Jan 15 2018
Bob’s repair will help you to connect with both contractors and customers with advanced technology. If you take a look at the experienced trade service, it revealed that a lot of trouble would appear. What kind of trouble? Everything. From the prices that too high, the efficiency that too low, to poor service. With this trouble happening in business, the founder of Bob’s repair relies on advanced technology to provide better efficiency, lower prices, and not to mention more reliable service. The first stage that the founder do is developing STWP a.k.a Skilled Trade Workers Platform. This platform is an automated SMS system that connects to other platforms via API. This technology works well, and the founders can identify a greater way of business through blockchain technology. This technology is the key to the formation of Bob’s Repair. In short, Bob’s Repair is here to help you utilize the power of blockchain technology so you can get a huge portion of more than USD 300 billion in skilled trade service market. How great is that, right?
The History of Bob’s Repair
Back in 2013, Frideric and Alexandre Prandecki, who is the founder of Bob’s Repair, formed the company which directly connecting consumers to contractors via their first technology which is the STWP. The Prandecki brothers worked hard to develop the STWP since they know the high price, poor service, and low efficiency will crumble the business of contractor-service companies. The STWP will help to provide a lower cost and better alternative enterprises such as HomeAdvisor and Angie’s List.
In just three years, Bob’s Repair grew significantly, thanks to the STWP. The Prandecki brothers got over 50,000 service calls and generated more than USD 1 million in revenue. Fun fact: Bob’s Repair started from a single small purveyor in Nevada, and over three years, they can build 100 purveyors all over the six states in the USA. The contractors mainly focused on many areas such as electricity, painting, plumbing, and HVAC. The STWP only depend on the small scale business model. However, the automated technology they have will increase the efficiency. It leads to improve the profit and scale of the business. For your information, the STWP handle all aspects of the business such as contractors, managing, and collecting payments. They go all out for contractors, hiring new contractors, managing the outsourcing of online advertising, as well as answering calls and messages from contractors by using a bot.
How does Bob’s Repair work? There are four steps on how this business works. The first is the business model. Through local online advertising, this platform will recruit both contractor and customer. The contractor must pay a flat fee that cost USD 75 per week. They will get many potential customers. They will get at least two customers per day on average. Two customers each day will make the contractor get paid on USD 5. Meanwhile, if you compare to another platform, the customer must pay USD 50.
The second step is the automated process. When there is a customer who saw the advertisement on the local online advertising platform, he/she will send a text or call the local number service available. At the early days of Bob’s Repair, the Prandecky brothers will answer the calls. Later, the qualified agents are the one who is responsible for this job. As for the text, the STWP will respond to the text message automatically with a response as well as connect the customer to a contractor. After that, the automated process will describe through an SMS API built on the cloud communication platform such as Twilio. This platform serves many customers such as Netflix and Intuit who are very significant with the traffic. The process also relies a lot on keyword technology. If the customer gets a message of “240 AC connection”, the STWP will send a message automatically to a qualified contractor that can have “a 240V connection for AC”. The system will learn continually to recognize synonyms as well as non-standard phrasing.
If there is a moment when a voicemail or message can’t be sent to the contractor automatically, the voicemail or message will be filtered to one of the human operators in Bob’s Repair. The operator will connect the customers for clarification. And then, the operator will also help the customer who used a landline. The operator will send a message to the customer. The human operators are not only helping the customers but also facilitating them with loyalty and satisfaction. For instance, Bob’s Repair will use the STWP to send a message such as “Merry Christmas” to both costumers and contractors to create the personal touch between the company and the customers as well as between the company and the contractors.
The combination of the business model of Bob’s Repair and the automated process will beneficial for both the contractors and customers. This business is a low-cost business model that can lower the prices for customers, and it can gain higher profit for contractors. Moreover, the automated process also helps to lower the prices as well as improve the scalability. For example, with the STWP, a single full-time employee can manage many contractors at one time, even he can manage more than 200 contractors. Also, the company will rely on a lower cost location workplace.
The Formation of Bob’s Repair
Since the company grows bigger each year, the Prandecki brothers recognize in 2017 that the STWP indeed provides a lower-cost and better efficient alternative of contractors. However, the efficiency and cost are still not fully optimized. Regarding with this issue, they develop blockchain technology. They learn deeper about this technology, and soon they realize that blockchain can reverse the three biggest problems in the skilled trade worker industry which are hidden advertising fees, review fraud, and inflated prices due to the lack of transparency price. As a result, they start the company with the STWP, and now they change into Bob’s Repair which is a Delaware Corporation. The goal of this company is to launch an organized marketplace that builds on blockchain technology. They hope that the advanced technology will allow both customers and contractors to connect each other directly. Together that will defeat hidden advertising fees, review fraud, and inflated prices due to the lack of transparency price.
