring for a home theater system
Most homeowners will not have the expertise or tools to do this work themselves, so they will need to hire an electrician.
2. Commercial businesses
Commercial businesses are another common target market for electricians. Like homeowners, many businesses will need to hire an electrician at some point.
Examples of electrical work in a commercial setting include:
- Wiring a new office building
- Adding new outlets in a retail space
- Installing a backup generator
- Updating the electrical system in an older building
- Fixing a faulty circuit breaker
Again, most businesses, especially small businesses, will not have the expertise or tools to do this work themselves and will need to hire an electrician.
3. Landlords and rental property managers
Another target market for electricians is landlords and rental property managers. These customers will often need to hire an electrician to do work in their rental properties. Much as with homeowners, this work can include:
- Installing new outlets
- Updating the electrical system
- Doing repairs
- Adding landscape lighting
- Running cable or wiring between buildings
Like homeowners and businesses, landlords and rental property managers will not typically have the expertise or tools to do this work themselves, so will look for external vendors.
4. Industrial clients
Industrial clients are another target market for electricians. These customers often need to hire an electrician for:
- New construction projects
- Updating the electrical system
- Doing repairs
- Installing new equipment
- Updating wiring in a factory
Industrial clients will typically have their own in-house maintenance staff to do some of this work. However, they will often need to hire an electrician for more complex projects or for work that requires specialized knowledge or tools.
5. Owners of electrical equipment
Finally, another target market for electricians is owners of electrical equipment. These customers often need to hire an electrician to:
- Install new equipment
- Update the electrical system to accommodate new equipment
- Do repairs on existing equipment
While these customers may have maintenance contracts with companies from whom they’ve purchased the electrical equipment, usually after the warranty period is over they look elsewhere – eg to electrical contractors – for less expensive alternatives for maintenance and repairs.
As you can see, there are a variety of different segments in the target market for electricians. When marketing to this target market, it’s important to keep in mind the needs and wants of each segment. For example, homeowners will likely be more concerned with cost, while businesses may be more concerned with quality and timeliness. By understanding the needs of each segment, you will be able to better craft your marketing message and appeal to your target market.
The Target Market for Electricians: How do they select?
Now that we’ve answered the question “Who is the target market for electricians?” let’s move on and see what factors influence a customer’s decision-making process while selecting one electrician over another.
Here are the top factors:
- Competence
- References
- Price
- Quality
- Location
- Availability
- Certification
- Insurance
Let’s briefly look at each of these.
1. Competence
No customer wants to hire an electrician who isn’t competent or doesn’t have the necessary skills, certification, or experience to do the job.
Most customers will first and foremost do a background check to gauge an electrician’s competence before hiring them.
So before you contact a customer make sure you have a way to prove your competence and expertise.
2. References
Almost all customers will ask you for references. They will check reviews left on your social media pages and your website.
Many electricians will have a list of references from past customers that potential customers can contact. Make sure you are ready with a reference list and updated social media profiles and website.
Ask old customers to be your references. If they were happy with you, most will oblige. If needed, offer them a discount on the next order in exchange for leaving a positive review about your work.
3. Price
Of course, price is always a factor when choosing any service provider. Customers will want to get the best value for their money, so they will compare prices before making a decision.
But this is one field where people will be willing to pay a bit more if they feel they can get a competent person to do their electrical work. In the end, it comes down to risk. No one wants to take a risk on the cheapest provider in case the low price is a reflection of a lack of competence. Poor electrical work can lead to short circuits and fires.
So make sure to price your services wisely and avoid being the cheapest or the most expensive provider of electrical services in your market.
4. Quality
Competence and quality often go hand in hand where competence is reflected in the quality of the work.
Customers will, no doubt, be interested in the quality of your work. This includes not just the final product but also the process of getting there – eg, whether you clean up after yourself, how polite you are, whether you show up on time, whether you finish the work on time as committed, etc.
And if you work for industrial clients who have their own in-house experts, you can expect your competence to be put to the test.
5. Location
Your location may only be important to your customers if you charge for your travel time or travel costs. If you don’t, then they probably won’t care where you are based as long as you can come to their premises for work on time.
One case in which a customer might care about your location is where they would want you to come to their premises if there are any problems. If they think it will take you a long time to get there each time, they may choose an electrician who is closer to them.
6. Availability
Needless to say, customers will only hire you if are available when they need your services. Being available also means having the capacity to do the work and being able to schedule it for a time that suits the customer.
If you are already booked up or if they have to wait too long for an appointment, they will likely take their business elsewhere.
Another factor you will need to consider while signaling your availability is not showing that you are always busy. Customers might be concerned about hiring you for a project if they feel you will not be available later on for maintenance or repairs.
7. Certification
Most countries have certification requirements for electricians. This is for your safety as well as that of your customer.
Your potential customers will want to see that you have the necessary certification before hiring you and may even ask to see it. Make sure your certifications are up to date and in order.
8. Insurance
Customers will also want to confirm that you have insurance. This is another case of risk management for them – if something goes wrong, they want to know that they will be compensated.
It is also a legal requirement in many countries for electricians to have insurance. If you don’t have it, you may not be able to work on some customers’ premises. You should check your local laws and regulations and if necessary get professional legal advice.
Summary
The target market for electricians includes anyone who needs electrical work done in their home, garden or business location. The market includes homeowners, businesses, factories, stores, landlords, rental property managers, industrial companies, and owners of electrical equipment.
The type of work for which someone needs an electrician includes installing new outlets, wiring, doing landscape lighting, fixing broken circuit breakers, installing backup generators, updating electrical systems, doing repairs, and installing and updating electrical equipment.
Customers select electricians based on a variety of factors which include competence, references, price, quality, location, availability, certification and insurance. The final decision is usually a trade-off between these different factors.
If you are an electrician and are planning to start your own business, make sure that you analyze your target market by understanding the real reasons why your potential customers need the services of an electrician. Understand what influences their selection criteria when they look at a list of electricians to choose from. Precisely matching your services to the needs of your potential customers is the recipe for success.
