Tapping Into the $500B Home Improvement Market

REPLAY VIDEO
Your next video will start in
Pause
  • Info

  • Comments

  • VIDEO TEXT

Nov. 26 (Bloomberg) -- Porch.com CEO Matt Ehrlichman discusses how the company is tapping into the $500 billion home improvement market with Pimm Fox on Bloomberg Television's "Taking Stock." (Source: Bloomberg)

Correspondent jon erlichman.

Inc.

For joining us.

You can sit on the porch, -- thank you for joining us.

You can sit on the porch.

You are undergoing a renovation in your home.

Why did you start porch.com?

It's an incredible market.

The home is the largest asset in our lives, and yet it is incredibly painful for people.

There is no transparency in the markets.

It is hard to know what to higher.

It is impossible to know what it will cost.

When i was building a home for my family, we felt that pain ourselves.

We thought this was a great opportunity to build a company, which is porch.

Tell us about the pieces that go into porch.com.

Porch is about helping home owners with their homes holistically.

It is not just about finding a professional, which is a huge part of what we do.

It is getting people inspired and educated about what a project might actually cost them.

When you are ready to go, porch helps them find confessionals -- professionals their neighbors have used and have worked on homes just like there's so they can get what they want.

That word-of-mouth referral.

How do you make sure the word-of-mouth referral is accurate?

That's a great question.

The reason we can do that is we have organized all the information, all the data across the country.

Porch was started a year and a half ago.

A little more than a year-and-a- half ago.

We started aggregating information for hundreds of thousands of different partners.

Not only do we have insights across the country and 90 million projects these professionals have done.

We know who your neighbors have used.

We know what they have spent.

For homes just like yours, we know what professionals have worked on homes of similar size or value and this information is never been organized before.

For the first time porch has created a trusted home improvement network which we hope is going to change this industry.

Does it follow in the path of all the information about real estate prices?

You can find out what your neighbor's house or apartment sold for or what the recent transaction was?

That information at least 10 or 15 years ago was not readily available for most people?

That's completely right.

There is more transparency than there was 10 years ago.

Similarly if you're looking at other industries, buying a car, there is transparency.

You can compare and see what a car might cost.

When you're doing a project for your home, there is no transparency.

It is impossible to have that sense of confidence when you are starting a project.

That is what porch is doing.

Again, to surface this data, make it available to homeowners across the country so they can more effectively improve their homes and be able to get these projects done.

It sounds very noble on one level.

How do you make money as a business?

We are free for homeowners and we will always be free.

We let the millions of small businesses who do these home service projects across the country have a free profile with porch.

We have a paid option for those professionals to get deeper insight using all the data we have two better price their services and know where they should be marketing their services.

We are creating a lot of value for professionals to grow and that is a big driver given how big the industry is.

You have managed to raise more than $6 million for porch.com.

Tell us about your investors.

We have been very fortunate.

I'm lucky to have a good track record and have built a couple large companies.

It is much easier after you have had a couple wins.

I sold the first company, to the second public.

Through that experience, investors have wanted to participate.

We have a fantastic group of investors down in the bay area and up in seattle.

And there has been great support for us.

What is next for porch.com.

What do you want to achieve over the next tree to six months?

We are doing a lot.

The company launched in september publicly, nationally.

We are really cranking in terms of going into business.

It is an exciting time.

There will be multiple stories we can sell.

Lots of improvements.

There is a really big rollout nationally to help homeowners improve their home for any type of work whether it is painting or projects.

If you had to do your home renovation over again or wanted to know something you did not know previously, what would have saved you a lot of headache?

Porch was created in part because of the personal pain that i felt.

My wife certainly every day wishes that porch existed before we started our process.

We spent months, many months interviewing professionals and trying to be informed.

If porch at existed, we would have been able to see which professionals worked on a home like the one we were building, it would have been an unbelievable difference for us.

What about making sure the family stays together and on track?

Sometimes home renovation can try anybody's nerves.

No doubt about it.

Time and again if you talk to people undergoing a project, if you find the right professional, truly the right person, the right contractor or designer, whoever it might be, it makes all the difference in the world.

Because it is someone you will spend a lot of time with.

You need to have that right match.

Again porch.com, right now people can go get the information, find the right candidate to do that work.

Want to thank you very much

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change