Does it feel like your plumbing business is stuck in quicksand? In this insightful episode of Potty Talk Richard reveals three things you may be doing that are keeping your plumbing business from thriving.
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3 Golden Nuggets
- Mistake #1: Serving the wrong customers
- Mistake #2: Not charging enough
- Mistake #3: Invoicing the customer
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Show Notes
If you are a plumbing business owner, you know how challenging it can be to grow your business and make a profit. You have to deal with competition, customer expectations, and operational costs. But are you making some common mistakes that are hurting your bottom line? Here are three plumbing business mistakes to avoid and how to fix them.
Mistake #1: The wrong customers
Not all customers were created equally–and there is a right and wrong customer for your plumbing business!
Some customers are looking for the cheapest service possible, don’t care about quality, and won’t pay you on time. These are the wrong customers for your plumbing business. They will waste your time, money, and energy.
The right customers for your plumbing business are those who…
- Value their time over economy
- Own the problem (homeowners)
- Will pay you today.
These are the customers who appreciate your expertise, trust your recommendations, and reward you with referrals and repeat business.
How to fix it: Choose residential–always!
Contractors might sound like a solid idea at first, but they’re not. They don’t care about getting the problem fixed or about paying you on the spot. In fact, they’ll keep promising you houses and projects, and keep delaying your payment. Which is a complete waste of time and energy.
So, choose the right customer, and serve residential plumbing customers.
Mistake #2: Not charging enough
Wondering what to factor into your rates as a plumbing business owner?
Many plumbing business owners make the mistake of charging too little for their services. They think that by lowering their prices, they will attract more customers and beat the competition. But this is a short-sighted strategy that can backfire in the long run.
The customer pays for everything, including the time it takes to purchase supplies, equipment, marketing, and everything else that goes into your plumbing business.
Because if you charge too little, you are not only losing money, but also devaluing your work and reputation.
How to fix it: Calculate your overhead costs and profit margin and set your rates accordingly.
Don’t be afraid to charge what you are worth.
Remember that you are not just selling your time but also your experience, skills, and quality–so factor your years of expertise into your fair rates!
Communicate the value of your services to your customers and justify your prices with confidence–know your worth, and the right customer will respect that.
So stop undercharging, and get your money’s worth–TODAY!
Mistake #3: Invoicing the customer
When you complete a job for a customer, do you invoice them, or do you charge right away? Because if you’re in the habit of invoicing, you’re making a BIG mistake.
Because…
- Your plumbing business is NOT bank
- You’re hurting your cash flow
- You’re delaying payment to your supply house and employees
Which is hurting your business!
So just remember that cash flow is KING–it’s how you keep your business running.
You’re not in the business of lending money to your customers. You’re in the business of providing plumbing services and getting paid for them. So, if you’re not getting paid TODAY, you are risking not getting paid at all or getting paid late.
And don’t worry about it being awkward–it’s not! It’s what your customers are used to everywhere they go. Think of Walmart, do you think they pay on the spot or do they invoice them?
How to fix it: Ideally, you should get paid as soon as the job is done. If your problem is that you don’t accept credit cards, use online invoicing software or apps that make it easy to create and send invoices from anywhere.
Make sure to include clear payment terms and methods on your invoices. Follow up with reminders if necessary.
But most importantly, collect the money TODAY.
It’s much easier than you think–so no excuses!
And there you have it. The 3 most common plumbing business mistakes to avoid if you want to grow your business and make more money.
By targeting the right customers, charging what you are worth, and invoicing promptly, you can set yourself up for success.
Richard’s Call to Action
If you want to learn more about numbers that matter and how to best run your plumbing business, why not schedule a free 30-min strategy call with us? Let’s talk about your goals and where you want to be this time next year, and we’ll help you create a path to make that happen. Schedule your free strategy call here today!
