How do people know they're finding quality workers on your site?
Our professionals go through a very rigorous screening process, where we check for appropriate licensing, liability insurance, bankruptcies, liens, and judgments, as well a criminal and sex-offender background check. Once they pass that initial vetting, we rely on our ratings and reviews for constant feedback on the work they're doing.
Are you an adequate replacement for old-fashioned word of mouth?
Word of mouth has always been a great way to find pros. We've just moved the discussion from literal neighbor-to-neighbor interactions to an online community. The result is much more dynamic. Through the Web site or our new ServiceMagic Home Improvement iPhone app, consumers can compare up-to-date profile information of multiple pros, see examples of their work in a design format, read ratings and reviews from other consumers, and ask those same neighbors specific questions about specific pros.
How does ServiceMagic differ from Angie's List?
We're free to consumers. Professionals get charged a lead fee. Additionally, our rating system is verified, meaning a consumer can submit a rating and review only for professionals we match them to specifically. We have 5 million Web site visitors each month, more than a million ratings from consumers, and 75,000 professionals, 5,800 of whom are in the remodeling category.
How often do you have to remove bad pros off your site?
We end kicking out about 10 percent of the network each year. A contractor might be licensed, insured, and have a clean background, but if they're not doing the right thing by our customer, it's not good for our brand. That said, we have a customer-care team that proactively mediates between the consumer and the contractor anytime there's a low rating. Nine times out ten there's some communication error. People don't always realize how emotional remodeling is until they're in the middle of a project. We can usually intervene and get the parties talking again.
The remodeling industry has been hit hard by the recession. Any signs of a rebound?
By the third quarter of 2009, there was an indication that people were starting to feel more positive about home remodeling. But they were still extremely cautious, so the activity wasn't flowing through. Now that the housing market has stabilized and the stock market is coming back, we're seeing a confident resumption of homeowner activity. For the first quarter of 2010, we saw a 191 percent year-over-year increase in the number of service requests for kitchen remodeling. (This dovetails with Harvard's Joint Center for Housing Studies, which recently projected increased home-improvement spending for 2010.)
Are you seeing some regions rebounding faster than others?
Generally speaking, we're seeing an east-to-west recovery in remodeling, but growth in key markets shows a nationwide trend. In terms of kitchen remodeling, Detroit had one of the biggest year-over-year increases in service requests in the first quarter of 2010, up 342 percent. Other cities with big jumps were Miami (333 percent), New York (224 percent), Atlanta (178 percent), Houston (162 percent), and San Diego (167 percent).
Did the recession provide any upside to consumers looking to remodel?
As the industry has pulled back, it's become easier to secure the best of the best in a community. When the market is really hot, it can take many months to get on the calendar of the best contractors. So for people who are in a position to remodel, now's a good time.
How has the recession changed the way people pay for remodeling?
There's a continuing trend away from equity-based financing, with 70 percent of homeowners now opting to pay cash. The size of the remodels has definitely come down as a result. Our data indicates that about 30 percent of bathroom remodels are in the $5,000 to $10,000 range and about 30 percent of kitchen remodels are in the $10,000 to $20,000 range. That's a pretty small project compared with 2006 or 2007, when home equity was financing much larger projects.
Are people still approaching projects in phases?
We recently asked over 1,200 homeowners whether they planned on completing full or phased kitchen or bath remodels. Forty-one percent are choosing a complete remodel. This is in stark contrast to the homeowner sentiment we saw one year ago.
Do you think that government tax credits and rebates, such as the ongoing cash for appliances program, raising awareness of energy efficiency?
Absolutely. In the first and second quarters of 2009, our year-over-year activity for home energy audits doubled and tripled, respectively. That was indicative of people seeking to better understand what needs to be done around their home to make them more efficient. It's leveled off since then, but a lot of people are still willing to spend $200 or $300 for a home energy audit.
50% of the leads are Bullshit ...........
I have been with them for 3 years ,But you have to take the good with the bad
ServiceMagic's promises far outreach its performance. When it started out, it promised qualified leads to potential customers interested in construction and remodeling services. Turns out that the leads are not qualified at all -- although it took a long time to get someone at SM to admit that.
I have received "leads" from people who do not exist asking to be contacted at telephone numbers that do not exist for work at addresses that do not exist. There is not even the most elementary lead screening. All that is required to be considered a 'lead' is for someone to enter some basic information on SM's web site. At very least SM could screen for valid phone #s and valid addresses. It does not even do that.
While SM has a process for getting credits for bad leads, their definition of bad lead is very narrow. For example, there is no credit available for people who simply misunderstood the purpose of the web site and just wanted some information without any intention of remodeling in the foreseeable future.
SM has backed off its claim of qualified leads in recent years and started identifying itself as a mere "advertising service" that cannot be responsible for the quality of the leads it provides. This is a quite a backpedaling from its original "we provide qualified leads" position.
We have cut back very dramatically on our use of the service because it is so unsatisfactory. I certainly would not recommend it to any contractor.
Having no experience with it from the consumer's point of view, I cannot say whether it provides adequate service to homeowners who want work done. And I don't know how qualified its contractors are. I know it does require proof of licensing and insurance, but that seems to be about it. Some of the contractors I know who are enrolled in SM services are not very good -- some have even been kicked out of the BBB for past offenses.
If I were a consumer, I would be a little wary. As a consumer you should do what you always should do, check references and the BBB for complaints. If the contractor is not a BBB member, walk away, especially if the price offered to too good to be true.
I have never used the site directly for home security leads or video surveillance leads. I have noticed that the site does rank fairly well on the first page of the keywords I am looking for though. I interested in finding a site that may bring qualified leads regarding home security or video surveillance cameras, monitoring of existing alarm systems that use honeywell products as well.
I just visited ServiceMagic.com and wasted too much time being led in circles w/no help locating a "pro". I only searched in one area, central air conditioning service/repair. Perhaps somebody who has used this service under a different category got better results. It's an excellent idea but I got what I paid for; nothing for nothing.
I have used Service Magic for electrical work and I received a phone call within 30 minutes from one of the 3 contractors. All three came out and gave estimates and all checked out with the BBB, had insurance and had licenses. I checked references also - but who is going to give a reference of someone they know they didn't do a good job for? I also personally checked out their insurance through their insurance company and checked through my state for licenses and how long the company had been in business, their addresses etc. All checked out perfectly. I will use them again when I need other work done.
I was surprised to see Consumer Reports give favorable publicity to Service Magic. You should google this company to see the scads of complaints directed at this operation.
In my case, I was referred to a roofer who performed incompetent work, and I received no help from Service Magic to rectify the situation and had to sue. SM would not even verify his current address. I checked, and I found that the bad feedback that I gave this contractor was not reflected on his profile, and that he remained on the site.
SM does not screen contractors and its "service guarantee" is so loaded with qualifiers as to make it almost meaningless.
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