How can local gas engineers adapt to online market disrupters?

Do online boiler installation companies offer new opportunities for engineers or are they a hindrance?

In recent years, online boiler installers that have adopted the Uber-style model have become a common concern and area of heated debate in the industry, with many installers blaming them for driving down prices and increasing competition.

For instance, according to Companies house, the online boiler installer Boxt lost 2 million last year, but it appears they are willing to take a loss in order to gain market share.

With these aggressive growth strategies, there is no denying that these platforms are disrupting a traditionally stable industry, so how do installers need to respond to the disruption?

According to Sam Price co-founder of Heatable “As a traditional market, it has been a little slower to break its way out into the online space, but in recent years we continue to see people abandon the old-fashioned route of calling their local plumber to shop for their boilers online instead.”

Heatable has certainly made headway in recent years, becoming one of the largest online boiler suppliers, and with thousands of 5-star reviews, it is clear they are providing stellar service in an industry with stable demand.

Genuine Concerns in the Industry

Many commentators have expressed concern that the online platform prices are not sustainable and that in the long term it may lead to a slip in standards in an industry where safety is paramount.

Moreover, installers themselves feel they will eventually be priced out of the market and lose work to these large and growing online platforms.

For example, Vaillant recently found themselves at the centre of controversy when they were accused of giving Boxt a special deal. But with a growing market share, there is little doubt that these large platforms have an incredible buying power, allowing them to have a strong competitive advantage.

But others, including consumers themselves, feel that the market has been stagnant and uncompetitive for too long, with sparse consumer knowledge and an incomprehensible approach. For example, according to a Which? Survey, 73% of people trusted their plumber, so there is still some room for improvement.

How can Engineers Respond?

With this major disruption to the industry and one which shows no signs of slowing down, many engineers are finding themselves asking the same question – what can I do to remain competitive?

The reality is that these platforms are targeting the entire country, which means there is still an opportunity for engineers to become a familiar name in their local communities, favoured for excellent customer service and local knowledge, an area where these platforms fall down.

In addition, there are apps such as PlumbAgent that are helping to fight back against this tide of digital disrupters. Such apps promise to help plumbers increase their online profiles and offer a full range of plumbing services, not simply boiler installation.

Why is PlumbAgent different than the other online platforms? Unlike the likes of Boxt and other online boiler installers, the plumber remains in full control of the job, the quote process and most importantly the pricing.

This allows plumbers to better market themselves online, gain leads, without helping aggressive online platforms gain even more market share.