The Market Opportunity of Bob’s Repair
For skilled workers, the market is very significant, and it can grow well with the backup of many skilled workers. For instance, in the United States, the skilled trade industry market alone is USD 340 billion in revenue as of 2015. From 2001 to 2015, there is improvement and maintenance expenditure on both rental units and owner-occupied homes in the United States. Furthermore, the amount of contractors in the United States also grows well. Until four years ago, there are around 2,5 million skilled trade workers. Each year, the number is always increasing.
The Industry Problems
Just like other businesses, there will be problems as the brothers continue to develop theirs. The Prandecki brothers realize that there are three significant problems while operating the STWP. Those issues are the main issues in the skilled trade industry. The first problem is review fraud. There are many consumers that can’t trust online reviews anymore because of review fraud. This first problem can arise in many ways. Some companies will purchase fake reviews to inflate their overall ratings artificially. Moreover, they also pay to remove the negative reviews of their service. The worst case when companies purchase fake negative reviews to degrade the ratings of their competitors artificially. This bad thing will result in the consumer who can no longer trust the reviews. They also can’t trust search listings such as Google, Yelp, or HomeAdvisor. Without real reviews, they can’t make the good decision. And they will choose the wrong contractor that has more professional fraud practices. This type of contractor won’t give best price or service.
The second problem is advertising fees. Many customers complain about the high price. They pay too much just for experienced trade service. For example, contractors will use a lot of money for advertising on existing skilled trade service websites. Contractors will pass the cost of advertising on to the customers. Because of this sly act, the customer must pay the high price to help the contractors pay for the advertising.
The last major problem is transparency price. Because of this problem, many customers don’t know the actual price. They purchase services, and they pay the unfair price. For example, an existing skilled trade service website will make the customer pay for USD 400 just to replace a toilet. Unfortunately, the consumer doesn’t know why they have to pay USD 400 just to replace a toilet. They don’t know what kind of new toilet and the service that they get, they also don’t know the fee for the new toilet and the fee of labor. As a result, the consumer will pay a high price to install a new toilet when they just have to pay below USD 200.
The Solution from Bob’s Repair
The Prandecki brothers put their position as consumers. If they experience those three problems above, they will be made over the contractors. So they don’t want this happen to another consumer out there. They make solutions to these three major problems with Bob’s Repair. They develop the Bob Application to be a platform that focuses on how to eliminate review fraud, eliminate intermediaries to lower the prices, and allow customers to find contractors based on how the contractor charged and handled for a similar job. This application also provides a service called ‘a smart-contract escrow’ service to make sure that both parties are protected while they are transacting for a home repair. The blockchain technology contributes a lot to developing Bob Application. The application can be downloaded from iOS and Android. It can also be accessed from the website.
To eliminate the fake reviews, Bob Application will use blockchain technology to control the review fraud. The STEEM blockchain that the app used has a feature which is three second transaction time and no transaction costs. These features will help the app to store all the financial transaction on Bob’s Repair. After that, when a customer and a contractor leave a review, Bob’s Repair will give the review and put it to the real-time financial deal. The review link contains actual financial transactions. So, the customers can trust the review again. The review is a real review from a real customer. It will provide better information for customers, and it will lead them to make the good decision.
As for the advertising, Bob Application wouldn’t support any type of advertising from the contractors. It will lead to burdening costumers to pay for the advertising cost. Also, the contractors can’t buy advertising on Bob’s Repair. The STEEM blockchain is run by merit, so the function of upvoting, user reputation and flagging posts are checked by Bob Application. For example, if there is a contractor that has real positive reviews, then this contractor will have a more significant presence. This method will eliminate hidden advertising costs automatically.
The last problem is the lack of transparent pricing. The app, of course, will have open pricing. The app will provide the cost of the service for each review. The price will be divided into the labor and material costs transparently. The customer can search review easily. They can also determine the actual cost for both labor and material for a certain service. The transparent pricing will lower down the price and fight inflated costs.
Bob’s Repair also provides an escrow service. This service will make all the parties involved protected in a home repair transaction. There is a case when the contractor mismanage the fund that they get from the client and they can’t finish the job. Meanwhile, the customer forgets the term of an agreement. So, both of them can’t get what they want. With the smart contract, the money for the job will be used well. Thus, both parties can be protected. The contract also used to manage the money between the customer and contractor. The job agreements and reviews will also be stored there. Follow their social media on https://twitter.com/bobsrepair or https://facebook.com/bobsrepairscom for the latest news.
Posted by : kurniawan05