D I V E R S I F IC AT ION For efficiency solutions, Harriett's offers
higher efficiency Energy Star appliances and light weatherization such as spray foam insu- lation. For more advanced weatherization the company has partnered with BPI certified ceiling and insulation contractors. "They work under our contract for the job and it works out great because that's their specialty. And the whole heating and air-conditioning side is ours along with the audit and the test out. Some companies have gone the full route and at some point that can be a diversifica- tion for us. But right now, we're just trying to strengthen our core competencies." Part of Harriett's success with diver-
sification—even when launching so many new business ventures in such a short period of time—has been stick- ing close to core competencies. New business units tie into the existing cus- tomer base as earlier identified, start out limited in scope and involve partners outside of core competencies and have the opportunity to ramp up down the line. Even with the BPI energy audits, which required more dedication, the commitment is not one that would have broke the company had it failed to pan out. That carries over into the company's current diversification plans. "We have two new diversifications under
consideration for this year," Harriett said. "We are looking at home monitoring ser- vices and we made the decision we want to do bathroom remodeling. For the bathroom remodeling, we have a contractor to do the carpentry side. We are looking at light remodeling without a significant amount of reconstruction centered on the plumbing and any heating and air-conditioning work." The home monitoring will be a multi-
stage addition. The first stage will be to move into heating equipment, tank and water leak monitoring as a poten- tial package for around $400 per year. After that stage is up and running, secu- rity would follow that and could involve cameras. "This market is exploding," said Harriett. "You have all kinds of compa- nies jumping into it. We have a list of loyal customers that rely on us, it's going to be our service, and we have keys to a
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lot of our customers' homes already, so it's a natural fit." Harriett's has truly taken the diversifica-
tion mantra to heart—and made it work. "Many of the diversifications we've done or looked at have been able to be accomplished with virtually no capital," said Harriett.
"They didn't all take a lot of time individu- ally, but they cumulatively required a lot of effort. But, we've seen the handwriting on the wall and my father—when he went into water conditioning back in the 1970s—saw that he couldn't just rely on the heating oil and that is true today." l FON
