S2 EP18 How a Small Repair Gig Became a National Franchise
Discover how Ty McBride transformed wood rot repair into a thriving franchise, sharing key franchising tips and industry insights for home service...
ShipShape's AI-driven smart home tech reduces maintenance costs, boosts contractor sales, and protects homes from costly water damage.
Homeownership is a journey filled with both pride and responsibility. While many invest in security systems to protect against theft, the reality is that homes are far more likely to suffer from water damage, mold, or equipment breakdowns than from a break-in. In fact, your house is 100 times more likely to experience a major maintenance issue related to water or mold than to be burglarized. Yet, for decades, the tools to proactively manage these risks have lagged behind. Enter Ship Shape—a smart home solution that’s redefining how contractors and homeowners approach maintenance, communication, and peace of mind.
This article explores the intersection of technology, contracting, and homeownership, drawing on insights from industry experts and real-world experiences. We’ll dive into the challenges contractors face, the opportunities technology brings, and how solutions like Ship Shape are changing the game for everyone involved.
The world of contracting is evolving rapidly, especially as technology and institutional investment reshape traditional trades. Ryan Dalton, co-founder and CRO of Ship Shape, brings a unique perspective to the industry, having transitioned from a decade in finance to the world of home maintenance technology. His journey highlights a key shift: while Wall Street sales are often digital and direct, contracting relies heavily on relationships, reputation, and hands-on experience.
In established trades like HVAC, decades of mergers, acquisitions, and technological adoption have created a more sophisticated, competitive environment. Newer trades, such as waterproofing, are now catching up as private equity and institutional investors recognize the untapped potential for growth and efficiency. This influx of capital is pushing contractors to modernize, adopt new tools, and rethink how they engage with customers.
Many contractors hit a growth ceiling—often around $3 to $6 million in annual revenue—because they struggle to delegate, adopt new technologies, or shift from working in the business to working on the business. The day-to-day demands of running a contracting company can make it difficult to prioritize innovation or process improvement. Yet, those who embrace change are finding new ways to scale, improve customer retention, and increase profitability.
Ship Shape is a smart home platform designed to monitor and protect homes from unexpected maintenance issues, with a particular focus on water damage, mold, and equipment failures. Unlike traditional security systems that guard against theft, Ship Shape acts as a “security company” for your home’s health—monitoring sump pumps, dehumidifiers, and other critical systems to catch problems before they become disasters.
The system uses simple sensors that can be plugged into existing equipment, transforming “dumb” appliances into smart, connected devices. Homeowners receive real-time alerts about power usage, humidity, temperature, and even live data on water being pumped out. For contractors, Ship Shape offers a powerful way to stay connected with customers, provide ongoing value, and generate new business opportunities.
Most homeowners invest significant capital in their properties, yet many are unaware of the risks lurking in basements and crawl spaces. These areas are often out of sight and out of mind—until a problem arises. By the time a sump pump fails or mold takes hold, the damage can be extensive and expensive to repair.
Ship Shape addresses this gap by providing continuous monitoring and proactive alerts. Whether it’s a stuck float switch, a power outage, or rising humidity, the system notifies homeowners (and their contractors) before minor issues escalate into major headaches. This not only protects the home but also preserves the value of recent repairs and renovations.
For contractors, Ship Shape is more than just a product—it’s a business tool that fosters ongoing relationships with customers. By bundling monitoring services with installations or maintenance plans, contractors create recurring touchpoints that keep them top-of-mind for future work. The data generated by Ship Shape also makes follow-up sales easier, as contractors can present homeowners with concrete evidence of issues or opportunities for improvement.
Sophisticated contractors are leveraging these touchpoints to increase their average revenue per visit. Even a simple battery replacement becomes an opportunity to assess the home, recommend upgrades, or address new concerns. The result is higher close rates, increased customer loyalty, and a steady stream of leads from past clients.
One of the most significant benefits of integrating Ship Shape into maintenance plans is the dramatic reduction in customer churn. In the software world, churn—the rate at which customers cancel recurring services—is a critical metric. In contracting, it’s often overlooked. Yet, maintenance plans are a powerful source of recurring revenue, and keeping customers engaged is key to long-term profitability.
Ship Shape has demonstrated a 90% reduction in churn for maintenance plans when monitoring is included. The perceived value of real-time data and proactive alerts makes customers far less likely to cancel, especially as time passes and the likelihood of an issue increases. For contractors, this translates into more stable revenue, higher business valuations, and greater appeal to investors.
At the heart of Ship Shape’s platform is Sam, an AI-powered assistant designed to help homeowners and contractors troubleshoot issues, schedule maintenance, and manage communication. Sam can walk users through basic troubleshooting steps—like checking if a sump pump is plugged in—before escalating to a service call. This reduces unnecessary truck rolls, saving contractors time and money.
