Know Your Worth to Make More Money and Grow Your Business – Episode 326
Do you want to make more money with your plumbing business? Join the Million Dollar Plumber and the Lovely Laura as they share three simple steps you can take today to grow your business and your top line.
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3 Golden Nuggets
- Charge what you’re worth. Knowing your worth is the first step to setting the correct rate and thus making the most money possible. What you charge should cover every expense involved in doing business.
- Add another tech. Although it might seem scary to take the plunge and buy another truck and hire another plumber, but it’s all about the economies of scale. That investment will pay off handsomely.
- Focus on the top line. The mistake many business owners make is concentrating on percentages and bottom line. You need to focus on the top line first.
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Know Your Worth
[08:57] There are two elements to knowing your worth. There is the psychological element of deep down knowing your worth and believing in yourself, but also the very real business element of actually charging what it takes to do the job, running the business, and making a profit. If you’re not making a profit with your business, is it anything more than just a hobby?
Figuring out what hourly rate it takes to run your business is one of the things we cover in the first module of the Million Dollar Plumber Success Academy. We also spent time discussing it in last week’s episode, you can check it out here. Knowing your Honest Hourly Rate raises your value and helps you attract the right client.
It can be hard to overcome the conditioning that’s deeply ingrained in us about money and there’s a lot of baggage involved, so the thought that you can charge enough to make a living is sometimes hard to reconcile. You’re allowed to have more than what you need, and it’s time we all realize that.
Grow Your Sales by Hiring Another Tech
[14:00] A trap that we can get caught in is the idea of squeezing all that we can out of the truck(s) that we have. Constantly working on getting that average ticket price up and up and up. This same trap leads us to try and have our plumbers double as salesmen to increase the ticket price. But let’s be honest. Trying to train your guys to sell is a waste of time. They’re not going to be good at it and the customer won’t like it or trust you as a result.
The simplest way to organically increase that ticket price is to hire another tech and to have them offer options, like we talked about in Episode 324.
If you get completely focused on squeezing everything you can out of our current assets and not expand, you’re going to burn yourself and your guys out by running through jobs as fast as possible. If you want to make more money, you need to hire another tech. Always be recruiting. Always.
Focus on the Top Line
[23:13] What we focus on becomes our view, and that’s even more true for business. We tend to get caught up on the bottom line and the percentages that we’ve been told make our business “successful”. Rather than cutting costs or finding creative ways to save money, why not increase that top line instead? How do we bring in more money and grow the top line?
Focusing on the bottom line feeds into the scarcity mindset. When we focus on the fear and scarcity, it’s impossible to succeed.
While we have all always been told that debt is bad and we should avoid it, there is a difference between racking up credit card debt and investing in a new truck to grow our business. You have to do the math on that truck payment and how much that truck makes you in a day, a week, a month. We bet it’s more than the truck payment.
Richard’s Call to action.
[18:31] If you want to learn more about what we’ve discussed and become a successful plumbing business owner, check out the Million Dollar Plumber Blueprint. It lays out the specs to build a successful, self-sustaining, and very profitable plumbing business. That you can make a lot of money with. It’s all in there for you and it’s free. So if you type free in the comments or go to themilliondollarplumber.com/free and get your free blueprint.
[32:45] you can truly grow your plumbing business and have the freedom lifestyle and live the life that you really wanna live. We cover all that in my Million Dollar Plumber Success Academy in 12 bite size modules, laid out in an easily digestible format. Go to themilliondollarplumber.com/success and grab your free trial. It’s all there for you.