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Septic Systems and Services Market 2018 Profiler

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Presentation on theme: "Septic Systems and Services Market 2018 Profiler"— Presentation transcript:

1 Septic Systems and Services Market 2018 Profiler
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2 Increasing Revenue Opportunities
Increasing Revenue Opportunities Septic system services are a subset of the overall waste management category and accounted for approximately $4.146 billion during 2017, with a forecast to increase 4.43% during 2018, due to more residential construction. Two-thirds of American households use a sewer system while a third use a septic tank or cesspool. Almost all septic systems (97%) are located in rural or suburban areas. According to the latest data from the US Bureau of Labor Statistics (2016), there were 14,130 people employed in the industry. Septic systems are most common in Vermont, Maine, West Virginia, Alabama, North Carolina and South Carolina

3 A Robust Housing Market Drives the Need for Septic Services
A Robust Housing Market Drives the Need for Septic Services From Q through January 2018, the housing inventory was tight. According to the RE/MAX National Housing Report, the number of homes for sale in January decreased 4.8% MOM and decreased 14.8% YOY. Although new construction is shifting from multi-family to single-family, inventory is not increasing as quickly as demand, causing price increases. Construction materials were diverted to areas impacted by hurricanes, causing high prices and shortages. Higher prices have caused some Millennials who are ready to start households to wait before buying a home. Higher interest rates will also have an impact during 2018.

4 Consumers’ Size and Price Choices
Homeowners can choose either an anaerobic system or an aerobic septic system. Aerobic systems cost 4–5 times as much because they require an air pump and multiple tanks ($10,000–$20,000, compared to $2,000– $5,000). The size of the household (or, for multi-family units, the total number of people using the system) will determine how big the tank must be and how often it must be pumped (from once a year to an interval of 25 years, but typically an interval of 1–3 years). According to Home Advisor, the national average price to pump a septic tank is $380. Not pumping often enough, using bleach and antibacterial products, some drugs and flushing certain items can damage the system, leading to drain field replacement.

5 Innovations in Wastewater Treatment
Innovations in Wastewater Treatment Smaller cities, towns and suburban areas may not have the budget to invest in sewer infrastructure, so it is to their benefit to encourage and promote septic systems. Some innovative products include septic systems with peat moss filters that treat effluent through chemical, biological and physical processes, uniquely shaped watertight tanks and plastic leaching chambers that replace gravel drain field systems. Homeowners with advanced onsite septic systems tend to be happy with their operation, according to a Florida Department of Health study, with 38% very satisfied, 41% satisfied, 11% dissatisfied and 10% very dissatisfied.

6 Advertising Strategies
Advertising Strategies For standard pumping jobs, emphasize on-time service and restoration of the area to its original state after the digging and pumping is finished. Keep sod on your trucks to replace removed grass. Because consumers are concerned about fly- by-night companies, owners of local septic services companies should appear in commercials and printed advertising materials, stating the number of years the company has served the community and the number of customers. An inexpensive method to brand a septic services company directly with the community and homeowners and potential commercial customers is to sponsor local youth and adult athletic teams as well as charitable/non-profit events, such as runs, walks, biking, etc.

7 New Media Strategies Provide an online self-scheduling app for appointments that is also accessible via mobile devices. customers an appropriate time in advance of when they should have their tanks pumped. Include a link to a helpful online article/blog post to position your company as an important information source. Access content on YouTube to learn how to record the best-looking videos with a smartphone, and then record a series of videos, featuring the owner or employees, explaining how the company installs/replaces a septic system, scheduled pumpings, etc.

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