Sam also facilitates appointment booking, filter change reminders, and maintenance plan sign-ups. As the technology evolves, the vision is for Sam to become the primary interface—eliminating the need for multiple apps and streamlining the entire maintenance process.
One of the challenges of connected home monitoring is managing the flood of alerts that can occur during major events, like storms. Ship Shape acts as a triage system, filtering out minor issues and ensuring that contractors are only notified when their expertise is truly needed. This helps prevent overload, improves response times, and ensures that resources are allocated efficiently during peak demand.
While monthly maintenance plans are common in industries like HVAC and pest control, Ship Shape’s experience suggests that longer-term commitments are more effective. Monthly plans often suffer from high churn, as customers question recurring charges after a few months. Instead, locking customers into one-, three-, or five-year plans increases retention and provides greater peace of mind.
Contractors who excel at selling multi-year maintenance plans—like Groundworks, a leader in the field—enjoy higher business valuations and more predictable revenue streams. The key is to engage customers at the right moment (often after a major repair) and to provide ongoing value through monitoring and proactive service.
Many contractors miss out on the opportunity to re-engage past customers. Simple outreach—such as a phone call a year after a project to check in and offer a maintenance plan—can unlock significant value. Customers often forget to perform basic tasks like changing filters, and a friendly reminder can lead to new sales and stronger relationships.
The difference between contractors who actively engage their customer base and those who don’t is stark. Those who prioritize follow-up and ongoing service consistently outperform their peers in both revenue and customer satisfaction.
While Ship Shape started with a focus on water management, the platform is expanding to monitor a wide range of home systems. New integrations include hard switches for appliances that don’t plug into standard outlets (like pool pumps) and circuit breaker monitoring through partnerships with companies like Sense. This allows homeowners and contractors to track energy usage, identify inefficiencies, and prevent problems across the entire home.
Despite the hype around smart home technology, many connected devices have failed to deliver real value. Homeowners are often reluctant to pay extra for features they don’t understand or use. Ship Shape’s approach is different: by focusing on critical systems that impact safety, comfort, and property value, the platform provides tangible benefits that justify the investment.
Manufacturers are taking note, with some phasing out their own smart devices in favor of integrating with Ship Shape. The simplicity and cost-effectiveness of retrofitting existing equipment with smart sensors make it an attractive option for both homeowners and contractors.
The true value of proactive monitoring becomes clear in moments of crisis. One homeowner, after suffering $100,000 in water damage and a protracted battle with insurance, installed Ship Shape on his new sump pumps. When another failure occurred, the system caught it immediately, preventing a repeat disaster. Stories like these are common, with both homeowners and contractors sharing accounts of Ship Shape “saving their house” and providing peace of mind.
Behind every installation is a story—sometimes humorous, sometimes harrowing. From crawl space encounters with spiders to the challenges of early product installs, the journey to smarter home maintenance is filled with learning experiences. These stories underscore the importance of empathy, adaptability, and a willingness to embrace new tools in the pursuit of better outcomes for customers.
Ship Shape’s team prides itself on being nimble and responsive to customer feedback. Unlike large manufacturers, they can implement changes and new features in weeks, not months. Recent innovations include the ability for homeowners to upload inspection reports, which the AI then uses to generate a comprehensive home health score and maintenance schedule. Integrations with solar systems and advanced energy monitoring are also on the horizon.
A key part of Ship Shape’s success is its collaborative approach with contractors. By working closely with industry leaders—like TerraFirma in the Pacific Northwest—the company tailors its solutions to real-world needs and continuously improves the product. This partnership model ensures that technology serves the people who use it, rather than the other way around.
The journey to smarter home maintenance is as much about people as it is about technology. Contractors who embrace innovation, delegate effectively, and prioritize customer relationships are poised to thrive in a changing landscape. Homeowners who invest in proactive monitoring gain peace of mind and protect their most valuable asset.
Ship Shape stands out as a rare example of smart home technology delivering real, measurable value. By bridging the gap between contractors and homeowners, it’s helping to create safer, more resilient homes—and stronger, more successful businesses.
As the industry continues to evolve, the lessons are clear: embrace change, invest in relationships, and never underestimate the power of a well-timed alert. The future of home maintenance is here, and it’s smarter, more connected, and more human than ever before.
Discover how Ty McBride transformed wood rot repair into a thriving franchise, sharing key franchising tips and industry insights for home service...
Discover how contractors can achieve market dominance by mastering business processes, investing in marketing, and implementing robust systems for...
Learn how performance-based pay boosts crew output by 37%, improves employee retention, and helps contractors compete with big companies effectively.
Be the first to know how to grow your company, culture and everything in-between.